CPA Exam Blueprints
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The blueprints for the Uniform CPA Exam are created by the American Institute of Certified Public Accountants (AICPA), which comprises all the knowledge, skills, and content topics that candidates will need to demonstrate in order to pass each CPA Exam section. It is meant to help candidates get ready for the exam and ensure they have the basic skills and knowledge needed to become CPAs. In addition, the CPA Exam Blueprints cover upcoming exam changes.
New blueprints are released periodically by the AICPA. The current blueprint is effective until the end of 2023. However, a new blueprint was released in January, 2023 that will go into effect starting January, 2024. This is part of the CPA Evolution, in which the CPA Exam will incur significant changes to the exam structure, content, and format. Here we will discuss both the current format and upcoming changes to the CPA Exam.
CPA Exam Structure
| Section | Section time | Multiple-choice Questions (MCQs) | Task-based Simulations (TBSs) | Written communication |
|---|---|---|---|---|
| AUD | 4 hours | 72 | 8 | – |
| BEC | 4 hours | 62 | 4 | 3 |
| FAR | 4 hours | 66 | 8 | – |
| REG | 4 hours | 76 | 8 | – |
The current CPA Exam consists of four distinct sections: AUD, FAR, BEC, and REG. Each section of the exam is four hours long, which equates to 16 hours in total. The individual exam parts are broken down into 5 testlets that either contain multiple-choice questions (MCQs), task-based simulations (TBSs), or written communication (WCs) exercises.
The type and number of questions varies from one CPA Exam section to the next. AUD, FAR, and REG follow a similar format in that the first two testlets contain MCQs, and the remaining three testlets contain TBSs. BEC also includes two MCQ testlets, but only two TBS testlets. The fifth BEC testlet is dedicated to WCs, making BEC the only exam section to include this question-type.
Score Weightage by Question Type
| Section | Multiple-choice questions (MCQs) | Task-based simulations (TBSs) | Written communication |
|---|---|---|---|
| AUD | 50% | 50% | – |
| BEC | 50% | 35% | 15% |
| FAR | 50% | 50% | – |
| REG | 50% | 50% | – |
MCQs account for 50% of the total score for the AUD, FAR, and REG exams, and the other 50% is from TBSs. In contrast, BEC has a 50% score dependency on MCQs, 35% on TBSs, and 15% on WC.
Score Weightage by Skill Level
The CPA Exam Blueprints layout around 570 representative tasks that newly licensed CPAs (nlCPAs) should be able to demonstrate within their first two years of licensure. Each task is labeled with a corresponding skill level that follows a revised version of Bloom’s Taxonomy of Objectives. These skill levels, in order from easiest to most difficult, are Remembering and Understanding, Application, Analysis, and Evaluation.
- Remembering and Understanding: The perception and comprehension of a subject’s significance based on acquired information.
- Application: Utilization or exhibition of knowledge, concepts, or skills.
- Analysis: Research and study intersectional relationships to identify problems and collect evidence to reach conclusions.
- Evaluation: Problem analysis and the utilization of judgment to reach a conclusion.
The table below demonstrates how much weight each component has at different skill levels on the four parts of the CPA Exam.
| Section | Remembering and Understanding |
Application | Analysis | Evaluation |
|---|---|---|---|---|
| AUD | 25-35% | 30-40% | 20-30% | 5-15% |
| BEC | 15-25% | 50-60%* | 20-30% | – |
| FAR | 10-20% | 50-60% | 25-35% | – |
| REG | 25-35% | 35-45% | 25-35% | – |
The AUD section of the CPA Exam tests candidates’ understanding of the entire auditing process, including engagements, audit engagements, attestation engagements, and accounting and review service engagements.
The AUD section is demonstrated by content areas, content groups, and content topics. Each topic includes representative tasks related to auditing procedures, generally accepted auditing standards, standards related to attest, and the AICPA Code of Professional Conduct.
In the AUD section, the following items are tested from an auditor’s perspective:
- Business processes and the information technology (IT) that enables them, including their associated risks and controls
- Data analytics and the data-driven mindset
- System and Organization Controls for service organizations: internal control over financial reporting (ie, SOC 1, Type 2 Reports)
Score weightage by content area
It’s important to note that the AUD Exam tests how well a CPA candidate applies their audit and attestation knowledge when solving problems and performing specific tasks laid out in the AICPA Blueprints, not how well they are able to memorize auditing concepts. The topics that make up the structure of the AUD Exam are as follows:
- Nature and Scope of Audit and Non-Audit Engagements
- Ethics, Independence, and Professional Conduct
- Terms of Engagement for Audit and Non-Audit Engagements
- Requirements for Engagements Documentation
- Communication with Management and Those Charged with Governance
- Communication with Component Auditors and Parties Other Than Management and Those Charged with Governance
- A Firm’s System of Quality Control, Including Quality Control at the Engagement Level
- Planning an Engagement
- Understanding an Entity and Its Environment
- Understanding an Entity’s Internal Control
- Assessing Risks Due to Fraud
- Identifying and Assessing the Risk of Material Misstatement and Planning Further Procedures Responsive to Identified Risks
- Materiality
- Planning for and using the Work of Others, Including Group Audits, the Internal Audit Function and the Work of a Specialist
- Specific Areas of Audit Risk
- Understanding Sufficient Appropriate Audit Evidence
- Sampling Techniques
- Performing Specific Procedures to Obtain Evidence
- Specific Matters that Require Individual Attention
- Misstatements and Internal Control Deficiencies
- Written Representations
- Subsequent Events and Subsequently Discovered Facts
- Reports On Auditing Engagements
- Reports On Attestation Engagements
- Accounting and Review Service Engagements
- Reporting On Compliance
- Other Reporting Considerations
Score Weightage by Skill Levels
| Skill allocation | Weight |
|---|---|
| Evaluation | 5–15% |
| Analysis | 20–30% |
| Application | 30–40% |
| Remembering and Understanding | 25–35% |
Sample Topics by Area
Area I — Ethics, Professional Responsibilities and General Principles
A. Nature and scope
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Nature and scope | |||||
|
1.
Nature and scope: audit engagements
|
Identify the nature, scope and objectives of the different types of audit engagements, including issuer and non issuer audits. | ||||
|
2.
Nature and scope: engagements conducted under Government
Accountability Office Government Auditing Standards
|
Identify the nature, scope and objectives of engagements performed in accordance with Government Accountability Office Government Auditing Standards. | ||||
|
3.
Nature and scope: other engagements |
Identify the nature, scope and objectives of attestation engagements and accounting and review service engagements. | ||||
Sample topics by area
Area I – Ethics, Professional Responsibilities and General Principles
A. Nature and scope
Content group/topic
Nature and scope: audit engagements
Representative task
Identify the nature, scope and objectives of the different types of
audit engagements, including issuer and non issuer audits.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Nature and scope: engagements conducted under Government Accountability Office Government Auditing Standards
Representative task
Identify the nature, scope and objectives of engagements performed
in accordance with Government Accountability Office Government Auditing Standards.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Nature and scope: other engagements
Representative task
Identify the nature, scope and objectives of attestation engagements
and accounting and review service engagements.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
The detailed list of AUD content groups and topics in accordance with the skills and representative tasks can be accessed from the AICPA website.
The Business Environment and Concepts (BEC) section of the CPA Exam examines candidates’ understanding of business concepts, processes, tasks, and responsibilities in the business environment. One unique aspect of the BEC Exam is that, unlike other sections, it requires candidates to prepare and submit three written communication responses.
BEC pass rates have historically been slightly higher than other sections. As a result, many CPA candidates consider BEC the least difficult section of the CPA Exam. However, the exam still requires a strenuous study effort.
Score weightage by content area
The BEC section of the CPA Exam comprises corporate governance, economic concepts and analysis, financial management, information systems and communications, strategic planning, and operations management. Here are the topics that make up the structure of the BEC Exam:
- Internal control and enterprise risk management frameworks
- Other regulatory frameworks and provisions
- Economic and business cycles
- Market influences on business
- Financial risk management
- Capital structure
- Working capital
- Financial valuation methods and decision models
- IT governance
- Role of IT in business
- Information security/availability
- Processing integrity (input/processing/output controls)
- Systems development and maintenance
- Cost measurement concepts, methods, and techniques
- Variance analysis
- Process management
- Planning techniques
Score weightage by skill levels
| Skill allocation | Weight |
|---|---|
| Evaluation | – |
| Analysis | 20–30% |
| Application | 50–60% |
| Remembering and Understanding | 15–25% |
Sample topics by area
Area I — Enterprise Risk Management, Internal Controls and Business Processes
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Enterprise risk management (ERM) | |||||
|
1.
Purpose and objectives
|
Define ERM within the context of the COSO ERM framework, including the purpose and objectives of the framework. | ||||
|
2.
Components and principles
|
Identify and define the components, principles and underlying structure of the COSO ERM framework. | ||||
| Understand the relationship among risk, business strategy and performance within the context of the COSO ERM framework. | |||||
| Apply the COSO ERM framework to identify risk/opportunity scenarios in an entity. | |||||
Sample topics by area
A. Enterprise risk management (ERM)
Content group/topic
Purpose and objectives
Representative task
Define ERM within the context of the COSO ERM framework, including
the purpose and
objectives of the framework.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Components and principles
Representative task
Identify and define the components, principles and underlying
structure of the COSO ERM framework.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Understand the relationship among risk, business strategy and
performance within the context of the COSO ERM framework.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Apply the COSO ERM framework to identify risk/opportunity scenarios
in an entity.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
The detailed list of BEC content groups and topics in accordance with the skills and representative tasks can be accessed from the AICPA website.
The Financial Accounting and Reporting (FAR) section of the CPA Exam is perhaps the most difficult one. As the most extensive section of the CPA Examination, it requires the highest number of study hours. Looking at the pass rates of the FAR CPA Exam over the years gives a clear indication of the difficulty level as it historically has the lowest passing rate among the four CPA Exam sections.
Score weightage by content area
The FAR section of the CPA Exam tests candidates on the concepts and standards surrounding financial statements, typical items in financial statements, specific types of transactions and events, accounting and reporting for governmental entities, and accounting and reporting for nongovernmental and not-for-profit organizations.
Here are the topics that make up the structure of the FAR Exam:
- Conceptual framework and standard-setting
- General-purpose financial statements: for-profit business entities
- General-purpose financial statements: nongovernmental, not-for-profit entities
- Public company reporting topics
- Financial statements of employee benefit plans
- Special purpose frameworks
- Cash and cash equivalents
- Trade receivables
- Inventory
- Property, plant and equipment
- Investments
- Intangible assets
- Payables and accrued liabilities
- Long-term debt
- Equity
- Revenue recognition
- Compensation and benefits
- Income Taxes
- Accounting changes and error corrections
- Business combinations
- Contingencies and commitments
- Derivatives and hedge accounting
- Foreign currency transactions and translation
- Leases
- Nonreciprocal transfers
- Research and development costs
- Software costs
- Subsequent events
- Fair value measurements
- Differences between IFRS and U.S. GAAP
- State and local government concepts
- Format and content of the Comprehensive Annual Financial Report (CAFR)
- Deriving government-wide financial statements and reconciliation requirements
- Typical items and specific types of transactions and events in governmental entity financial statements
Score weightage by skill levels
In terms of competencies, the FAR Exam adheres to the revised Bloom’s Taxonomy of Educational Objectives. The skills evaluated on FAR are outlined in the following table.
| Skill allocation | Weight |
|---|---|
| Evaluation | – |
| Analysis | 25–35% |
| Application | 50–60% |
| Remembering and Understanding | 10–20% |
Sample topics by area
Area I — Conceptual Framework, Standard-Setting and Financial Reporting
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Conceptual framework and standard-setting for business and nonbusiness entities | |||||
|
1.
Conceptual framework
|
Recall the purpose and characteristics in the conceptual framework for business and nonbusiness entities. | ||||
|
2.
Standard-setting process
|
Recall the due process steps followed by the FASB to establish financial accounting and reporting standards. | ||||
Sample Topics by Area
Area I — Conceptual Framework, Standard-Setting and Financial Reporting
Content group/topic
Conceptual framework
Representative task
Recall the purpose and characteristics in the conceptual framework
for business and
nonbusiness entities.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Standard-setting process
Representative task
Recall the due process steps followed by the FASB to establish
financial accounting and reporting standards.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
The detailed list of FAR content groups and topics in accordance with skills and representative tasks can be accessed from the AICPA website.
The Regulation (REG) section of the blueprint is structured by content area, content group, and content topic. Each topic includes one or more representative tasks that are required when performing tax preparation services, tax advisory services, or other responsibilities of a CPA.
Score weightage by content area
The REG CPA Exam section primarily focuses on federal taxation. According to the AICPA Blueprints, more than 60% of the REG Exam deals with it. Other topics include business law, business ethics, and professional and legal responsibilities. The topics that make up the structure of REG are as follows:
- Federal taxation of individuals
- Federal taxation of entities
- Federal taxation of property transactions
- Contracts
- Agency
- Business structure
- Debtor-creditor relationships
- Government regulation of business
- Ethics and responsibilities in tax practice
- Licensing and disciplinary systems
- Federal tax procedures
- Legal duties and responsibilities
Score weightage by skill levels
| Skill allocation | Weight |
|---|---|
| Evaluation | – |
| Analysis | 25–35% |
| Application | 35–45% |
| Remembering and Understanding | 25–35% |
Sample topics by area
Area I — Ethics, Professional Responsibilities and Federal Tax Procedures
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Ethics and responsibilities in tax practice | |||||
|
1.
Regulations
governing
practice
before the
Internal
Revenue Service
|
Recall the regulations governing practice before the Internal Revenue Service. | ||||
| Apply the regulations governing practice before the Internal Revenue Service given a specific scenario. | |||||
|
2.
Internal Revenue
Code and
Regulations
related
to tax return
preparers
|
Recall who is a tax return preparer. | ||||
| Recall situations that would result in federal tax return preparer penalties. | |||||
| Apply potential federal tax return preparer penalties given a specific scenario. | |||||
Sample topics by area
Area I — Ethics, Professional Responsibilities and Federal Tax Procedures
A. Ethics and responsibilities in tax practice
Content group/topic
Regulations governing practice before the Internal Revenue Service
Representative task
Recall the regulations governing practice before the Internal
Revenue
Service.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Apply the regulations governing practice before the Internal Revenue
Service
given a specific scenario.
Remembering & Understanding
Application
Analysis
–
Evaluation
–
Internal Revenue Code and Regulations related to tax return preparers
Representative task
Recall who is a tax return preparer.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Recall situations that would result in federal tax return preparer
penalties.
Remembering & Understanding
Application
Analysis
–
Evaluation
–
Representative task
Apply potential federal tax return preparer penalties given a
specific
scenario.
Remembering & Understanding–
Application
Analysis–
Evaluation
–
CPA Exam Structure
| Section | Section time | Multiple-Choice Questions (MCQs) | Task-Based Simulations (TBSs) |
|---|---|---|---|
| AUD – Core | 4 hours | 78 | 7 |
| FAR – Core | 4 hours | 50 | 7 |
| REG – Core | 4 hours | 72 | 8 |
| BAR – Discipline | 4 hours | 50 | 7 |
| ISC – Discipline | 4 hours | 82 | 6 |
| TCP – Discipline | 4 hours | 68 | 7 |
The new format of the CPA Exam that launches January, 2024 has three core sections: Auditing and Attestation (AUD) Financial Accounting and Reporting (FAR) and Taxation and Regulation (REG). BEC will no longer be a part of the CPA Exam starting in 2024. However, a large amount of BEC content will still be tested, as it will be distributed among several of the core and discipline sections.
Under the new CPA Exam format, candidates will choose one discipline section in addition to the three core sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). Each discipline is an expansion of one of the Core sections, allowing applicants to focus more deeply on a subject that suits their interests and areas of expertise.
The core and “discipline” sections each are four hours long and have multiple-choice questions (MCQs) and task-based simulations (TBSs). Written communication (WC) questions will no longer be included on the CPA Exam.
Score Weightage by Question Type
In the ISC discipline, the MCQ score weight is 60%, and TBS brings in the remaining 40% score. The rest of the core and discipline sections contain 50% MCQs and 50% TBS.
| Score Weighting | ||
|---|---|---|
| Section | Multiple-Choice Questions (MCQs) | Task-Based Simulations (TBSs) |
| AUD – Core | 50% | 50% |
| FAR – Core | 50% | 50% |
| REG – Core | 50% | 50% |
| BAR – Discipline | 50% | 50% |
| ISC – Discipline | 60% | 40% |
| TCP – Discipline | 50% | 50% |
Score Weightage by Skill Level
For the 2024 CPA Exam, the skill level weightage across all core and discipline sections has been revised to the following:
| Section | Remembering and Understanding |
Application | Analysis | Evaluation |
|---|---|---|---|---|
| AUD – Core | 30-40% | 30-40% | 15-25% | 5-15% |
| FAR – Core | 5-15% | 45-55% | 35-45% | – |
| REG – Core | 25-35% | 35-45% | 25-35% | – |
| BAR – Discipline | 10-20% | 45-55% | 30-40% | – |
| ISC – Discipline | 55-65% | 20-30% | 10-20% | – |
| TCP – Discipline | 5-15% | 55-65% | 25-35% | – |
Score weightage by content area
- Ethics, Independence and Professional Responsibilities
- Professional Skepticism and Professional Judgment
- Nature and Scope
- Terms of Engagement
- Requirements for Engagement Documentation
- Communication With Management and Those Charged with Governance
- Audit and Assurance Quality
- Planning an Engagement
- Understanding an Entity and Its Environment
- Understanding an Entity’s Control Environment and Business Processes, Including Information Technology (It) Systems
- Materiality
- Assessing and Responding to Risks Of Material Misstatement, Whether Due to Fraud or Error
- Planning for And Using The Work of Others
- Specific Areas of Engagement Risk
- Use of Data and Information
- Sufficient Appropriate Evidence
- Sampling Techniques
- Procedures to Obtain Sufficient Appropriate Evidence
- Specific Matters that Require Special Consideration
- Misstatements and Internal Control Deficiencies Misstatements and Internal Control Deficiencies
- Written Representations
- Subsequent Events and Subsequently Discovered Facts
- Reports on Auditing Engagements
- Reports on Attestation Engagements
- Accounting and Review Service Engagements
- Reporting on Compliance
- Other Reporting Considerations
Score Weightage by Skill Levels
- Remembering and Understanding (30-40%) : Areas I and IV are mostly focused on remembering and understanding. Area I covers a lot of the general auditing knowledge and Area IV covers reporting tasks.
- Application (30-40%) and Evaluation (5-15%): application skills are tested in all four AUD content areas. Candidates are evaluated based on tasks linked to their professional duties, documentation, and everyday responsibilities.
- Analysis (15-25%): The majority of analysis and evaluation level skills are tested in Areas II and III. These two areas require a deeper capacity for observation and comprehension.
Sample topics by area
Area I – Ethics, Professional Responsibilities and General Principles
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Ethics, independence and professional responsibilities (continued) | |||||
|
3.
Requirements of the Government Accountability Office and
the Department of Labor (continued)
|
Apply the ethical requirements and independence rules of the Government Accountability Office Government Auditing Standards to situations that could present threats to compliance during an audit of, or attestation engagement for, a government entity or an entity receiving federal awards | ||||
| Apply the independence rules of the Department of Labor to situations when an accountant would not be considered independent during an audit of employee benefit plans. | |||||
| B. Professional skepticism and professional judgment | |||||
| Understand the concepts of professional skepticism and professional judgment. | |||||
| Understand unconscious auditor biases and other impediments to acting with professional skepticism, including threats, incentives and judgment-making shortcuts. | |||||
Sample topics by area
A. Ethics, independence and professional responsibilities (continued)
Content group/topic
Requirements of the Government Accountability Office and the Department of Labor (continued)
Representative task
Apply the ethical requirements and independence rules of the
Government Accountability Office Government Auditing Standards to situations that could present
threats to compliance during an audit of, or attestation engagement for, a government entity or an
entity receiving federal awards
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Apply the independence rules of the Department of Labor to
situations when an accountant would not be considered independent during an audit of employee
benefit plans.
Remembering & Understanding–
Application
Analysis
–
Evaluation
–
B. Professional skepticism and professional judgment
Representative task
Understand the concepts of professional skepticism and professional
judgment.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Understand unconscious auditor biases and other impediments to acting with
professional skepticism, including threats, incentives and judgment-making shortcuts.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Score weightage by content area
- General-Purpose Financial Reporting: For-Profit Business Entities
- General-Purpose Financial Reporting: Nongovernmental Not-for-Profit Entities
- State and Local Government Concepts
- Public Company Reporting Topics
- Special Purpose Frameworks
- Financial Statement Ratios and Performance Metrics
- Cash and cash equivalents
- Trade receivables
- Inventory
- Property, plant and equipment
- Investments
- Intangible assets
- Payables and accrued liabilities
- Debt (financial liabilities)
- Equity
- Accounting changes and error corrections
- Contingencies and commitments
- Revenue recognition
- Accounting for income taxes
- Fair value measurements
- Lessee accounting
- Subsequent events
Score weightage by skill levels
The FAR Exam will continue to follow the same skill sets for the new format. However, skill weightage has been revised to the following:
| Skill allocation | Weight |
|---|---|
| Evaluation | – |
| Analysis | 35-45% |
| Application | 45-55% |
| Remembering and Understanding | 5–15% |
Sample topics by area
Area I – Financial Reporting
| Skill | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. General-Purpose Financial Reporting: For-Profit Business Entities | |||||
|
1.
Balance sheet/Statement
of financial position
|
Prepare a classified balance sheet from a trial balance and supporting documentation. | ||||
| Adjust the balance sheet to correct identified errors | |||||
| Detect, investigate and correct discrepancies while agreeing the balance sheet amounts to supporting documentation, including the source data. | |||||
|
2.
Income statement/Statement
of profit or loss
|
Prepare a single-step or multi-step income statement (e.g., operating, nonoperating, discontinued operations) from a trial balance and supporting documentation. | ||||
| Adjust the income statement to correct identified errors. | |||||
| Calculate transaction gains or losses recognized from monetary transactions denominated in a foreign currency. | |||||
| Detect, investigate and correct discrepancies while agreeing the income statement amounts to supporting documentation, including the source data. | |||||
Sample topics by area
Area I – Financial Reporting
A. General-Purpose Financial Reporting: For-Profit Business Entities
Content group/topic
Balance sheet/Statement of financial position
Representative task
Prepare a classified balance sheet from a trial balance and
supporting documentation.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Adjust the balance sheet to correct identified errors
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Detect, investigate and correct discrepancies while agreeing the
balance sheet amounts to supporting documentation, including the source data.
Remembering & Understanding
–
Application
–
Analysis
Evaluation
–
Income statement/Statement of profit or loss
Representative task
Prepare a single-step or multi-step income statement (e.g.,
operating, nonoperating, discontinued operations) from a trial balance and supporting
documentation.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Adjust the income statement to correct identified errors.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Calculate transaction gains or losses recognized from monetary transactions denominated in a foreign currency.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Detect, investigate and correct discrepancies while agreeing the
income statement amounts to supporting documentation, including the source data.
Remembering & Understanding
–
Application
–
Analysis
Evaluation
–
Score weightage by content area
- Ethics and responsibilities in tax practice
- Licensing and disciplinary systems
- Federal tax procedures
- Legal duties and responsibilities
- Agency
- Contracts
- Debtor-creditor relationships
- Federal laws and regulations (employment tax, qualified health plans, bankruptcy, worker classifications and anti-bribery)
- Business structure
- Basis of assets
- Cost recovery (depreciation and amortization)
- Gross income (inclusions and exclusions)
- Reporting of items from pass-through entities
- Adjustments and deductions to arrive at adjusted gross income and taxable income
- Loss limitations
- Filing status
- Computation of tax and credits
- Differences between book and tax income (loss)
- C corporations
- S corporations
- Partnerships
- Limited liability companies
- Tax-exempt organizations
Score weightage by skill levels
The CPA Examination will continue to utilize the revised Bloom’s Taxonomy of Educational Objectives. It describes numerous sets of skills. As shown in the table below, the REG Exam score weightage by skill level will remain the same in 2024.
- Both Area I and Area II demand exceptional remembering and understanding abilities. Due to the inclusion of professional obligations, general ethics, and corporate law in these two categories, a high capacity for retention is necessary.
- In Areas III, IV, and V application and analysis abilities are assessed extensively. These three areas pertain to the daily duties of a CPA.
| Skill allocation | Weight |
|---|---|
| Evaluation | – |
| Analysis | 25–35% |
| Application | 35-45% |
| Remembering and Understanding | 25-35% |
Sample topics by area
Area I – Ethics, Professional Responsibilities and Federal Tax Procedures
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Ethics and responsibilities in tax practice | |||||
|
1.
Regulations governing practice before the Internal Revenue Service
|
Recall the regulations governing practice before the Internal Revenue Service. | ||||
| Apply the regulations governing practice before the Internal Revenue Service given a specific scenario. | |||||
|
2.
Internal Revenue Code andRegulations related to taxreturn preparers
|
Recall who is a tax return preparer. | ||||
| Recall situations that would result in tax return preparer penalties. | |||||
| Apply potential tax return preparer penalties given a specific scenario. | |||||
Sample topics by area
Area I – Ethics, Professional Responsibilities and Federal Tax Procedures
A. Conceptual framework and standard-setting for business and nonbusiness entities
Content group/topic
Regulations governing practice before the Internal Revenue Service
Representative task
Recall the regulations governing practice before the Internal
Revenue
Service.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Apply the regulations governing practice before the Internal Revenue
Service
given a specific scenario.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Internal Revenue Code and Regulations related to tax return preparers
Representative task
Recall who is a tax return preparer.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Recall situations that would result in federal tax return preparer
penalties.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Apply potential federal tax return preparer penalties given a
specific
scenario.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
The detailed list of REG content groups and topics in accordance with the skills and representative tasks can be accessed from the AICPA website.
Effective January 2024, the Business Analysis and Reporting (BAR) CPA Exam is a newly introduced discipline section of the Uniform CPA Exam. It covers business combinations, accounting for derivatives and hedges, data analytics, employee benefit schemes, etc. As a division of BEC and an extension of FAR, it contains subjects that are relevant to both sections.
Score weightage by content area
- Current period/historical analysis, including the use of data.
- Prospective analysis, including the use of data
- Indefinite-lived intangible assets, including goodwill
- Internally developed software
- Revenue recognition
- Stock compensation (share-based payments).
- Research and development costs
- Business combinations
- Consolidated financial statements
- Derivatives and hedge accounting
- Leases
- Public company reporting topics
- Financial statements of employee benefit plans
- Format and content of the financial section of the annual comprehensive financial report
- Deriving government-wide financial statements and reconciliation requirements
- Typical items and specific types of transactions and events: measurement, valuation, calculation and presentation in governmental entity financial statements
Score weightage by skill levels
The BAR section of the CPA Exam tests candidates’ skill level at the following three levels of Bloom’s taxonomy:
- Remembering and understanding abilities are examined in all three areas of the BAR CPA Exam.
- Similarly, application skills are tested in all three areas.
- Areas I and II of the BAR Exam evaluate analytical skills.
| Skill allocation | Weight |
|---|---|
| Evaluation | – |
| Analysis | 30-40% |
| Application | 45-55% |
| Remembering and Understanding | 10-20% |
Sample topics by area
Area I – Business Analysis
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Current period/historical analysis, including the use of data | |||||
| 1.
Financial statement analysis |
Determine attribute structures, format and sources of data needed to prepare financial statement analysis. | ||||
| Compare current period financial statement accounts to prior periods or budget and explain variances. | |||||
| Interpret financial statement fluctuations and ratios (e.g., profitability, liquidity, solvency, performance). | |||||
| Use outputs (e.g., reports, visualizations) from data analytic techniques to identify patterns, trends and correlations to explain an entity’s results. | |||||
| Derive the impact of transactions on the financial statements and notes to the financial statements. | |||||
| 2.
Non-financial and non-GAAP measures of performance |
Identify relevant non-financial and non-GAAP measures used to analyze an entity’s performance | ||||
| Identify and apply internal and external benchmarking (e.g., competitor analysis) techniques to measure an entity’s performance. | |||||
| Use a balanced scorecard approach to measure an entity’s performance. | |||||
| Interpret non-financial (e.g., customer retention rate, employee turnover, labor productivity rate, ticket response time) and non-GAAP (e.g., EBITDA, free cash flow, core earnings, adjusted net income for non-recurring expenses) measures and analyze specific aspects of an entity’s performance and risk profile. | |||||
| 3. Managerial and cost accounting | Calculate fixed, variable and mixed costs. | ||||
| Describe and use the different costing methods including absorption, variable, activity-based, process and job order costing. | |||||
Sample topics by area
A. Current period/historical analysis, including the use of data
Content group/topic
Financial statement analysis
Representative task
Determine attribute structures, format and sources of data needed to
prepare
financial statement analysis.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Compare current period financial statement accounts to prior periods
or budget
and explain variances.
Remembering & Understanding
–
Application
–
Analysis
Evaluation
–
Representative task
Interpret financial statement fluctuations and ratios (e.g.,
profitability, liquidity, solvency, performance).
Remembering & Understanding
–
Application
–
Analysis
Evaluation
–
Representative task
Use outputs (e.g., reports, visualizations) from data analytic
techniques to identify patterns, trends and correlations to explain an entity’s results.
Remembering & Understanding
–
Application
–
Analysis
Evaluation
–
Representative task
Derive the impact of transactions on the financial statements and
notes to the
financial statements.
Remembering & Understanding
–
Application
–
Analysis
Evaluation
–
Non-financial and non-GAAP measures of performance
Representative task
Identify relevant non-financial and non-GAAP measures used to
analyze an entity’s performance
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Identify and apply internal and external benchmarking (e.g.,
competitor analysis)
techniques to measure an entity’s performance.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Use a balanced scorecard approach to measure an entity’s
performance.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Interpret non-financial (e.g., customer retention rate, employee
turnover, labor productivity rate, ticket response time) and non-GAAP (e.g., EBITDA, free cash
flow, core earnings, adjusted net income for non-recurring expenses) measures
and analyze specific aspects of an entity’s performance and risk profile.
Remembering & Understanding
–
Application
–
Analysis
Evaluation
–
Representative task
Managerial and cost accounting
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Describe and use the different costing methods including absorption,
variable,
activity-based, process and job order costing.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Effective January 2024, the Information Systems and Controls (ISC) is another discipline section. It is an extension of the AUD section that covers topics like technology (IT) auditing and consulting, and system and organization controls (SOC) engagements.
Score weightage by content area
- Information systems
- Data management
- Regulations, standards, and frameworks
- Security
- Confidentiality and privacy
- Incident response
- Considerations specific to planning and performing a SOC engagement
- Considerations specific to reporting on a SOC engagement
Score weightage by skill levels
- All sections of the ISC assess remembering and understanding skills.
- Application skills are also tested in all areas
- Analytic skills are only assessed in Areas I and II.
| Skill allocation | Weight |
|---|---|
| Evaluation | – |
| Analysis | 10-20% |
| Application | 20-30% |
| Remembering and Understanding | 55-65% |
Sample topics by area
Area III – Considerations for System and Organization Controls (SOC) Engagements
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Considerations specific to planning and performing a SOC engagement | |||||
| 1.
Financial statement analysis |
Explain the purpose of the Trust Services Criteria and its organization (e.g., alignment with the COSO Internal Control – Integrated Framework, supplemental criteria, common criteria and additional specific criteria). | ||||
| Recall the types of subject matters a practitioner may be engaged to report on using the Trust Services Criteria. | |||||
| Identify management assertions specific to the different categories and types (Type 1 and Type 2) of SOC engagements (SOC 1®, SOC 2®, SOC 3®). | |||||
| Recall the intended users of SOC 1®, SOC 2® and SOC 3® reports. | |||||
| Summarize the independence considerations between the service auditor, service organization and subservice organizations. | |||||
| Explain how materiality is determined and used in performing a SOC engagement (SOC 1®, SOC 2®). | |||||
| Identify the risk assessment requirements for a service organization and the service auditor. | |||||
| Summarize the criteria for a vendor to be considered a subservice organization. | |||||
| Explain the considerations for deciding between, and use of, the inclusive and carve-out method for subservice organizations and complementary subservice organization controls (CSOCs). | |||||
| Define service commitments and system requirements in a SOC 2® engagement and how they correspond to an entity’s objectives referred to in the Trust Services Criteria. | |||||
Sample topics by area
Area III – Considerations for System and Organization Controls (SOC) Engagements
A. Considerations specific to planning and performing a SOC engagement
Content group/topic
Financial statement analysis
Representative task
Explain the purpose of the Trust Services Criteria and its
organization
(e.g., alignment with the COSO Internal Control – Integrated Framework,
supplemental criteria, common criteria and additional specific criteria).
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Recall the types of subject matters a practitioner may be engaged to
report
on using the Trust Services Criteria.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Identify management assertions specific to the different categories
and types
(Type 1 and Type 2) of SOC engagements (SOC 1®, SOC 2®, SOC 3®).
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Recall the intended users of SOC 1®, SOC 2® and SOC 3® reports.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Summarize the independence considerations between the service
auditor,
service organization and subservice organizations.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Explain how materiality is determined and used in performing a SOC
engagement
(SOC 1®, SOC 2®).
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Identify the risk assessment requirements for a service organization
and the
service auditor.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Summarize the criteria for a vendor to be considered a subservice
organization.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Explain the considerations for deciding between, and use of, the
inclusive and
carve-out method for subservice organizations and complementary subservice organization controls
(CSOCs).
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Define service commitments and system requirements in a SOC 2®
engagement
and how they correspond to an entity’s objectives referred to in the Trust
Services Criteria.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Effective January 2024, the Tax Compliance & Planning (TCP) discipline is an extended version of the core REG section. It assesses applicants’ understanding of individual and business tax compliance as well as personal and business financial planning.
Score weightage by content area
- Individual compliance and tax planning considerations for gross income, adjusted gross income, taxable income and estimated taxes
- Compliance for passive activity and at-risk loss limitations (excluding tax credit implications)
- Gift taxation compliance and planning
- Personal financial planning for individuals
- C corporations
- S corporations
- Partnerships
- Trusts
- Tax-exempt organizations
- Formation and liquidation of business entities
- Tax planning for C corporations
- Tax planning for S corporations
- Tax planning for partnerships
- Nontaxable disposition of assets
- Amount and character of gains and losses on asset disposition and netting process
- Related party transactions, including imputed interest
Score weightage by skill levels
The table below depicts the weightage of skill levels tested on the TCP Exam.
- The majority of Remembering and Understanding is centered in Areas I and II.
- Application and Analysis skills are examined in all areas.
| Skill allocation | Weight |
|---|---|
| Evaluation | – |
| Analysis | 25-35% |
| Application | 55-65% |
| Remembering and Understanding | 5-15% |
Sample topics by area
Area I – Tax Compliance and Planning for Individuals and Personal Financial Planning
| Skill | |||||
|---|---|---|---|---|---|
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Individual compliance and tax planning considerations for gross income, adjusted gross income, taxable income and estimated taxes | |||||
1.
Financial statement analysis |
Recall the impact of equity compensation awards on taxable income. | ||||
| Recall items included in dermination and computation of Alternative Minimum Taxable income. | |||||
| Consider the impact to an individual’s taxable income for certain items of grossincome, including imputed interest on below-market rate loan and compensation earned while employed outside the U.S | |||||
| Calculate the tax on a child’s investment and other unearned income. | |||||
| Consider the effect of changing tax rates and legislation on the timing of income and expense items for planning purposes given a specific scenario. | |||||
| Identify projected tax savings through utilization of flexible spending accounts(FSAs) and qualified health savings accounts (HSAs) for planning purposes given a specific scenario. | |||||
| Consider the impact of using either itemized deductions or the standard deduction for planning purposes given a specific scenario. | |||||
| Calculate estimated tax payments required for an individual to avoid underpayment penalties given a specific planning scenario | |||||
| Calculate the potential tax savings when donating noncash property to a charitable organization given a specific planning scenario, including identification of the property to be donated to minimize the individual’s current-year tax liability. | |||||
| Review an individual’s projected income and expenses prior to year end to determine the tax implications, and provide options to minimize tax liability given a specific planning scenario. | |||||
Sample topics by area
Area I – Tax Compliance and Planning for Individuals and Personal Financial Planning
A. Individual compliance and tax planning considerations for gross income, adjusted gross income, taxable income and estimated taxes
Content group/topic
Financial statement analysis
Representative task
Recall the impact of equity compensation awards on taxable income.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Recall items included in dermination and computation of Alternative
Minimum
Taxable income.
Remembering & Understanding
Application
–
Analysis
–
Evaluation
–
Representative task
Consider the impact to an individual’s taxable income for certain
items of gross
income, including imputed interest on below-market rate loan and compensation
earned while employed outside the U.S
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Calculate the tax on a child’s investment and other unearned income.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Consider the effect of changing tax rates and legislation on the
timing of income
and expense items for planning purposes given a specific scenario.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Consider the impact of using either itemized deductions or the
standard deduction for planning purposes given a specific scenario.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Calculate estimated tax payments required for an individual to avoid
underpayment penalties given a specific planning scenario
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Calculate the potential tax savings when donating noncash property
to a
charitable organization given a specific planning scenario, including identification
of the property to be donated to minimize the individual’s current-year tax liability.
Remembering & Understanding
–
Application
Analysis
–
Evaluation
–
Representative task
Review an individual’s projected income and expenses prior to year
end to
determine the tax implications, and provide options to minimize tax liability
given a specific planning scenario.
Remembering & Understanding
–
Application
–
Analysis
Evaluation
–
How Do I Use the CPA Exam Blueprints?
The CPA Exam Blueprints lay out the rules and regulations candidates need to know when preparing for the CPA Exam. The AICPA describes the blueprints as “a brief explanation of what the exam will test you on with a correlation to the skill that is being tested.”
- Candidates can use the blueprints to do a lot more than just check the quantity of content that needs to be covered. The blueprints help you to plan your exam preparation, make your own study schedule, and prepare yourself so there are no surprises on exam day.
- Plan one section at a time, as opposed to all four sections at once. This will help you concentrate your study efforts. You should also change the schedule as you hone in on your study habits. Our recommendation would be to prepare for difficult topics first, as it is a time intensive process.
- You can save a lot of time by focusing on content topics in accordance with the score weightage and representative tasks laid out in the blueprints. Give importance to topics which carry more weightage. This in turn, will enable you to dedicate an appropriate amount of time to each topic.
- You should also remember that you cannot solely rely on the blueprints. Studying with a strong, comprehensive review course is key to CPA Exam success. A CPA Review course might seem costly, but studies show that candidates who take a CPA review have higher pass rates than those who do not. Ultimately, the investment is well worth the money and effort.
