The US CPA exam is a gateway to a prestigious and rewarding career in accounting and finance. However, understanding the syllabus can be overwhelming if you don’t have the right guidance. This comprehensive guide will break down each section, explain the detailed chapters for FAR, REG, and AUD, and introduce you to how EduMont’s study materials and the UWorld portal can make your preparation journey smoother and more effective.
The US CPA exam is divided into three main sections:
The FAR section is considered one of the most comprehensive and challenging parts of the US CPA exam. It focuses on financial reporting frameworks used by various entities, including governments, public companies, and non-profit organizations. The content is detailed, covering various financial accounting topics.
FAR Chapters Breakdown:
Chapter 1: Conceptual Framework and Financial Reporting
Financial statements and their components
Recognition, measurement, valuation, and disclosure
Ø Chapter 2: Financial Statements of Non-Governmental Not-for-Profit Organizations
Ø Chapter 3: Financial Statements for State and Local Governments
Chapter 4: Financial Statement Accounts
Chapter 5: Revenue Recognition and Contracts with Customers
Understanding the revenue recognition principles under ASC 606
Chapter 6: Fixed Assets and Intangible Assets
Accounting for property, plant, equipment, depreciation, amortisation, and impairment
Chapter 7: Long-term Liabilities and Bonds
Accounting for bonds, leases, and long-term liabilities
Ø Chapter 8: Business Combinations and Consolidated Financial Statements
Consolidation process, intercompany transactions, and financial reporting
Ø Chapter 9: Foreign Currency Transactions and Translation
Currency exchange, hedging, and foreign financial statement translation
Ø Chapter 10: Derivatives and Hedge Accounting
Understanding derivative instruments, risk management, and accounting
Ø Chapter 11: Income Taxes and Deferred Tax
Current and deferred tax calculations, valuation allowances, and disclosures
Ø Chapter 12: Statement of Cash Flows
Preparation, classification, and understanding cash flow statements
The REG section focuses on business laws, ethics, federal taxation, and regulations affecting businesses and individuals. This section ensures that candidates understand the legal framework and taxation policies. Here’s a chapter-wise breakdown of REG:
REG Chapters Breakdown:
Chapter 1: Ethics, Professional Responsibilities, and Federal Tax Procedures
– Understanding professional responsibilities and the AICPA Code of Conduct
– Circular 230 regulations and IRS procedures
Chapter 2: Business Law and Contracts
– Agency, contracts, sales, and secured transactions
– Bankruptcy laws and debtor-creditor relationships
Chapter 3: Federal Taxation of Individuals
– Gross income, deductions, credits, and filing requirements
– Calculation of individual taxable income and tax liabilities
Chapter 4: Federal Taxation of Property Transactions
– Realized and recognized gains/losses, property basis, and depreciation
– Like-kind exchanges and installment sales
Chapter 5: Federal Taxation of Entities
– Taxation of C corporations, S corporations, partnerships, and LLCs
– Formation, operation, and liquidation of entities
Chapter 6: Tax-Exempt Organizations
– Types of tax-exempt organizations and filing requirements
– Unrelated business income (UBI) and excise taxes
The AUD section covers auditing processes, internal controls, and professional ethics. It’s crucial for those aiming to understand how audits are conducted and how to analyze financial statements.Here’s a breakdown of the chapters that AUD subject entails:
AUD Chapters Breakdown:
Chapter 1: Ethics, Professional Responsibilities, and General Principles
– AICPA Code of Professional Conduct
– Sarbanes-Oxley Act and PCAOB standards
Chapter 2: Assessing Risk and Developing a Planned Response
– Understanding the client, industry, and internal controls
– Audit risk and materiality
Chapter 3: Performing Further Procedures and Obtaining Evidence
– Audit sampling, substantive procedures, and analytical procedures
– Internal controls testing and fraud detection
Chapter 4: Forming Conclusions and Reporting
– Audit reports, reviews, compilations, and attestation engagements
– Modifications to the audit report and communication with stakeholders
There have been several changes and updates to the US CPA syllabus in recent years. Here are some key updates:
It’s crucial for aspiring CPAs to stay informed about these updates and incorporate the latest syllabus changes into their study plans to ensure they are well-prepared for the exam.
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By choosing EduMont, you’re not just preparing for an exam; you’re investing in a learning experience that equips you with the knowledge, skills, and confidence to succeed in your CPA journey.
7. Proven Track Record:EduMont has a history of helping students pass the CPA exam with flying colors. Our success stories speak volumes about the quality of our training and support.
Conclusion:-
The US CPA exam syllabus is comprehensive, but with the right guidance and resources, you can conquer it successfully. By covering each chapter in detail and offering study support, EduMont ensures you’re well-prepared for the CPA journey. Invest in your future with EduMont and start your path to becoming a Certified Public Accountant today.
