exam prep
CPA Exam Strategy and Study Guide
A guide to preparing for the CPA exam. Covers exam format, study strategies, time management, and section-specific tips for the FAR, AUD, and REG core sections.
A guide to preparing for the CPA exam. Covers exam format, study strategies, time management, and section-specific tips for the FAR, AUD, and REG core sections.
Learning Objectives
- ✓Understand the CPA exam format and structure
- ✓Develop an effective study plan
- ✓Learn strategies for each exam section
- ✓Manage time effectively during the exam
1. Exam Overview
Since 2024 the CPA exam has four sections: three core sections everyone takes, FAR (Financial Accounting and Reporting), AUD (Auditing and Attestation), and REG (Regulation), plus one discipline you choose: BAR (Business Analysis and Reporting), ISC (Information Systems and Controls), or TCP (Tax Compliance and Planning). BEC (Business Environment and Concepts) was retired. You must pass all four within your state board credit window, 30 months in most states. Each section is 4 hours long and includes multiple-choice questions (MCQs) and task-based simulations (TBSs).
Key Points
- •4 sections, 4 hours each
- •30-month credit window in most states (check your state board)
- •Score of 75 needed to pass each section
- •MCQs and TBSs each count for about half the score in most sections
2. FAR (Financial Accounting and Reporting)
FAR is often considered the most challenging due to its breadth. Covers financial accounting, governmental accounting, not-for-profit accounting, and IFRS differences. Key areas: consolidated financial statements, leases, pensions, bonds, and government-wide financial statements.
Key Points
- •Broadest content area
- •Strong focus on journal entries and financial statements
- •Must know government and NFP accounting
- •Practice calculations extensively
3. AUD (Auditing and Attestation)
AUD covers audit procedures, ethics, and professional responsibilities. Heavy emphasis on audit reports and modifications. Key areas: internal controls, substantive procedures, audit evidence, and compilation/review engagements.
Key Points
- •Know the audit report formats
- •Understand internal control concepts
- •Study the AICPA code of conduct
- •Many TBSs involve document review
4. REG (Regulation)
REG covers federal taxation (individual and corporate), business law, and ethics. Tax content is heavily tested. Key areas: individual tax calculations, basis, business structures, and property transactions.
Key Points
- •Individual tax is about 30-40% of content
- •Know basis calculations thoroughly
- •Business law is a smaller portion
- •Tax rate changes annually - know current rules
5. Study Strategies
Create a realistic study schedule. Most candidates need 300-400 total hours. Study one section at a time. Use a CPA review course. Practice MCQs daily - aim for 80%+ accuracy before the exam. Do TBSs under timed conditions.
Key Points
- •300-400 hours total study time typical
- •Focus on one section at a time
- •MCQ accuracy of 80%+ before exam
- •Practice TBSs under timed conditions
High-Yield Facts
- ★Some questions are unscored pretest questions, and you cannot tell which ones
- ★You can't go back to previous testlets once you move forward
- ★Calculator and spreadsheet tools are available - practice using them
Practice Questions
1. How should you allocate time in a 4-hour exam section?
2. If you fail a section, when can you retake it?
3. What order should you take the sections?
FAQs
Common questions about this topic
Pass rates vary widely by section, and the AICPA publishes them each quarter. It's challenging but very passable with proper preparation. Most people who fail didn't study enough or didn't study effectively.
Yes, many candidates do. Expect to study 15-25 hours per week for 2-3 months per section. It requires sacrifice and dedication, but it's manageable with good time management.
Requirements vary by state but generally include: 150 semester hours of education (most bachelor's programs provide only 120, so additional coursework is needed), a specific number of accounting and business credits, and a bachelor's degree. Some states allow you to sit for the exam at 120 hours but require 150 for licensure. Check your state board's specific requirements.
Many candidates take 12-18 months to pass all four sections, and some finish faster with a disciplined schedule. Each passed section counts only for your state board credit window, 30 months in most states, so a passed section expires if you don't pass all four in time. Plan your exam order and timeline carefully.
Several established CPA review courses exist, and the best one is the one you will actually use consistently. Compare them on format, practice question volume and price, and check whether your employer covers the cost before buying one yourself.