The CPA exam journey is a marathon, not a sprint. With four distinct sections to complete, many candidates wonder, “Which section of the CPA exam should I take first?” The choice of what CPA Exam to take first is crucial; the right starting point can set a strong foundation, boost confidence, and build momentum. Generally speaking, most recommend that you take the most difficult section first. This article will guide you through key considerations and offer a personalized approach to help you determine the best CPA exam section to tackle first, ensuring you start on the right foot in your CPA journey.
Overview of CPA Exam Sections
The Uniform CPA Exam consists of four sections, each with its own CPA exam blueprints, outlining the core topics covered. Understanding these sections can help CPA candidates determine an optimal CPA exam order.
Financial Accounting and Reporting (FAR)
FAR is often considered the most difficult section due to its extensive coverage of financial accounting, financial reporting, and accounting and reporting FAR principles. It includes topics such as GAAP, IFRS, pensions, leases, and governmental and nonprofit accounting. Many candidates see FAR as foundational because it establishes foundational knowledge referenced in other sections. The FAR CPA exam section requires a strong understanding of accounting and reporting across multiple industries, making it both extensive and detail-heavy. Test takers who are organized and can absorb information efficiently may find FAR a rewarding, though demanding, first CPA exam.
Auditing and Attestation (AUD)
AUD emphasizes auditing standards, ethics, and procedures, focusing on risk assessment, audit reports, and professional ethics. Candidates with a background in auditing or an audit class often find AUD manageable, as it aligns closely with real-world audit processes, including tasks like identifying control risks and assessing financial integrity. If you’re familiar with audit tasks, this section may feel less daunting. AUD covers standards from governing bodies such as the PCAOB, AICPA, and GAO, requiring candidates to understand the importance of ethics and professional responsibilities. AUD’s content is often relevant to roles where CPA candidates help ensure financial transparency.
Regulation (REG)
REG dives into federal tax procedures and compliance, business law, and ethics, making it popular among those with a background in tax or law. REG covers individual, corporate, and partnership taxation, business ethics, and regulatory compliance. Candidates in tax-related fields may find REG’s focus on tax laws, strategy, and legal implications relevant, as it requires applying complex tax codes and understanding legal principles that affect financial reporting. REG is an excellent choice for candidates interested in careers involving tax advisory, compliance, or corporate law, providing practical, in-depth knowledge for immediate use.
Discipline Sections
With the CPA evolution, candidates choose one of three new discipline sections based on career goals, allowing for specialization:
- Business Analysis and Reporting (BAR): Suited for those interested in business analysis, financial analysis, and data management, BAR is ideal for roles in financial planning and analysis. It includes advanced concepts, often involving financial modeling and quantitative analysis. If you enjoy working with data, BAR is a good fit.
- Information Systems and Controls (ISC): Perfect for candidates focused on IT, cybersecurity, and information systems, ISC emphasizes risk management and systems control. ISC suits candidates interested in IT audit or cybersecurity, covering cybersecurity frameworks and digital controls.
- Tax Compliance and Planning (TCP): TCP covers tax compliance and planning, ideal for candidates specializing in tax advisory or compliance. It includes tax planning and optimization with topics like entity formation, retirement planning, and corporate tax strategies.
Each chosen discipline aligns with specific career paths, helping candidates build expertise that directly impacts their chosen field.
Factors to Consider When Deciding What CPA Exam to Take First
Background Knowledge
Starting with core sections of the CPA that align closely with your education or professional experience is beneficial. Candidates with a finance or accounting background may find the FAR section more manageable, while those with tax experience may prefer REG or TCP. Leveraging your background can make each section of the CPA exam feel more accessible and increase your confidence.
Perceived Difficulty Level
Many candidates find FAR the hardest section, while tax compliance and planning (TCP) may be more straightforward for those with tax experience. The FAR section, being extensive, can be intimidating, but it also builds a foundation for other sections. Candidates who enjoy analysis might find BAR engaging, while those passionate about IT may prefer ISC. Choosing a section you feel confident in can reinforce your commitment.
Study Strategies and Preferences
Each CPA exam section has different study demands. FAR requires a structured study plan due to its complex topics, while REG involves memorization of tax laws. Candidates who prefer solving multiple-choice questions may prefer REG or AUD, while those who enjoy task-based simulations may find FAR or BAR more appealing.
Testing Windows and Scheduling
The CPA exam follows continuous testing, allowing flexibility in scheduling. Planning a study schedule around work and personal commitments is essential. Some candidates prefer to take the most difficult section first, while others start with a more manageable section to build momentum.
Confidence Building
Starting with a CPA exam section that aligns with your strengths can provide an early confidence boost. Passing an easier section first can make the remaining CPA exams feel less overwhelming.
Overlap and Integration
Some CPA exam sections complement each other. For example, FAR covers general principles that are helpful in AUD, while REG overlaps with TCP. Understanding these relationships can optimize study efficiency.
Managing Exam Anxiety and Staying Motivated
Preparing for the CPA exam can be overwhelming, and managing stress is crucial for success. Creating a realistic study plan that includes regular breaks, exercise, and relaxation techniques can help mitigate anxiety. Engaging in study groups or seeking mentorship from past CPA students can also provide encouragement and accountability. Setting small, achievable goals throughout the study process can help maintain motivation and keep progress on track.
The Role of Practice Exams in CPA Preparation
Practice CPA exams are a critical tool for CPA students. They provide a realistic simulation of the test environment and help gauge readiness for each section. Taking multiple practice CPA exams can improve time management, familiarize candidates with multiple-choice questions and task-based simulations, and reduce test anxiety. Many students find that scoring well on practice CPA exams correlates with better performance on the actual test. Additionally, reviewing incorrect answers in practice CPA exams strengthens weak areas and ensures a thorough understanding of the material.
Reasons to Take Each CPA Exam Section First
FAR First
Starting with FAR is a strategic choice for many candidates because it provides a strong foundation in financial accounting and reporting. This section is often considered the hardest due to its comprehensive coverage of accounting principles. Passing FAR early allows candidates to leverage the knowledge gained in subsequent sections, particularly AUD and BAR, where financial reporting plays a key role. Additionally, getting the most challenging CPA exam out of the way first can build momentum and reduce CPA exam stress.
AUD First
Candidates with previous auditing experience or those currently working in an audit role may find AUD to be a logical first choice. AUD covers auditing standards, internal controls, and risk assessment, making it easier for those familiar with audit engagements to grasp. Since AUD also has some overlap with FAR, particularly in financial reporting and internal control assessments, candidates who start with AUD can apply this knowledge when tackling FAR later.
REG First
REG is a great option for test takers with foundational knowledge in business law or federal taxation. Since REG heavily focuses on tax compliance, legal regulations, and business structures, individuals working in tax-related positions may find this section easier to study. Starting with REG allows tax professionals to apply their real-world experience directly to the certified public accountant exam, making the study process more efficient. Additionally, REG’s content can assist in understanding the tax aspects covered in TCP.
Discipline First
Candidates with specialized expertise in business analysis, information systems, or tax compliance may prefer to start with their chosen discipline section. This approach allows them to capitalize on their strengths and gain an early confidence boost. For example:
- BAR First: Ideal for candidates with experience in financial modeling or data analysis, as it focuses on advanced financial reporting and business insights.
- ISC First: Beneficial for IT professionals or those interested in cybersecurity, as this section covers information security, system controls, and data protection.
- TCP First: Recommended for tax professionals who want to reinforce their expertise in tax compliance and strategic planning before taking REG.
Best CPA Exam Order Based on Candidate Profiles
| Candidate Profile | Recommended Exam Order |
| Recent Graduates | FAR → REG → AUD → Discipline |
| Accounting Professionals | FAR or AUD first, depending on work experience |
| Tax Professionals | REG → TCP → FAR → AUD |
| IT and Systems Analysts | ISC → FAR → AUD → REG |
Understanding CPA Exam Scores
CPA exam scores range from 0 to 99, with a passing score of 75. Scores are calculated based on performance in multiple-choice questions, task-based simulations, and in some cases, written communication tasks. The CPA exam adapts based on responses, presenting more challenging questions as performance improves.
Final Considerations
Selecting which CPA section to take first is a personal decision influenced by background knowledge, study preferences, difficulty perception, and career goals. Strategic sequencing of CPA exams can help candidates optimize study efforts, reduce stress, and increase the likelihood of passing all four sections within their preferred timeline. Earning your CPA license requires careful planning and dedication, and choosing the right exam order can set the stage for a successful journey.