AICPA Exam Structure

The AICPA (American Institute of Certified Public Accountants) Exam is the gateway to becoming a licensed CPA in the United States. Its structure is designed to rigorously assess the knowledge and skills essential for practicing public accounting. Latest AICPA Exam Structure in January 2024, introduces a new exam structure designed to bridge skill gaps and enhance specialization for accountants.

Each 4-hour exam section includes both multiple-choice questions (MCQs) and task-based simulations (TBSs). Each section has five testlets: two with MCQs and three with TBSs. Sections are scored on a 0-99 scale with a 75 needed to pass. MCQs and TBSs are usually weighted 50/50 (except for ISC, which weights MCQs at 60%). You have 18 months from passing your first section to pass the remaining three. However, many states are adopting a longer 30-month timeline – check with your state board for specifics.

Core Section (Mandatory for all CPAs)

1. Regulation (REG)

REG section consists of 72 MCQs and 8 TBSs, focusing on common tax situations. It assesses your knowledge of tax practice, including ethics, U.S. business law, and federal tax compliance for individuals and businesses.

• Ethics, Professional Responsibilities and Federal Tax Procedures
• Business Law
• Federal Taxation of Property Transactions
• Federal Taxation of Individuals
• Federal Taxation of Entities

2. Auditing and Attestation (AUD)

AUD section consists of 78 MCQs and seven TBSs. AUD section tests your knowledge of auditing processes, standards, and ethics.

• Ethics, Professional Responsibilities and General Principles
• Assessing Risk and Developing a Planned Response
• Performing Further Procedures and Obtaining Evidence
• Forming Conclusions and Reporting

3. Financial Accounting and Reporting (FAR)

FAR section consists of 50 MCQs and seven TBSs. It assesses your knowledge of financial accounting and reporting frameworks for for-profit, not-for-profit, and government entities

• Financial Reporting
• Select Balance Sheet Accounts
• Select Transactions

Discipline Section (Choose one)

1. Business Analysis and Reporting (BAR)

The BAR Discipline section tests a newly licensed CPA’s knowledge and skills in analyzing financial statements (including comparisons to budgets/forecasts, transaction impact, and investment alternatives), technical accounting/reporting requirements for for-profit businesses (FASB/SEC standards, revenue recognition, lease accounting), and governmental accounting standards (GASB). Note that some advanced technical accounting topics, like revenue recognition and lease accounting, overlap with the FAR Core section.

• Business Analysis
• Technical Accounting and Reporting
• State and Local Governments

2. Information Systems and Controls (ISC)

The ISC Discipline section tests a newly licensed CPA’s skills in information technology (IT) audits, advisory services (including SOC engagements), and data management throughout its lifecycle. For SOC engagements, the exam focuses on using Trust Services Criteria (Security, Availability, Processing Integrity, Confidentiality, Privacy) within SOC 2® engagements, as well as planning, select procedures, and reporting for SOC 1® engagements.

• Information Systems and Data Management
• Security, Confidentiality and Privacy
• Considerations for System and Organization Controls (SOC) Engagements

3. Tax Compliance and Planning (TCP)

The TCP Discipline section tests a newly licensed CPA’s knowledge and skills in U.S. federal tax compliance (nonroutine, complex transactions) for individuals and entities, federal tax planning (implications of transactions/structures), and personal financial planning strategies connected to individual tax returns. This includes both preparing and reviewing tax returns.

• Tax Compliance and Planning for Individuals and Personal Financial Planning
• Entity Tax Compliance
• Entity Tax Planning
• Property Transactions (disposition of assets)

Note: Information and data for this AICPA Exam Structure were obtained from the AICPA and Becker websites.