Ch1. US CPA Exam — Overview & CPA Evolution Strategy
What Is the US CPA?
The US CPA (Certified Public Accountant) credential is administered by the AICPA (American Institute of CPAs) and NASBA (National Association of State Boards of Accountancy). It is the most widely recognized accounting credential in the United States and carries significant weight across global financial services.
Why CPA?
- Required for public accounting in the US (audit sign-off, tax practice)
- Fast track to Big 4 partner and CFO/Controller roles
- Accepted by multinational employers worldwide
CPA Exam Structure: CPA Evolution (2024)
The CPA exam was restructured under the CPA Evolution initiative, shifting to a Core + Discipline model.
Core Sections (3 required)
| Section | Code | Content |
|---|---|---|
| Financial Accounting & Reporting | FAR | GAAP, IFRS, governmental accounting |
| Auditing & Attestation | AUD | Audit principles, ethics, internal controls |
| Regulation | REG | Federal taxation, business law |
Discipline Sections (choose 1)
| Section | Code | Best For |
|---|---|---|
| Tax Compliance and Planning | TCP | Tax-focused career path |
| Business Analysis and Reporting | BAR | Corporate finance/analysis |
| Information Systems & Controls | ISC | IT audit / cybersecurity |
Exam Format
| Feature | Detail |
|---|---|
| Delivery | Computer-based (CBT), at Prometric centers |
| Testing window | Year-round (no blackout periods) |
| Time per section | 4 hours (Core) / 4 hours (Discipline) |
| Passing score | 75 or above (on a 0–99 scale) |
| Credit window | All 4 sections must be passed within 30 months of first pass |
Eligibility Requirements
Requirements vary by state, but generally:
- Education: Bachelor’s degree + 150 semester hours total
- Accounting credits: ~24–30 credit hours in accounting
- Business credits: ~24 credit hours in business
Strategies for International Candidates
- Many international candidates choose Montana (120 credits for exam eligibility) or Alaska (no residency requirement)
- US online coursework can supplement international transcripts
- NASBA’s International Credential Evaluation service evaluates foreign transcripts
Study Plan
| Section | Recommended Hours | Typical Duration |
|---|---|---|
| FAR | 150–200 hours | 5–6 months |
| AUD | 100–140 hours | 3–4 months |
| REG | 100–130 hours | 3–4 months |
| Discipline | 100–130 hours | 3–4 months |
Top Review Courses:
- Becker CPA Review: Highest pass rates, industry standard
- Roger CPA Review: Strong lecture delivery
- Wiley CPAexcel: Cost-effective alternative
Chapter 2 Preview
Next: FAR (Financial Accounting & Reporting) — GAAP financial statements, revenue recognition, business combinations, and governmental accounting.
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