3 credit hours

Regulation covers knowledge of federal taxation, ethics, professional and legal responsibilities, and business law and the skills needed to apply that knowledge. This portion covers knowledge of a CPA's professional and legal responsibilities and the legal implications of business transactions, particularly as they relate to accounting and auditing, and the skills needed to apply that knowledge. It deals with federal and widely adopted uniform state laws as well as principles and procedures for federal income, estate, and gift taxation and their application in practice.