CPA Exam Guide

The CPA Exam consists of four different sections, Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG) and Business Environment and Concepts (BEC). Each section contains five miniature tests, known as “testlets.” The first two testlets in each section are multiple-choice, ranging from 30 to 40 questions each. The remaining three testlets are task-based simulations that require you to apply accounting principles in a real-world simulation. The exception to this format is the BEC section, which trades out one set of task-based simulations for a set of written communication questions. Each section is scored individually, and you need to score at least a 75 (out of 99) in order to pass the exam. While you can take the tests in any order, they must each be scheduled separately and passed within an 18 month window.

Before you get started preparing for the exam, there are a few things you should know. To take the CPA Exam, you must have completed 150 credit hours of relevant accounting coursework, which is typically earned through a Bachelor's Degree in Accounting. Depending on the number of credits built into your bachelor’s program, you may need to pursue additional schooling, like a graduate or other accounting degree in order to meet the 150 credit hour requirement. Some CPA Exam candidates may pursue a Master's Degree in Accounting and Financial Management, a Master's Degree in Accounting or an MBA with a Specialization in Accounting

It's also worth keeping in mind that some states have additional requirements for their CPA Exam candidates, such as ethics courses, or may allow you to take the exam having completed 120 credit hours, though you won’t be able to apply for your CPA license until the 150 credit hour requirement has been reached. Make sure to check your state’s requirements before you schedule your test.

One strategy for studying for the CPA Exam is to get an early start on reviewing the material. Getting an early start not only gives you the chance to study the material for longer, it gives you the opportunity to study with less stress and avoid late-night cram sessions. While more intense study sessions can certainly help you learn, they may be less effective than consistent, relaxed study over a longer period of time. Studying consistently can also help reinforce concepts in your brain better than an all-nighter, since you have longer to process the information.

Beyond starting early, another study method we recommend is taking practice exams. Practice exams can help you get comfortable with the format of the test and allow you to see which areas you have a good grasp of and which areas could use additional study time. You can use a practice exam at any point in your study, but they may prove even more valuable as the exam date gets closer.

Each section of the CPA Exam is four hours long. Taking practice exams in the weeks leading up to the test, you can time yourself in order to simulate the actual exam experience and figure out your pacing. Doing so might help shake off any nerves and increase your confidence in your abilities to perform in a timed setting.