Haub School of Business | Department of Accounting
Haub School of Business | Department of Accounting
Department of Accounting

Certified Public Accountant (CPA) Exam

Overview

The Certified Public Accountant (CPA) Exam is prepared by the American Institute of Certified Public Accountants (AICPA) and administered all across the U.S. and its jurisdictions.

Each U.S. state has its own board of accountancy that administers the licensing function. The requirements vary state-by-state, so it is advised to check with your state's board of accountancy for its requirements to sit for the exam and to then become licensed after passing it. For example, for those who want to work in New York, the New York Board of Accountancy will determine requirements for licensure, issue a license to practice and supply the CPA certificate.

CPA Evolution Updates

"The CPA Evolution initiative, a join project between the National Association of State Boards of Accountancy (NASBA) and the AICPA, was created to transform the CPA licensure model. It was undertaken to embrace the changing skills and competencies required of CPAs, today and in the future." -PICPA Journal

The New and Improved CPA Exam

What Is on the CPA Exam?

The following areas are tested on the CPA exam:

  • In this section, you will be tested on your knowledge of auditing procedures and generally accepted auditing standards.

    • Engagement Acceptance and Understanding the Assignment (12-16%)
    • Understanding the Entity and its Environment (including Internal Controls) (16-20%)
    • Performing Audit Procedures and Evaluating Evidence (16-20%)
    • Evaluating Audit Findings, Communications and Reporting (16-20%)
    • Accounting and Review Services Engagements (12-16%)
    • Professional Responsibilities (16-20%)

  • This section covers general business environments and concepts to understand the accounting implications of specific transactions.

    • Corporate Governance (16-20%)
    • Economic Concepts and Analysis (16-20%)
    • Financial Management
    • Information Systems and Communications (15-19%)
    • Strategic Planning (10-14%)
    • Operations Management (12-16%)

  • In this section, you will be tested on your knowledge of GAAP for business enterprises, not-for-profit organizations and government entities.

    • Conceptual Framework, Standards, Standard Setting and Presentation of Financial Statements (17-23%)
    • Financial Statement Accounts: Recognition, Measurement, Valuation, Calculation, Presentation and Disclosures (27-33%)
    • Specific Transactions, Events and Disclosures: Recognition, Measurement, Valuation, Calculation, Presentation and Disclosures (27-33%)
    • Governmental Accounting and Reporting (8-12%)
    • Not-for-Profit (Nongovernmental) Accounting and Reporting (8-12%)

  • This section covers knowledge of federal taxation, ethics in tax practice, professional and legal responsibilities and business law.

    • Ethics, Professional and Legal Responsibilities (15-19%)
    • Business Law (17-21%)
    • Federal Tax Process, Procedures, Accounting and Planning (11-15%)
    • Federal Taxation of Property Transactions (12-16%)
    • Federal Taxation of Individuals (13-19%)
    • Federal Taxation of Entities (18-24%)

How Do You Qualify for a CPA License?

In Pennsylvania, one of the major requirements to receive a CPA license to meet the 150-hour rule. According to the Pennsylvania Institute of Certified Public Accountants (PICPA), students need:

  • 120 credit hours to sit for the exam, including 24 credit hours in accounting
  • 150 credit hours of education to receive a certificate, including 36 credit hours in accounting subjects
  • 1 year (1,600 hours) of work experience through employment in government, industry, academia or public practice within 5 years of the date of the certification application. Work experience includes:
    • Accounting
    • Attest
    • Compilation
    • Consulting
    • Financial Advisory
    • Tax

 

How to Meet the 150-Hour Requirement

  1. Saint Joseph's accounting curriculum currently requires 40 courses. You can take 10 additional 3-credit courses to reach 150 credit hours.
  2. Alternatively, you can take the 10 additional 3 credit-courses at any certified community college.
  3. Saint Joseph's currently offers a graduate option: the professional MPA program.
  4. Saint Joseph's also offers an M.S. in Financial Services.

 

Questions about the 150-Hour CPA Requirement

  • 150 hours is a licensure requirement only. Students who do not plan on becoming a CPA do not need 150 credit hours.

  • No, the ten additional courses do not need to be taken at Saint Joseph's. The courses may be taken at any institution approved by the Pennsylvania State Board of Accountancy.

  • An official requirement does not exist regarding what subjects the classes must be in, so you can take the courses of your choosing. However, it is recommended to take some additional courses in accounting-related topics to help with the CPA Exam.

  • The major public accounting firms are strongly advising that the additional classes are taken prior to beginning full-time employment. Possible time slots for courses include summer, intersession as well as a sixth course during the fall and spring semesters.

  • Check with the registrar's office about the add/drop period for the current semester. To add a sixth class, you can complete the course overload form from the William F. Leahy Advising Center. This form requires the approval of your faculty adviser and the associate dean. This must be completed by the end of the drop/add period.

  • No, repeat coursework does not go towards the 150-hour requirement. Credit will be given for only one class. Transcripts will be reviewed by the State Board of Accountancy in order to sit for the exam.

  • If college credit was given for the AP class, the class will count towards 150 hours.

Frequently Asked Questions

    1. Apply to your state board of accountancy. Create a profile on the CPA Central website.
    2. Complete payment of exam fees.
    3. Obtain your Notice to Schedule (NTS). This is your confirmation of eligibility to sit for the exam.
    4. Schedule your exam.
    5. Take your exam.

  • (Per Kaplan CPA Review: Passing the CPA Exam, 5th Edition)

    A. Auditing and Attestation

    • 3 multiple-choice question testlets, 90 questions total
    • 1 testlet containing 7 task-based simulations
    • Time limit: 4 hours

    B. Financial Accounting and Reporting

    • 3 multiple-choice question testlets, 90 questions total
    • 1 testlet containing 7 task-based simulations
    • Time limit: 4 hours

    C. Regulation

    • 3 multiple-choice question testlets, 72 questions total
    • 1 testlet containing 6 task-based simulations
    • Time limit: 3 hours

    D. Business Environment and Concepts

    • 3 multiple-choice question testlets, 72 questions total
    • 1 testlet containing 3 written communication tasks
    • Time limit: 3 hours

  • The exam is offered 5 (and sometimes 6) days per week during:

    • January and February
    • April and May
    • July and August
    • October and November

    THERE IS NO TESTING IN: March, June, September and December

  • No, you do not need 150 credit hours to sit for the exam. Students holding a bachelor's degree with at least 120 college credits may sit for the exam. 24 of these credits must be in accounting-related topics.

  • The CPA Exam is administered by Prometric. The exam is taken at a Prometric testing facility, and a demonstration can be found on their website.