CPA Exam Section Difficulty Ranking: Which Section Is Hardest?
Rank the CPA Exam sections by difficulty based on pass rates, content complexity, and candidate feedback. Learn which section to tackle first and how to prepare for each.
Ranking CPA Exam Sections by Difficulty
One of the most common questions from CPA candidates is which section of the exam is the hardest. The answer depends partly on objective measures like pass rates and content volume and partly on subjective factors like your educational background, work experience, and personal aptitude. This analysis ranks the sections using multiple criteria to help you make informed decisions about your study plan and exam order.
Overall Difficulty Ranking
Based on a combination of pass rates, content breadth, candidate surveys, and preparation time requirements, the consensus difficulty ranking from hardest to easiest is: FAR, AUD, REG, and then the discipline section (which varies by choice). This ranking is not universal. Many candidates find REG harder than AUD or struggle more with their discipline section than any core section. Your personal ranking will depend on your strengths.
FAR: The Most Challenging Section
FAR is widely considered the most difficult CPA Exam section. It covers the broadest range of content, including revenue recognition under ASC 606, lease accounting under ASC 842, government-wide and fund financial statements, not-for-profit accounting, stock compensation, business combinations, consolidations, and international financial reporting standards. The volume of material is staggering, and many topics require detailed calculations and journal entries.
FAR's difficulty is compounded by the interconnected nature of its content. Understanding consolidations requires knowledge of equity method investments, which requires knowledge of fair value measurements. This web of dependencies means that a weak understanding of one area can undermine performance across multiple topics. Candidates typically need 150 to 200 study hours for FAR alone, more than any other section.
AUD: Conceptual Complexity
AUD is challenging for different reasons than FAR. Rather than requiring extensive calculations, AUD tests conceptual understanding of audit processes, professional judgment, and the application of auditing standards. Many candidates find AUD difficult because the material is less concrete than accounting standards. Questions often present scenarios requiring you to identify the most appropriate audit procedure, assess risk factors, or evaluate the sufficiency of audit evidence. The correct answer frequently depends on nuanced distinctions between similar-sounding options.
AUD also tests topics that many candidates have limited practical experience with, including sampling methodology, internal control evaluation, and reporting on compliance engagements. Candidates with audit work experience generally find this section more manageable, while those without audit exposure often struggle with the abstract nature of the content.
REG: Technical Rules and Memorization
REG covers federal taxation for individuals, corporations, partnerships, estates, and trusts, along with business law, ethics, and professional responsibilities. The tax content is rules-based and requires significant memorization of tax rates, thresholds, phase-outs, and special provisions. Many candidates find this memorization-heavy approach either straightforward or overwhelming, with little middle ground.
REG's difficulty has decreased slightly with the CPA Evolution changes, as some of the most complex tax planning topics have moved to the TCP discipline section. However, the core REG section still demands thorough knowledge of the Internal Revenue Code and the ability to apply tax rules to complex scenarios involving multiple entities and transactions.
Discipline Sections: Variable Difficulty
BAR (Business Analysis and Reporting)
BAR is generally considered the most approachable discipline section for candidates with strong financial reporting backgrounds. It extends FAR concepts into advanced analysis, data interpretation, and technical accounting research. Candidates who excel at FAR typically find BAR manageable with moderate additional study.
ISC (Information Systems and Controls)
ISC is often cited as the most unfamiliar discipline section for traditional accounting candidates. Topics include IT governance frameworks, cybersecurity risk assessment, data management principles, and system controls. Candidates without IT backgrounds may need significant additional preparation, while those with IT audit or information systems experience may find it straightforward.
TCP (Tax Compliance and Planning)
TCP builds on REG content and dives deeper into advanced tax planning, entity selection strategies, and complex transactions. For candidates planning tax careers, TCP is a natural extension of their existing knowledge. For candidates without tax inclination, the advanced material can be challenging.
Strategic Implications
- Consider taking your hardest section first while your motivation is highest and your study schedule is fresh. For most candidates, this means starting with FAR.
- Pair sections with complementary content. Taking FAR and AUD close together leverages overlapping financial reporting knowledge. Taking REG and TCP together maximizes tax knowledge retention.
- Allocate study time proportionally to difficulty. If FAR is your weakest area, dedicate 30 to 40 percent of your total study time to it.
- Do not let difficulty rankings discourage you. Every section is passable with sufficient preparation, and thousands of candidates pass each section every testing window.
Remember that difficulty is personal. Use these rankings as a starting framework, but adjust your plan based on your own practice exam performance and honest self-assessment.
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