If you’re considering becoming a Certified Public Accountant (CPA), you’ve probably heard that the CPA exam is one of the toughest out there. I know firsthand how challenging it can be—it was easily the hardest test of my career but also the most rewarding.
Here’s a surprising stat:
Only about 50% of candidates pass the CPA exam on their first attempt. That’s why understanding the updated CPA exam structure can be the key to your success. Let’s break down the latest changes and what you can expect on your CPA journey.
Key Takeaways
- Four exam sections: FAR, AUD, REG, and one of three new disciplines (BAR, ISC, TCP).
- New discipline exam sections: These sections allow candidates to focus on a specialized area, replacing the old BEC section.
- 120–150 study hours per section: A serious commitment is needed to succeed.
- CPA exam requirements vary by state: Make sure you know what your state expects before diving in.
- Prep courses are a must: Resources like Becker, Gleim, or Surgent help you master task-based simulations and other complex topics.
CPA Exam Overview
The Uniform CPA Examination is a rigorous, multi-part test designed to assess the technical knowledge and skills needed for a career as a Certified Public Accountant (CPA). It consists of four sections:
Financial Accounting and Reporting (FAR): This section covers financial statements, accounting standards, and governmental accounting. FAR is often seen as the most challenging due to its depth and breadth of topics, typically requiring significant study time (about 150-200 hours). It includes 50 MCQs and 7 TBSs, each weighted at 50%.
Auditing and Attestation (AUD): In AUD, CPA candidates must understand audit procedures, professional responsibilities, and ethical standards. With the recent update, AUD now incorporates foundational BEC topics like economic principles and internal controls, providing insight into how business and economic factors impact auditing. AUD includes 78 MCQs and 7 TBSs, and it is also split 50/50 in scoring weight.
Regulation (REG): The REG section covers tax law, business law, and regulatory frameworks, including federal tax procedures and entity tax compliance. REG is detail-heavy, focusing on taxation and regulatory rules, with a 50/50 split of 72 MCQs and 8 TBSs.
Discipline Sections: With the recent CPA Evolution initiative, BEC has been removed, and candidates now select a discipline section to specialize in. These options include:
- Business Analysis and Reporting (BAR): Focuses on advanced financial reporting, data analysis, and corporate finance. BAR now integrates BEC’s advanced technical accounting concepts, such as stock compensation, business combinations, and derivatives, aligning with its emphasis on financial analysis.
- Information Systems and Controls (ISC): Centers around IT systems, cybersecurity, and internal controls. ISC emphasizes data analytics and cybersecurity concepts, preparing candidates for the technology-focused demands of modern accounting.
- Tax Compliance and Planning (TCP): Emphasizes tax compliance, planning strategies, and federal taxation.
Each discipline section varies slightly in MCQ and TBS count. BAR includes 50 MCQs and 7 TBSs, ISC includes 82 MCQs and 6 TBSs (60% MCQs, 40% TBSs), and TCP has 68 MCQs and 7 TBSs.
CPA Exam Format and Structure
The CPA Exam is divided into five testlets per section, each containing a mix of multiple-choice questions (MCQs) and task-based simulations (TBSs). While the general format is consistent across sections, the exact weighting and number of questions vary slightly depending on the section.
Each section includes:
- Two MCQ testlets followed by three TBS testlets.
Section Breakdown:
- Auditing and Attestation (AUD): 78 MCQs and 7 TBSs (50% MCQs, 50% TBSs)
- Financial Accounting and Reporting (FAR): 50 MCQs and 7 TBSs (50% MCQs, 50% TBSs)
- Regulation (REG): 72 MCQs and 8 TBSs (50% MCQs, 50% TBSs)
Discipline Sections:
Each discipline section varies slightly in the number of MCQs and TBSs:
- Business Analysis and Reporting (BAR): 50 MCQs and 7 TBSs (50% MCQs, 50% TBSs)
- Information Systems and Controls (ISC): 82 MCQs and 6 TBSs (60% MCQs, 40% TBSs)
- Tax Compliance and Planning (TCP): 68 MCQs and 7 TBSs (50% MCQs, 50% TBSs)
Skill Levels Tested:
The CPA Exam evaluates four primary skill levels: remembering, application, analysis, and evaluation. Each section emphasizes these skills differently to reflect the demands of various accounting roles:
Regular practice with each question type—both MCQs and TBSs—is essential, as the CPA Exam requires agility in handling straightforward knowledge checks as well as complex, scenario-based simulations.
CPA Exam Scoring Breakdown
Each section of the CPA exam is graded on a scale from 0 to 99, and candidates need a minimum passing score of 75. Scoring is typically divided between MCQs and TBSs. In most sections, MCQs account for 50% of the score, and TBSs make up the other half. Understanding this scoring breakdown will help you plan your study approach and focus on areas that contribute the most to your final score.
- FAR: Heavy on application and analysis, focusing on practical tasks and interpretation of financial data.
- AUD: Tests application, analysis, and evaluation skills, especially in assessing risk and ethical decision-making.
What’s New with the CPA Exam?
The most notable change is the removal of the BEC section, which has been replaced by a discipline section. This update reflects the evolving needs of the profession, particularly with the rising importance of technology and data analysis. In the ISC discipline, for instance, expect more questions on information systems and IT governance—areas that have become increasingly relevant to accountants.
The change is part of the broader CPA Evolution, which aims to modernize the exam to match the future demands of the profession.
Continuous Testing Update
In a significant change for 2024, the CPA Exam transitioned to a continuous testing model, offering year-round scheduling flexibility. This new structure replaces the traditional quarterly testing windows with a system that allows candidates to schedule and take exams at any time, with only brief blackout periods for system maintenance. Continuous testing offers greater convenience and adaptability, allowing candidates to manage exam timing around personal and professional commitments without waiting for designated testing windows.
How to Prepare for the CPA Exam Sections
To pass the CPA exam, you’ll need to dedicate about 300-400 hours across all four sections. When I studied, I found breaking down my schedule into blocks of 80-100 hours per section kept me organized, while some may need to study 150-200 hours per section, depending on their accounting experience.
FAR took more time than others, and some suggest studying up to 200 hours on it, so I focused on specific areas like balance sheet accounts and financial statement reporting. Using a prep course like Becker helped me simulate real test scenarios, especially task-based simulations that mirror real-world challenges.
Mock exams were a staple in my prep. Taking full-length practice exams for each section not only boosted my confidence but also got me used to the pacing and format of the test. I highly recommend scheduling at least 3-5 practice exams per section.
Study Tips for Success
- Develop a Study Schedule: Staying organized was key to my CPA prep. I broke down each topic and committed specific days to areas I found challenging, like tax procedures in REG.
- Focus on Your Weaknesses: While studying, I realized it’s easy to stay in your comfort zone, but tackling weak areas like federal taxation made a huge difference. Consider using extra time on challenging topics rather than breezing through familiar material.
- Use CPA Review Courses: A structured CPA prep course can be invaluable. Becker helped me master the task-based simulations and get used to the exam structure. Having access to mock exams also improved my confidence.
- Take Practice Exams: The more I practiced with mock exams, the better my timing and accuracy became. Aim to take at least 3-5 practice exams per section and treat them like real exam sessions to build endurance and familiarity with the exam format.
Conclusion
The CPA exam is your ticket to becoming a licensed CPA, but it requires dedication and focus. The new discipline sections allow you to tailor the exam to your career goals, making the path to becoming a Certified Public Accountant both challenging and rewarding. With the right study plan and resources, you’ll be well-prepared to succeed.
Ready to start your CPA journey? Every hour of preparation will pay off in the rewarding career that follows.
FAQs
The new discipline sections allow you to specialize in a specific area, like tax compliance or information systems, whereas the old BEC section covered a broad range of business topics.
Pick the discipline that aligns best with your career path. If you’re interested in data analytics, choose Business Analysis and Reporting (BAR). For tech-related roles, Information Systems and Controls (ISC) is a great fit.
You may need to adjust your study schedule slightly, but the overall recommendation remains 80-100 hours per section with more study time for FAR.
No, CPA requirements vary by state. Check with your state boards to understand the specific rules for your area.
Yes, especially in the ISC discipline, where you’ll encounter questions about cybersecurity, IT systems, and data analytics.
No, once you choose a discipline section, it’s locked in for your exam journey.
Costs vary by state, but fees typically range between $200 and $350 per section.
Not necessarily. The new sections are more specialized, so you may find them easier if you have experience in that area.
The minimum passing score is 75 for each section of the CPA exam.
The CPA exams are four hours long for each of the four sections, and they have about 260 questions.
