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Certification Provider:	CPA
Exam Code / Number:	AA
Exam Name:	Audit & Insurance
Exam Questions:	80
Last Updated:	Jun 19, 2026
Corresponding Certification:	Certified Public Accountant

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Topics of Certified Public Accountant (CPA) Exam

The CPA Exam test consists of four, four-hour sections. You must clear all four sections within 18 months with a minimum score of 75 on each part. The core topics for each of the four sections are listed below. These contents are likely to be used for the examination. However, on any particular delivery of the test, other similar topics could also appear.

It is recommended that, where possible, the applicant uses these contents and/or other resources to provide background information on the exam objectives. The syllabus for the Certified Public Accountant (CPA) Exam is listed below with detail of each section and their topics:

1. Auditing and Attestation (AUD)

Objectives covered by this section:

Developing a Planned Response & Assessing Risk (20 to 30%)

Assessing and identifying the risk of material misstatement
Planning an engagement
Materiality
Debtor-creditor relationships
Entity's internal control
Specific areas of engagement risk

Professional Responsibilities, Ethics & General Principles (15 to 25%)

A firm's system of quality control
Ethics and professional conduct
Nature and scope
Communication with component auditors
Engagement documentation
Communication with management

Obtaining Evidence & Performing Further Procedures (30 to 40%)

Internal control deficiencies and misstatements
Performing specific procedures to get evidence
Acquisition and disposition of assets
Written representation
Subsequent events
Sampling techniques

Reporting and Forming Conclusions (15 to 25%)

Reporting on compliance
Review service engagements
Reports on auditing engagements
Reports on attestation engagements
Other reporting considerations

2. Regulation (REG)

Objectives covered by this section:

Federal Tax Procedures, Professional Responsibilities, and Ethics (10 to 20%)

Legal duties
Responsibilities in tax practice
Licensing and disciplinary systems
Federal tax procedures

Business Law (10 to 20%)

Business structure
Contracts
Debtor-creditor relationships
Agency
Government regulation of business

Federal Taxation of Property Transactions (12 to 22%)

Cost recovery
Gift tax annual exclusion
Estate and gift taxation
Acquisition and disposition of assets
Determination of taxable estate
Gift tax deductions

Federal Taxation of Individuals (15 to 25%)

Computation of tax and credits
Computation of tax and credits
Filing status
Reporting items from pass-through entities
Gross income
Passive activity losses
Alternative Minimum Tax

Federal Taxation of Entities (28 to 38%)

Trusts and estates
S corporations
Liquidation of business entities & tax treatment of formation
Tax-exempt organizations
Partnerships
Limited liability companies
C corporations

3. Financial Accounting and Reporting (FAR)

Objectives covered by this section:

Standard-Setting, Conceptual Framework, and Financial Reporting (25 to 35%)

Public company reporting topics
Standard setting and conceptual framework for nonbusiness entities
Special purpose framework
Standard setting for non-business entities
Conceptual framework
General-purpose financial statements

Select Financial Statement Accounts (30 to 40%)

Property, plant, and equipment
Intangible assets
Income taxes
Inventory
Long-term debt
Compensation benefits
Cash and cash equivalents
Investments

Select Transactions (20 to 30%)

Contingencies and commitments
Software costs
Research and development costs
Fair value measurements
Nonreciprocal transfers
Differences between IFRS and U.S. GAAP
Leases
Accounting changes and error corrections
Business combinations
Derivatives and hedge accounting
Foreign currency transaction and translation
Subsequent events

State and Local Governments (5 to 15%)

Government-wide financial statements
Specific types of transactions and events: calculation, measurement, presentation in a governmental entity, and valuation
State and local government concepts
Comprehensive Annual Financial Report (CAFR)

4. Business Environment and Concepts (BEC)

Objectives covered by this section:

Corporate Governance (17 to 27%)

ERM (Enterprise Risk Management) frameworks
Regulatory frameworks and provisions
Internal control frameworks

Economic Concepts and Analysis (17 to 27%)

Market influences on business
Economic business cycles
Financial risk management

Financial Management (11 to 21%)

Financial valuation methods
Working capital
Capital structure

Information Technology (15 to 25%)

Systems development of maintenance
Information security/availability
Role of information technology business
IT governance
Processing integrity

Operations Management (15 to 25%)

Performance management
Process management
Planning techniques
Cost accounting

How to Prepare For Certified Public Accountant (CPA) Exam

Preparation Guide for Certified Public Accountant (CPA) Exam

Introduction

For practitioners aspiring to become CPAs, the Standardized Certified Public Accountant test is a credentialing exam. The CPA exam tests are graded and governed by the American Institute of Certified Public Accountants (AICPA) and by the National Association of State Accountancy Boards (NASBA).

The American Institute of Certified Public Accountants (AICPA) is the United States' national professional association of Certified Public Accountants (CPAs), with more than 418,000 members in business and industry, public practice, government, education, student affiliates, and foreign associates in 143 countries. Established in 1887, the association sets ethical guidelines for audits of private businesses, non-profit organizations, federal, state, and local governments for the profession and U.S. auditing standards. It also establishes the Standardized CPA Test and rates it. The AICPA has offices in New York City; Durham, NC; Washington DC; and Ewing, NJ.

This exam guide is intended to get you to know about the exam details and help you to prepare for the Certified Public Accountant (CPA) Exam successfully. This guide includes information on the certification test target audience, recommended preparation and documentation, and a full list of exam targets, all to help you obtain a passing grade. To increase your chances of passing the test, AICPA strongly recommends a mix of on-the-job experience, a study of CPA exam dumps, course attendance, and self-study.

Introduction to Certified Public Accountant (CPA) Exam

Passing all four sections of the Uniform CPA Test is one of the first steps to being a licensed CPA. The CPA Exam is a computer-based examination conducted by the AICPA, consisting of four parts evaluating the minimum knowledge and skills needed by a CPA. The new version of the exam takes 16 hours in total.

While each state/jurisdiction has its particular criteria for obtaining a CPA license, they all require the CPA Exam to be passed by an applicant, and you have 18 months to complete all four sections of the CPA Exam (the clock starts ticking after you pass the first section), so be aware of scheduling and preparing.

The exam contains the following four main parts which are further described in details in the following section:

Financial Accounting and Reporting (FAR)
Regulation (REG)
Auditing and Attestation (AUD)
Business Environment and Concepts (BEC)

See the CPA practice exams to get a know-how of how these sections are divided. The AUD section offers questions based on professional obligations, ethics, risk assessment in the production of plan responses, the performance of procedures and facts, and drawing conclusions and reporting of accounting information. The BEC chapter discusses topics related to corporate governance, economic concepts, and interpretation, financial management, IT, and operations management. The FAR section consists of questions that emphasize the conceptual structure and financial reporting, the selection of accounts of financial statements, the selection of transactions, and the application of state and local governments to accounting work. The REG section consists of topics that concentrate on ethics, federal tax practices, professional obligations, business law, federal property transaction taxation, federal individual taxation, and federal agency taxation.

CPA AA Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Assurance and Related Services	5%	- Other assurance engagements and non-audit services
Topic 2: Accepting and Planning Audit Engagements	25%	- Risk assessment, materiality and audit strategy - Understanding entity and internal control systems - Pre-conditions, client acceptance and engagement terms
Topic 3: Review, Completion and Reporting	20%	- Audit reports, modifications and other communications - Going concern, subsequent events and written representations - Evaluation of misstatements and review of work
Topic 4: Performing Audit Procedures and Gathering Evidence	30%	- CIS auditing and computer-assisted audit techniques - Tests of controls and substantive procedures - Audit evidence, sampling and documentation
Topic 5: Legal, Ethical and Regulatory Environment	20%	- Regulatory framework including Companies Act 2014 - Ethics, independence, professional skepticism and quality control - Anti-money laundering, fraud and corporate governance