What is the CPA Exam?

In order to take the CPA exam, there are a few requirements that you must meet. Keep in mind that these requirements may vary from state to state.

The first and most notable requirement involves education. In most states, a candidate must have completed a minimum of 150 credit hours of coursework, often achieved while earning a Bachelor's Degree in Accounting or in another relevant program. In certain cases, some states may allow candidates to take the exam once they reach 120 hours, so long as they meet their 150-hour requirement before obtaining their license.

Some states may also require students to take specific classes in order to sit for the CPA exam, such as an ethics course. If your state requires an ethics course, you typically must complete it within 1 to 2 years after taking the CPA exam.

Depending on the number of credit hours built into your bachelor’s degree, you may need to pursue additional education to reach the 150-credit hour minimum for taking the CPA exam. You may decide to earn an MBA with an Accounting Specialization, Master's in Accounting, Graduate Certificate in Accounting or another accounting-related degree such as a Master's in Accounting and Financial Management to help close the gap.¹

Preparing for the CPA exam is a unique experience for everyone. Different techniques and study methods work for different people, so you will likely need to do some experimenting in order to find the best approach for your learning style.

That said, here are a few universal tips that may help as you consider how to study for the CPA exam:

There are 4 sections, or individual tests, that make up the CPA exam:

This section covers areas ranging from corporate governance to financial management, operations management and beyond.

This section goes over the foundations of financial reporting, as well as select financial statements and select transactions. Requirements based on state and local government are also covered.

This section covers business law, ethics, taxable income and tax procedures. This includes knowledge of contracts, individual income tax, retirement plans and taxable items.

While you can take the tests in any order you prefer, they must each be scheduled separately and passed within an 18-month window. Each section is broken down into 5 smaller “testlets” which contain a range of questions, including task-based, written communication and multiple-choice, which must be completed within a 4-hour timeframe.

Each part is scored individually, and you need to score a minimum of 75 or higher (out of 99) to pass the exam. Your score is calculated through a weighted combination of scaled scores from each exam portion, taking into account both the difficulty of the question and whether or not you answered it correctly.

There are varying strategies for trying to pass the exam, including deciding which CPA exam section to take first. While there is no single solution, there are multiple strategies you can consider as you determine your own exam schedule.

One method is to start with your most challenging section of the exam before tackling the rest. This will allow you to feel accomplished that the biggest challenge is out of the way. This theory also makes sense when it comes to studying. The hardest part of the exam will likely require the most time and effort on your part. If you take on your most challenging section of the exam first, you may have more time available to study for the rest of the sections during the 18-month period.

Of the four CPA exam parts, FAR tends to have a reputation for being the most difficult section due to its length and the scope of information it covers. The FAR section tests broad yet foundational knowledge, some of which overlaps with the AUD section of the exam. For that reason, some may advise that you take AUD after passing FAR.

However, while some sections are thought to be more difficult than others, that does not mean your experience with the CPA exam will be the same. For example, you may think that AUD will be harder than BEC based on what others have said, but your own personal experience and interests will play a role in which sections may pose more of a challenge and which may be easier for you to tackle.

If you would rather start with something that feels more manageable and save the challenging sections for last, consider beginning with the exam that feels easiest to you. This may be an ideal strategy if you need the confidence of an accomplishment before moving on to more difficult subject areas. This can also be a worthwhile strategy as you begin the CPA exam study process but cannot immediately devote as much time to exam preparation.

As there is no universally defined "easiest" exam section, you may need to determine which one to begin with based on your own strengths and preferences. If you have no strong preference, you may want to pick a section that was recently covered in your CPA exam preparation courses. The course material may be fresh in your mind, making it an easier subject to approach. Alternatively, you could also choose a section that aligns with subjects you excelled at while in school.

Consider these tips for identifying which section may be the easiest for you:

Another strategy for the determined individual is to immerse yourself in test prep and then knock out taking all 4 tests within a few months. Though this strategy will not be a good fit for everyone, it can be extremely rewarding for those who are willing to put in the extra effort.

If you are a fast test-taker, you may be able to take two sections during the same testing window. For example, you might consider taking FAR and AUD at the same time, since they are related. But before choosing this course of action, consider how much time you are able to commit to studying each week or if you have other commitments that will take priority.

As you can see, there is no one-size-fits-all strategy for preparing for the CPA exam. The 4 parts of the CPA exam will pose different challenges for different individuals. The key is determining what strategy works best for you. Whether you choose to work your way from difficult to easy or the other way around, tackling the CPA exam is about knowledge and perseverance. Study hard, stick to your strategy and you may be more likely to see the positive results of your hard work.