The American Institute of Certified Public Accountants (AICPA) first offered the Uniform CPA Examination in 1917, and it has been in use by each jurisdiction since 1952. In April 2004, the computer-based version replaced the traditional paper-and-pencil format.
Accountants file tax returns, manage personal and corporate finances, prepare financial statements and audit companies, among other responsibilities. A CPA license is granted to individuals who prove their accounting capability by passing the Uniform CPA Examination. The public, who trust accountants with their sensitive financial data, can be assured that a CPA is a knowledgeable accountant. A uniform, standard test also ensures that every person taking the test knows the same material.
A board of accountancy manages each jurisdiction. The jurisdictions are any of the 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam and the Commonwealth of Northern Mariana Islands. As an administrative agency, the board is composed of CPAs and other accounting professionals who monitor procedures relating to accountancy, including examination testing.
The National Association of State Boards of Accountancy (NASBA) oversees the jurisdictional boards of accountancy. It serves as the informational center for CPA candidate information, including scoring.
Prometric--a company that manages a network of computer-based licensing testing--schedules and hosts the CPA test. It is available for the first two months of each calendar quarter, but is not available the third month because of system maintenance. Scheduling must be done at least five days before test day. The NASBA recommends that individuals schedule the test 45 days in advance to ensure a slot. The test takes about 14 hours to complete. Any individual section or all of the sections may be taken on the scheduled test day. The same section cannot be taken more than once each quarter.
There are four sections of the test: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR) and Regulation (REG). The AUD section tests the candidate's knowledge of auditing procedures and standards, as well as standards and skills relating to other areas in which the CPA attests. The BEC section covers business concepts and the related accounting implications. The FAR section tests knowledge of accounting principles for not-for-profit organizations, corporations and government entities. The REG portion covers federal taxation, ethics, responsibilities and laws. Each section has groups, known as testlets, of 24 to 30 multiple-choice questions or a case study.