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The Uniform CPA Exam was developed and is maintained by the American Institute Of Certified Public Accountants (AICPA), and is administered by the National Association Of State Boards Of Accountancy . The CPA exam is used by the regulatory bodies of all fifty states plus the District Of Columbia , Guam , Puerto Rico , the U.S. Virgin Islands and the Northern Mariana Islands. HISTORY Until the 1990s, the Uniform CPA Exam was a nineteen and a half (19.5) hour test given over a three day period, consisting of four subject areas (sections) which were tested in five sittings: Auditing (3.5 hours); Business Law (3.5 hours); Theory (3.5 hours); and Accounting Practice (Part I & Part II; 4.5 hours each). Although Accounting Practice I and Accounting Practice II were given in separate sittings, they were counted as one section for grading purposes (i.e., five exam parts, resulting in four separate scores). The exam was given only twice per year: on the first consecutive Wednesday, Thursday and Friday in May and November of each year. Test takers were allowed to use only paper and pencil (no electronic calculators or computers of any kind). In the 1992, the exam was restructured into a four-section, two-day exam. The subject matter was reorganized and redundant material was eliminated, primarily between Accounting Theory and Accounting Practice (Parts I and II). In addition, innovative machine-scorable test questions were incorporated to better assess the skills needed by CPAs to protect the public. For the first time, proprietary electronic calculators were provided to CPA candidates for the two new accounting sections. The four new sections were:
Until 1996, completely new versions of the CPA Exam were prepared every six months, and after each administration all questions and the keyed responses (correct answers) were published and available for purchase. Beginning with the May 1996 administration, almost all exam material was kept secure so that many high-quality questions could be reused. Though this is common practice in the world of large-scale testing, it was a policy decision that was momentous at the time, and made only after extensive comments were elicited from all key stakeholders, such as the 54 Boards of Accountancy, members of the CPA profession, accounting educators, CPA candidates, and testing professionals. By deciding to release only a small portion of each exam--to help candidates prepare for the examination experience--high quality exam material could be reused in the future. It also became possible for the first time to use statistical techniques for test Equating , which allowed the use of standard-based passing scores to be determined, and to make allowances in setting passing scores based on the difficulty of any particular exam, independent of ability of the group taking any particular version of the exam. COMPUTER BASED EXAMINATION Since April 5 , 2004 the exam has been entirely Computer based. Research skill as well as use of Word Processing and Database software is required. The year is divided into four "windows". In each three-month window the candidates can take any number of the sections, once for each section on a window, in the first two months (January and February, April and May, and so on).By contrast, each state formerly imposed varying requirements on whether a candidate was required to sit for the entire exam. For example, in the 1970s and early 1980s Louisiana required that first-time candidates sit for the entire 19 and a half hour exam. Under the Louisiana rules, the candidate was required to pass at least two parts (with a score of 75 or above) while scoring no less than 50 on any part, with Practice I and II counting as only one part (the rule was later changed to count Practice I and II as two parts for this purpose). Thus, a first time Louisiana candidate who scored a 75 or above on each of the "Auditing," Theory," and "Law" sections of the exam but who scored a 49 or less on "Practice" would have been deemed to have passed nothing, and would have been required to re-take the entire exam. Each credit for a passed section is valid for 18 months. Thus, a candidate must pass all four sections within an 18-month period. If all four sections are not passed within an 18-month period, sections passed outside the 18-month period must be retaken. The computer based examination is administered by Thomson Prometric . Since the computer based examination was introduced in 2004, there is in general no longer a requirement to sit for the Uniform CPA Exam in the same state as the state for which one is a candidate. Sections and topics covered The sections have been reorganized as follows:
The Uniform CPA exam tests both federal and state laws. Although questions are not asked about laws, accounting rules or taxes that operate in a specific U.S. state, the exam includes questions on general principles of contract law, agency law, and the Uniform Commercial Code, all of which are primarily state, rather than federal, law.See generally ''Uniform CPA Examination: Examination Content Specifications'', American Inst. of Certified Public Accountants, p. 11-12 (orig. issued June 14, 2002; references updated Oct. 19, 2005) at {Link without Title} Testing method Multiple-choice questions comprise approximately 70% of the exam, while the other 30% consist of simulations, with the exception of Business Environment and Concepts (BEC). Accounting knowledge is tested in simulations through a variety of tasks, some of which require searching databases, completing written communication exercises, and working with spreadsheets and forms. The skills that simulations are intended to measure are: analysis, judgment, communication, and research. In all simulations, candidates are presented with a situation and are instructed to write a letter or memorandum on a specific topic. Written communication responses are scored on the basis of three criteria:
Responses that do not address the assigned topic are not scored. In Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG), multiple-choice testlets account for 70%, and simulations (case studies) 30%, of the score. The 30% simulation portion is further divided into 10% for written communication and 20% for all other parts of the simulation. In Business Environment and Concepts (BEC), multiple-choice questions account for 100% of the score, although the AICPA has planned to introduce simulations. During the examination, candidates may take a break after completing a "testlet" (either a set of multiple choice questions or a simulation). Once a testlet is completed, however, the candidate is not allowed to return to it, so it is not possible to use the "break time" to improve one's score by looking up answers. The clock continues to run during breaks. The "bank" of questions is much larger than the set presented to each candidate. Different candidates (even taking the examination at the same time) may therefore receive a completely different examination. This variance is accounted for in the scoring. Adaptive testing The Uniform CPA exam is administered using a method called Adaptive Testing for the multiple choice component. In general, candidates are first presented with a multiple choice testlet of average difficulty. If the score is high, then questions presented in the second and third testlet may be more difficult. More raw points are available from answering difficult questions as opposed to easy ones. The AICPA takes the position that adaptive testing allows the competence of a candidate to be assessed with fewer questions than would be required for a static, or non-adaptive, testing methodology. Scoring The score represents the candidate's overall performance on the identified examination section. Scores are reported on a numeric scale of 0 to 99, with 75 as the passing score. The scale does not represent "percent correct." A score of 75 indicates examination performance reflecting a level of knowledge and skills that is sufficient for the protection of the public. The ''New York State Board for Public Accountancy'' does not allow scores to be reported in numeric terms. Instead, New York candidates for the Uniform CPA exam receive only a "pass" or "fail" notification from that state board. This pass/fail convention was updated in November of 2006. Scores {Link without Title} are now posted on NASBA's website as they become available. To use this service, the candidate must have the section ID number from his or her Notice to Schedule. ELIGIBILITY TO SIT FOR UNIFORM CPA EXAM In order to sit for the Uniform CPA Exam, a person must be declared eligible to do so by one of the 55 U.S. State Boards of Accountancy. Requirements of state boards vary, but usually consist of a U.S. bachelors degree in accounting plus an extra year's study (which can be either at undergraduate or graduate level). The requirement for 5 years full time equivalent study is known as the "150 hour rule" and has been adopted by the majority of state boards. An important distinction should be made between requirements to sit for the exam, and requirements for certification. In some states, such as Minnesota, the "150-hour rule" only applies to certification; anyone with a bachelors degree (from a qualifying institution) in Accounting may sit for the exam. Certification does require 150 credit hours, however. Noteworthy exceptions to the "150 hour rule" include:
EXAMINATION PROCESS The steps involved in sitting for the Uniform CPA Examination are as follows: First time applicants
Re-examination applicants A candidate who has previously taken a section of the Uniform CPA Exam is a ''re-examination applicant''. The registration process for re-examination candidates with state boards is normally simpler than that for first-time candidates, and does not usually require new proof of ID or qualifications. Some state boards allow online registration for re-examination candidates. Additionally the candidate's entry is already on the National Candidate Database, which allows quicker processing by NASBA. Otherwise the process is similar. Fees Fees to sit for the Uniform CPA Exam vary by state, however for first time applicants sitting for all four sections, a fee between USD550 and USD850 is typical. The equivalent re-examination fee is normally about USD50 less. Score reporting timescale The timescale for score reporting depends on:
As of July 2006, scores of ''some'' applicants who sit for the exam in the first month of a testing window are reported by AICPA sooner, usually in the third week of the second month of that window. For example, some scores of persons who sat for the Uniform CPA Exam in April 2006 were reported in the third week of May 2006. The remaining scores from April 2006, plus the scores from May 2006 attendees, were reported in the last two weeks of June 2006. Candidates who do not receive a score by the end of the first month ''after'' the testing window in which they sat for the exam are advised to contact their state board. For example, all scores of candidates from the April/May 2006 test window should be reported by 30 June 2006. It is however, unusual for a result to be received so late. Failed sections Where a candidate fails a section, it may be re-done without any penalty other than a re-examination fee and the risk of credits for other sections expiring under the "18 month rule". Re-sitting for a failed section in the same testing window is not permitted. Re-scoring and appeals A candidate who fails a section may request that the exam be re-scored. As of July 2006, the fee for a re-score is USD150 for the Business Environment and Concepts section (BEC) and USD200 for the other sections. Application for a re-score must be made by a particular deadline, usually around the end of the first month after the testing window in which the examination was taken. For example, for the April/June test window, an application for a re-score must be made before the end of July. Some but not all state boards allow a failed candidate to lodge a score appeal where the candidate can review the examination section and challenge the response. This involves paying a fee of USD500 and travelling to the NASBA offices in Nashville, TN. Under secure conditions, the examination can be reviewed and specific questions can be challenged for a fee of USD100 each. The deadline for lodging an appeal is the same as that for a re-score. Results of either process take about 8 weeks and are sent by NASBA to the candidate's state board of accountancy. It is unusual for either re-scores or appeals to result in a changed score for the candidate. Lodging a re-score or appeal application does not prevent the candidate from applying to re-sit the examination. CONFIDENTIALITY The Uniform CPA Exam is a confidential examination. All persons involved with the Uniform CPA Exam, including candidates, must sign a confidentiality agreement not to disclose the contents of specific questions asked. INTERNATIONAL QUALIFICATION EXAMINATION (IQEX) Certain overseas qualified accountants may sit for the International Qualification Examination (IQEX) is an alternative to the Uniform CPA Exam. As of July 2006 this eligibility extends to most Canadian, Irish and Australian Chartered Accountant s together with Australian CPAs and the ''Instituto Mexicano De Contadores Publicos'' (Mexican Institute of Public Accountants). NON U.S. CANDIDATES There is no specific bar to non-U.S. candidates sitting for the Uniform CPA Examination, however:
NOTES SEE ALSO
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