Taking the CPA Exam

After graduating from an accredited college's accounting program, it is essential for you to pass the CPA exam. This exam is not as easy as it looks so do not get overconfident. This is often a problem with new graduates. They feel they can beat anything they face because they made it through their accounting course load and now hold a degree. The real work is ahead of them.

Before you take the exam, you must decide where you plan to work as a certified public accountant. Every state has specific rules that must be followed, so you will need to apply to the board in the state you plan to work and reside. Different states have different rules. For example, in California you must pass an ethics exam before you can take the CPA exam. In Idaho, the Accounting Board can and often does ask for a certificate of completion for every college accounting course you took during your college career. In Maine, an accountant must complete 40 credit hours of continuing education every year to remain licensed.

Though the cost of the CPA exam varies from state to state, expect to pay between $500 and $800 to take the exam. You must schedule the exam at least six days in advance of the testing date. This means you must fill out all applicable paperwork and pay the exam fee six days prior to taking the test. There are no exceptions made to this rule. It pays to be aware of exam dates because the CPA exam is given only 60 days out of the year (January and February, April and May, July and August, and October and November only.) Once you've taken the first part of this test, you have eighteen months to pass all sections. If you fail to pass all sections within eighteen months, you are forced to start over and pay the hefty exam fees all over again.

The CPA (certified public accounting) exam is in English (it is not offered in any other language) and is done via a computer. The CPA exam is set up in four parts:

There is no set order dictating the way a student must take his or her CPA exam. Any of the four parts can be taken first, but you may not take the same part twice in a row. Each test part consists of three sets of multiple choice questions (Approximately 30 questions per set) and then a couple of simulated case studies that must be completed correctly. In general, each test part contains approximately 100 questions. To pass the CPA exam, you must complete each part with a score of 75% or higher. If you do fail a part, you must retake it within 18 months of the day you took the first test.

Study hard for the different test parts. Not all questions are easy, in fact many are extremely hard! You can get an idea of what is expected from the sample questions found below.

When running a computer auditing program, when can you put fake and real transactions together without telling the client?

If you find an incorrect voucher number during an internal audit, how do you handle it if it is the voucher numbers that do not line up?

Name the auditing standards that are widely accepted within the United States.

What is a limited partnership?

What elements are included in a disaster recovery plan?

How can you reduce a company's break-even point?

What are the legal duties of a company owner? How about of a stockholder?

Name three items that are considered to be intangibles.

If your client buys a 100,000 ten-year note with interest of 7%, what interest would the client have paid at the end of the ten years?

How do you record supplies donated to a non-profit business?

Company X sells and repairs lamps. Company Y sold them some lamp repairing equipment by offering an installment note. A year later, Company X files bankruptcy. What can Company Y do?

During bankruptcy what claims will be discharged?

What is the Code of Professional Conduct?

As a tax preparer, what tax information can you tell another party without facing a severe penalty?

Obviously, these questions would include more information and a selection of answers creating the multiple choice format. This is, however, the type of information that is included on the test. Study hard, your career depends on successfully completing this rigorous test!