Choosing which CPA exam section to tackle first can feel like picking the first peak to conquer in a towering mountain range. Each section has its own blend of challenges and rewards, so making the right first choice can set you on the path to success. With demanding work schedules, relentless study hours, and high stakes (only about half of candidates pass the CPA exam on their first try!), taking a strategic approach isn’t just a good idea—it’s essential.
But how do you know where to start?
Let’s dive into proven strategies that have helped countless candidates succeed on their first attempt and break down each section’s unique challenges and benefits. With the right plan, you can start strong, build momentum, and keep your confidence high as you move through the exam.
Key Takeaways
- Know your strengths: Start with the section you’re most comfortable with to build momentum.
- FAR is intense: The Financial Accounting and Reporting (FAR) section is known as the most difficult, so some choose to knock it out first.
- New discipline sections are a factor: The CPA Evolution has introduced new discipline-specific sections, allowing specialization.
- Plan your study schedule around your life: Choose an exam window that fits your personal and professional schedule.
Understanding the CPA Exam Sections
As of the CPA Evolution update in 2024, the exam now comprises three core sections and three discipline sections, which candidates select based on their career paths. All candidates are required to pass the three core sections. The three discipline sections, however, allow candidates to showcase expertise in a specialized area. Here’s an updated look at each section:
- Financial Accounting and Reporting (FAR): Covers comprehensive financial accounting topics including financial reporting, U.S. GAAP, IFRS, and governmental accounting. Widely regarded as the most challenging due to its volume of material.
- Auditing and Attestation (AUD): Focuses on auditing standards, internal controls, and the evidence-gathering process, with added emphasis on data analytics and the role of technology.
- Regulation (REG): A combination of federal taxation, business law, and ethics. This section covers individual and corporate tax, estate and gift taxes, and professional responsibilities.
Discipline Sections (BAR, ISC, TCP): The CPA Evolution’s discipline-specific sections enable specialization:
- Business Analysis and Reporting (BAR): Geared toward advanced financial reporting and analysis, focusing on topics like business combinations, stock compensation, and consolidated financial statements.
- Information Systems and Controls (ISC): Emphasizes IT governance, cybersecurity, and information systems auditing.
- Tax Compliance and Planning (TCP): Concentrates on complex tax topics, including estate and gift tax, entity taxation, and strategic tax planning.
This restructuring also involved the removal of the BEC section and the redistribution of its content across the new core and discipline sections.
Should You Start with FAR?
For most test takers, Financial Accounting and Reporting (FAR) is the most challenging section due to its depth and breadth of topics, including U.S. GAAP, IFRS, and governmental accounting standards. FAR’s extensive content requires dedicated study time to fully understand both domestic and international reporting frameworks, making it a time-intensive section to prepare for.
Starting with FAR can be advantageous if you have the time and energy to dive into the densest material first. By tackling what’s often viewed as the most challenging section, you may build confidence for the remaining exams. However, FAR’s volume can feel overwhelming if you’re balancing significant work or family obligations. So, if you’re not up for a challenge, you might want to wait on the most difficult section.
AUD: A Manageable First Step?
If FAR seems too daunting, Auditing and Attestation (AUD) may be a more approachable choice. AUD tests your understanding of the audit process, risk assessment, and the role of evidence in drawing conclusions. Additionally, the CPA Evolution update incorporated emerging technologies into AUD, making it relevant to current accounting practices needed for a CPA license.
Many candidates find AUD manageable, especially if they have prior experience in auditing. Starting with AUD can provide an achievable entry point, building momentum for the subsequent sections. AUD requires a strong grasp of auditing principles but is often viewed as more intuitive than FAR.
Starting with REG
Regulation (REG) covers federal tax procedures, ethics, and business law, providing a mix of concepts that are particularly valuable for candidates interested in tax specialization. REG includes taxation topics relevant to individuals, corporations, and property transactions, making it comprehensive but manageable for those with a tax background.
Candidates comfortable with tax laws may find REG a rewarding first section to tackle. While it involves less content than FAR, REG is still demanding, particularly for those less familiar with tax law. For candidates focused on the Tax Compliance and Planning discipline, starting with REG can align well with career goals.
Exploring the New Discipline Sections
The updated CPA exam now includes three discipline sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP). These sections are designed to align with career paths and provide in-depth knowledge in specialized areas of accounting.
- Business Analysis and Reporting (BAR): Emphasizes advanced financial analysis and reporting, covering technical topics like derivatives, stock compensation, and business combinations. Candidates with a strong financial reporting background may find this section a natural fit.
- Information Systems and Controls (ISC): Focuses on IT governance, cybersecurity, and control frameworks. Candidates with an interest in IT auditing or cybersecurity may consider starting with ISC, though completing core sections first may be beneficial.
- Tax Compliance and Planning (TCP): Focuses on specialized tax topics, including complex entity and individual tax issues. Candidates with a tax background may find TCP closely aligns with their experience.
Timing Your First CPA Exam
When planning the order of your CPA exams, consider not just difficulty but also timing. If you’re balancing heavy work demands, avoid starting with the hardest section. Beginning in 2025, the core sections will offer more frequent testing windows, providing additional flexibility for candidates.
A well-structured study plan is essential. When I prepared, I scheduled exams during periods with minimal distractions. For some, starting with a lighter section like AUD or REG and saving FAR for a more focused time can be strategic. Quality study materials, like Becker, Gleim, or Surgent, are invaluable for preparing with practice simulations and questions.
Effective Study Tips for the CPA Exam
No matter which section you start with, these tips can improve your study strategy:
- Use High-Quality CPA Review Courses: Popular CPA prep course providers like Becker, Gleim, and Surgent offer task-based simulations and questions aligned with CPA exam blueprints.
- Follow a Consistent Study Schedule: Aim to study 2-3 hours daily, dedicating at least 80-100 hours to each section.
- Practice Simulations Regularly: Task-based simulations are crucial to the CPA exam, so make them part of your routine.
- Review the Exam Blueprints: Familiarize yourself with CPA blueprints to ensure you cover essential topics.
CPA Section Selector Cheat Sheet
If you’re wondering which CPA section to begin with, here’s a quick cheat sheet to help you decide based on your background, strengths, and goals:
| Recommendation | Explanation |
|---|---|
| Financial Accounting and Reporting (FAR) | If you have a strong background in financial accounting and reporting, it may be beneficial to start with FAR. Tackling this section first can help boost your confidence in what many consider to be the most difficult section, setting a solid foundation for the rest of the exam. |
| Auditing and Attestation (AUD) | If you have experience in auditing or are familiar with auditing concepts, starting with AUD could be a great choice. Drawing on your existing knowledge will make studying more intuitive and can ease your way into exam prep with material that feels more familiar. |
| Regulation (REG) | If you have a strong interest in tax law or are working towards a tax-focused career, REG may be the best starting point. Since it covers tax law and business regulations, it’s a natural fit for those pursuing a career in taxation, and can set you up for success, particularly if you’re considering the Tax Compliance and Planning (TCP) discipline later. |
| Information Systems and Controls (ISC) | If you have an interest in technology, IT auditing, or cybersecurity, ISC might be a good starting point for your CPA journey. This section covers topics that will be relevant to those looking to specialize in IT controls, auditing, or related areas, helping you tailor your exam prep to your career aspirations. |
Conclusion
Deciding which CPA exam section to start with depends on your strengths, availability, and career goals. Starting with FAR might make sense if you’re ready for a challenge, while AUD or REG can provide a solid foundation without being overwhelming.
Ultimately, the path you choose should align with your comfort level and schedule. Developing a study plan and focusing on one section at a time will bring you closer to achieving CPA licensure. Each section you pass is a step closer to the rewarding accomplishment of becoming a Certified Public Accountant. Best of luck on your CPA journey!
FAQ
It depends on your strengths and schedule. Many candidates begin with FAR or AUD.
Plan for a minimum of 80-100 hours per section, with FAR typically needing more time.
Most candidates consider FAR the most challenging due to the extensive material covered.
Yes, you can choose to take the sections in whatever order that suits you best.
Scores range from 0-99, with 75 required to pass each section.
CPA Evolution introduced discipline sections, allowing candidates to specialize in areas like BAR, ISC, or TCP.
Becker is a top choice due to its comprehensive materials and realistic simulations.
