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CPA AA

AA

Exam Code: AA

Exam Name: Audit & Insurance

Updated: May 27, 2026

Q&A Number: 80 Q&As

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About CPA AA Exam Questions and Answers

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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%)

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

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

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

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

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

Reporting and Forming Conclusions (15 to 25%)

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

2. Regulation (REG)

Objectives covered by this section:

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

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

Business Law (10 to 20%)

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

Federal Taxation of Property Transactions (12 to 22%)

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

Federal Taxation of Individuals (15 to 25%)

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

Federal Taxation of Entities (28 to 38%)

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

3. Financial Accounting and Reporting (FAR)

Objectives covered by this section:

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

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

Select Financial Statement Accounts (30 to 40%)

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

Select Transactions (20 to 30%)

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

State and Local Governments (5 to 15%)

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

4. Business Environment and Concepts (BEC)

Objectives covered by this section:

Corporate Governance (17 to 27%)

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

Economic Concepts and Analysis (17 to 27%)

  • Economic business cycles
  • Financial risk management
  • Market influences on business

Financial Management (11 to 21%)

  • Financial valuation methods
  • Capital structure
  • Working capital

Information Technology (15 to 25%)

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

Operations Management (15 to 25%)

  • Planning techniques
  • Performance management
  • Cost accounting
  • Process management

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How much Certified Public Accountant (CPA) Exam Cost

The cost of this exam differs according to the state of but roughly it costs around USD 200 per section and a total of around USD 800 for all four sections. Hover on to the official website of AICPA and choose your state for more pricing information. Other costs may also incur like buying the CPA exam dumps pdf and then practicing for the exam via the CPA practice test.

The benefit of obtaining the Certified Public Accountant (CPA) Exam Certification

Many accountants joining the profession are curious about the advantages of being a certified public accountant (CPA) so that they can determine if the time and energy to undertake this achievement are worth devoting. The certification process may undoubtedly be rigorous and difficult, but for those employed in industry or finance, success offers some notable advantages. In the US, several states have their board that regulates the certification in their jurisdiction of public accountants.

The qualification process helps both new and seasoned accountants to test their qualifications, develop their abilities, and enhance their understanding of the overall discipline. Via their local state board, prospective applicants can learn more about the licensing process specifics and visit the NASBA website for information about the standardized CPA test. The growing demand for CPAs across the job market is motivated by many factors, so the trend is likely to continue in the near future. Accountants winning their CPA earn 10 percent more on average than non-CPA colleagues and have more chances to grow their careers. In job searching, being a CPA can also be a big boon as it shows professional dedication and makes the candidate stand out from others. Among several other specialist fields, CPA certification demonstrates qualification for auditing, business strategy, bookkeeping, and forensic accounting. Becoming accredited opens the doors to hundreds of various career paths and is essential for foreign positions in particular.

How to book the Certified Public Accountant (CPA) Exam

Follow the steps mentioned below to book the Certified Public Accountant (CPA) Exam:

  • Step 1: Determine your eligibility from the NASBA website by clicking here
  • Step 2: Select a jurisdiction where you want to become a licensed CPA
  • Step 3: Access the application by clicking here
  • Step 4: Complete the application, prepare from the CPA exam dumps and submit all required documents
  • Step 5: Schedule your exam by following this link

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