CPA Evaluation: Regulation – Wikibooks, open books for an open world

The Regulation part of the CPA Examination checks the information and understanding of the next subjects:

1. Ethics {and professional} duty
2. Enterprise legislation
3. Federal tax procedures and accounting points
4. Federal taxation of property transactions
5. Federal taxation-individuals
6. Federal taxation-entities

The define under describes the above subjects, lists the most important parts examined for every matter, exhibits the diploma to which every matter is examined, and gives the sources from which the check questions are derived:

I. Ethics, Skilled, and Authorized Obligations (15% — 19%).

Ethics, Skilled and Authorized Obligations checks the information and understanding of the authorized {and professional} tasks of a CPA’s enterprise transactions. Skilled ethics points relate to tax apply points and are based mostly on the AICPA Code of Skilled conduct, Treasury Division Round 230, and legal guidelines for tax practitioners.

A. Licensing and Disciplinary Methods.
1. Function of state boards of accountancy
2. Necessities of regulatory businesses.

B. Authorized Duties and Obligations.
1. Frequent legislation duties and legal responsibility to shoppers and third events.
2. Federal statutory legal responsibility
3. Privileged communications, confidentiality, and privateness acts.

II. Enterprise Regulation (17% — 21%)

The Enterprise Regulation part of the Examination checks the information and understanding of the authorized implications regarding accounting, auditing, and monetary reporting.

A. Company
1. Formation and termination
2. Authority of brokers and principals.
3. Duties and liabilities of brokers and principals.

B. Contracts
1. Formation
2. Efficiency
3. Third Celebration Assignments
4. Discharge, breach, and cures

C. Uniform Business Code
1. Gross sales Contracts
2. Negotiable Devices
3. Secured Transactions
4. Paperwork of title and title switch

D. Debtor-Creditor Relationships
1. Rights, duties, and liabilities of debtors, collectors, and guarantors.
2. Chapter and insolvency.

E. Authorities Regulation of Enterprise
1. Federal securities laws
2. Different federal legal guidelines and laws (antitrust, copyright, patents, money-laundering, labor, employment, and ERISA).

F. Enterprise Construction (Collection of a Enterprise Entity)
1. Benefits, disadvantages, implications, and constraints
2. Formation, operation, and termination
3. Monetary construction, capitalization, revenue and loss allocation, and distributions

III. Federal Tax Course of, Procedures, Accounting, and Planning (11% — 15%)

A. Federal Tax Legislative Course of

B. Federal Tax Procedures
1. Due dates and associated extensions of time.
2. Inner Income Service (IRS) audit and appeals course of
3. Judicial course of
4. Required disclosure of tax return place
5. Substantiation necessities
6. Penalties
7. Statute of Limitations

C. Accounting intervals

D. Accounting Strategies
1. Recognition of revenues and bills beneath money, accrual, or different permitted strategies.
2. Stock valuation strategies, together with uniform capitalization guidelines
3. Accounting for long-term contracts
4. Installment Gross sales

E. Tax Return Elections, Together with Federal Standing Elections, Various Remedy Elections, or Different Sorts of Elections Relevant to an Particular person or Entity’s Tax Return.

F. Tax Planning
1. Various remedies
2. Projection of tax penalties
3. Implications of various enterprise entities
4. Influence of proposed tax audit changes
5. Influence of estimated tax fee guidelines on planning
6. Function of taxes in decision-making

G. Influence of Multijurisdictional Tax Points on Federal Taxation (Together with Consideration of Native, State, and Multinational tax Points).

H. Tax Analysis and Communication
1. Authoritative hierarchy
2. Communications with or on behalf of shoppers

IV. Federal Taxation of Property Transactions (12% — 16%)
A. Sorts of Property
B. Foundation and Holding Intervals of Property
C. Price Restoration (Depreciation, Depletion, and Amortization)
D. Taxable and Nontaxable Gross sales and Exchanges
E. Quantity and Character of Good points and Losses, and Netting Course of
F. Associated Celebration Transactions
G. Property and Reward Taxation
1. Transfers topic to the reward tax
2. Annual exclusion and reward tax deductions
3. Willpower of taxable property
4. Marital deductions
5. Unified credit score

V. Federal Taxation of People (13% — 19%)

A. Gross Earnings
1. Inclusions and exclusions
2. Characterization of revenue

B. Reporting of Gadgets from Cross-By way of Entities

C. Changes and deductions to Arrive at Taxable Earnings

D. Passive Exercise Losses

E. Loss Limitations

F. Taxation of Retirement Plan Advantages

G. Submitting Standing and Exemptions

H. Tax Computations and Credit

I. Various Minimal Tax

VI. Federal Taxation of Entities (18% — 24%)

A. Similarities and Distinctions in Tax Remedy Amongst Enterprise Entities

1. Formation
2. Operation
3. Distributions
4. Liquidation

B. Variations Between Tax and Monetary Accounting

1. Reconciliation of e-book revenue to taxable revenue.
2. Disclosures beneath Schedule M-3

C. C Firms

1. Willpower of taxable revenue/loss
2. Tax computations and credit, together with various minimal tax
3. Web working loss
4. Entity/proprietor transactions, together with contributions and distributions
5. Earnings and income
6. Consolidated returns

D. S Firms

1. Eligibility and election
2. Willpower of peculiar revenue/loss and individually said objects
3. Foundation of shareholder’s curiosity
4. Entity/proprietor transactions, together with contributions and distributions
5. Constructed-in positive aspects tax

E. Partnerships

1. Willpower of peculiar revenue/loss and individually said objects
2. Foundation of associate’s member’s curiosity and foundation of property contributed to the partnership.
3. Partnership and associate elections
4. Transactions between a associate and the partnership
5. Remedy of partnership liabilities
6. Distribution of partnership liabilities
7. Possession modifications and liquidation and termination of partnership.

F. Trusts and Estates

1. Sorts of trusts
2. Earnings and deductions
3. Willpower of beneficiary’s share of taxable revenue

G. Tax Exempt Organizations

1. Sorts of organizations
2. Acquiring and sustaining tax-exempt standing
3. Unrelated enterprise revenue


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