CPFO-Accounting-and-Financial-Reporting Exam Information and Outline
CPFO: Accounting and Financial Reporting
CPFO-Accounting-and-Financial-Reporting Exam Syllabus & Study Guide
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The information below reflects the latest 2026 course contents as defined by GFOA. We provide this detailed breakdown to help you align your preparation with the actual exam format, ensuring there are no surprises on test day. Use this outline as a checklist to track your progress as you move through our practice question banks.
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Exam Name: Certified Public Finance Officer (CPFO): Accounting and Financial Reporting
Exam Administered by: Government Finance Officers Association (GFOA)
Number of Questions: 100 multiple-choice questions
Question Format: Each question has a stem with four possible answers; only one answer is correct or best. Each question is worth one point.
Time Allotted: Typically- the full CPFO exams allow up to 3.5 hours- but specific timing for the Accounting and Financial Reporting exam is not explicitly stated; candidates are expected to complete within the allotted exam session time.
Passing Score: Candidates must correctly answer at least 80% of the questions to pass the exam.
Accounting: 30%
Auditing: 25%
Financial Reporting: 25%
Interpretations and Analysis of Financial Statements: 10%
Internal Controls: 10%
1. Accounting
- Fund Accounting:
- Structure and use of governmental- proprietary- and fiduciary funds.
- Accounting for general funds- special revenue funds- capital projects funds- debt service funds- enterprise funds- internal service funds- and trust/agency funds.
- Modified accrual and accrual basis of accounting.
- GASB Standards:
- Application of GASB Statements and Interpretations (e.g.- GASB 34- GASB 68- GASB 87).
- Accounting for pensions- other post-employment benefits (OPEB)- and leases.
- Recognition of deferred inflows and outflows of resources.
- Budgetary Accounting:
- Integration of budgets into accounting systems.
- Encumbrance accounting and its impact on financial records.
- Budgetary control and reporting.
- Revenue and Expenditure Recognition:
- Criteria for recognizing revenues and expenditures under modified accrual accounting.
- Accounting for grants- intergovernmental revenues- and tax revenues.
- Treatment of non-exchange transactions (e.g.- grants- donations).
- Capital Assets and Long-Term Liabilities:
- Accounting for general property- plant- and equipment (PP&E).
- Depreciation and impairment of capital assets.
- Recording long-term debt- including bonds and leases.
- Journal Entries and Ledger Reconciliation:
- Preparation of journal entries for governmental transactions.
- Reconciling general ledger accounts to subsidiary ledgers.
- Adjusting entries for accruals- deferrals- and reclassifications.
- Fund Balance (Nonspendable- Restricted- Committed- Assigned- Unassigned)
- Governmental Accounting Standards Board (GASB)
- Modified Accrual Basis
- Full Accrual Basis
- Encumbrances
- Deferred Inflows/Outflows of Resources
- Net Position (Net Investment in Capital Assets- Restricted- Unrestricted)
- Capital Assets
- Long-Term Liabilities
- Non-Exchange Transactions
- Interfund Transfers
- Chart of Accounts
2. Auditing
- Governmental Auditing Standards:
- Application of Generally Accepted Government Auditing Standards (GAGAS- or Yellow Book).
- Differences between financial audits- performance audits- and attestation engagements.
- Compliance Auditing:
- Auditing compliance with federal and state regulations (e.g.- Uniform Guidance for federal grants).
- Single Audit Act requirements for entities receiving federal funds.
- Testing compliance with laws- regulations- and grant agreements.
- Performance Auditing:
- Evaluating economy- efficiency- and effectiveness of government programs.
- Developing audit objectives- scope- and methodology for performance audits.
- Reporting findings and recommendations.
- Audit Planning and Execution:
- Risk assessment and materiality in audit planning.
- Developing an audit plan and program.
- Gathering and evaluating audit evidence.
- Audit Reporting:
- Structure and content of audit reports (e.g.- unmodified- qualified- adverse- or disclaimer opinions).
- Reporting on internal control deficiencies and noncompliance.
- Management letters and recommendations.
- Generally Accepted Government Auditing Standards (GAGAS)
- Single Audit
- Uniform Guidance (2 CFR Part 200)
- Materiality
- Audit Risk
- Internal Control Deficiencies
- Unmodified Opinion
- Qualified Opinion
- Adverse Opinion
- Disclaimer of Opinion
- Audit Evidence
- Performance Audit
- Compliance Audit
3. Financial Reporting
- Comprehensive Annual Financial Report (CAFR):
- Structure of a CAFR: introductory- financial- and statistical sections.
- Government-wide financial statements (Statement of Net Position- Statement of Activities).
- Fund financial statements for governmental- proprietary- and fiduciary funds.
- GASB Reporting Requirements:
- GASB 34: Basic financial statements and management’s discussion and analysis (MD&A).
- GASB 68: Pension reporting and net pension liability.
- GASB 87: Lease accounting and disclosures.
- Financial Statement Elements:
- Reporting assets- liabilities- deferred inflows/outflows- and net position.
- Presentation of revenues- expenditures- and changes in fund balance.
- Reconciliation between government-wide and fund financial statements.
- Notes to Financial Statements:
- Disclosure requirements for significant accounting policies- commitments- and contingencies.
- Notes on pensions- OPEB- and debt obligations.
- Supplementary Information:
- Required supplementary information (RSI)- such as budgetary comparison schedules.
- Combining and individual fund statements.
- External Reporting Requirements:
- Compliance with Securities and Exchange Commission (SEC) requirements for municipal bonds.
- Reporting to the Electronic Municipal Market Access (EMMA) system.
- Comprehensive Annual Financial Report (CAFR)
- Government-Wide Financial Statements
- Fund Financial Statements
- Management’s Discussion and Analysis (MD&A)
- Net Pension Liability
- Required Supplementary Information (RSI)
- Notes to Financial Statements
- Reconciliation
- Electronic Municipal Market Access (EMMA)
- Fiduciary Activities
- Component Units
- Blended vs. Discretely Presented Component Units
4. Interpretations and Analysis of Financial Statements
- Financial Statement Analysis:
- Analyzing government-wide and fund financial statements.
- Assessing liquidity- solvency- and operational efficiency.
- Evaluating trends in revenues- expenditures- and fund balances.
- Ratio Analysis:
- Calculating and interpreting financial ratios (e.g.- debt-to-asset ratio- current ratio- operating margin).
- Comparing ratios to industry benchmarks or historical trends.
- Limitations of ratio analysis in the public sector.
- Performance Metrics:
- Measuring financial performance for governmental and proprietary funds.
- Assessing cost efficiency and service delivery outcomes.
- Using key performance indicators (KPIs) for decision-making.
- Cost Analysis and Allocation:
- Allocating costs across programs and funds.
- Analyzing direct and indirect costs in government operations.
- Cost-benefit analysis for public projects.
- Long-Term Financial Planning:
- Evaluating capital budgeting decisions and their impact on financial statements.
- Assessing financial sustainability and long-term liabilities.
- Forecasting revenues and expenditures for multi-year planning.
- Liquidity Ratios
- Solvency Ratios
- Debt-to-Asset Ratio
- Current Ratio
- Operating Margin
- Fund Balance Analysis
- Cost Allocation
- Direct vs. Indirect Costs
- Key Performance Indicators (KPIs)
- Financial Sustainability
- Capital Budgeting
- Trend Analysis
5. Internal Controls
- Internal Control Frameworks:
- Application of the COSO (Committee of Sponsoring Organizations) framework.
- Five components of internal control: control environment- risk assessment- control activities- information and communication- and monitoring.
- Control Activities:
- Segregation of duties in financial processes.
- Authorization and approval procedures for transactions.
- Physical controls over assets and records.
- Risk Assessment:
- Identifying financial and operational risks in government entities.
- Assessing the likelihood and impact of risks.
- Mitigating risks through control activities.
- Compliance with Regulations:
- Ensuring compliance with federal and state laws (e.g.- Uniform Guidance- Sarbanes-Oxley for public entities).
- Internal controls over federal grant funds.
- Monitoring and Evaluation:
- Continuous monitoring of internal control effectiveness.
- Performing internal audits to evaluate controls.
- Correcting identified deficiencies.
- Technology and Internal Controls:
- Role of information systems in financial controls.
- Safeguarding financial data through IT controls.
- Addressing cybersecurity risks in financial reporting.
- COSO Framework
- Control Environment
- Risk Assessment
- Control Activities
- Segregation of Duties
- Authorization Controls
- Physical Controls
- Monitoring Activities
- Internal Audit
- Uniform Guidance
- Cybersecurity Controls
- Control Deficiencies