CPA Exam Study Materials for Section IV: Regulation (REG)
Many students report that the fourth section of the CPA exam, Regulation (REG), is by far the most difficult to study for. While the information isn’t exceptionally difficult, the nuances of various tax regulations make for dull reading, and they are often difficult to retain. The best CPA exam study materials simplify the process of studying for the REG section by dividing review into topics that mirror the structure of the exam. These include the following subject areas.
Ethics, Professional Responsibilities and Federal Tax Procedures
The first area of the REG section is intended to take you through the foundation of the accounting profession’s ethical and professional responsibilities. Here, you will show your knowledge of the professional expectations of individuals practicing in this industry. This area covers the legal requirements of professional practice, such as state licensing regulations, and you will have to show that you understand the legal issues that could impact you as a CPA. Finally, expect to answer questions related to federal tax processes and procedures, such as disclosures and penalties.
A solid understanding of the legal implications of business transactions, including those related to agency, contracts, debtor-creditor relationships and business structure are critical to successful practice as a CPA. This area of the REG section validates that you have a comprehensive knowledge of these concepts.
Federal Taxation of Property Transactions
The third area of the REG section is focused on the detailed regulations that surround federal income taxation of property transactions. You will have to show your understanding of these concepts as well as a working knowledge of regulations that apply to federal estate and gift taxes.
Federal Taxation of Individuals
Many CPAs spend their entire careers working with individuals on federal taxation issues, and this area of the exam ensures you are up for the task if you choose this specialization. It covers federal taxation of individuals from both the tax preparation perspective as well as the tax planning perspective.
Federal Taxation of Entities
The last area of the REG section ensures you have the knowledge and skills to handle tax planning and tax preparation for all kinds of businesses. As you prepare for the CPA exam, ensure you are ready to discuss sole proprietorships, partnerships, limited liability companies (LLCs), C corporations, S corporations, joint ventures, trusts, estates and tax-exempt organizations.
Surgent CPA Review offers effective CPA exam study materials that are designed to maximize your time. Using Surgent’s unique tools, you will complete a quick review of sections you have already mastered, then focus on the areas that need extra attention.