CPA Exam FAQs Overview
Preparing for the CPA Exam is a significant milestone in an accountant’s career. With so much on the line, it’s no surprise that candidates have many questions about the process. Here, we address the top 15 most frequently asked questions by CPA candidates to help you navigate your exam journey with confidence.
How Hard is the CPA Exam?
The CPA Exam is known for its challenging nature, with comprehensive content across four distinct sections. Candidates need to demonstrate not just knowledge, but also the ability to apply that knowledge in real-world scenarios. While the exam is difficult, proper preparation and study strategies can make it manageable.
What Are the Sections of the CPA Exam?
The new CPA Exam, effective starting in 2024, introduces a “Core + Discipline” model. Candidates must pass three core sections: Financial Accounting and Reporting (FAR), Auditing (AUD), and Regulation (REG)—covering essential knowledge. They then choose one of three discipline sections to specialize in: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). This model allows candidates to demonstrate both breadth in core accounting skills and depth in a chosen specialty, aligning the exam more closely with evolving industry demands.
What is the Passing Score for Each Section?
A candidate must score at least 75 on a scale of 0-99 to pass each section. It’s important to note that this score does not represent a percentage of correct answers but rather a scaled score that reflects performance on the exam.
How Long Does it Take to Prepare for the CPA Exam?
Preparation time varies depending on the candidate’s background, study habits, and other commitments. On average, candidates spend between 300 to 400 hours studying for the entire exam, with some spending more time on challenging sections like FAR.
Can I Retake a Section if I Fail?
Yes, candidates can retake a section if they do not pass. There is no limit on the number of times you can retake a section, but each section must be passed within an 18-month rolling window from the date you first pass a section.
What is the 18-Month Rule?
The 18-month rule requires candidates to pass all four sections of the CPA Exam within 18 months. The clock starts ticking when you pass your first section. If you do not pass the remaining sections within this period, the first section’s passing score will expire, and you’ll need to retake it.
How Should I Choose Which Section to Take First?
Many candidates choose to start with the section they find the most challenging to get it out of the way while motivation is high. Others start with a section they feel more confident about to build momentum. Consider your strengths, study materials, and personal schedule when deciding.
What is the Best Study Strategy for the CPA Exam?
A well-structured study plan is essential. Break down the material into manageable chunks, focus on one section at a time, and regularly review previous sections to reinforce your learning. Practice exams and time management are also key components of a successful study strategy.
Do I Need a CPA Review Course?
While not mandatory, most candidates find CPA review courses invaluable. These courses offer structured learning, practice questions, and simulations that closely mimic the actual exam. They also provide study plans and support to help keep you on track.
How Much Does the CPA Exam Cost?
The cost varies by jurisdiction but generally ranges from $1,000 to $3,000 for all four sections, including registration fees, study materials, and additional costs like review courses. Be sure to check with your state board for specific fees.
What are the Eligibility Requirements to Sit for the CPA Exam?
Eligibility requirements vary by state but generally include a bachelor’s degree with a minimum number of credit hours in accounting and business-related courses. Some states may require additional coursework or a specific number of credits in certain subjects.
How are the CPA Exam Scores Calculated?
The CPA Exam uses a scaled scoring system. Your performance on each section is evaluated based on a combination of multiple-choice questions and task-based simulations.
When Will I Receive My CPA Exam Scores?
Score release dates are posted by the American Institute of CPAs (AICPA) and generally occur in waves. Typically, scores are released within two weeks after the end of a testing window, but this can vary depending on when you take the exam.
What Happens if I Fail a Section?
If you fail a section, you can retake it in the next testing window. It’s important to review your performance and identify areas for improvement before attempting the section again. Keep in mind that the 18-month rule still applies.
How Can I Stay Motivated Throughout the CPA Exam Process?
Staying motivated during the CPA Exam journey can be challenging. Set clear goals, celebrate small victories, and maintain a balanced study schedule to avoid burnout. Connecting with other candidates, whether through study groups or online forums, can also provide support and encouragement.
Conclusion
The CPA Exam is a rigorous but achievable goal for those who are prepared. By understanding the answers to these frequently asked questions, you can approach the exam with confidence and a clear plan for success. Remember, thousands of candidates pass the CPA Exam every year, and with the right preparation, you can join their ranks.