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CPA Exam Preparation
University of Minnesota Duluth
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Abstract
This literature review covers the ways in which colleges lack appropriate preparation for
the Certified Public Accountant Exam. As a group, we constructed subcategories of; the history
of the CPA exam, requirements of the CPA, compared outcomes and university success or lack
thereof, and solutions to increase exam readiness among students. For each topic discussed there
are databases compiled to either support or disprove the discussion in each topic. We intend to
show how the research conducted relates to the issue that many accounting students face today.
In the topic of CPA history, the compiled sources state the importance of the CPA certification,
and the necessity of having certified individuals in the workplace. This leads to the topic of the
different requirement that are put on students who are taking the exam now. Compared outcomes
states how the changes to the CPA exam and the requirements now have affected the scores of
individuals that take the CPA, and how the different courses offered, or not offered, have
impacted the pass rates. This leads to the final topic in which scholars and professionals debate
how colleges should implement change within their academic system to help better prepare
accounting students who take the CPA, and improve the university pass rate.
Key words: CPA preparation, CPA exam, CPA college courses, history of CPA, and job
readiness, and skills in business.
Introduction: CPA Exam Preparation
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The Uniform Certified Public Accountant (CPA) Examination is designed to assess the
knowledge and skills entry-level accountants need to practice public accounting. The
examination was developed in 1917 by The American Institute of Certified Public Accountants
(AICPA). To be able to put “CPA” credential next to your name, you have to pass all four
sections of the examination to receive the licensure. CPA Dale Flesher, Ph.D. and professor of
accountancy at the School of Accountancy at the University of Mississippi, states that before the
AICPA, each state had its own exam that CPA candidates were required to take. By 1952, all
states started using the CPA exam administered by the AICPA (Granados, 2016).
Historically, the CPA exam has proven to be a very difficult test of accounting
knowledge, and graduates attempting it have had to study accordingly. This is shown by the
abysmal pass rate, especially among individuals attempting it for the first time. Sources have
shown that steps have been taken by professional accounting associations and colleges alike to
create better prepared students. Since the Sarbanes Oxley Act, accounting firms have needed
more CPA certified accountants, and the weakened flow of manpower due to the difficulty of the
exam has forced the accounting career field to be extremely overworked. Since making the test
easier would be counterproductive, and risk allowing under certified accountants into the
workplace, the only feasible option would be to put resources into figuring out why the CPA
exam has such a low pass rate, and implement changes that help graduates be better prepared.
In our exploration of this issue, certain abbreviations used in the accounting world will be
used. CPA refers to a person holding the Certified Public Accountant credential, and the
Certified Public Accountant test required to gain the certificate. Within the CPA exam, there are
four parts; Auditing & Attestation, Financial Accounting & Reporting, Regulation , Business
Environment & Concepts. These will be referred to as AUD, BEC, FAR, and REG. NASBA
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refers to the National Association of State Boards of Accountancy, and AICPA refers to the
American Institute of Certified Public Accountants, both of which are groups of experienced
accountants that set standards of accounting and provide guidelines to those in the career field.
Our group chose to explore the history of the CPA exam in hopes to uncover some
solutions that could be implemented by the University of Minnesota at Duluth. We are all
business students who have made an investment in our education in hopes of becoming as
qualified as possible for our prospective career fields, so we have a vested interest in how our
university prepares us to accomplish these tasks.
Research Methods
When researching university participation in CPA preparation programs, our group chose
