CPA Exam Questions - Regulation

Becoming a CPA is challenging, but is a vital certification needed for promotions.  The process begins by applying to the State where you want to practice, meeting their particular requirements and receiving a Notice to Sit.  Once a NTS is in hand, you may apply to sit for the four sections of the CPA exam.

This article will discuss the very challenging Regulation exam (REG).  This is one of the most challenging parts of the CPA exam. It is a three hour test, broken up into three multiple choice sections and six task-based simulations.

The single biggest change in the CPA exam is the inclusion of international accounting and standards questions.

The REG exam covers personal income taxes, when to recognize and realize gains, business structures and non-monetary transactions.

The exam will include several Task-Based Simulations (TBS) and a series of multiple choice questions.  The TBSs take the place of the older multi-tab simulations.  These will also account for approximately 40% of the test score.

These structural changes to the exam were designed with the applicant in mind.  One of the major complaints of the current exam structure is the significant amount of time it takes to receive the score.  It has taken over two months in many instances.

There are six major areas of focus listed below along with their corresponding weights on the exam.  

Use this information to prioritize your studying if some sections are causing difficulties.  

The first category of questions includes:

1. Ethics - 

2. Professional Responsibilities - 

3. Legal Responsibilities - 

Approximately 15 - 19% of the REG exam will be comprised of these topics

The second concentration of topics encompasses Business Law.  

About 17 - 21% of the REG exam is based on this topic.

This part of the REG exam includes:

1. Federal Tax Process - 

2. Federal Tax Procedures - 

3. Federal Tax Accounting - 

4. Federal Tax Planning - 

These challenging topics will be covered in about 11 - 15% of the REG exam.

Federal Taxation of Property Transactions is the fourth area of concentration.

This topic will show up in 12 - 16% of the REG exam.

The next category of questions will come from Federal Taxation of Individuals.

13 - 19% of the REG exam will deal with this topic.

The last area of concern is the Federal Taxation of Entities.

This topic will be tested in 18 - 24% of the REG exam.

By far, the best way to prepare for the CPA exam is to use a professional review course and continually practice the questions they provide.

Most of the CPA review courses come with hundreds of questions to practice, but there are many free websites that provide sample CPA exam questions as well.

Use all of the practice questions that are available to you. The more you practice, the higher your chances will be to pass the CPA exam on the first try!