CPA US Exam Core Section - AUD, FAR, and REG NEW 2025

CPA US Exam Core Section - AUD, FAR, and REG NEW 2025 free download

NEW 2025, CPA US Exam, Core Section, AUD, FAR, and REG, BAR, ISC, TCP, CA, Accounting, Taxation, Reporting

NEW 2025 CPA US Exam

The CPA exam is a substantial undertaking and the final step to becoming a certified public accountant (CPA).

Before taking the exam, aspiring CPAs must pass undergraduate and graduate-level classes in accounting, business law, and general studies. The exact courses and grades needed will vary between states. Many states require work experience as well.

Once those requirements have been met, the last step to becoming a CPA is taking and passing the Uniform CPA Examination.

Prior to 2024, the CPA Exam consisted of four sections that all candidates had to pass:

• Auditing and Attestation (AUD)

• Business Environment and Concepts (BEC)

• Financial Accounting and Reporting (FAR)

• Regulation (REG)

The current format includes these three Core exams:

• Auditing and Attestation (AUD)

• Financial Auditing and Reporting (FAR)

• Taxation and Regulation (REG)

Candidates must also pass one of three Discipline sections. Each one is centered on more specialized knowledge and skills gained in the Core sections:

• Business Analysis and Reporting (BAR)

• Information Systems and Controls (ISC)

• Tax Compliance and Planning (TCP)

CPA Exam Structure

The core and discipline sections are each four (4) hours long and have multiple-choice questions (MCQs) and task-based simulations (TBSs). Written communication (WC) questions are no longer included on the CPA Exam.

Most of the core and discipline sections have equal score weighting for MCQs and TBSs (50% for each). In ISC, however, the score weight is 60% for MCQs and 40% for TBSs.

Core section - Auditing and Attestation (AUD)

Area I: (15–25%) I. Ethics, ProfessionalResponsibilities And General Principles

• Ethics, Independence and Professional Responsibilities

• Professional Skepticism and Professional Judgment

• Nature and Scope

• Terms of Engagement

• Requirements for Engagement Documentation

• Communication With Management and Those Charged with Governance

• Audit and Assurance Quality

Area II: (25–35%) Assessing Risk AndDeveloping A Planned Response

• Planning an Engagement

• Understanding an Entity and Its Environment

• Understanding an Entity’s Control Environment and Business Processes, Including Information Technology (It)Systems

• Materiality

• Assessing and Responding to Risks Of Material Misstatement, Whether Due to Fraud or Error

• Planning for And Using The Work of Others

• Specific Areas of Engagement Risk

Area III: (30–40%) Performing FurtherProcedures And Obtaining Evidence

• Use of Data and Information

• Sufficient Appropriate Evidence

• Sampling Techniques

• Procedures to Obtain Sufficient Appropriate Evidence

• Specific Matters that Require Special Consideration

• Misstatements and Internal Control Deficiencies

• Written Representations

• Subsequent Events and Subsequently Discovered Facts

Area IV: (10–20%) Forming Conclusions AndReporting

• Reports on Auditing Engagements

• Reports on Attestation Engagements

• Accounting and Review Service Engagements

• Reporting on Compliance

• Other Reporting Considerations

Core section - Financial Accounting and Reporting (FAR)

Area I: (30–40%) Financial Reporting

• General-Purpose Financial Reporting: For-Profit Business Entities

• General-Purpose Financial Reporting: Nongovernmental Not-for-Profit Entities

• State and Local Government Concepts

• Public Company Reporting Topics

• Special Purpose Frameworks

• Financial Statement Ratios and Performance Metrics

Area II: (30–40%) II. Select Balance Sheet Accounts

• Cash and cash equivalents

• Trade receivables

• Inventory

• Property, plant and equipment

• Investments

• Intangible assets

• Payables and accrued liabilities

• Debt (financial liabilities)

• Equity

Area III: (25-35%) Select Transactions

• Accounting changes and error corrections

• Contingencies and commitments

• Revenue recognition

• Accounting for income taxes

• Fair value measurements

• Lessee accounting

• Subsequent events

Core section - Taxation and Regulation (REG)

Area I: (10-20%) Ethics, Professional Responsibilities and Federal Tax Procedures

• Ethics and responsibilities in tax practice

• Licensing and disciplinary systems

• Federal tax procedures

• Legal duties and responsibilities

Area II: (15-25%) Business Law

• Agency

• Contracts

• Debtor-creditor relationships

• Federal laws and regulations (employment tax, qualified health plans, bankruptcy, worker classifications and anti-bribery)

• Business structure

Area III: (5-15%) Federal Taxation of Property Transactions

• Basis of assets

• Cost recovery (depreciation and amortization)

Area IV: (22–32%) Federal Taxation of Individuals

• Gross income (inclusions and exclusions)

• Reporting of items from pass-through entities

• Adjustments and deductions to arrive at adjusted gross income and taxable income

• Loss limitations

• Filing status

• Computation of tax and credits

Area V: (23–33%) Federal Taxation of Entities (including tax preparation)

• Differences between book and tax income (loss)

• C corporations

• S corporations

• Partnerships

• Limited liability companies

• Tax-exempt organizations