Just like building a house, starting with a strong foundation is crucial, and the same goes for the CPA exam.
A nine-year study of over 121,000 CPA candidates revealed that those who began with Financial Accounting and Reporting (FAR) typically completed all sections faster than those who chose a different starting point.
But is a FAR start the right choice for you? And if so, what comes next?
By discovering the best order to take your CPA exams, you can enhance your understanding and boost your confidence! Keep reading to find out my thoughts.
Key Takeaways
- Foundation: Starting with FAR lays a solid groundwork for your CPA exam journey. It’s crucial for understanding financial statements.
- Sequence: Following FAR with AUD helps reinforce your auditing skills, making the transition smoother and more intuitive.
- Focus: Tackling REG after AUD allows you to apply your accounting and auditing knowledge to tax laws and regulations effectively.
- Specialization: Choosing the right Discipline section helps you deepen your expertise and aligns with your career goals.
- Preparation: Effective study techniques and practice under exam conditions are key to boosting your confidence and improving your CPA exam scores.
Pass Rates for CPA Exam Sections
Before we get into order, let’s look at how candidates fared on the CPA exam in the latest testing window. These pass rates from AICPA can give you a good sense of what to expect and where you might want to focus your studies.
Core Exam Section Pass Rates
| Core Exam Section | Passing Percentage |
|---|---|
| Auditing and Attestation (AUD) | 44.63% |
| Financial Accounting and Reporting (FAR) | 41.92% |
| Taxation and Regulation (REG) | 63.42% |
Discipline Exam Section Pass Rates
| Discipline Exam Section | Passing Percentage |
| Business Analysis and Reporting (BAR) | 42.94% |
| Information Systems and Controls (ISC) | 50.93% |
| Tax Compliance and Planning (TCP) | 82.36% |
These CPA pass rates show that while some sections are more challenging than others, there’s hope! If you pick your study topics wisely and stay focused, you can boost your chances of passing the CPA. Remember these rates as you plan your exam strategy, and remember, you’ve got this!
Kickoff with Financial Accounting and Reporting
Understanding the changes made after 2024 is essential to tackling the CPA exam effectively. With the BEC section gone, focusing on foundational concepts is crucial. The FAR section is still a core element of the CPA exam.
Starting with FAR is a smart choice because it covers important topics like understanding financial statements, selecting key accounts, and the basic principles that guide accounting. This section lays a strong foundation, even though it’s often considered the toughest part of the CPA journey.
“FAR [first] – it requires the longest prep time. Once you pass it, the clock starts with three exams left that take substantially less prep time.”
u/wintroml86
“I think starting with the hard ones is better. I wish that I got FAR first but I surprisingly passed AUD with a 75. I’m not looking forward to a 3rd FAR attempt.”
u/Feeling-Currency621
Next Stop: Auditing and Attestation
Once you’ve completed FAR, the next step is to move on to the AUD section. This CPA exam section assesses your skills in gathering evidence, evaluating risks, drawing conclusions, and understanding your responsibilities in audits.
The knowledge you gained from FAR, especially about financial reporting and accounting principles, will help you in AUD. This sequence makes sense, as understanding the details of financial reporting is essential for mastering audit standards and practices.
“FAR > AUD > BEC > REG That’s the order I wish I had taken. Unless I’m mistaken, most intermediate accounting taught in university is heavily FAR material—and therefore fresh in your mind. Plus, as others have said, it’s a lot of material. AUD and BEC have some overlap information with FAR, so it makes sense to take those after. And REG seemed like it was its own thing to me.”
u/staffaccountant
Getting into Taxation and Regulation
With a solid understanding of accounting and auditing under your belt, diving into the REG section is a logical next step. REG covers federal taxation, business law, tax procedures, and ethical considerations.
Studying REG after FAR and AUD lets you apply what you’ve learned about financial statements and auditing in a regulatory setting. This makes studying more intuitive, as everything is interconnected.
“Reg was rough for me personally. Lots of content in there, and difficult to know what will be heavily tested.”
u/beancounter27
Embracing Changes in the CPA Exam
One of the biggest updates to the CPA exam is the addition of three discipline sections. This change allows candidates to specialize in areas that align with their career goals or interests. The disciplines include Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP).
This shift makes the certification process more relevant, showcasing the diverse skills needed in today’s accounting field. By choosing a discipline, candidates can deepen their expertise in a specific area, enhancing their value in the job market and reflecting the evolving demands of the profession.
Picking Your Discipline Section
When deciding on a discipline section, consider what sparks your interest and how it aligns with your career aspirations. This choice allows you to showcase your skills in a specialized area of accounting, making it more relevant to your future job prospects. Each discipline section dives into specific topics, such as data management, advanced financial management, and risk assessment, helping you gain deeper knowledge in your chosen field.
Here’s a quick look at what each discipline offers:
- If you want to enhance your skills in financial reporting, then choose BAR for a focus on analyzing financial information.
- If you’re interested in the intersection of technology and accounting, then opt for ISC to gain insights into IT systems.
- If you’re passionate about tax law and strategy, then go with TCP to dive deep into tax regulations.
- If you’re looking to build expertise in interpreting financial statements, then consider BAR, as it’s ideal for those aiming for careers in financial analysis.
- If you want to specialize in ensuring data integrity in accounting, then ISC is the right choice, focusing on controls and processes.
- If you’re aiming to assist clients with tax planning, then TCP is your best bet, emphasizing compliance and strategic tax management.
By embracing these new sections and strategies, you’ll be better equipped to succeed on your CPA exam journey!
Last-Minute Tips for Preparing for Your CPA Exam
As your CPA exam dates get closer, here are some handy tips to help you get ready:
- Go Over Everything: Set aside time to review each exam section. Focus on topics where you’re not as confident. Using tools like summary notes, practice quizzes, flashcards, and more from CPA prep courses can really help reinforce your understanding of important concepts.
- Practice Like It’s the Real Thing: Try practicing under exam conditions. This will help you get used to the time limits and pressure of the actual test. Doing this can improve your time management and lower your anxiety on exam day.
- Take Care of Yourself: While studying is important, don’t forget about your health. Make sure you’re getting enough sleep, eating nutritious meals, and taking breaks to keep your mind sharp and focused.
- Connect with Study Buddies: Studying with others who are also preparing for the CPA exam can be beneficial. It provides support, allows you to discuss tricky topics, and can introduce you to new study strategies.
- Ask for Advice: If you can, reach out to mentors or colleagues who have passed the CPA exam. They can share helpful tips about effective study techniques and strategies for taking the exam.
Following these tips can help you feel more confident and ready to take on the CPA exam!
Final Thoughts
As you embark on your journey to take the CPA exam, remember that having a solid strategy in place can make all the difference. From my experience, understanding the CPA exam structure and knowing the best order to take the exam—starting with FAR, then moving on to AUD, and finally tackling REG—is crucial for building your knowledge and confidence. This sequence helps establish a strong foundation for the more advanced topics.
By focusing on the right areas and employing effective study techniques, you’ll be well-prepared to meet the challenges ahead. Stay committed, keep a positive mindset, and remember that every bit of preparation brings you closer to your goal of becoming a certified public accountant.
FAQs
The CPA exam consists of four main sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Taxation and Regulation (REG), and a choice of one Discipline section. Each section tests different knowledge areas essential for becoming a certified public accountant.
These procedures cover the rules for tax filings and compliance in the U.S. You’ll find these mainly in the Taxation and Regulation (REG) section.
Task-based simulations (TBS) require you to apply your accounting knowledge to real-world scenarios. They’re a key part of the CPA exam and can impact your overall scores.
To improve your scores, focus on understanding key concepts and practice with task-based simulations. Consistent practice and effective study materials are essential.
To take the CPA exam, first, ensure you meet the educational requirements set by your state board. Next, apply through the National Association of State Boards of Accountancy (NASBA) to schedule your exam. You’ll need to select your sections, pay the fees, and choose a testing location. Finally, prepare thoroughly to maximize your chances of success!
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