Everything You Need to Know About the CPA Exam

The CPA exam is one of the most demanding professional certifications in accounting — and one of the most valuable. Here is what you need to know before you sit for it.

What Is the CPA Exam?

CPA stands for Certified Public Accountant. It is a four-part examination administered by the American Institute of Certified Public Accountants (AICPA) in partnership with state boards of accountancy. The exam tests knowledge across core areas of accounting practice including financial reporting, auditing, taxation, and business analysis, using multiple-choice questions, task-based simulations, and written communication tasks. Each section lasts four hours for a combined total of 16 hours.

Passing the CPA exam — and meeting the additional requirements set by your state board — earns you the right to use the CPA designation, which is the gold standard credential in public accounting.

Eligibility Requirements

Requirements vary by state, but the general framework is:

• A minimum of 120 semester hours of college coursework to sit for the exam
• 150 semester hours to obtain the CPA license (an extra 30 hours beyond a standard four-year degree)
• 1–2 years of professional accounting experience supervised by a licensed CPA (varies by state)

You do not need to have a degree specifically in accounting, but most state boards require a certain number of accounting and business credit hours. Check your specific state board's requirements before registering.

How the Exam Is Structured

All four sections can be taken in any order, but all must be passed within a 30–36 month window once you pass your first section. The exam consists of three core sections — required of everyone — plus one discipline section of your choice.

Core Sections (required)

• AUD — Auditing and Attestation: Auditing processes, ethics, and professional responsibilities. Tests your understanding of how auditors plan engagements, assess risk, gather evidence, and report findings.
• FAR — Financial Accounting and Reporting: Principles and standards for financial accounting across entity types — public companies, governmental entities, nonprofits, and more. This is widely considered the most content-heavy section.
• REG — Regulation: Federal taxation, ethics, business law, and professional responsibilities. Covers individual and entity taxation, tax compliance, and the legal environment of business.

Discipline Sections (choose one)

• BAR — Business Analysis and Reporting: Advanced financial reporting, business analytics, and technical accounting topics. A good fit if you plan to work in financial reporting or corporate accounting.
• ISC — Information Systems and Controls: IT governance, cybersecurity, and data analytics applied to accounting and auditing. A good fit if you plan to work in IT audit or advisory.
• TCP — Tax Compliance and Planning: Advanced individual and entity taxation, tax planning strategies, and tax research. A good fit if you plan to specialize in tax.

Passing Score

You need a 75 or higher on a scale of 0 to 99 for each section. The score is a weighted combination of your performance on multiple-choice questions (MCQs) and task-based simulations (TBSs). MCQs are computer adaptive — perform well early and the difficulty increases. TBSs are longer scenario-based problems that test applied skills. Written communication tasks appear only in certain sections.

How to Prepare

Most candidates study 300–400 total hours across all four sections, though your background matters significantly. Strong accounting graduates may need less; candidates entering from adjacent fields may need more.

Choose a CPA Review Course

A structured review course (Becker, Roger CPA, Wiley CPAexcel, UWorld Roger, and others) is nearly universal among successful candidates. These courses map study material to the current exam blueprint, provide thousands of practice questions, and track your progress. The course is a significant investment but it meaningfully increases pass rates.

Practice Questions Are Non-Negotiable

The CPA exam is heavily application-based. You can read about financial statement concepts all day, but until you work through hundreds of questions — with immediate explanations of why the correct answer is correct — you won't reliably perform under exam conditions. Most candidates complete 2,000–4,000 MCQs per section in their preparation.

Simulate Exam Conditions

Each section is four hours. Practice timed simulations in the final two to three weeks before your exam date. You need to be comfortable with the pacing — approximately 90 seconds per MCQ and longer blocks for TBSs — before you sit down in the testing center.

Focus on High-Yield Topics

For FAR, governmental accounting and fund accounting receive heavy weighting and trip up many candidates. For AUD, the risk assessment process and report modifications are tested constantly. For REG, individual income tax calculations and entity taxation mechanics generate the most questions. For your chosen discipline, focus on the topics specific to that section's blueprint.

After You Pass

Passing all four exam sections is a major milestone — but you are not yet a CPA. Most states also require:

• An ethics exam — a self-study exam on the AICPA Code of Professional Conduct (required by most states)
• Applying to your state board for formal licensure and paying the licensing fee
• Verifying your work experience with a supervising CPA

Once licensed, most states require approximately 40 hours of continuing professional education (CPE) annually to maintain the license. The license renews periodically depending on your state's schedule.

Is the CPA Worth It?

For most people pursuing a career in public accounting — audit, tax, or advisory at a CPA firm — the credential is essentially required to advance. At large firms, the expectation is that you will pass all four sections within a defined timeline, typically within your first two years of employment.

Outside of public accounting, the CPA is highly respected in corporate accounting, financial reporting, internal audit, and finance leadership roles. Controllers and CFOs at public companies are disproportionately CPAs. The credential signals technical rigor and professional commitment in a way that is recognized across industries.

Alternatives to the CPA

The CPA is not the only option for accounting and finance professionals. Depending on your career focus, these alternatives may be better fits:

• CMA (Certified Management Accountant) — focuses on financial planning, analysis, and strategic management accounting. Ideal if you plan to stay in corporate finance rather than public accounting or audit.
• CFA (Chartered Financial Analyst) — specializes in investment management, financial analysis, and portfolio management. A better fit if your career is in investment banking, asset management, or financial analysis rather than accounting.
• EA (Enrolled Agent) — the IRS's own credential for tax practitioners. Narrower scope than the CPA but faster to obtain, equally authoritative before the IRS, and highly respected in tax-focused practices. No degree or experience requirement.
• MBA — a graduate degree in business administration providing broad knowledge across finance, marketing, and operations. A reasonable alternative if you want general management advancement rather than a technical accounting credential.

Starting Your Preparation

The FAR section covers the widest range of financial accounting topics tested on the CPA exam — including the journal entries, financial statement preparation, and reporting standards that form the technical foundation of accounting. Building a deep understanding of these fundamentals through consistent, active practice is the most effective way to start your CPA preparation.