REG CPA Exam Section

CPA Exam REG Section

The CPA Exam contains four sections, each of which covers significant topics within particular areas of accounting. Of the four sections, Regulation is the one devoted to the areas of federal taxation, business law, and business ethics. The majority of the REG CPA Exam section addresses federal taxation, so it can be one of the easier sections for candidates with tax experience as well as one of the most difficult sections for those without. However, every candidate can have an advantage over REG by learning more about this CPA Exam section.

REG CPA Exam Content

Preparing for and passing the REG CPA Exam section requires a knowledge and understanding of ethics, taxation, business law, and professional and legal responsibilities. The REG CPA Exam section addresses these accounting topics in five content areas.

REG CPA Exam Content



Ethics, Professional Responsibilities and Federal Tax Procedures


Business Law


Federal Taxation of Property Transactions


Federal Taxation of Individuals


Federal Taxation of Entities


As the CPA Exam tests candidates’ higher order skills, the REG CPA Exam section dedicates 25-35% of its content to evaluating remembering and understanding, 35-35% to application, and 25-35% to analysis.

REG CPA Exam Format and Structure

The format of the REG CPA Exam section features 5 testlets. Two of these testlets contain 38 multiple-choice questions (MCQs) each (32 operational and 6 pretest) for a total of 76 MCQs. The remaining 3 testlets present 8 total Task-Based Simulations (TBSs) (7 operational and 1 pretest). The first TBS testlet has two TBSs and the second and third each have three TBSs.

Both the MCQ and TBS testlets will contribute 50% of your total REG CPA Exam section score.

REG CPA Exam Testing Process

As with the other CPA Exam sections, total testing time for REG is four hours.

When you begin the REG MCQ testlets, the difficulty setting of the first testlet will default to medium, and your performance on that testlet will determine the difficulty setting of the next one. If you do well, the exam will give you more difficult questions in the next testlet. However, if you struggle with the medium difficulty questions, you will receive another MCQ testlet of medium difficulty. The performance-based determination of the difficulty of the MCQ testlets will continue until you complete all the MCQ testlets for REG. The difficulty levels assigned to each testlet are based on the average difficulty of the MCQs. Although you will receive more credit for correctly answering a more difficult question than a less difficult one, you will not be penalized for receiving harder questions, nor will you have an advantage for receiving easier ones.

The difficulty levels of the REG TBSs are not based on your performance. The TBSs are pre-selected, so their difficulty levels will not change.

REG CPA Exam Grading Process

Just like they do for the other exam sections, computers grade the REG MCQ and TBS testlets, and you must score a 75 or higher to pass REG.

Passing the REG CPA Exam Section

For the past several years, REG CPA Exam section pass rates have hovered just under 50%, giving REG the second highest pass rates of all the exam sections and encouragement to exam candidates. You can find another source of encouragement for REG in the CPA Exam mentors at Gleim CPA. Our exam mentors, called Personal Counselors, provide all the REG CPA Exam tips and advice you need, and you can contact them anytime during your exam journey when you study with Gleim CPA Review. Access to Personal Counselors is just one of the standard features of our Premium review course. Learn more about Gleim CPA Review today so you don’t have to take on the CPA Exam alone!