CPA US Exam Discipline Section - BAR, ISC, and TCP NEW 2025

CPA US Exam Discipline Section - BAR, ISC, and TCP NEW 2025 udemy course free download

NEW 2025, CPA US Exam, Core Section, AUD, FAR, and REG, BAR, ISC, TCP, CA, Accounting, Taxation, Reporting

NEW 2025 CPA US Exam

The CPA exam is a substantial undertaking and the final step to becoming a certified public accountant (CPA).

Before taking the exam, aspiring CPAs must pass undergraduate and graduate-level classes in accounting, business law, and general studies. The exact courses and grades needed will vary between states. Many states require work experience as well.

Once those requirements have been met, the last step to becoming a CPA is taking and passing the Uniform CPA Examination.

Prior to 2024, the CPA Exam consisted of four sections that all candidates had to pass:

• Auditing and Attestation (AUD)

• Business Environment and Concepts (BEC)

• Financial Accounting and Reporting (FAR)

• Regulation (REG)

The current format includes these three Core exams:

• Auditing and Attestation (AUD)

• Financial Auditing and Reporting (FAR)

• Taxation and Regulation (REG)

Candidates must also pass one of three Discipline sections. Each one is centered on more specialized knowledge and skills gained in the Core sections:

• Business Analysis and Reporting (BAR)

• Information Systems and Controls (ISC)

• Tax Compliance and Planning (TCP)

CPA Exam Structure

The core and discipline sections are each four (4) hours long and have multiple-choice questions (MCQs) and task-based simulations (TBSs). Written communication (WC) questions are no longer included on the CPA Exam.

Most of the core and discipline sections have equal score weighting for MCQs and TBSs (50% for each). In ISC, however, the score weight is 60% for MCQs and 40% for TBSs.

Discipline section - Business Analytics and Reporting (BAR)

The Business Analysis and Reporting (BAR) CPA Exam is a newly introduced discipline section of the Uniform CPA Exam. It covers business combinations, accounting for derivatives and hedges, data analytics, employee benefit schemes, etc.

Area I: (40-50%) Business Analysis

• Current period/historical analysis, including the use of data.

• Prospective analysis, including the use of data

Area II: (35-45%) Technical Accounting and Reporting

• Indefinite-lived intangible assets, including goodwill

• Internally developed software

• Revenue recognition

• Stock compensation (share-based payments).

• Research and development costs

• Business combinations

• Consolidated financial statements

• Derivatives and hedge accounting

• Leases

• Public company reporting topics

• Financial statements of employee benefit plans

Area III: (10-20%) State and Local Governments

• Format and content of the financial section of the annual comprehensive financial report

• Deriving government-wide financial statements and reconciliation requirements

• Typical items and specific types of transactions and events: measurement, valuation, calculation andpresentation in governmental entity financial statements

Discipline section - Information Systems and Controls (ISC)

The Information Systems and Controls (ISC) discipline adds to the exam new material on the fusion of auditing and IT. ISC takes a deeper dive into new technologies and threats as well as into the controls needed for data-driven modern business.

Area I: (35-45%) Information Systems and Data Management

• Information systems

• Data management

Area II: (35-45%) Security, Confidentiality, and Privacy

• Regulations, standards, and frameworks

• Security

• Confidentiality and privacy

• Incident response

Area III: (15-25%) Considerations for System and Organization Controls (SOC) Engagements

• Considerations specific to planning and performing a SOC engagement

• Considerations specific to reporting on a SOC engagement

Discipline section - Tax Compliance and Planning (TCP)

The Tax Compliance & Planning (TCP) discipline is an extended version of the core REG section. It assesses applicants’ understanding of individual and business tax compliance as well as personal and business financial planning.

Area I: (30-40%) Tax Compliance and Planning for Individuals and Personal Financial Planning

• Individual compliance and tax planning considerations for gross income, adjusted gross income, taxable income and estimated taxes

• Compliance for passive activity and at-risk loss limitations (excluding tax credit implications)

• Gift taxation compliance and planning

• Personal financial planning for individuals

Area II: (30-40%) Entity Tax Compliance

• C corporations

• S corporations

• Partnerships

• Trusts

• Tax-exempt organizations

Area III: (10-20%) Entity Tax Planning

• Formation and liquidation of business entities

• Tax planning for C corporations

• Tax planning for S corporations

• Tax planning for partnerships

Area IV: (10-20%) Property Transactions (disposition of assets)

• Nontaxable disposition of assets

• Amount and character of gains and losses on asset disposition and netting process

• Related party transactions, including imputed interest