Finance

CPA Exam Structure

Business Environment and Concepts (BEC)

Business Environment and Concepts (BEC)

The structure of the CPA Exam divides the exam into four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR)and Regulation (REG). Business Environment and Concepts (BEC) covers the skill set requisite to apply knowledge of business concepts and a general business environment. The passing candidate will be able to understand and apply the underlying business concepts and accounting implications to any business transaction. Topics covered during the test: * What is a business structure? * What is the role of planning and measurement in a business? * What are economic concepts? * How does financial management work? * What role does information technology play in accounting? There will be major changes to the exam from 2010 to 2011. These are: The types of questions on the Exam include multiple choice questions (MCQ), simulations (which are condensations of case studies) and written communications. BEC has no simulations, either in 2010 or 2011. For 2010, BEC has 90 MCQs; in 2011, BEC will drop to 72 MCQs.

Part 2010 2011 BEC 90 MCQs 72 MCQs BEC 0 simulations 0 simulations BEC 0 3 written communications BEC 2.5 hours to complete 3.0 hours to complete test When you sit for the exam, you are responsible for knowing how to function in the computer-based testing environment and how to handle each of these types of questions. A program like CPAexcel will familiarize you with both the format of the exam and the types of questions. If you do not how the test functions in terms of format and the questions, this may adversely affect your score. Changes in the Weighting of the Exam from 2010 to 2011

Part Questions 2010 2011 BEC MCQs 100% 85% Simulations N/A N/A Written Comm. N/A 15%

For more on the contents of each section, please refer to the Uniform CPA Examination Content Specifications Outline which details the subjects on the exam.

Financial Accounting and Reporting (FAR)

The structure of the CPA Exam divides the exam into four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR)and Regulation (REG).

Financial Accounting and Reporting (FAR) covers the skill set requisite to apply knowledge of generally accepted accounting principles (GAAP) as related to the operation of government branches, business enterprises, and not-for-profit organizations. Topics covered during the test:

* Items which are often found on financial statements * Types of specific events and transactions * Standards and concepts for financial statements * Accounting and reporting for not-for-profit and nongovernmental agencies and * Accounting and reporting for government agencies There will be major changes to the exam from 2010 to 2011. These are:

The types of questions on the Exam include multiple choice questions (MCQ), simulations (which are condensations of case studies) and written communications.

Simulations are condensed case studies about which you are asked specific questions which showcase how you would apply your skill set to solve a “real-life” situation. Your answers allow you to demonstrate your writing skills because about 30% of your score in 2010 depends on your ability to write out your answers, not simply select option a, b, c or d.

For FAR, simulations will double from 20% of your score in 2010 to 40% of your score in 2011. In 2010, about 1/3 of your simulation score is based on your writing ability. For 2010, FAR has 90 MCQs; in 2011, FAR will retain its 90 MCQs. Part 2010 2011 FAR 90 MCQs 90 MCQs FAR 2 long simulations 7 shorter Task-Based Simulations & research question (new format) FAR 2 written communications 0 written communications FAR 4 hours to complete 4 hours to complete When you sit for the exam, you are responsible for knowing how to function in the computer-based testing environment and how to handle each of these types of questions.

A program like CPAexcel will familiarize you with both the format of the exam and the types of questions. If you do not how the test functions in terms of format and the questions, this may adversely affect your score. Changes in the Weighting of the Exam from 2010 to 2011

Part Questions 2010 2011 FAR MCQs 70% 60% Simulations 20% 40% Written Comm. 10% N/A

For more on the contents of each section, please refer to the Uniform CPA Examination Content Specifications Outline which details the subjects on the exam.

The structure of the CPA Exam divides the exam into four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR)and Regulation (REG).

Regulation (REG) covers the skill set requisite to apply the knowledge of business law, ethics, federal taxation, professional and legal responsibilities. Topics covered during the test:

* Principles and application of business law * Professional responsibility and ethics * What do you need to know about federal taxation of property transactions? * What do you need to know about federal taxation of entities? * What do you need to know about federal taxation of individuals? * What do you need to know about accounting issues and federal tax procedures? There will be major changes to the exam from 2010 to 2011. These are:

The types of questions on the Exam include multiple choice questions (MCQ), simulations (which are condensations of case studies) and written communications.

Simulations are condensed case studies about which you are asked specific questions which showcase how you would apply your skill set to solve a “real-life” situation. Your answers allow you to demonstrate your writing skills because about 30% of your score in 2010 depends on your ability to write out your answers, not simply select option a, b, c or d.

For REG, simulations will double from 20% of your score in 2010 to 40% of your score in 2011. In 2010, about 1/3 of your simulation score is based on your writing ability.

For 2010, REG has 90 MCQs; in 2011, REG will only have 72 MCQs. Part 2010 2011 REG 90 MCQs 72 MCQs REG 2 long simulations 6 shorter Task-Based Simulations & research question (new format) REG 2 written communications 0 written communications REG 3 hours to complete 3 hours to complete

When you sit for the exam, you are responsible for knowing how to function in the computer-based testing environment and how to handle each of these types of questions. A program like CPAexcel will familiarize you with both the format of the exam and the types of questions. If you do not how the test functions in terms of format and the questions, this may adversely affect your score.

Changes in the Weighting of the Exam from 2010 to 2011 Part Questions 2010 2011 REG MCQs 70% 60% Simulations 20% 40% Written Comm. 10% N/A For more on the contents of each section, please refer to the Uniform CPA Examination Content Specifications Outline which details the subjects on the exam.

Structure of the CPA Exam: Auditing and Attestation (AUD) Structure of the CPA Exam divides the exam into four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR)and Regulation (REG). Auditing and Attestation (AUD) covers the topics of generally accepted auditing standards, auditing procedures, and those standards which are related to attesting engagements, and the skill set requisite to apply such knowledge in the workplace. Topics covered during the test: * How to plan an engagement * How to obtain and document information * How to establish internal controls * How to review this engagement and evaluate the information * How to prepare communications such as reports There will be major changes to the exam from 2010 to 2011. These are: Types of Questions on the Exam include multiple choice questions (MCQ), simulations (which are condensations of case studies) and written communications.

Simulations are condensed case studies about which you are asked specific questions which showcase how you would apply your skill set to solve a “real-life” situation. Your answers allow you to demonstrate your writing skills because about 30% of your score in 2010 depends on your ability to write out your answers, not simply select option a, b, c or d.

For AUD, simulations double from 20% of your score in 2010 to 40% of your score in 2011.

In 2010, about 1/3 of your simulation score is based on your writing ability.

For 2010, AUD has 90 MCQs; in 2011, AUD will retain its 90 MCQs.

Part 2010 2011 AUD 90 MCQs 90 MCQs

AUD 2 long simulations 7 shorter Task-Based Simulations & research question (new format)

AUD 2 written communications 0 written communications

AUD 4.5 hours to complete 4.0 hours to complete test

Those who sit for the exam are responsible for knowing how to function with the computer-based testing environment and how to handle each of these types of questions. A program like CPAexcel will familiarize the candidate with both the format of the exam and the types of questions. If someone does not know the function of the test format and the questions, it may adversely affect that person’s score.

Changes in the Weighting of the Exam from 2010 to 2011

Part Questions 2010 2011

AUD MCQs 70% 60% Simulations 20% 40% Written Comm. 10% n/a

Business Environment and Concepts (BEC) covers the skill set requisite to apply knowledge of business concepts and a general business environment. The passing candidate will be able to understand and apply the underlying business concepts and accounting implications to any business transaction. Topics covered during the test:

* What is a business structure? * What is the role of planning and measurement in a business? * What are economic concepts? * How does financial management work? * What role does information technology play in accounting? Financial Accounting and Reporting (FAR) covers the skill set requisite to apply knowledge of generally accepted accounting principles (GAAP) as related to the operation of government branches, business enterprises, and not-for-profit organizations. Topics covered during the test:

* Items often found on financial statements. * Types of specific events and transactions * Standards and concepts for financial statements * Accounting and reporting for not-for-profit and nongovernmental agencies * Accounting and reporting for government agencies

Regulation (REG) covers the skill set requisite to apply the knowledge of business law, ethics, federal taxation, professional and legal responsibilities. Topics covered during the test:

* Principles and application of business law * Professional responsibility and ethics * What do you need to know about federal taxation of property transactions? * What do you need to know about federal taxation of entities? * What do you need to know about federal taxation of individuals? * What do you need to know about accounting issues and federal tax procedures?

Types of Questions on the Exam include multiple choice questions (MCQ), simulations (which are condensations of case studies) and written communications.

Simulations are condensed case studies about which you are asked specific questions which showcase how you would apply your skill set to solve a “real-life” situation. Your answers allow you to demonstrate your writing skills because about 30% of your score in 2010 depends on your ability to write out your answers, not simply select option a, b, c or d.

BEC has no simulations, either in 2010 or 2011.

For AUD, FAR and REG, simulations double from 20% of your score in 2010 to 40% of your score in 2011.

In 2010, about 1/3 of your simulation score is based on your writing ability.

For 2010, AUD, BEC and FAR have 90 MCQs; in 2011, AUD and FAR will retain their 90 MCQs each while BEC and REG will drop to 72 MCQs.

Part 2010 2011 AUD 90 MCQs 90 MCQs BEC 90 MCQs 72 MCQs FAR 90 MCQs 90 MCQs REG 90 MCQs 72 MCQs

AUD 2 long simulations 7 shorter Task-Based Simulations & research question (new format) BEC 0 simulations 0 simulations FAR 2 long simulations 7 shorter Task-Based Simulations & research question (new format) REG 2 long simulations 6 shorter Task-Based Simulations & research question (new format)

AUD 2 written communications 0 written communications BEC 0 3 written communications FAR 2 written communications 0 written communications REG 2 written communications 0 written communications

AUD 4.5 hours to complete 4.0 hours to complete test BEC 2.5 hours to complete 3.0 hours to complete test FAR 4 hours to complete 4 hours to complete REG 3 hours to complete 3 hours to complete

Those who sit for the exam are responsible for knowing how to function with the computer-based testing environment and how to handle each of these types of questions. A program like CPAexcel will familiarize the candidate with both the format of the exam and the types of questions. If someone does not know the function of the test format and the questions, it may adversely affect that person’s score.

Changes in the Weighting of the Exam from 2010 to 2011

Part Questions 2010 2011 BEC MCQs 100% 85% Simulations n/a n/a Written Comm. n/a 15%

AUD/FAR/REG MCQs 70% 60% Simulations 20% 40% Written Comm. 10% n/a

For more on the contents of each section, please refer to the Uniform CPA Examination Content Specifications Outline which details the subjects on the exam.

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