US CPA Subjects Explained: Syllabus Overview & What It Takes to Clear All 4 Exams

Think of the US CPA certification as a sieve. It separates average accountants from forward-thinking, universally-recognised accounting professionals. It’s a tough program, no doubt. However, once you’re through, the career opportunities are on a whole new level. From Big 4 firms to global finance roles, you have your pick of roles that lead to leadership positions.The first tactical move towards efficient CPA prep is to know what you are in for. Do you understand the syllabus? The CPA subjects are a mix of core accounting fundamentals and specialised knowledge.

The curriculum tests how well you apply real-world concepts. From auditing and financial reporting to tax laws and business strategy, each section challenges you differently. If you are a student who memorises facts, then this is not the course for you. The CPA is about thinking like a true accounting professional working in a global corporate environment.

Here’s a complete guide to the CPA course

The US CPA subjects and syllabus (2024 updated version)

The syllabus has recently transformed. The course now has a core + discipline model.

• 3 mandatory core sections
• 1 discipline section (choose one topic out of three)
• The exam pattern is as follows:
  • MCQs and task-based simulations
  • Each exam section is 4 hours long with an optional 15-minute break after the 3rd testlet

 

Let’s take a deep dive into understanding the CPA subjects here.

Core CPA subjects (mandatory for all candidates)

The three core exams assess your technical knowledge and ability to apply accounting standards in real-world scenarios. Let’s break them down one by one.

1. Auditing and Attestation (AUD)

Skip a few years into the future. You are a CPA professional auditing a company’s expenses. You come across a few receipts that look irregular. On closer inspection, you realise they don’t match the actual expenses. As an auditor, your job is to analyse what is going on. It’s up to you to ensure the company’s financial statements are accurate and authentic.

The AUD core section will teach you how to be a financial detective. You’ll learn to review the financial records, identify errors, and make sure all the numbers are correct. It’s an essential CPA subject, so you better revise it well.

Topics covered:

Auditing procedures

Ethics

Risk assessment

Financial reporting

Key skills:

Critical thinking

Applying auditing standards

Ethical judgement

Risk assessment

Good written communication

Prep tips for the exam:

• Get comfortable with GAAP and PCAOB rules, as they are essential CPA subjects and will appear in MCQs.
• Practice task-based simulations to practice applying concepts to real-life situations.
• Develop critical thinking as it plays a key role in this paper.
• Ethics is huge. Study the AICPA code of professional conduct thoroughly.
• Study real auditing cases to understand how professionals handle them.
• The AUD section questions can be tricky. Practice using mock tests regularly.
• Learn to manage your time well so you spend equal duration on each question.

2. Financial Accounting and Reporting (FAR)

Your company needs a loan. The bank needs documentation before they can approve the request. You submit the firm’s balance sheet, income statement, and cash flow statement to prove the company is financially stable. Are the numbers correct? Are there any hidden liabilities? Or exaggerated expenses? You must check that all reports are clear, transparent, and accurate.

The FAR section deals with the backbone of accounting—number crunching. You will learn how companies prepare and present their financial statements based on GAAP (generally accepted accounting principles).

Topics covered:

US GAAP

Financial statements

Government and not-for-profit accounting

Key skills:

Attention to detail

knowledge of journal entries

Interpretation of financial data

Prep tips for the exam:

• This section has a lot of content, so dedicate enough study time to deal with the complex topics.
• Master the basics first, and ensure you are well-versed in fundamental CPA subjects like journal entries, debits & credits, and the accounting cycle.
• Make a habit of practising journal entries daily. It will help you to be quick, sharp and ready for the exam.
• Focus on conceptual understanding, not memorising formulas. Understand the ‘why’ of things as much as the ‘how’.
• Don’t neglect government and nonprofit accounting. It is a critical topic, yet some students ignore it.
• Flashcards or apps like Quizlet can help reinforce crucial topics like ASC, financial statement components and disclosures.

3. Regulation (REG)

The Indian start-up you are working for just registered a subsidiary in the US. They’re raising capital from investors and hiring American employees. Now, they need you to figure out corporate tax filing, payroll taxes and if Indian shareholders have to pay US tax on their dividends. Good thing you’re a qualified CPA.

The REG section deals with taxes, laws, and the ethical framework all businesses must follow. You will learn how much tax a company should pay and what rules to follow when dealing with clients or vendors.

Topics covered:

Tax laws

business laws

Ethics

Regulatory framework

Key skills:

Proficiency in taxation laws

Legal reasoning

Attention to detail

Analytical thinking

Ethical judgement

Prep tips for the exam:

• Understand the core tax concepts first. Use them as a foundation before you move on to advanced topics.
• Business law is essential. Topics like contracts, negotiable instruments, and agency law often feature in MCQs and TBSs.
• Ensure you spend adequate time on the AICPA professional ethics.
• Situational questions are very popular in REG. Laws and tax codes will pop up in scenario-based MCQs and task-based simulations.
• Know your tax codes thoroughly for easy scoring.
• Solve full-length, timed mock tests to manage REG’s vast syllabus better.

Discipline CPA subjects (Choose one out of three)

Consider the three discipline topics as areas of specialisation. You have to pick the one that best aligns with your career goals.

1. Business Analysis and Reporting (BAR)

You’ve been working at an electronics company for a while. Sales have dropped over the last two quarters, and everyone is looking at you for answers. You use your BAR skills to analyse sales data, financial statements, product margins and operating costs. Your research will reveal the reasons. Maybe the company’s discount scheme was poorly managed and affected profits. Once you have figured it out, you can share your findings with company leaders.

The BAR section helps you apply financial knowledge to real-world business scenarios. It teaches you how to use number crunching for strategic decision-making. If you plan to specialise in corporate finance or management, this is your chosen CPA subject.

Topics covered:

Corporate finance

Cost accounting

Financial reporting

Financial statement analysis

Key skills:

Analytical reasoning

Strategic thinking

Decision making

Good communication

Prep tips for the exam:

• Master financial statement analysis by brushing up on key ratios (liquidity, profitability, solvency) and trend analysis. It is the main focus of BAR.
• Review cost and managerial accounting concepts.
• Many CPA review systems offer tools with task-based simulations mirroring business cases and strategic decisions. Use these to practice regularly.
• Work on solving multi-step problems under timed conditions to improve your speed.
• Interpretation is more important than calculations. You have to understand the story the numbers are trying to tell you.

2. Information Systems and Controls (ISC)

You just got hired at Tata Consultancy Services as an IT risks and controls specialist. The company has upgraded the enterprise financial reporting system (SAP), but discrepancies between transaction records and final financial reports are showing up. There are a few duplicate entries, and high-value transactions are incomplete. This is where you step in. You analyse the system’s updated configuration and check the automated controls. It turns out there is a logic bug in the update. Using your ISC expertise, you can make recommendations to fix the problem.

ISC is perfect CPA subject for candidates who want to play a key role in securing financial information in digital businesses. You learn how accounting integrates with tech systems, how data is processed and secured, and how to set up internal controls.

Topics covered:

IT risks and controls

System development & maintenance

Information systems and data governance

Audit and assurance of tech systems

Key skills:

Risk analysis

Cybersecurity awareness

Analytical thinking

Tech savviness

Prep tips for the exam:

• Get a solid grasp on core concepts such as IT governance, internal controls, data management and security principles.
• When studying, learn to apply the topics to real business systems.
• Practice analysing IT documentation, access logs, or internal audit findings for task-based simulations.
• Use apps like Quizlet for bite-sized reviews on IT processes, data flow and control types.

3. Tax Compliance and Planning (TCP)

You are a CPA working at Ernst & Young. Your US-based tech client has just opened operations in Bengaluru. You work with them to plan their tax strategy, ensure transfer pricing compliance, and align US tax obligations with Indian regulations to avoid double taxation.

The TCP discipline helps you develop proficiency in US federal taxation. The focus is on business and individual tax strategy, entity structure planning, and cross-border taxation.

Topics covered:

Tax planning

Entity taxation

Cross-border taxation

foreign tax credits

IRS procedures

Key skills:

Analytical thinking

Strategic decision-making

Risk assessment

Application of ethics

Understanding of international tax treaties and their implications

Prep tips for the exam:

• Ensure you have a strong foundation in US tax laws.
• Pay Special Attention to International Taxation, especially foreign tax credits, transfer pricing, and tax treaties.
• Practice with real-world studies to improve your application skills and critical thinking.
• Full-length, timed mock tests will improve your speed and accuracy in answering.

 

Also Read- How to Crack the CPA Exams in Your First Attempt: Proven Tips That Actually Work

Which discipline is the right one for you?

DISCIPLINE	WHO SHOULD TAKE THIS CPA SUBJECT?
Business Analysis and Reporting (BAR)	Candidates interested in corporate finance, analytics and data interpretation.
Information Systems and Controls (ISC)	Professionals who want to work in tech, systems auditing or cybersecurity.
Tax Compliance and Planning (TCP)	Future tax professionals and advisors.

Modifications in the CPA subjects and syllabus

1. Integration of data analytics and technology

Tech and data analytics concepts are now added to all CPA sections, reflecting the shift towards a more digital accounting world.

2. Removal of the BEC section (Business Environment and Concepts)

The unit BEC is replaced by the three disciplinary sections BAR, TCP and ISC.

3. Introduction of research task-based simulations (TBS)

The new research-based TBS questions test your ability to search through official accounting or tax standards to find the right answer. It reflects how you would work in the real world.

4. MS Excel is replaced with SpreadJS

SpreadJS (a spreadsheet tool) is now used in simulations. It is similar to MS Excel, but you should practice using it before the exams.

How to clear all four CPA subjects

Understand the exam format

Familiarise yourself with the structure of each section. They contain MCQs, task-based simulations (TBS) and research questions.

Create an efficient study plan.

CPA experts recommend 320 to 420 hours of study time or 80 to 120 hours per section. So, you should plan and create a realistic schedule you stick to.

Take mock tests regularly.

What do CPA students who cleared their exams on the first attempt have in common? They repeatedly took timed, full-length mock tests to help them prepare.

Focus on TBS

Don’t leave this to the last minute. Mastering the TBS part of your exam is vital for your overall score.

Select your exam dates strategically.

Space out your exams so you don’t get overwhelmed, but keep them within the 18-month window.

Enrol with a coaching institution

A good training partner like Proschool will guide your prep from start to finish. They help with all the above points and give students the advantage of learning on the Becker LMS platform.

Also Read- CPA Salary Guide: What You’ll Earn at Each Career Stage from Entry-Level to Senior Roles

Understand the CPA subjects better with Proschool

You’re probably wondering why you should enrol at Proschool. In a nutshell, the institution makes the whole complicated CPA process less overwhelming for you. They have a strong expert faculty who offer personalised support and engaging, interactive classroom sessions. The focus is real-world application, not just theory. The complex CPA concepts are broken down into easy-to-grasp lessons. That’s not all. Proschool’s counsellors also help during the eligibility procedure, ensuring you have all the credits you need to qualify. Below are a few more reasons that prove Proschool has your back.

• Proschool offers online and offline classes, making it more convenient for you.
• You can review all CPA subjects on the globally acclaimed Becker LMS platform.
• Proschool also helps students with completing the mandatory work experience.
• The institution recognises the importance of providing full-length mock tests, practice papers and other board-approved study materials.
• Once certified, students receive training in interview etiquette, resume building and soft skills development.
• Proschool’s placement portal offers students access to multiple job opportunities in the industry.

Conclusion

Don’t get intimidated by the CPA syllabus. Once you understand the CPA subjects, you’ll realise they are more manageable than they first seemed. All you need is the right guidance, total commitment and consistent preparation. You’ll soon get the hang of it and might even start enjoying the process of becoming a certified CPA.

Register for the CPA course today. Click here to connect with Proschool

FAQs

How long does it take to clear the four CPA exams?

While it depends entirely on your learning pace and time management, most students finish all four sections within 18 to 24 months.

What is the passing score for each section of the CPA exam?

You need 75 out of 99 marks to clear each section.

Is it possible to self-study for the CPA exams?

Yes, it is possible. But would you want to? The CPA sections are complex and vast. It requires a lot of discipline and focus, not to mention the right choice of study materials. Many candidates prefer enrolling in a structured course for extra support and guidance.

What happens if I fail a section?

You can retake the exam after 24 hours. Just remember, you have 18 months to clear all four exams. Otherwise, the tests you passed will expire, and you’ll have to sit for them again.

How long will it take me to study each CPA subject?

You should commit 80 to 120 hours per section to cover all the topics adequately.

How are the CPA exam questions scored?

MCQs are 50 per cent of the grade, TBS are 35 per cent, and written communication is 15 per cent (where applicable).

Has the CPA syllabus changed in 2024?

The syllabus is restructured to include three core sections and one discipline section.