CPA Exam Cheat Sheet.
The CPA Exam numbers, rules and traps that decide questions, on one page. Review them here, then download the free PDF for offline study.
Download the PDFFull write-up
the complete guide, in proseEvery figure below comes from the 2026 Uniform CPA Examination Blueprints, the AU-C sections in force, or NASBA's UAA Model Rule 5-7.
Exam structure: four sections, 16 hours
Three Core sections plus one Discipline, each 4 hours.
| Section | Role | MCQs | TBSs | MCQ / TBS weight |
|---|---|---|---|---|
AUD — Auditing and Attestation | Core | 78 | 7 | 50% / 50% |
FAR — Financial Accounting and Reporting | Core | 50 | 7 | 50% / 50% |
REG — Taxation and Regulation | Core | 72 | 8 | 50% / 50% |
BAR — Business Analysis and Reporting | Discipline | 50 | 7 | 50% / 50% |
ISC — Information Systems and Controls | Discipline | 82 | 6 | 60% / 40% |
TCP — Tax Compliance and Planning | Discipline | 68 | 7 | 50% / 50% |
Testlet layout
Five testlets: two MCQ blocks, then three TBS blocks.
| Section | Testlet 1 (MCQ) | Testlet 2 (MCQ) | Testlet 3 (TBS) | Testlet 4 (TBS) | Testlet 5 (TBS) |
|---|---|---|---|---|---|
AUD | 39 | 39 | 2 | 3 | 2 |
FAR | 25 | 25 | 2 | 3 | 2 |
REG | 36 | 36 | 2 | 3 | 3 |
BAR | 25 | 25 | 2 | 3 | 2 |
ISC | 41 | 41 | 1 | 3 | 2 |
TCP | 34 | 34 | 2 | 3 | 2 |
The break rule that costs people time: the clock only stops for the standardized 15-minute break after testlet 3. Breaks after testlets 1, 2 and 4 run on your own clock.
Content-area weights (2026 blueprints)
| Section | Area | Allocation |
|---|---|---|
AUD | I — Ethics, Professional Responsibilities and General Principles | 15–25% |
| II — Assessing Risk and Developing a Planned Response | 25–35% | |
| III — Performing Further Procedures and Obtaining Evidence | 30–40% | |
| IV — Forming Conclusions and Reporting | 10–20% | |
FAR | I — Financial Reporting | 30–40% |
| II — Select Balance Sheet Accounts | 30–40% | |
| III — Select Transactions | 25–35% | |
REG | I — Ethics, Professional Responsibilities and Federal Tax Procedures | 10–20% |
| II — Business Law | 15–25% | |
| III — Federal Taxation of Property Transactions | 5–15% | |
| IV — Federal Taxation of Individuals | 22–32% | |
| V — Federal Taxation of Entities (including tax preparation) | 23–33% | |
BAR | I — Business Analysis | 40–50% |
| II — Technical Accounting and Reporting | 35–45% | |
| III — State and Local Governments | 10–20% | |
ISC | I — Information Systems and Data Management | 35–45% |
| II — Security, Confidentiality and Privacy | 35–45% | |
| III — Considerations for SOC Engagements | 15–25% | |
TCP | I — Tax Compliance and Planning for Individuals and Personal Financial Planning | 30–40% |
| II — Entity Tax Compliance | 30–40% | |
| III — Entity Tax Planning | 10–20% | |
| IV — Property Transactions (disposition of assets) | 10–20% |
Scoring, credit window and score release
| Item | Official rule |
|---|---|
| Score scale | 0–99. Not a percentage correct. |
| Passing score | 75 on every section. |
| Curve | None. Scaling reflects question difficulty, not cohort performance. |
| Credit window | 30 months (UAA Model Rule 5-7), running from the passing score's release date — not the date you sat. |
| Window end | Closes when you sit for the final section passed, whenever the score lands. |
| Rolling expiry | Miss it and the first credit drops; a new window starts from the second score's release. Stop testing 30 months and all credit goes. |
| Adoption | Model Rules are recommendations — confirm your Board adopted them. |
| Core release | Continuous testing; roughly 2 weeks after AICPA receives your Prometric file. |
| Discipline release | First month of each quarter only; scores target roughly six weeks after the window closes. All dates can move. |
| New pronouncements | A&A changes are testable in the later of the first quarter after the earliest mandatory effective date or six months after issuance; IRC changes six months after the later of effective or enactment. |
FAR formula sheet
FAR assumes a for-profit entity under U.S. GAAP unless stated — governmental and not-for-profit questions label themselves.
| Concept | Formula |
|---|---|
| Accounting equation | Assets = Liabilities + Equity |
| Expanded | A = L + Contributed capital + Beginning RE + Revenues − Expenses − Dividends |
| Rollforward | Beginning + Additions − Reductions = Ending |
| Cost of goods sold | Beginning inventory + Purchases − Ending inventory |
Inventory: which write-down rule applies
ASU 2015-11 split this by costing method — the split is the exam point.
| Costing method | Measurement | Mechanics |
|---|---|---|
FIFO, Average cost | Lower of cost and net realizable value | NRV = Selling price − costs of completion, disposal and transportation |
LIFO, Retail inventory method | Lower of cost or market (unchanged) | Market = replacement cost, ceiling = NRV, floor = NRV − normal profit margin |
Depreciation
| Method | Periodic charge |
|---|---|
| Straight-line | (Cost − Salvage) ÷ Useful life |
| Units of production | (Cost − Salvage) × (Units this period ÷ Total units) |
| Double-declining balance | Carrying amount × (2 ÷ Useful life) — ignores salvage until the floor |
| Sum-of-the-years'-digits | (Cost − Salvage) × (Remaining life ÷ SYD), where SYD = n(n+1) ÷ 2 |
| Gain/loss on disposal | Proceeds − Carrying amount |
Bonds — effective interest method
Interest expense = Carrying amount × Effective (market) rateCash interest = Face × Stated rate;Amortization = Interest expense − Cash interest- Discount (stated < market): expense exceeds cash, carrying amount climbs toward face.
- Premium (stated > market): expense below cash, carrying amount falls toward face.
- Issuance costs reduce carrying amount and raise the effective rate.
Earnings per share
Basic EPS = (Net income − Preferred dividends) ÷ Weighted-average common shares- Options — treasury stock method:
Incremental shares = Shares issuable − (Proceeds ÷ Average market price). Antidilutive when exercise price exceeds that average. - Convertible debt — if-converted: add back after-tax interest to the numerator, shares to the denominator.
- Convertible preferred — if-converted: drop the preferred dividend, add conversion shares.
Leases — lessee only in FAR
Initial recognition is identical either way: ROU asset = Lease liability = PV of lease payments. It is a finance lease if any ASC 842-10-25-2 criterion is met:
- Ownership transfers by end of the lease term.
- Purchase option the lessee is reasonably certain to exercise.
- Term is a major part of the asset's remaining economic life.
- PV of payments plus lessee-guaranteed residual is substantially all of fair value.
- Asset is so specialized it has no alternative use to the lessor at term end.
None met → operating: one straight-line cost. Finance: interest plus amortization, separately.
Consolidation eliminations
Goodwill = (Consideration transferred + FV of NCI + FV of previously held interest) − FV of identifiable net assets acquired- Eliminate the parent's investment against subsidiary equity; NCI at acquisition-date fair value.
- Eliminate intercompany receivables/payables and sales against COGS.
- Defer unrealized profit in ending inventory until sold outside the group.
FAR also names ratios to calculate: gross margin, ROA, ROE, current, quick, inventory turnover, DPO, debt-to-equity, times interest earned, EBITDA, P/E, asset turnover.
REG
Before you memorize any dollar figure: the REG and TCP section assumptions state candidates "will not be tested on their knowledge of specific tax rate percentages, amounts or limitations that are indexed to inflation." Learn the structure, not the thresholds. New for 2026: wages and compensation exclude overtime and tips unless stated.
Individual tax formula (Form 1040 order)
| Step | Computation | Line |
|---|---|---|
| Total income | Wages, interest, dividends, capital gains, retirement, Schedule 1 | 9 |
| Less: adjustments | Above-the-line deductions, Schedule 1 | 10 |
| = Adjusted gross income | Drives most phase-outs | 11a |
| Less: standard or itemized | Greater of the two (Schedule A) | 12e |
| Less: QBI deduction | Form 8995 / 8995-A | 13a |
| Less: additional deductions | Schedule 1-A | 13b |
| = Taxable income | Floors at zero | 15 |
| Tax, then credits | Nonrefundable before refundable | 16+ |
Loss limits tested: capital loss netting and carryforward; ordinary business loss for a materially participating owner with sufficient basis; losses disallowed from hobbies, wash sales and personal-use assets.
Entity comparison
| C corporation | S corporation | Partnership | LLC | |
|---|---|---|---|---|
| Return | Form 1120 | Form 1120S | Form 1065 | Per election |
| Level of tax | Entity-level; distributions taxed again | Pass-through | Pass-through | Per election |
| Income reporting | Taxable income; book-tax differences reconciled | Ordinary business income + separately stated items | Same, guaranteed payments separate | Per election |
| Owner basis | Cost of stock | Stock basis; entity debt does not add basis (shareholder loans give separate debt basis) | Includes the partner's share of liabilities — liability changes move basis | Per election |
| Directly tested | Taxable income, nexus concepts | Eligible shareholders, election | Separately stated items, partner basis | Classification options |
Property transactions
REG owns basis and cost recovery; dispositions are TCP.
| Topic | Rule | Section |
|---|---|---|
| Purchased asset | Cost plus amounts to place in service | REG |
| Gift | Carryover basis; dual basis if FMV at gift is below donor's basis | REG |
| Inheritance | FMV at death (or alternate valuation date) | REG |
| Personal → business | Lesser of adjusted basis or FMV at conversion | REG |
| Wash sale | Loss disallowed; adds to replacement stock basis | REG |
| Cost recovery | MACRS period and convention; bonus and §179 eligibility | REG |
| Realized gain | Amount realized − Adjusted basis; amount realized = cash + FMV received + liabilities relieved − selling costs | TCP |
§1031 | Lesser of realized gain or boot received is recognized; the rest defers into the new basis | TCP |
§1231 | Net gain → long-term capital gain; net loss → ordinary loss | TCP |
§1245 | Ordinary recapture of the lesser of depreciation taken or realized gain | TCP |
§1250 | Unrecaptured §1250 gain on realty is computed separately | TCP |
§1244 | Ordinary loss to a statutory limit, capital beyond | TCP |
AUD
Opinion types (AU-C 705)
Two questions decide it: misstatement or scope limitation, pervasive or not.
| Nature of the matter | Material but not pervasive | Material and pervasive |
|---|---|---|
| Financial statements are materially misstated | Qualified | Adverse |
| Unable to obtain sufficient appropriate audit evidence | Qualified | Disclaimer of opinion |
| Neither applies | Unmodified (nonissuer) / unqualified (issuer) | |
Pervasive (AU-C 705.06): effects not confined to specific elements, accounts or items; or, if confined, a substantial proportion of the statements; or, for disclosures, fundamental to users' understanding. Emphasis-of-matter and other-matter paragraphs never modify the opinion.
Assertions (AU-C 315, as amended by SAS 145)
The current standard uses two categories, each covering related disclosures. The old three-category "presentation and disclosure" bucket is gone — presentation is now an assertion within each.
| Transactions and events, and related disclosures | Account balances, and related disclosures |
|---|---|
| Occurrence | Existence |
| Completeness | Rights and obligations |
| Accuracy | Completeness |
| Cutoff | Accuracy, valuation and allocation |
| Classification | Classification |
| Presentation | Presentation |
Evidence hierarchy (AU-C 500)
- External beats internal — third-party information is less susceptible to management bias.
- Direct beats indirect — observing a control beats inquiring about it.
- Documentary beats oral — a contemporaneous record beats a later verbal account.
- Internal evidence gains reliability when related controls are tested and effective.
- Reliability attributes:
accuracy,completeness,authenticity,susceptibility to management bias.
Procedures: inspection, observation, external confirmation, recalculation, reperformance, analytical procedures, inquiry. Inquiry alone never suffices.
Where topics actually live
CPA Evolution moved these — studying them under the wrong section is wasted time:
| Topic | Tested in | Not in |
|---|---|---|
| Lessor accounting | BAR | FAR |
| Business combinations, advanced consolidation, foreign currency | BAR | FAR |
| Basic and diluted EPS | FAR | BAR |
| Derivatives, stock compensation, R&D | BAR | FAR |
| SOC 1 / SOC 2 engagements | ISC Area III | — |
| Employer defined-benefit pension expense | Not a blueprint topic anywhere — pensions appear only as employee benefit plan statements (BAR) and the governmental net pension liability. | |
Frequently asked questions
What deserves the final pre-exam review?
The two most confusable tables: AUD's opinion grid (qualified versus adverse versus disclaimer, by misstatement-or-scope and material-or-pervasive) and FAR's ownership ladder (fair value below 20%, equity method 20-50%, consolidation above 50%). Add REG's penalty tiers (20% accuracy, 75% fraud) and the 1933-versus-1934 Act split, and you have covered the highest-frequency confusion points.
Is 75 the same as answering 75 percent correctly?
No — and the AICPA says so explicitly. Scores are reported on a 0-99 scale as a weighted combination of scaled scores that accounts for question difficulty; the reported number is neither a percentage correct nor a curve against other candidates. Chasing a raw-percentage target in practice is fine as a habit, but the real exam's scaling makes difficult-question performance count for more.
What logistics should I confirm before scheduling?
Three things from your own jurisdiction: that you have been declared eligible (required before applying for any section), your board's education and experience requirements, and its current conditional-credit window for passed sections — boards have adjusted these windows recently, so confirm the current policy from your board directly rather than trusting any fixed number in prep materials.
Sources
- 1.CPA Exam scoring and pass rates — AICPA & CIMA — AICPA (accessed Aug 7, 2026)
- 2.CPA Exam — AICPA & CIMA — AICPA (accessed Aug 7, 2026)
- 3.CPA Exam — NASBA — National Association of State Boards of Accountancy (NASBA) (accessed Aug 7, 2026)
Official sources
Primary documents used to verify the exam details shown on this page.
- CPA Exam — AICPA & CIMAAICPAaicpa-cima.com
- CPA Exam scoring and pass rates — AICPA & CIMAAICPAaicpa-cima.com
- CPA Exam — NASBANational Association of State Boards of Accountancy (NASBA)nasba.org
- Model Rule 5-7: the 18 to 30 shiftNASBAnasba.org
- CPA exam blueprintsAICPAaicpa-cima.com
- CPA exam score releaseAICPAaicpa-cima.com
Last verified against the official exam content outline: