All about CPA-REG exam
Sat Jul 08 2023
CPA-REG-Regulation-Exam The CPA-REG (Regulation) exam tests the understanding level of the candidate at legal matters in a business context and taxation at a federal level. The REG CPA exam covers the topics of business law and federal taxation.
Let’s go through the complete details of the CPA regulation exam structure.
CPA-REG Exam Topic Areas:
The REG section is a 4-hour long exam. It includes below topics:
| Area of Content | Allocation |
|---|---|
| Ethics, Professional Responsibilities and Federal Tax Procedures | 10-20% |
| Business Law | 15-25% |
| Federal Taxation of Property Transactions | 5-15% |
| Federal Taxation of Individuals | 22-32% |
| Federal Taxation of Entities | 23-33% |
Ethics, Professional responsibilities and Federal Tax Procedures: These topics cover professional liability, independence, and professional conduct.
Business Law: It covers debt transactions, contracts, and commercial regulations. Besides, some concepts, like business structure and Uniform Commercial Code (UCC).
Federal Taxation of Property Transaction: The differences between the taxation of an individual and the taxation of a business will be tested with a few subjects like gross income inclusion and taxation of transactions involving assets and property.
Federal Taxation of Individual: It includes all the income tax topics such as exemptions, deductions, profits, losses, carry backs, carry forwards, and everything related to the 1040 form and its structure.
Federal taxation of Entity: It covers all the legal entities, and the methods they are taxed like C.Corp, S.Corp, and partnerships. It can be drawn from IRC local state boards, and other regulatory agencies.
CPA-REG Exam Structure and Format:
The CPA Regulation exam contains five different testlets. The first two testlets consist of 38 MCQs each. Then there will be a 15-minute break. After you come back from break, there will be three more testlets consisting of task-based simulations.
| Question Type | No of Questions |
|---|---|
| Multiple-Choice Questions (MCQs) | 72 (36+36) |
| Task-Based Simulations | 8 (2+3+3) |
Regulation Section Format:
| Testlets | No of Questions |
|---|---|
| 1 | 36 MCQs (Multiple-Choice Questions) |
| 2 | 36 MCQs (Multiple-Choice Questions) |
| 3 | 2 TBS (Task-Based Simulations) |
| 4 | 3 TBS (Task-Based Simulations) |
| 5 | 3 TBS (Task-Based Simulations) |
Conclusion:
The REG section of the
CPA exam dives deep into taxation-related topics, making it essential to
thoroughly study and consistently review each concept. This article provides a
complete overview of the REG section—covering key details, topics, and exam
format—to support your preparation journey. We hope this guide helps you tackle
the REG exam with confidence. If you have any further questions, feel free to
comment below!
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