The regulation (REG) section of the CPA exam is just that—all about regulations. Overall, the section tests 60% income taxation-related topics and 40% business law topics.
ⅠSCRATCH PAPER USAGE
After the exam has begun, recall any taxation and business law items you might forget. Write them down, before you started on the exam. Jot down key concepts.
ⅡFEDERAL TAXATION: MULTIPLE-CHOICE QUESTIONS
Pay attention to major tax law changes. Check the IRS Web site (www.irs.gov) for announcements of new laws. In general, the best way to study income taxation topics is to skin the current year’s income tax forms and directions and work questions. Remember directly referring to the questions and then studying the answers not only helps candidates to learn the material more effectively and also helps to increase learning efficiency.
ⅢFEDERAL TAXATION: SIMULATIONS
What do candidates need to know to earn points on the simulations? Before you begin your studies of the income taxation area, take the USCPA sample REG exam as presented at www.cpa-exam.org.by learning the multiple-choice concepts, you also will be learning the concepts tested in many of the simulation tabs.
ⅣFEDERAL TAXATION: THE COMMUNICATIONS TAB
Avoid the use of bullet points, abbreviations, and lists. Use full sentences. Recognize the audience. Avoid the use of tax jargon by clearly explaining any tax phrases. Define the tax terms in the beginning of the memo. Candidates can earn as many as 10% of their total examination points in the communication area by staying on the topic and by writing well.
ⅤFEDERAL TAXATION: TAX SCHEDULE PREPARATION TAB
Testlests 4 and 5, the two simulation testlets, often require candidates to prepare tax schedules. Take a look at your own personal tax return. Ask to see the corporate tax return for the business where you work. Don’t forget to study corporate taxation topics as well as estate and gift taxation issues. Comprehensive review materials should include these areas.
ⅥFEDERAL TAXATION: THE RESEARCH TAB
Working the USCPA sample exam at www.cpa-exam.org is essential to candidate success. Don’t memorize code sections. No one has enough brainpower to do that. Trust your ability to read the question requirement to identify the proper search phrase. Save the search section of the simulation testlet for the last. Overall，don’t risk missing double-digit points by working overtime to solve a research question. Remember that the exam begins of with three teslets of multiple-choice questions that only test taxation topics but also business law topics.
ⅦBUSINESS LAW TOPICS
Learn law topics by doing the questions. The advantage here is that the simulation test only tax topics, not law topics. Don’t underestimate the area of ethics and professional and legal responsibilities. This area represents 15-20% of the total exam points. Avoid overpreparing for the contract area. Contract issues are tested, but they comprise only a small portion of the law points. Commercial paper and bankruptcy are tested. Learn when an instrument is negotiable.
In conclusion, it is your content knowledge that gives you the power to success.
Areas where candidates tend to receive scores are
·Law—understanding the uniform commercial code (UCC)
·Law—the Professional Code of Conduct, especially independence issues and auditor retention and use of work paper documentation
·Tax—the alternative minimum tax
·Tax—taxpayer preparer’s responsibilities
·Tax—estate and gift taxation
This is a list not all-inclusive. Do not take a chance. Study all the areas.
GoPro advice: Understand the USCPA Professional Code of Conduct. View the Code and take an USCPA ethics quiz at www.aicpa.org