CPA Exam Review Courses Key Terms

Know what you need to study before you choose a CPA exam review

By Kimberly Huber

The exam required to become a certified public accountant, or CPA, covers a great deal of material, from accounting practices and auditing standards to ethics and business law. To perform well on this exam, extensive study is expected and encouraged. There are many review course formats available.

Before choosing a CPA exam study course, you should understand the range of topics covered by the exam. The following terminology will help you identify what is on the exam so you can zero in on categories for study.

American Institute of Certified Public Accountants (AICPA)

The AICPA offers the CPA examination in the United States. It also offers a tutorial on taking the exam, free practice tests and an outline of the topics and subject matter that are covered on the exam. These are a must for any exam candidate to review. Communication, research, analysis, judgment and understanding are the skills tested in each category of the Uniform CPA Exam.
Try: See the AICPA for practice tests and a tutorial.

Business Environment and Concepts

The Business Environment and Concepts section tests the candidate's understanding of the business environment and basic business concepts. Candidates must understand the reason for, and implication of, each business transaction they perform. This section also requires that the candidate demonstrate the use of this knowledge within the performance of normal CPA functions.
Try: The Becker CPA Review offers more information and advice from top scoring exam takers.

Auditing and Attestation

The Auditing and Attestation section tests the candidate's understanding of procedures and standards involved with the auditing and attestation process. This part of the test has multiple choice questions and case studies.
Try: The Public Company Accounting Oversight Board (PCAOB) posts detailed auditing, attestation and quality control standards.

Financial Accounting and Reporting, or FAR

The Financial Accounting and Reporting category covers the generally accepted accounting principles, or GAAP, in the United States. These guidelines and concepts cover general businesses, government entities and not-for-profit groups or businesses. Financial accounting standards, concepts, procedures and their application are tested in this section.
Try: Governmental Accounting Standards Board (GASB) publishes the guidelines established by the council. The site offers news updates on any changes made to the guidelines. Roger CPA has a rundown of the FAR section of the CPA exam.

Regulation

The Regulation section of the CPA exam covers ethics, both professional and legal responsibilities, and business laws. Questions test the candidate's knowledge and application of laws that apply throughout most of the U.S. The ethics section is based on the AICPA Code of Professional Conduct.
Try: The AICPA Professional Standards Board offers its complete Code of Professional Conduct and Bylaws online.

Federal Taxation the Internal Revenue Code

This portion of the CPA exam tests the candidate's knowledge and application of taxation regarding federal income, estates and gifts. This section also involves multiple choice questions and case studies.
Try: The Internal Revenue Service website publishes the complete Internal Revenue Code and Income Tax Regulations.