What is the Best Order to Take the CPA Exam?

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For those thinking about the best way to tackle the CPA exam, you’ve come to the right place.

I’ll get straight to the point: You should start with FAR.

This answer comes from a mix of data and my personal opinion after years of helping others pass the CPA exam (and passing it myself.)

The data: a nine-year study of 121,234 CPA candidates found that individuals who began with Financial Accounting and Reporting (FAR) generally completed all four sections quicker than those who chose a different starting point.

My personal CPA exam journey echoes this suggestion to start with FAR since it sets the groundwork for subsequent sections like AUD (Auditing and Attestation) and REG (Regulation), making it advantageous to tackle it first in a sequential learning approach.

But before you schedule your test date, let’s look at other important info needed when deciding on your CPA exam order.

Key Takeaways

• Start with FAR: It’s widely recommended that you begin your CPA exam journey with the Financial Accounting and Reporting (FAR) section due to its extensive coverage of foundational accounting principles, which will aid in understanding subsequent sections.

• Choose Discipline Section Strategically: Select your discipline section based on personal career goals, interests, and the market demand in your specialization. This choice should reflect where you see your professional journey heading.

• Plan Your Exam Schedule Wisely: While candidates have the flexibility to take the CPA exam sections in any order, spacing them out can help manage study time effectively and reduce burnout, keeping in mind the 18-month window to pass all sections.

• Preparation Time is Key: On average, dedicating 80-100 hours of study time per section is advisable, with more focus on areas you find challenging. Quality and depth of study are crucial for a comprehensive understanding.

• Adapt to Changes in the CPA Exam: Stay informed about updates to the CPA exam structure, such as removing the BEC section and introducing discipline sections in 2024. These changes can impact your study strategy and the order of taking the exam sections.

Best CPA Exam Order: A Strategic Approach

Starting Strong: Financial Accounting and Reporting (FAR)

Passing the CPA exam requires you to know the landscape post-2024 changes. With the BEC section removed, the emphasis on foundational knowledge has never been more critical. The FAR section, covering financial accounting and reporting, remains the cornerstone of the CPA exam.

Diving into FAR first is advisable due to its comprehensive coverage of financial statement knowledge, select financial statement accounts, and the conceptual framework that underpins accounting standards. This section sets a solid foundation, making it the most challenging yet essential part of the CPA exams.

Building on Knowledge: Auditing and Attestation (AUD)

After FAR, progressing to the Auditing and Attestation (AUD) section naturally follows. This segment tests candidates on obtaining evidence, assessing risk, forming conclusions, further procedures, and understanding the professional responsibilities within an audit context.

Leveraging the detailed knowledge from FAR, especially regarding financial reporting and accounting principles, AUD emphasizes the application of these principles in audit scenarios. This sequence ensures a logical buildup of knowledge, where understanding the intricacies of financial reporting aids in grasping auditing standards and practices.

Deep Dive into Regulation (REG)

With a solid grasp of accounting and auditing principles, tackling the Regulation (REG) section next is a strategic move. REG focuses on federal taxation, business law, federal tax procedures, and ethics, among other regulatory frameworks. This section benefits from the knowledge of financial statements and accounting principles covered in FAR and the governance and compliance aspects touched upon in AUD.

Studying for REG after FAR and AUD allows candidates to apply their comprehensive understanding of accounting and auditing in a regulatory context, making the study process more intuitive and interconnected.

Strategizing Your Study Plan for Your CPA Exam Order

Crafting a study plan that accommodates the breadth of the CPA exam while allowing for in-depth exploration of your chosen discipline is key. Here are some strategies:

• Start Early with FAR: Given its comprehensive scope, beginning your study journey with FAR allows more time to absorb the material, setting a strong foundation for subsequent sections.

• Sequential Study: Progressing from FAR to AUD, then REG, and finally to your chosen Discipline section creates a logical learning flow, building on previously acquired knowledge.

• Focus on Practice: Engage with multiple choice questions and task-based simulations across all sections, with particular emphasis on your discipline area, to hone your test-taking skills and deepen your understanding.

Order to Take the CPA Exam: Tips and Testimonials from CPAs

Here are some tips and trends from CPA candidates after analyzing three Reddit threads on the best order of exams recommendation, what order do you suggest taking the exams, and the order of exams, with data from the BEC section removed.

FAR as the Foundation: Starting with FAR, it establishes a critical foundation in financial accounting principles essential for both AUD and REG. This strategic step is not just about covering a vast syllabus first but ensuring a solid grounding that benefits other exam sections.

• “I really think taking FAR first is a must. It is the base foundation you need for all the other exams in one way or another.” - Jk5821358

AUD for Reinforcement: Placing AUD immediately after FAR capitalizes on the content overlap, particularly in understanding financial statements and internal controls. This method reinforces FAR’s concepts in a practical auditing context, enhancing retention and deepening comprehension.

• “Definitely do FAR first. It has the most material and will take you the longest to study for... Then do AUD because it builds on a lot of stuff from FAR.” - mareeeea

REG as a Diverse Finale: Ending the CPA exam journey with REG makes strategic sense, allowing candidates to apply their accounting and auditing understanding to the nuances of tax and business law. This sequence prepares them for the distinctive challenges of REG, leveraging the comprehensive knowledge gained from FAR and AUD.

• “I would also recommend taking REG as far away from FAR as possible (i.e. last) because it’s hard to make that switch from GAAP (FAR) to tax (REG).” - Careless_One9150

Adapting to the CPA Evolution: Discipline Sections

The most significant change in the CPA exam structure is the introduction of three discipline sections, allowing candidates to specialize in a chosen discipline that aligns with their career goals or areas of interest. This evolution represents a shift towards a more tailored and relevant certification process, reflecting the diverse skill sets required in the modern accounting profession.

Choosing Your Discipline Section

Selecting the right discipline section—whether it focuses on business analysis, information systems, or another specialized area—should be based on your professional interests and career aspirations. This choice offers an opportunity to demonstrate proficiency in a specific area of accounting, setting you apart in the job market.

Each discipline section requires a deep dive into specialized topics, ranging from data management and information technology to advanced financial management and risk assessment. Preparing for these sections involves not only mastering the core concepts from the FAR, AUD, and REG sections but also developing a keen understanding of the specific challenges and opportunities within your chosen discipline.

Maximizing Success in Discipline Sections

The introduction of discipline sections is a game-changer, offering candidates the chance to specialize and demonstrate their expertise in specific areas of accounting. Here’s how you can approach these new sections:

1. Align with Your Career Goals: Choose a discipline section that best aligns with your career aspirations or current job role. This alignment not only makes studying more relevant and engaging but also equips you with specialized knowledge that can give you an edge in your professional life.

2. Integrate with Core Knowledge: While discipline sections allow for specialization, they build on the foundational knowledge tested in the FAR, AUD, and REG sections. Make connections between these core sections and your chosen discipline to deepen your comprehension and application of accounting principles.

3. Practice Task-Based Simulations: Given the practical nature of the discipline sections, focusing on task-based simulations can be particularly beneficial. These simulations mimic real-world scenarios and require you to apply your knowledge in a practical context, helping to prepare you for the kinds of challenges you might face in your accounting career.

4. Stay Informed on CPA Evolution: The CPA exam is continuously evolving, with changes reflecting the dynamic nature of the accounting profession. Staying informed about these changes and understanding how they impact your chosen discipline is crucial for ensuring that your study material and approach remain current.

Final Preparation Tips for What Order to Take the CPA Exam

As you approach your CPA exam dates, here are some final tips to ensure you’re fully prepared:

• Review and Revise: Allocate time to review each section, focusing on areas where you feel less confident. Use summary notes, flashcards, or mind maps to reinforce your understanding of key concepts.

• Simulate Exam Conditions: Practice under exam conditions to acclimate yourself to the time constraints and pressure of the actual test. This practice can help improve your time management skills and reduce exam day anxiety.

• Prioritize Your Well-being: While studying is crucial, so is taking care of your physical and mental health. Ensure you get enough sleep, eat well, and take breaks to keep your mind fresh and focused.

• Join Study Groups: Engaging with peers who are also preparing for the CPA exam can provide moral support, enhance your learning through discussion, and offer new insights or study strategies.

• Seek Feedback: If possible, seek feedback from mentors or colleagues who have successfully passed the CPA exam. Their guidance can provide valuable insights into effective study habits and exam strategies.

Conclusion

The journey to becoming a CPA is challenging but immensely rewarding. The recent changes to the CPA exam, including removing the BEC section and introducing discipline sections, reflect the profession’s commitment to staying current and relevant in the business world. You can navigate this journey successfully by choosing the best order to take the CPA exam sections, aligning your studies with your career goals, and preparing diligently.

FAQ

Why start with the FAR section on the CPA exam?

Starting with FAR is recommended because it covers extensive topics foundational to accounting, making subsequent sections easier to grasp.

How should I choose my discipline section for the CPA exam?

Select based on your career interests and strengths, considering future goals and market demands in your chosen field.

Can I take the CPA exam sections in any order?

Yes, you can take the sections in any order, but a strategic approach based on your strengths and weaknesses is advisable.

How long should I spend preparing for each CPA exam section?

Preparation time varies, but generally, 80-100 hours per section is recommended, focusing more on sections you find challenging.

Is it better to take the CPA exam sections back-to-back or spread them out?

It’s often better to spread them out to allow ample time for thorough study and mental rest, but ensure that you complete all within the 18-month window.

What happens if I fail one section of the CPA exam?

If you fail a section, you can retake it in the next testing window. Review your performance report to focus your study on weaker areas.

Do changes in the CPA exam affect the order in which I should take the sections?

Yes, recent changes, especially the introduction of discipline sections, may influence your strategy. Consider starting with the three core sections, like FAR and AUD, then REG, before your chosen discipline section for a comprehensive understanding.