Sections of the CPA Exam: Changes You Need to Know

The CPA exam has changed a lot since I took it. The BEC section transitioned out, with its content spread across other areas. Taxation and Regulation have merged into a single Regulation (REG) section, streamlining the test but adding depth.

New discipline sections—Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP)—let candidates focus on areas that match their career goals. These changes make the exam more tailored while still demanding thorough preparation.

Let’s break down the sections of the CPA exam and see how understanding the updated structure can help you build a winning strategy.

Key Takeaways

• Updated Structure: The CPA exam now includes three core sections (AUD, FAR, and REG) and a discipline section (BAR, ISC, or TCP) to align with specialized career paths.
• Discipline Section Flexibility: Candidates now choose one discipline section—Business Analysis and Reporting, Information Systems and Controls, or Tax Compliance and Planning—tailored to their career aspirations.
• Technology and Ethics Focus: The exam places greater emphasis on technology, data analytics, and ethical standards to prepare candidates for modern accounting challenges.
• Study Strategy Matters: Success relies on mastering task-based simulations, leveraging quality study materials, and tailoring your study plan to focus on your strengths and areas needing improvement.
• Flexible Testing: Starting in 2025, core sections will be available more frequently, while discipline sections will follow a quarterly testing window.

CPA Exam Sections Overview

The CPA exam has seen significant updates, reflecting the evolving needs of the accounting profession. The revised structure now includes three core sections—Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG)—as well as a choice of one discipline section: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). These changes aim to provide candidates with a balanced foundation while allowing for specialized career paths.

The exam places greater emphasis on technology, data analytics, and ethical standards, ensuring candidates are prepared for the dynamic challenges of today’s accounting roles.

Core Sections

Financial Accounting and Reporting (FAR)

FAR is known for its depth and difficulty, covering U.S. GAAP, governmental accounting, not-for-profit reporting, and select topics in IFRS. It tests your ability to prepare and analyze complex financial statements, handle intricate accounting topics like leases and fair value, and apply principles across various entities.

What FAR Covers:

• Financial statements for public and private entities
• Governmental and not-for-profit accounting standards
• Revenue recognition, leases, pensions, and equity transactions

Study Tip: Task-based simulations (TBS) dominate this section, requiring practice with multi-step problem-solving. Focus on mastering key concepts and applying them to real-world scenarios using tools like Becker or Surgent.

Auditing and Attestation (AUD)

The AUD section evaluates your ability to plan and execute audits, assess risks, and understand professional responsibilities. Emerging technologies, such as data analytics, now play a significant role in audit procedures.

What AUD Covers:

• Ethics and independence standards
• Risk assessment and internal controls
• Evidence collection and data-driven auditing practices

Study Tip: Focus on the COSO framework and audit scenarios that involve technology integration. Simulations are a great way to strengthen your ability to apply standards in practice and earn this CPA exam credit.

Regulation (REG)

REG combines U.S. tax laws, business law, and professional ethics into a single, comprehensive section. Recent updates incorporate changes in tax legislation and emphasize the practical application of these laws.

What REG Covers:

• Federal tax compliance for individuals and entities
• Business law topics, including corporate governance
• Ethical standards under Circular 230 and tax guidelines

Study Tip: Work on tax-related simulations to gain confidence in applying complex regulations. Familiarize yourself with key forms and scenarios using study platforms like Becker or Surgent.

Discipline Sections

Business Analysis and Reporting (BAR)

BAR dives into advanced financial analysis, valuation, and public company reporting. This section is ideal for candidates interested in corporate finance or consulting roles.

Key Focus Areas:

• Ratio analysis and complex financial data interpretation
• Technical accounting standards
• Government and public company reporting

Information Systems and Controls (ISC)

ISC is tailored for candidates with an interest in IT auditing, cybersecurity, and system controls. It covers IT architecture, data security, and SOC engagements.

Key Focus Areas:

• Cybersecurity risks and data management
• IT system controls and regulatory frameworks
• SOC 1, SOC 2, and SOC 3 engagements

Tax Compliance and Planning (TCP)

TCP emphasizes advanced tax planning strategies and compliance for individuals and entities, making it perfect for candidates focused on tax advisory careers.

Key Focus Areas:

• Estate, gift, and business tax planning
• Nonroutine compliance issues
• Entity-specific tax strategies

Choosing a Discipline Section: Select BAR for financial analysis, ISC for IT and cybersecurity, or TCP for tax planning. Align your choice with your career aspirations.

Match Your Skills to the CPA Exam Sections

Your Strengths

Financial Accounting and Reporting: You’ll likely excel in FAR, which focuses on preparing and analyzing financial statements for public, private, and not-for-profit entities. However, its depth and technical accounting make it time-intensive for future Certified Public Accountants.

• Focus Extra Time On: Task-based simulations and topics like balance sheet accounts and governmental accounting, especially if you’re less familiar with IFRS or advanced U.S. GAAP concepts.

Business Analysis: BAR might be your ideal discipline section, as it emphasizes ratio analysis, valuation techniques, and public company financial reporting.

• Watch Out For: Governmental reporting standards or technical accounting topics if these aren’t your strong suits.

Data Management or IT Systems: You’ll shine in ISC, which focuses on information systems, cybersecurity, and system controls.

• Invest More Time In: SOC engagements and the regulatory frameworks that underpin systems and controls if you’re new to IT auditing concepts.

Federal Tax Compliance: REG and TCP may feel like a breeze if tax preparation or tax compliance is in your wheelhouse.

• Be Careful With: Business law and professional responsibilities—these can be trickier if you’re less experienced with the legal and ethical sides of tax practice.

Your Weaknesses

Technical Accounting: FAR will require extra focus. Dive deep into complex topics like property transactions, pensions, and revenue recognition. Supplement with robust practice simulations to build confidence.

Applying Theory to Scenarios: REG might feel challenging, as it emphasizes practical tax applications and federal tax procedures. Incorporate plenty of case-based practice and simulations to master recurring and routine transactions.

Balancing Detail and Strategy: BAR tests analytical skills with high-level technical accounting and valuation. Allocate time to understand financial reporting details and practice interpreting large sets of data for deeper insights.

Abstract Concepts Like Ethics: AUD relies heavily on professional responsibilities and ethical decision-making. If this isn’t your strong suit, focus on AICPA and PCAOB standards and use practice scenarios to understand the practical applications.

Quick Study Matchups

• Love crunching numbers? Focus on FAR or BAR.
• Tech-savvy and detail-oriented? ISC may feel natural, but prepare for SOC reporting details.
• Tax enthusiast? REG and TCP are your zones, but brush up on federal tax procedures and personal financial planning rules.
• Great at identifying risks? AUD and ISC are perfect fits, though you may need to practice integrating data analytics with risk assessments.

Timing Your CPA Exam Sections

Choosing the order of your CPA exams is strategic, especially with the updated testing windows. From 2025, core sections will offer increased flexibility, allowing more frequent scheduling opportunities. Discipline sections remain on a quarterly testing schedule, with an additional window in June for further convenience.

If you’re working full-time or balancing other commitments, starting with a more manageable section like REG or AUD can build momentum before tackling FAR. Alternatively, if you’re ready to tackle the toughest section first, beginning with FAR may build your confidence for the remaining exams.

Practical Study Tips for Success

Whichever section you start with, here are some proven study strategies to help you succeed:

• Use Quality Study Materials: Choose one of the best CPA review courses, like Becker, Surgent, and Gleim, are popular for their comprehensive task-based simulations and multiple-choice questions. These resources align closely with the CPA exam blueprints.
• Stick to a Schedule: Dedicate 2-3 hours daily to study, with around 80-100 hours per section, though FAR might require up to 120 hours.
• Practice Task-Based Simulations: TBSs make up a large portion of the CPA exam. Practicing these under timed conditions will build your confidence and accuracy.
• Review the CPA Exam Blueprints: Familiarize yourself with the AICPA blueprints for each section. This ensures that your study plan covers all relevant topics and objectives.

Conclusion

Understanding each section of the CPA exam and creating a targeted study strategy is the first step in passing the exam. Whether you start with FAR or choose a discipline section tailored to your career path, approaching each section with a solid plan will help you build momentum toward your CPA license.

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