The Regulation (REG) section of the Uniform CPA Examination (the Exam) tests the knowledge and skills that a newly licensed CPA must demonstrate with respect to:
– U.S. federal taxation
– U.S. ethics and professional responsibilities related to tax practice
– U.S. business law
The REG section is designed to have the following exam time and question types on the US CPA Exam:
|Section||Section Time||Multiple-choice questions (MCQs)||Task-based simulations (TBSs)||Written Communication|
The scoring weight of multiple-choice questions (MCQs), task-based simulations (TBSs) and written communication for REG section on the US CPA Exam is as follows:
|Section||Multiple-choice questions (MCQs)||Task-based simulations (TBSs)||Written Communication|
The following table summarizes the content areas and the allocation of content tested in the REG section of the Exam:
|Area I||Ethics, Professional Responsibilities and Federal Tax Procedures||10–20%|
|Area II||Business Law||10–20%|
|Area III||Federal Taxation of Property Transactions||12–22%|
|Area IV||Federal Taxation of Individuals||15-25%|
|Area V||Federal Taxation of Entities||28-38%|
Here are some tips you must keep in mind while preparing for the REG exam:
1. Spend more time practicing questions, than reading/ learning theory. The MCQs are generally more practical in nature, than theory.
2. Most people find out why an answer is not right. However, always identify the cause of your correct answer, as well. Sometimes you may get the answer right by chance. Ensure the logic applied by you is sound. Reading the answer explanation is highly important.
3. Task-Based Simulations (TBSs) should be attempted after you have a stronghold in the MCQ section, since simulations do not always conform to chapter boundaries and can test concepts from various disciplines. However, if you are good with the entire MCQs section, you will not find the TBSs as difficult, they will feel like long-form MCQs.
4. The REG section of the CPA exam requires a higher attention to detail in comparison to the other sections. One would have to digest a number of rules and regulations to pass this section, so investing the time needed to remember the concepts serves as an important tip.
Read more about the US CPA related articles in our blog section: https://blog.mileseducation.com/cpa/
Read more about FAR: https://blog.mileseducation.com/cpa/financial-accounting-and-reporting-far/
Read more about BEC: https://blog.mileseducation.com/cpa/business-environment-and-concepts-bec/
Read more about AUD: https://blog.mileseducation.com/cpa/auditing-and-attestation-aud-format-and-tips/