You're ready to take the next step in your career and earn your CPA license, but first, you need to pass the CPA Exam. Success starts with knowing what to expect, getting smart strategies in place, and having a solid grasp of the exam structure. We're sharing an in-depth look at CPA prep that includes everything you need to know, from eligibility to sit for the exam to walking into the testing center.
Table of contents
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The first step in CPA prep: Eligibility to sit for the exam
Before you can schedule your exam dates, and even before you start studying, you should know the CPA Exam requirements and whether you're eligible to sit for the exam. Every state has different guidelines, and your state may have eligibility requirements related to:
- Age
- Number of college hours earned
- Number of college hours in accounting or business
- Holding a degree
- Holding a degree in a specific major or concentration
- Residency
Checking your state's requirements will make sure you have everything you need and don't experience any setbacks.
Take the next step: Find your state's CPA Exam requirements
CPA Prep: Knowing the exam format
You need to pass four sections of the CPA Exam—three Core sections and one Discipline. Core sections cover the foundational and universal information in accounting, audit, and tax, while Disciplines dive deeper into a specific area of interest. Here's a breakdown of each section of the CPA Exam. Each section is four hours long and consists of both multiple-choice questions and task-based simulations across different skill levels to determine your ability to recall, apply, analyze, and evaluate information.
Core sections of the CPA Exam
All CPA candidates must take these three sections.
- Financial Accounting and Reporting (FAR) consists of 50 MCQs and seven TBSs and tests knowledge of financial reporting frameworks and practices for for-profit, not-for-profit, and government organizations.
- Auditing and Attestation (AUD) consists of 78 MCQs and seven TBSs and covers the auditing process, attest engagements, and professional ethics.
- Taxation and Regulation (REG) consists of 72 MCQs and eight TBSs and tests knowledge of tax practice, including ethics, professional responsibilities, US business law, and federal tax compliance.
Discipline sections of the CPA Exam
All CPA candidates must take one of these three sections.
- Business Analysis and Reporting (BAR) consists of 50 MCQs and seven TBSs and builds on knowledge from FAR related to more complex technical accounting topics and financial statement analysis.
- Information Systems and Controls (ISC) consists of 82 MCQs and six TBSs and builds on knowledge from AUD related to data management, IT audit and advisory services, and System and Organization Controls (SOC) engagements.
- Tax Planning and Compliance (TCP) consists of 68 MCQs and seven TBSs and builds on knowledge from REG to test your knowledge related to federal tax compliance and personal financial planning related to preparing and reviewing individual tax returns.
The 'admin' side of CPA prep
Before you dive into CPA prep, you'll need to do a bit of planning first, including choosing a Discipline, the best order to take your sections, knowing how to schedule your exam, budgeting how much time you'll need to study, and budgeting financially.
Choosing a Discipline
You'll need to choose a CPA Exam Discipline section to take, so consider these factors:
- Are you more interested in financial analysis and reporting, auditing and data, or tax? For example, if you're interested in information technology and data management, ISC may be the right fit for you.
- What career do you want to go into (or already work in)? For example, if you work in tax and want to stick with it for your career, TCP would align closely with your goals.
- What area do you feel most confident in? For example, if you did well in the more technical aspects of accounting and reporting, think about taking BAR as your Discipline.
While a Discipline can help you determine what path you take in your career and help you specialize your knowledge into accounting, audit, or tax, it's not set in stone. Just because you choose ISC doesn't mean you're locked into working in Audit for the rest of your life, so don't feel too pressured by choosing a Discipline.
Planning the order to take your exams
Once you choose your Discipline, you'll want to consider the best order to take your exams. We recommend this order:
- Start with FAR as this gives you a stronger foundation in financial accounting the other sections build upon.
- If your Discipline is BAR, start with FAR, then take BAR, AUD, and REG as BAR builds heavily on FAR concepts.
- If your Discipline is ISC, start with FAR, then take AUD, ISC, and REG (or FAR, REG, AUD, then ISC).
- If your Discipline is TCP, start with FAR, then take AUD, REG, and TCP.
Take the next step: The best order to take the CPA Exam
How to schedule the CPA Exam
When you're eligible to take the exam and you've applied with your state board to sit for the exam, you'll receive a notice to schedule (NTS) or an authorization to test (ATT) from NASBA. Once you have that, you can schedule your exam date through Prometric. When you schedule, you don't need to choose a testing center before choosing your date. Also, make sure you give yourself plenty of time to study before your test date!
Requesting CPA Exam accommodations
If you have a disability recognized under the Americans with Disabilities Act (ADA) or other needs, you may be eligible for testing accommodations, such as extra time or adaptive equipment. Follow these steps to request accommodations:
- Submit the required forms and documentation to your state board of accountancy
- Contact Prometric to schedule your accommodations
- Verify that your accommodations are accurately reflected in your confirmation email.
Take the next step: CPA Exam accommodations
How long does it take to study for the CPA Exam?
As mentioned, you'll need to give yourself plenty of time for CPA prep. Becker recommends between 320 and 420 total hours of study, depending on your Discipline. Breaking it down by section, we recommend:
- FAR: 80 to 100 hours
- AUD: 80 to 100 hours
- REG: 80 to 100
- BAR: 100 to 120
- ISC: 80 to 100
- TCP: 80 to 100
Of course, these are just guidelines! You may need more time to be fully prepared and understand the concepts on each section.
Take the next step: How long does it take to study for the CPA Exam
Budgeting for the CPA Exam
In addition to setting aside time, you'll also need to set aside money to take the CPA Exam. You'll need to pay for your initial eligibility application, the registration fee per section, and the examination fee per section. While the fees vary from state to state, the average is between $1,500 and $2,000. This does not include any retake costs, any CPA Exam Review materials, or any other fees.
Before you balk at the cost, having a CPA license offers an excellent return on investment!
Take the next step: The CPA Exam costs and fees
Diving into CPA prep: Study tips for success
Once you're ready to study, you want to make sure it counts! Use these tips and strategies to pass the CPA Exam.
Create a Study Plan
Allocate dedicated time each week to study, making sure to keep it realistic and factors in your other obligations. For example, if you have a full-time job and small children, you'll want to factor in these time constraints when mapping out your plan. It may not be realistic to block out 20 to 30 hours a week to study, but you could do eight to 10 hours.
Sticking with a realistic plan will help you stay motivated and on track to be ready for Exam Day!
Practice time management
Four hours may seem like a long time, but once you're sitting for the exam, it goes by quickly. Take simulated exams to mimic the real thing so you know exactly what to expect and how to manage your time during each section.
Take notes as you study
Whether you're watching a video or reading a textbook, take notes that summarize key points to reinforce your learning and create a quick-reference guide. These notes will be great before taking a practice test or simulated exam, too.
Use Becker's CPA Exam Review
Having a review course that teaches you what you need to know to pass the exam is essential. Becker's CPA Exam Review includes comprehensive resources and materials, expert instruction, and unlimited support to ensure you have what you need to get Exam Day ReadySM.
Take the next step: 10 CPA Exam study tips
CPA prep for Exam Day
You've studied, you've paid the fees, you've scheduled your exam. Make sure you're ready to actually sit for the exam with these tips:
- Know where your Prometric testing center is and how long it takes to get there
- Don't be late for the exam as they may not let you take it, and you'll have to reschedule
- Dress in comfortable clothes so you don't have any distractions while you're taking the exam
- Bring your valid photo ID and your NTS or ATT to your Prometric center
Download the CPA Exam Guide to learn more
Becker's FREE CPA Exam Guide provides an in-depth look at what's on the CPA Exam, what to expect, study tips, and even practice questions to test your knowledge! Download your FREE guide to get started.
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This comprehensive ebook contains everything you need to know about the CPA Exam, including the exam format, study tips, and practice questions!
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