a cpa is a trusted financial advisor who helps individuals,businesses, and other organizations plan and reach their financial goals allcpas are accountants, but not all accountants are cpas.
how to become cpa?
3 e’s are required for licensure:
education
exam or uniform cpa examination
experience
state boards of accountancy determine the laws and rules foreach state/jurisdiction
education
requirements vary by state/jurisdiction (see staterequirements)
most states now require 120-150 semester hours
number of accounting hours (in the 150 total) is dependenton state requirements
uniform cpa examination
computer-based format
consists of 4 sections
auditing and attestation (aud)
business environmentand concepts (bec)
financial accountingand reporting (far)
regulation (reg)
same test no matterwhere it is taken
passing score is 75 on a 0-99 scale
question types include multiple choice, simulation andwritten communication
eligibility to sit for exam depends on stat
examination center
prometric centers in uae, kuwait, bahrain, lebanon, japan& brazil subject to conditions.
exam format
subjects newcbte
ex m t
paper 1 : auditing & attestation 4 3 1
paper 2 : financial accounting & reporting 4 3 1
paper 3 : regulation (law & tax) 3 3 1
paper 4 : business environment & concepts 3 3
mcq – multiple choicequestions
tbs – task based simulation
wct – written communication task
experience
a candidate is an applicant for a cpa license
many states require the candidate to have 1 – 2 years’experience under a cpa
additional requirements vary by the candidate’s
education – e.g., graduate degree vs. 150 hours ofundergraduate
employer(s) – e.g., public accounting firm vs. industry