REG CPA Exam

Regulation CPA Exam SectionThe REG (Regulation) section of the CPA exam tests your knowledge on business law, business ethics, and federal taxation. It will have some significant changes starting in April of 2017. The REG exam is increasing the multiple choice questions from 72 to 76 and weighting them at 50% instead of 60%.

The remaining 50% comes from 8-9 Task-Based Simulations instead of 6, otherwise known as the SIMS, which require you to generate answers on your own rather than choose from a list of possible choices. You are now given 4 hours to complete the exam, instead of 3 but still need to get an overall score of 75% or higher to pass.

 REG Exam Format

Business Law

  • 17% to 21% of the exam
  • Examples include Uniform Commercial Code and concepts on Debtor-Creditor Relationships, Agency, Contracts and Government Regulation

Ethics & Professional and Legal Responsibilities

  • 15% to 19% of the exam
  • Examples include concepts regarding Independence and Due Care as well as Liability and Legal Responsibility, and Code of Conduct

Federal Taxation on Entities

  • 18% to 24% of the exam
  • Examples include Tax Reporting with regards to the 3 different types of Legal Trusts and Entities

Federal Taxation on Individuals

  • 13% to 19% of the exam
  • Examples include Adjustments and Deductions, Tax Computations, Gross Income Inclusion and Exclusions, Exemptions and Alternative Minimum Tax (AMT)

Federal Taxation on Property

  • 12% to 16% of the exam
  • Examples include Related Tax Implications and Types of Assets

Accounting and Federal Tax Procedures

  • 11% to 15%
  • Examples include Percentage of Completion, Installment Sales, Cash versus Accrual Accounting, Inventory Methods and Completed Contracts

 

Other CPA Exam Sections

BEC CPA Exam

FAR CPA Exam

Audit CPA Exam

Check out the AICPA webpage to learn more about the material covered in all 4 parts of the CPA exam.