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Comparison of Old and New Charts of Content Areas
Old (O) and New (N)
Roman numerals are not used; instead, Arabic (regular) numbers are used.OLD Content Areas
O1: Ethics, Professional, and Legal Responsibilities
15%-19%O2: Business Law
17%-21%O3: Federal Tax Process, Procedures, Accounting, and Planning
11%-15%O4: Federal Taxation of Property Transactions
12%-16%O5: Federal Taxation of Individuals
13%-19%O6: Federal Taxation of Entities
18%-24%NEW Content Areas
N1: Ethics, Professional Responsibilities, and Federal Tax Procedures
10%-20%N2: Business Law
10%-20%N3: Federal Taxation of Property Transactions
12%-22%N4: Federal Taxation of Individuals
15%-25%N5: Federal Taxation of Entities
28%-38%OBSERVATIONS
REG has reduced its number of areas from 6 to 5.
O1 is N1 and O2 is N2.
O3 moves to several new areas: N1 for Federal Tax Process (judicial but not legislative) and Procedures; N3 (a little), N4, and N5 for Federal Tax Accounting and Planning.
O4 is N3, O5 is N4, and O6 is N5.
N1 and N2 decrease their percentages.
N3, N4, and N5 increase their percentages.N5 has the highest percentage of contents that candidates will see on their tests, even though it is in the minimum because its minimum (28%) is higher than all other new areas’ maximums (20% for N1 and N2, 22% for N3, and 25% for N4).
Non-CPAs usually can do individual tax returns relatively easily with just limited tax knowledge, so CPAs can do business or more advanced tax returns more often; therefore, N5 has a higher percentage than N4.In the Exposure Draft, these percentages were planned differently: N2: 5%-15%; N3: 15%-25%; N5: 30%-40%. The other new areas percentages in REG and all new areas in AUD, BEC, and FAR are as planned.
Now, N2 is covered more than previously planned because the SEC and business structure are important groups for the new CPAs to study for. N3 and N5 has toned down a little from planned because these small decreases cause a small increase in N2 from planned.Each of the new content areas has a 10% variance (10%-20%), just like the skill level percentages. Like FAR, the percentages widen from 4% (O1, O2, O3, and O4) or 6% (O5 and O6).
NUMBER of Areas, Groups, Topics, and Tasks for Old and New Outlines
Areas: 6 for old; 5 for new
Groups: 40 for old; 28 for new
Topics: 85 for old; 50 for new
NOTE: A group without a topic does not count as a topic itself.Tasks: 185 for only new because the old outlines did not show the tasks within each group or topic
Since the CPA exam is in the new version, the number of groups and topics for each area of the old outlines are not shown below.
NUMBER of Groups, Topics, and Tasks for each Area in the New Version
N1: 4 Groups, 8 Topics, 20 Tasks
N2: 5 Groups, 12 Topics, 35 Tasks
N3: 3 Groups, 7 Topics, 32 Tasks
N4: 8 Groups, 0 Topics, 22 Tasks
N5: 8 Groups, 23 Topics, 76 Tasks
TOTAL: 28 Groups, 50 Topics, 185 TasksNUMBER of Tasks by Skill Levels for each Area in the New Version
N1
Remembering and Understanding: 11
Application: 9
Analysis: 0N2
Remembering and Understanding: 18
Application: 17
Analysis: 0N3
Remembering and Understanding: 8
Application: 19
Analysis: 5N4
Remembering and Understanding: 5
Application: 12
Analysis: 5N5
Remembering and Understanding: 20
Application: 40
Analysis: 16TOTAL
Remembering and Understanding: 62
Application: 97
Analysis: 26(R&U stands for Remembering and Understanding)
N1 and N2 have Application as the highest skill level because these are non-tax and non-calculating areas. Additionally, these areas have similar importance on R&U and Application, so new REG has 76 MCQs, more than any other sections in the new version and in old REG (72 MCQs previously).
N3, N4, and N5 have Analysis as the highest skill level because taxation involves extensive analyses and complex calculations. Also, these areas place less emphasis on R&U and more on Application (and Analysis) because new CPAs are expected to prepare tax returns for their clients more oftentimes than understanding the tax codes.
Best of Luck for the CPA candidates taking the new version soon.
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