Parts of the new CPA Examination

The CPA Examination is divided into four parts

• Regulation 3 hours
• Auditing 4.5 hours
• Business Environment 2.5 hours
• Financial Accounting 4 hours

Facts about the new CPA Examination

• The exam is written and graded by the AICPA, The Ohio Society of CPA’s is the AICPA’s Ohio affiliate.
• The exam is given on demand; a candidate will be permitted to take each part once each quarter.
• The minimum passing grade is 75.
• It is not necessary to pass all four parts at the same time.
• Each part will be taken one at a time. They do not have to be taken successively on successive days.
• A candidate will have a rolling 18 months to successfully complete the exam.

Content of the Regulation Examination

Accountant’s Legal Liability and Professional Responsibility 17.5%

Non-Tax Law (other than Business Organizations) 22.5%

• Common Law of Contracts
• Agency Contracts
• Insurance Contracts
• Property Law
• Anti-Trust
• UCC Articles 2, 3, 4, 4A, 7, 8, 9
• Estates and Trusts
• Bankruptcy and Debtor-Creditor Law
• Securities Law

Federal Tax Law 60%

• Federal Income Taxation – Individuals (including gift and estate tax) 15%
• Property Transactions 10%
• Business Organizations 25%
1. Corporations
2. Partnerships, LPs, LLPs
3. LLCs
4. Trusts
   
• Tax Procedure and Tax Accounting

Content of the Auditing Examination

• Planning the Engagement 25%
• Internal Control 15%
• Performing the Audit 35%
• Reviewing the Audit 10%
• Report Preparation 15%

Content of the Financial Examination

• Financial accounting concepts, general and special purpose financial statements 20%
• Accounting for typical financial statement items 30%
• Accounting for transactions and events 30%
• Governmental and Non-Profit 20%

Content of the Business Environment Examination

• Business Organizations 20%
• Economics 10%
• Corporate Finance 20%
• Information Technology 25%
• Measuring and Planning 25% (managerial accounting)

Types of questions on the new CPA Examination

Four Choice Multiple Choice (“MC”) 80%

• Three multiple choice “testlets” of about 25 questions each will be taken.
• Once a testlet is complete, the candidate will not be able to return to the testlet.
• Candidates will all take an equally hard first testlet then will be given harder or easier testlets depending on how well the candidate does on the first testlet.
• The curve is adjusted based on whether the candidate took a harder series of testlets or an easier series of testlets.

Two Simulations 20% (except Business Environment)

• Written communications
• Research
• Drop Down Menu and Select
• Computational Format
• Matching

Applying for the new CPA Examination

• The Ohio Accountancy Board contracts with the CPA Examination Services (CPAES) to process CPA examination applications.
• Applications will be made for six month increments.
• A candidate can self-schedule to take each part twice in that six month period. (once per each quarter)
  
• After the authorization is received from CPAES, the candidate schedules the test time with a Prometric Learning Center.