UWorld CPA Review Updated for 2026 

CPA Test Prep & Study Materials:
Your #1 CPA Review

Formerly Roger and Wiley CPA Review
UWorld CPA Review combines the proven expertise of Roger CPA and Wiley CPA into a comprehensive CPA Exam prep program featuring legendary instruction, expertly crafted practice questions, in-depth study materials, UAsk™ AI assistant, SmartPath Predictive Technology®, and unlimited practice exams, all designed to guide you to CPA Exam success.

*No Credit Card Required

96%
Customers Recommend Us
100%
Aligned to CPA Exam Blueprints
90% Pass Rate
on the CPA Exam*
Meet UAsk™
Our new AI-powered CPA study coach answers your questions and deepens your understanding of exam topics. Learn more ›
Trusted by Leading Organizations

Become a Partner for CPA Prep & Accounting Education

UWorld has been a leader in high-stakes exam prep for more than 2 decades. UWorld CPA Review, formerly Roger and Wiley, delivers trusted CPA test prep with proven learning methods and high-quality study materials. We partner with hundreds of universities, employers, and professional organizations to provide reliable CPA Prep and accounting education resources.

3 Powerful Tools. 1 Proven Platform.

Everything You Need to Pass the CPA Exam

Whether you need complete guided prep, focused question practice, or clear concept review, UWorld CPA Exam review has the right tool for every candidate and every goal.

1
Complete CPA Prep Courses

Expert-Led CPA Prep for All Sections

UWorld’s CPA Review Course is the most comprehensive CPA prep available, built from the best of Roger CPA, Wiley CPA, and legendary instructor Peter Olinto. With an industry-leading question bank, task-based simulations, 1,400+ video lectures, full-length mock exams, and SmartPath Predictive Technology® tracking your readiness at every step, you’ll always know exactly where you stand and what to study next. Candidates who meet SmartPath benchmarks pass at a 90% rate*, well above the national average.

Introducing UWorld's CPA Review Course
2
Detailed CPA QBank

Practice Tests with Visual Answer Explanations

UWorld’s CPA QBank gives you the most comprehensive bank of practice questions available, with 9,000+ MCQs, 500+ task-based simulations, across all 6 exam sections. Every question includes detailed answer explanations written by practicing CPAs, with vivid illustrations and diagrams that bring tough concepts to life. Create custom quizzes, simulate real exam conditions in a Prometric-like interface, and let SmartPath Predictive Technology highlight exactly where to focus next.

3
Colorful CPA Study Guides

Structured Materials for Every CPA Section

UWorld’s expertly crafted study guides break down complex CPA Exam topics into clear, easy-to-follow lessons. Focus on high-yield concepts, reinforce key ideas, and retain more with structured print materials because sometimes reading and writing with the printed page is exactly what your brain needs. Study guides are seamlessly integrated with the course’s digital materials, creating a complete learning system that engages all senses.

World-Class Educators

Learn from the Legends of CPA Prep

Roger Philipp and Peter Olinto bring unmatched CPA prep expertise to every lesson. Roger’s engaging, memorable teaching style has guided 100,000+ candidates to success, while Peter’s deep command of FAR and advanced accounting topics ensures no concept goes unexplained. Together, they deliver a learning experience you won’t find anywhere else with clear, exam-focused video lectures you can study anytime, on any device, even offline.

Built into Every Plan

Smart Tools That Accelerate Retention

From the UAsk AI to SmartPath Technology, these tools help you study smarter, stay focused, and walk into your exam fully prepared.

SmartPath Predictive Technology®

UWorld SmartPath Predictive Technology takes the guesswork out of CPA Exam prep by telling you exactly when you’re ready to pass. Powered by real performance data from thousands of successful CPA candidates, SmartPath compares your progress against proven benchmarks. Candidates who meet their SmartPath targets achieve a 90% average pass rate.

  • Compare your progress directly against successful CPA candidates.
  • Get data-supported performance targets tailored to your study journey.
  • Pinpoint your weak areas by topic across all 6 CPA Exam sections.
  • Stop wasting time and focus on the topics you need to improve.
  • Know exactly when you’re ready to pass, no more second-guessing.
SmartPath Predictive Technology

CPA Study Planner

A personalized CPA study planner helps candidates prepare efficiently by organizing study time based on their strengths, weaknesses, and target exam date. With a structured plan, candidates can focus on the highest-priority topics, practice consistently, and track their progress so they walk into exam day fully confident and ready to pass.

  • Take a diagnostic assessment to identify your current knowledge gaps.
  • Set a clear target exam date for each CPA Exam section.
  • Focus more time on the weak areas flagged by SmartPath Technology.
  • Practice with expertly crafted MCQs and Task-Based Simulations.
  • Track your progress and adjust the plan as exam day approaches.
Dynamic Study Planner in calendar view

UAsk™ AI Assistant

UAsk™ is a purpose-built AI study coach designed to help you stay focused and increase your grasp of the material. By combining UWorld’s trusted CPA review content with AI-powered support, UAsk delivers accurate, exam-relevant answers exactly when and where you need them.

  • Trained exclusively on UWorld’s expert-written CPA study materials.
  • Accurate and aligned to AICPA® CPA Exam Blueprints. 
  • Built directly into UWorld’s lectures, eTextbook, and question bank (QBank).
  • Provides immediate, contextual responses without losing your place.
  • Included in every UWorld CPA course package.
UAsk lives directly inside the UWorld CPA review course so you can get instant answers without interrupting your study flow.

Live Boot Camps

UWorld’s exclusive boot camps bring you face-to-face with the best instructors in accounting education through interactive, online sessions designed to sharpen your exam readiness. Led by subject-matter experts for each core CPA Exam section, these sessions go deep on the most heavily tested topics.

  • Listen to live, interactive online sessions led by expert CPA instructors.
  • Tackle the most challenging MCQs and TBS questions.
  • Get your questions answered directly by CPA subject-matter experts.
  • Access sessions anytime, as they are recorded and available on demand.
  • Receive at no extra cost with the Elite-Unlimited Package.
Live Boot Camps

Mobile App

The UWorld Accounting–Exam Prep mobile app puts your full CPA review at your fingertips, wherever life takes you. All your progress syncs seamlessly between your phone and desktop, so you never miss a beat in your prep.

  • Study anywhere with full material access on iOS and Android.
  • Practice MCQs and TBS directly on your mobile device.
  • Create and review smart flashcards with spaced repetition.
  • Track your SmartPath performance metrics on the go.
  • Pick up where you left off with seamless device syncing.
UWorld Roger CPA Review mobile app syncing functionality on a desktop and smartphone
Video Stories

Hear from Candidates Who Passed the CPA

Real stories told by real CPA candidates who used UWorld to pass their CPA Exams

×

Switching to the program definitely helped me: different instructors, more questions, better feedback.

— James T., CPA

UWorld CPA student

×

I was at the real exam, and I felt like I’d done the questions before.

— Ally P., CPA, MBA

UWorld CPA student

×

You can’t be half in, half out when you set out to pass this thing.

— Drew H., CPA

UWorld CPA student

Choose Your Plan

Complete CPA Exam Prep for Every Learning Style

All UWorld CPA Review Courses include four QBanks, or you may purchase as a stand-alone QBank by exam section below.
$299

Includes

Select one or more QBank

Access for 6-months
Thousands of Practice Questions
Detailed Explanations with Visuals
Unlimited Practice Tests in All 6 Sections
SmartCards – FlashCards with Spaced Repetition
Digital Notes taking with MyNoteBook
All CPA Study Guides are included in UWorld’s CPA review course packages or may
be purchased separately as a stand-alone product below.
Individual Part
$ 75 Each
Purchase an individual CPA Study Guide.
Choose from AUD, FAR, REG, BAR, ISC, or TCP.
Add Digital Access for an additional $50
4-Part Bundle
$ 250
Purchase a 4-part bundle. All bundles include the core sections (AUD, FAR, REG) plus your choice of one discipline section (BAR, ISC, or TCP).
Add Digital Access for an additional $50
*eBook (digital) access is provided for 6 months for single part purchases and 18 months for 4-part bundle purchases.
Not passing with your current CPA review course?
Save $2,600
by Switching to UWorld
3-in-1 · Best of Roger + Wiley + Peter

Why UWorld CPA Review Outperforms Every Alternative

A feature-by-feature look at how UWorld’s CPA platform stacks up against other leading providers.

Feature UWorld CPA Review Other Prep Materials
QBank Size & Quality
Largest bank with AICPA-released questions and close replicas Smaller or lower fidelity question sets
Visual Explanations
Visual answer explanations on every single question Text-heavy explanations, limited visual aids
Lecture Quality
Top instructors from every major platform, unified 1 instructor or 1 brand’s teaching style only
Modern, Colorful Study Guides
Visually rich, full-color guides designed for today’s learners Dense, text-heavy materials can feel harder to absorb and remember
AI Assistant
AI that sources exclusively from proprietary, AICPA-aligned content AI trained on unverified content from the open internet
Task-Based Simulations
Full-rigor TBS with video walkthroughs included Basic simulations, no walkthrough videos
Adaptive Study Engine
Built on real pass data: personalized, predictive No adaptive engine in competing platforms
AICPA® Blueprint Alignment
Nothing wasted, every topic maps to the exam Gaps or excess content not on the current exam
Documented Pass Rate
90% – Candidates who meet SmartPath benchmarks* 55% – National Average
QBank size & quality
UWorld CPA Review

Largest bank with AICPA-released questions and close replicas

Other Prep Materials

Smaller or lower fidelity question sets

Visual explanations
UWorld CPA Review

Visual answer explanations on every single question

Other Prep Materials

Text-heavy explanations, limited visual aids

Lecture quality
UWUWorld CPA Review

Top instructors from every major platform, unified

Other Prep Materials

1 instructor or 1 brand's teaching style only

Modern, Colorful Study Guides
UWorld CPA Review

Visually rich, full-color guides designed for today’s learners

Other Prep Materials

Dense, text-heavy materials can feel harder to absorb and remember

AI Assistant
UWorld CPA Review

AI that sources exclusively from proprietary, AICPA-aligned content

Other Prep Materials

AI trained on unverified content from the open internet

Task-Based Simulations
UWorld CPA Review

Full-rigor TBS with video walkthroughs included

Other Prep Materials

Basic simulations, no walkthrough videos

Adaptive study engine
UWorld CPA Review

Built on real pass data: personalized, predictive

Other Prep Materials

No adaptive engine in competing platforms

AICPA® Blueprint Alignment
UWorld CPA Review

Nothing wasted, every topic maps to the exam

Other Prep Materials

Gaps or excess content not on the current exam

Documented pass rate
UWorld CPA Review

90% – Candidates who meet SmartPath benchmarks*

Other Prep Materials

55% – National Average

Frequently Asked Questions (FAQs)

CPA Test Prep: FAQS

A CPA review is a structured exam preparation program designed to help candidates pass the Certified Public Accountant (CPA) Exam administered by the American Institute of Certified Public Accountants (AICPA). The CPA Exam is 1 of the most rigorous professional licensing exams in the United States, and a quality CPA Exam prep package provides the content, practice tools, and strategic guidance candidates need to pass all 4 required sections.

A comprehensive CPA Exam review program typically includes several core components:

  • Video lectures delivered by experienced CPA instructors who break down complex accounting, auditing, tax, and business concepts into manageable lessons
  • A robust question bank (QBank) offering thousands of multiple-choice questions (MCQs) and task-based simulations (TBS) that mirror the format, difficulty, and content weighting of the actual exam
  • Digital and/or printed study guides (textbooks) providing in-depth coverage of every topic outlined in the AICPA’s CPA Exam Blueprints
  • Additional CPA study material, including flashcards, customizable quizzes, full-length practice exams, performance analytics dashboards, AI and adaptive study tools

The best CPA test prep study materials integrate all of these elements into a single platform, allowing candidates to study efficiently and track their progress toward exam readiness.

UWorld CPA Review differentiates itself from competitors through its commitment to high-quality CPA Exam materials. While many providers focus on volume, UWorld prioritizes conceptual clarity and student engagement.

  1. Best-in-Class Instructors: The quality of instruction is 1 of UWorld’s strongest advantages. Roger Philipp is known for his high-energy, mnemonic-driven teaching style that makes even complex or dry accounting topics engaging. Peter Olinto complements this with deep expertise and a clear, relatable delivery. Having both instructors on the same platform gives candidates access to multiple teaching styles, which is rare in the CPA prep industry.
  2. In-Depth Answer Explanations: UWorld’s answer explanations are widely regarded as the most thorough in the market. Instead of brief rationales, each answer explanation includes illustrations, diagrams, flowcharts, and step-by-step reasoning. This helps candidates understand not only why an answer is correct, but also why the other options are incorrect, building true conceptual understanding rather than surface-level memorization.
  3. SmartPath Predictive Technology: SmartPath goes beyond basic adaptive learning tools by comparing your performance against data from thousands of successful candidates. This ensures you use your CPA Exam study materials as efficiently as possible to reach exam readiness.
  4. Strong Value and Flexible Pricing: UWorld offers competitive pricing relative to its feature set. With packages typically ranging from about $1,999 to $2,899 after discounts, and options for unlimited access through the StudyPass program, UWorld delivers strong value while offering comprehensive content, advanced technology, and flexible learning tools.

Every UWorld CPA package, regardless of tier, includes:

  • Comprehensive QBank: Over 9,000 MCQs and 500+ TBS covering all 6 CPA Exam sections
  • Video lectures: Approximately 1,400 lectures by expert instructors that break down complex concepts
  • Study guides (digital textbooks): Concise text aligned to CPA Exam Blueprints
  • Unlimited practice exams and customizable quizzes: Ability to generate full‑length exams and target quizzes down to the sub‑topic level
  • UAsk™ AI assistant: Trained exclusively on UWorld’s expert-written CPA study materials, ensuring every answer is accurate, reliable, and aligned with AICPA® CPA Exam Blueprints
  • Study planner: A tool that creates a personalized schedule with several planning options
  • SmartPath Predictive Technology and performance metrics: Ability to track your progress and receive data‑driven recommendations
  • Mobile app: Access all CPA Exam materials on Android and iOS, including offline mode
  • Digital flashcards and ReadyDecks: Spaced‑repetition flashcard system for efficient memory retention
  • My Notebook: A digital note‑taking tool to capture and organize content
  • TBS mastery videos: Guided videos to master simulations and a final review of the most testable topics

Higher‑tier packages (Elite‑Unlimited and Elite‑Unlimited+) add printed textbooks, live boot camps, full-length mock exams, and unlimited access until you pass. See UWorld’s package comparison page for a full list of features.

Yes. Roger CPA Review is now fully integrated into UWorld CPA. UWorld acquired Roger CPA and has since consolidated the brand under the UWorld Accounting umbrella. All of the elements that made Roger CPA popular, including Roger Philipp’s signature high-energy video lectures, his mnemonics and teaching methods, and his CPA Exam preparation philosophy, are preserved and available within the UWorld platform. When you purchase any UWorld CPA package, you automatically receive access to Roger Philipp’s complete lecture library alongside the rest of UWorld’s comprehensive study materials.

Wiley CPA was acquired by UWorld and has been fully integrated into the UWorld CPA Review platform. Wiley had long been 1 of the most recognized names in CPA Exam preparation, particularly known for its extensive question bank and solid study materials. UWorld acquired Wiley’s test-prep portfolio, and combined the best elements of Wiley’s offerings with Roger CPA instructional content and UWorld’s own technology infrastructure.

The result is a unified platform that draws from Wiley’s deep question bank heritage, Roger’s engaging lecture library, and UWorld’s expertise in adaptive learning technology. Candidates who previously used Wiley CPA will find that the core strengths of Wiley’s approach, particularly the breadth and quality of its practice questions, have been preserved and enhanced within UWorld’s modern platform.

UWorld has merged the best elements of both brands into a single, cohesive platform. From the Wiley side, the integration brought an expanded test question bank, additional practice content, and deep subject-matter expertise that broadened the coverage across all CPA Exam sections. From the Roger side, the integration preserved Roger Philipp’s signature lecture series and his mnemonic-driven teaching methodology. Building on both, UWorld layered its own proprietary technology, including SmartPath Predictive Technology, advanced performance analytics, mobile apps with offline access, and a modern, intuitive user interface.

UAsk AI is an AI-powered study assistant built into every UWorld’s CPA review course. You can use it to ask questions and get explanations while you’re in lectures, the eTextbook, or practicing questions, without leaving your study materials.

Unlike general AI tools, UAsk is trained exclusively on UWorld’s CPA Exam content, so its answers are accurate and contextually relevant to what you’re studying.

SmartPath Predictive Technology is UWorld’s proprietary, patent-pending adaptive learning tool that takes the guesswork out of CPA Exam preparation. Unlike traditional adaptive study tools that simply adjust your study plan based on your diagnostic quiz performance, SmartPath takes a fundamentally different approach: It compares your progress and comprehension metrics against the actual behavioral data of thousands of previous CPA candidates who successfully passed the exam.

Here is how it works. As you study, SmartPath analyzes your performance across multiple dimensions and sets data-supported targets for each topic area. These targets are derived from patterns observed in candidates who went on to pass. When you meet all of your SmartPath targets, the data indicates a 90% probability that you are ready to pass your exam section. This gives candidates a clear, measurable indicator of exam readiness rather than forcing them to rely on gut instinct or arbitrary benchmarks.

SmartPath also helps you study more efficiently by identifying exactly where you need to focus your efforts. Rather than working through every single question in the QBank regardless of your mastery level, SmartPath guides you toward the topics and subtopics where additional practice will have the greatest impact on your score. Candidates consistently report that SmartPath helped them reduce unnecessary study time while increasing their confidence going into exam day. SmartPath is included with all UWorld CPA packages at no additional cost.

Yes. UWorld offers single-section access for candidates who only need to study for 1 part of the CPA Exam. This option is ideal for candidates who are retaking a specific section, those who have already passed some sections using a different provider and want to switch to UWorld for the remaining ones, or candidates who prefer to invest in 1 section at a time rather than purchasing a full prep package upfront. Single-section access includes all of UWorld’s study tools and features for that specific section.

Yes. UWorld’s content team continuously updates all study materials to reflect the AICPA’s latest CPA Exam Blueprints, accounting standard changes, tax law updates, and any structural changes to the exam format. When you purchase a UWorld CPA course (or package), you receive automatic content updates and feature enhancements throughout your access period at no additional charge. This means that no matter when you purchase your course or how long your study timeline extends, you are always studying the most current, exam-relevant material available. Candidates with the Elite-Unlimited or Elite-Unlimited+ packages, which include StudyPass, benefit from these updates for as long as their course or subscription remains active.

UWorld’s Elite-Unlimited+ package includes a Pass Guarantee that provides a $250 refund per section in the event you do not pass, up to a maximum of $1,000 total. To qualify for the guarantee, candidates must meet specific study requirements, which typically include completing a significant portion of the question bank, meeting SmartPath targets, and studying for a minimum number of days. These requirements ensure that the guarantee rewards candidates who are genuinely engaged with the prep materials.

For candidates who purchase any package and are not satisfied, UWorld’s general refund policy applies. Specific terms and conditions are available on UWorld’s website, and candidates are encouraged to review the policy details before purchasing. UWorld also offers a Fresh StartTM Discount for candidates who previously used other CPA prep and are looking to switch.

The ideal time to start CPA Exam preparation depends on your individual circumstances, but as a general guideline, most candidates benefit from beginning their preparation as early as possible once they have met or are close to meeting the educational requirements for CPA licensure in their jurisdiction. Many candidates start studying while still completing their final semester of college or shortly after graduation, when the accounting coursework is still fresh in their minds.

It is important to keep in mind that candidates must pass all 4 CPA Exam sections within a rolling 30-month window (or 36 months in some jurisdictions), so timing your start date relative to when you plan to sit for your 1st section is a strategic decision. Starting too early without a clear plan to begin testing can mean that your earliest study material becomes stale before you finish all 4 sections. A common approach is to begin active preparation approximately 3 to 4 months before your 1st scheduled exam date, then maintain momentum by sitting for subsequent sections at regular intervals.

Yes, and in fact, a large percentage of CPA candidates study while working full time. UWorld CPA is specifically designed to support this lifestyle. The prep material is entirely self-paced. The mobile app allows you to study during commutes and breaks, and the study planner tools let you build a schedule around your work commitments.

Most accounting professionals who study while working full time allocate approximately 15 to 20 hours per week to CPA Exam preparation, which typically translates to a study timeline of 3 to 6 months per exam section. SmartPath Predictive Technology is particularly valuable for working professionals because it helps you study efficiently by focusing your limited time on the topics where additional practice will have the greatest impact, rather than requiring you to work through every single question in the QBank regardless of your mastery level. Many successful UWorld candidates have passed all 4 sections while maintaining full-time employment.

Yes. UWorld partners with hundreds of educational institutions, employers, accounting firms, professional associations, and training providers to offer CPA Exam materials and resources at the organizational level. Firms and corporations can purchase UWorld CPA Review for their employees, often at special group rates or through negotiated enterprise agreements.

UWorld provides onboarding support and enterprise accounts to ensure your team is getting the most out of their CPA Exam study materials. For universities, UWorld offers institutional programs that integrate CPA Exam preparation into the academic curriculum, and partnerships with professional associations and societies provide members with discounted access. Organizations interested in bulk pricing or enterprise solutions can contact UWorld’s institutional sales team directly for customized proposals.

Yes. You can sign up for a free, 7‑day trial with no credit card required, which gives you access to study materials from all 6 CPA Exam sections and allows you to experience the QBank, lectures, and study tools. This trial helps you decide if UWorld fits your learning style before committing.

Yes. UWorld CPA study materials are fully accessible on mobile devices, allowing you to study anytime, anywhere. You can access your study material on a computer, tablet, or smartphone, making it easy to continue your preparation across multiple devices.

UWorld also offers iOS and Android mobile apps that let you study even when you’re offline. Through the app, you can review lessons, practice questions, and detailed answer explanations directly from your mobile device.

Your progress is automatically saved and synced across all devices, so you can start studying on 1 device and seamlessly continue on another without losing your place. This flexibility helps you make the most of your study time, whether you’re at home or on the go.

UWorld provides robust support. The customer support team is available via email and chat to help with technical issues, account access, or platform navigation. You also have access to a comprehensive help center with step‑by‑step guides and tutorials for using the platform. For additional assistance, UWorld offers live boot camps with expert instructors in top packages. By combining self‑study flexibility with accessible support, UWorld ensures you never feel stuck during your prep.

*UWorld candidates who meet SmartPath performance benchmarks achieve an impressive 90% average pass rate across all sections of the CPA Exam.

Award-Winning Leader in Education Technology

Your Free CPA Study Hub

Resources to Support Every Step of Your CPA Journey

Access expert insights, learning tools, valuable content, and career guidance to support your CPA journey. Explore exam resources, meet our instructors, and discover career paths that help you maximize the value of your CPA credential.

Free Webinars

Stay ahead in your CPA journey with expert-led live and on-demand sessions.

Your Guide to the CPA Exam eBook

In this free guide, we'll walk you through what to expect on the exam and how to navigate the exam journey from start to finish.

Careers in Accounting eBook

Explore the CPA path, understand key requirements, and learn the steps to get started.

Free CPA Exam Resources

Your Complete Guide to the CPA Exam Journey

Everything you need to understand the exam, plan your path, and make confident decisions from meeting requirements to becoming a licensed CPA.

What is a CPA?
Learn what a CPA does, the types of roles they hold in accounting and finance, typical salary expectations, and what life looks like after earning the CPA license.
How to Become a CPA
Becoming a CPA involves more than passing exams. Understand the full process, including education requirements, exam completion, experience requirements, and licensing.
CPA Career Paths
A CPA license opens doors across public accounting, corporate finance, consulting, government, and more. Explore the different career paths available to CPAs.
What is the CPA Exam?
Get an introduction to the CPA Exam, learn its purpose, structure, and why it is 1 of the most respected credentials in the accounting profession.
CPA Exam Requirements
Understand the eligibility requirements for taking the CPA Exam, including education credits, degree requirements, and state-specific rules.
CPA Exam Structure & Sections
Understand the 4 CPA Exam sections, what topics they cover, and how the CPA Evolution model affects the exam format and content.
CPA Exam Registration & Fees
Navigate the CPA Exam registration process, application procedures, fees, and timelines involved in scheduling your exams.
CPA Exam Dates
Stay informed about CPA Exam testing windows, scheduling timelines, and key deadlines to help plan your exam journey.
CPA Exam Scoring & Pass Rates
Learn how the CPA Exam is scored, what the passing score means, and review historical pass rate trends for each exam section.
Best CPA Review Courses & Materials
Master all 6 CPA sections with elite instruction, adaptive study tools, and predictive SmartPath technology.
Best CPA Question Bank
Build deep mastery with 9,000+ exam-level MCQs and TBSs featuring our signature visual answer explanations.
Best CPA Practice & Mock Exams
Replicate the Prometric testing environment with 9 full-length mock exams and unlimited customizable practice tests.
Scroll to Top

See What Our Students Are Saying

Learn more about our Single-Section Review Courses

Question

An auditor's objective in the performance of audit procedures is to obtain evidence that either supports or refutes management assertions. Which of the following is an action designed to achieve this objective?

A. Comparing financial and nonfinancial data.
B. Developing and maintaining a system of quality control.
C. Preparing adequate and appropriate documentation.
D. Increasing the desired level of detection risk.

Explanation

AUD CPA Exam sample question explanation about Examples of management assertion tests

During an audit, client management asserts that the financial statements are complete, clear, correct, and in compliance with GAAP or an acceptable financial reporting framework. The auditor then gathers evidence to either support or refute these assertions.

The auditor may compare financial (eg, equipment depreciation expense) and nonfinancial (eg, vendor information about equipment’s expected useful life) information. This comparison can provide evidence regarding the validity of the valuation assertion (eg, depreciation expense is based on reasonable estimates).

(Choices B and C) The audit firm must develop a system of quality control, and the auditors must create adequate, appropriate documentation to provide evidence that the audit complies with professional standards. These activities do not provide evidence that supports or refutes management assertions regarding the financial statements.

(Choice D) The desired or acceptable level of detection risk might decrease when there is greater risk of material misstatement. This action would occur after the auditor obtains evidence that refutes management’s assertions.

Things to remember:
A comparison of financial (eg, equipment depreciation expense) and nonfinancial (eg, vendor information about equipment useful lives) information can provide audit evidence that either supports or refutes management assertions regarding financial statements.

Question

What is the purpose of reporting comprehensive income?

A. To summarize all changes in equity from nonowner sources.
B. To reconcile the difference between net income and cash flows provided from operating activities.
C. To provide a consolidation of the income of the firm's segments.
D. To provide information for each segment of the business.

Explanation

FAR CPA Exam sample question explanation about Statement of comprehensive income

An entity’s comprehensive income is the total of its net income (loss) and other comprehensive income (OCI). Net income (loss) is closed annually to an entity’s retained earnings. However, because OCI reports the unrealized portion of certain transactions that may or may not be realized in the future, it is transferred to accumulated OCI, a separate component of stockholders’ equity.

The purpose of comprehensive income is to report all changes in equity from nonowner sources. Therefore, by including OCI, comprehensive income provides a more complete accounting of all changes from nonowner sources.

(Choice B) Reconciling the difference between net income and cash flows provided from operating activities will show transactions reported using the accrual basis versus the cash basis of accounting.

(Choices C and D) All entities, including those with business segments, are required to report comprehensive income. Information regarding business segments is provided in the notes to the financial statements.

Things to remember:
An entity’s comprehensive income is the total of its net income (loss) and other comprehensive income (the unrealized portion of certain transactions). The purpose of comprehensive income is to report all changes in equity from nonowner sources.

Question

Trees were cut down and made into lumber. The lumber was used to build a house. Which of the following statements best describes the property aspect of these events?

A. The trees were and remained tangible personal property.
B. The trees were and remained real property.
C. The trees were real property, then became and remained personal property.
D. The trees were real property, became personal property, and then reverted to being real property.

Explanation

Real vs personal property

Real property is anything affixed to one specific location (ie, cannot be moved). It includes land and anything permanently attached to land. Personal property is anything that is not real property (eg, cars, contract rights). An item’s status as real or personal property is not permanent. Items can be converted from real property to personal property, and vice versa.

For example, trees are considered real property because they are attached to land (Choice A). Once they are cut down and made into lumber, they become personal property (Choice B). When the lumber becomes part of a house that is affixed to land, the lumber (as part of the house) becomes real property again (Choice C).

Even then, the lumber’s status as real property is not permanent. In the future, the house may be renovated and the lumber salvaged as reclaimed wood, which would convert it back to personal property.

Things to remember:
Real property is anything affixed to one specific location. It includes land and anything permanently attached to land. Personal property is anything that is not real property. An item’s status as real or personal property is not permanent; an item can be converted from real property to personal property, and vice versa.

Question

During a suspected data breach, an incident response team has gathered raw data indicating anomalous server activity. Then they compared the current situation with a similar incident from the previous year. Which of the following stages of the OODA loop is the team primarily utilizing?

A. Observe and act.
B. Orient and decide.
C. Observe and orient.
D. Decide and act.

Explanation

ISC CPA Exam sample question explanation about Cycle

The OODA loop is a four-stage decision-making framework: observe, orient, decide, and act. It is a useful tool for incident response teams as it helps them to make timely and informed decisions under pressure.

  • In the observe stage, the team gathers information about the incident. This information helps them to understand the scope and impact of the incident.
  • In the orient stage, the team analyzes the information they have gathered and assesses the situation. They try to identify the attackers, their motivations, and their methods of attack.
  • In the decide stage, the team makes a decision about how to respond to the incident. This may involve isolating affected systems, restoring data from backups, or changing passwords for affected accounts.
  • In the act stage, the team takes action based on their decisions. They implement the security controls they have developed and take steps to mitigate the risks to the organization.

(Choices A, B, and D): This scenario illustrates the observe and orient stages of the OODA loop. The team is gathering information about the incident (observe) and comparing it to a similar incident from the previous year (orient). They have not yet made a decision on how to proceed (decide) or taken any definitive action in response to their findings (act)

Things to remember:
The observe phase of the OODA loop involves gathering real-time data and information about an incident. The orient phase contextualizes this data by analyzing it against past experiences, knowledge, and other relevant information to derive meaning. Together, these steps provide a foundational understanding before making decisions.

Question

From an employee's standpoint, the tax benefit of a qualified stock option is that:

A. There is no AMT impact when stock is acquired through option exercise.
B. The gain recognized when stock acquired through option exercise is sold may be taxed at preferential rates.
C. The compensation income recognized is deferred until option exercise.
D. The compensation income recognized at grant date is taxed at preferential rates.

Explanation

ISC CPA Exam sample question explanation about Stock options comparison

Employers issue stock options to compensate employees. The two types of employee stock options are qualified, known as incentive stock options (ISOs), and nonqualified (NQSOs). The types have differing tax consequences. On the grant date, neither type requires income to be recognized by an option recipient (Choice D).

On the exercise date:

  • ISOs: There is no income recognition (Choice C). The employee’s acquired stock basis is the strike price paid. The bargain element increases AMTI (Choice A)
  • NQSOs: The bargain element is recognized as ordinary compensation income. The employee’s acquired basis in the stock is its FMV

When the acquired stock is later sold:

  • ISOs: The bargain element decreases AMT impact

    • If the statutory holding period is met, the employee recognizes long-term capital gain or loss (difference between proceeds and basis). Any gain is taxed at preferential rates
    • If the statutory holding period is not met, the employee recognizes the bargain element as ordinary compensation income, increasing basis by this amount. Capital gain/loss recognized is the difference between proceeds and basis. Any gain is taxed at ordinary or preferential rates, depending on the holding period
  • NQSOs: Capital gain/loss recognized is the difference between proceeds and basis. The gain is taxed at ordinary or preferential rates, depending on the holding period

Things to remember:
Employees often prefer ISOs to NQSOs because taxation is deferred until the stock acquired through option exercise is sold, rather than when the options are exercised. If statutory holding periods are met, gain recognized on the sale of stock is taxed at preferential rates.

Question

On May 1, Clothes Co. sells clothing to Link Corp. for $40,000. Clothes ships the clothing on May 1 and Link is obligated to pay Clothes within six months. Link is given 12 months to return any of the clothing for a refund if they experience low demand. Link is also given 18 months to exchange any clothing due to low demand. At the time of sale, Clothes cannot reasonably estimate returns, but estimates $5,000 in exchanged goods. Clothes should recognize revenue for the aforementioned transaction

A. On the day of the sale.
B. 6 months after the date of sale.
C. 12 months after the date of sale.
D. 18 months after the date of sale.

Explanation

BAR CPA Exam sample question explanation about 5 step revenue recognition process

GAAP requires that revenue be recognized at the conclusion of a five-step recognition process. The first step in this process is to identify a contract with the customer. A key criterion for establishing a contract is that collection from the customer is probable (ie, substantially all the accounts receivable will be collected).

In this scenario, Link Corp.’s payment obligation is contingent on customer demand. Therefore, collection is not probable until this is determined, at the 12-month deadline. Revenue will be recognized at that time.

Note: Right of return is not necessarily an impediment to revenue recognition. If Clothes Co. could reasonably estimate the proportion of unreturned items (eg, using previous experience) it could recognize that proportion of revenue on the day of sale. Only the estimated returns revenue amount would be deferred for 12 months.

(Choice A) Day-of-sale recognition incorrectly implies no risk of return.

(Choice B) Cash accounting recognizes revenue when the customer pays (six months). Accrual accounting requires five-step revenue recognition, under which timing of cash receipts is not considered.

(Choice D) Although exchanges can be made for 18 months, they do not prevent revenue recognition. Exchanges are only a transfer to different goods, not a reversal of the sale.

Things to remember:
The first step of the five-step revenue recognition process is to identify a contract with the customer. This includes ensuring that collection is probable. Right of return requires revenue to be deferred until the amount returned can be reasonably estimated. Customer exchanges do not require deferring of revenue.

CPA Review Book
Printed Textbook(s)
$0
Select your one or more course textbooks
CPA Review Book
Printed Textbook(s) + 6-months eBook Access
$0
Select your one or more course textbooks
CPA Review Book Set
Printed Textbooks (Includes AUD, FAR, REG)
$250
Select one discipline of your choice
CPA Review Book Set
Printed Textbooks + 18-months eBook Access
(Includes AUD, FAR, REG)
$300
Select one discipline of your choice

SAVE $1,600

CPA Elite-Unlimited Course
Now $2,299 $3,899
Sale Ends Thursday