CPA Exam Sections: AUD, FAR, REG, BAR, ISC, TCP
A complete breakdown of all six CPA exam sections. Learn what each section covers, how it is scored, and how to prepare effectively.
Overview of all six sections
The CPA exam consists of six sections. Each section is 4 hours long and includes both multiple-choice questions (MCQs) and task-based simulations (TBS). Here is a quick comparison:
| Section | Time | MCQs | TBS | Pass Rate | Difficulty |
|---|---|---|---|---|---|
| AUD | 4 hours | 72 | 8 | ~46% | Hard |
| FAR | 4 hours | 66 | 8 | ~44% | Hardest |
| REG | 4 hours | 72 | 8 | ~55% | Moderate |
| BAR | 4 hours | 72 | 8 | ~55% | Moderate |
| ISC | 4 hours | 72 | 7 | ~50% | Hard |
| TCP | 4 hours | 72 | 7 | ~50% | Hard |
AUD: Auditing and Attestation
What AUD covers
- ●Ethics, independence, and professional conduct
- ●Audit planning, risk assessment, and internal controls
- ●Audit evidence, procedures, and documentation
- ●Forming conclusions and reporting on engagements
- ●Attestation engagements and reviews
- ●Accounting and review service engagements
Study tips for AUD
AUD requires you to think like an auditor, not just memorize standards. Focus on understanding the audit process from planning through reporting. Practice applying auditing standards to scenarios rather than just reading about them. Candidates with professional audit experience have an advantage, but structured practice questions can bridge the gap.
Recommended study time: 300 to 400 hours
FAR: Financial Accounting and Reporting
What FAR covers
- ●Financial statement preparation and presentation (U.S. GAAP)
- ●Revenue recognition and expense measurement
- ●Assets: current, long-term, and intangible
- ●Liabilities: current, long-term, and contingencies
- ●Equity, stock-based compensation, and EPS
- ●Governmental accounting (GASB standards)
- ●Not-for-profit accounting
- ●Consolidations, foreign currency, and partnerships
Study tips for FAR
FAR has the most content of any CPA section and the lowest pass rate. Most study plans recommend tackling FAR first while motivation is highest. Break the material into manageable chunks and use flashcards heavily for memorizing standards and rules. Governmental and not-for-profit accounting are heavily tested, so do not skip those topics.
Recommended study time: 350 to 450 hours
REG: Taxation and Regulation
What REG covers
- ●Individual taxation: filing status, income, deductions, and credits
- ●Entity taxation: corporations, partnerships, S corps, and trusts
- ●Property transactions: basis, gains, losses, and like-kind exchanges
- ●Federal tax procedures and ethics
- ●Business law: contracts, agency, and debtor-creditor relationships
- ●Professional and regulatory ethics
Study tips for REG
REG rewards structured, methodical study of tax rules and thresholds. Create a system for memorizing phase-outs, limits, and rates because the exam tests precise numbers. Business law topics are testable but weighted less heavily than taxation. Candidates with tax experience often find REG manageable, while those without tax backgrounds should allocate extra study time.
Recommended study time: 250 to 350 hours
BAR: Business Analysis and Reporting (formerly BEC)
What BAR covers
- ●Corporate governance, risk management, and compliance
- ●Economic concepts: supply, demand, and market structures
- ●Financial management: capital budgeting, cost of capital, and working capital
- ●Information technology: IT controls, data management, and cybersecurity
- ●Operations management: process improvement and project management
- ●Data analytics and business intelligence
Study tips for BAR
BAR (formerly BEC) is often considered the most approachable CPA section because it covers broad business concepts rather than deep technical accounting. However, do not underestimate it. The section tests a wide range of topics, so you need broad preparation. Financial management formulas and IT concepts are frequently tested. Many candidates save BAR for last to end on a relatively manageable section.
Recommended study time: 200 to 300 hours
ISC: Information Systems and Controls
What ISC covers
- ●Information systems and technology fundamentals
- ●Data management and analytics
- ●IT governance and risk management
- ●Cybersecurity and data privacy
- ●System development and change management
Study tips for ISC
ISC is the discipline section that focuses on technology. It requires understanding of IT governance frameworks like COBIT and NIST, data management principles, and cybersecurity fundamentals. Candidates with IT audit or information systems experience will have an advantage. Focus on understanding how technology controls relate to financial reporting and how to evaluate IT risks. SOC reports, encryption concepts, and system development life cycle questions are frequently tested.
Recommended study time: 250 to 350 hours
TCP: Tax Compliance and Planning
What TCP covers
- ●Individual tax compliance and planning
- ●Entity tax compliance and planning
- ●Property transactions
- ●Tax research and communication
- ●State and local tax considerations
Study tips for TCP
TCP is the discipline section for candidates pursuing careers in tax. It goes deeper into tax compliance and planning than what REG covers, with more emphasis on multi-jurisdictional issues and advanced planning strategies. Candidates with tax experience will find this section more approachable. Focus on understanding how different entity structures affect tax outcomes, property transaction rules, and state and local tax considerations. Tax research methodology is also tested.
Recommended study time: 250 to 350 hours
Total study time estimate
Most candidates need 1,500 to 2,000 total study hours to pass all six CPA sections. This breaks down to roughly 250 to 350 hours per section, spread over 6 to 12 weeks of dedicated study per section.
The total timeline from start to finish is typically 14 to 24 months for candidates studying while working full-time. Candidates who can study full-time may complete all six sections in 8 to 12 months. Remember the 30-month rolling window: once you pass your first section, the clock is ticking.
Quality of study time matters more than quantity. Active practice through questions and flashcards is more effective than passive review. A candidate who spends 250 hours on focused practice with feedback will outperform one who spends 400 hours re-reading textbooks.
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Frequently asked questions
How many sections are on the CPA exam?
The CPA exam has six sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Taxation and Regulation (REG), Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP). You must pass the required sections with a score of 75 or higher to earn your CPA license.
What order should I take the CPA exam sections?
Most candidates start with FAR because it has the most content and the lowest pass rate. Getting FAR out of the way first builds momentum and reduces pressure from the 30-month rolling window. A common order is FAR, then AUD (since it shares some overlap with FAR), then REG, and finally BAR. However, the best order depends on your background, work experience, and study schedule.
How long do I have to pass all four CPA sections?
Once you pass your first section, you have 30 months (2.5 years) to pass the remaining sections. If a section score expires before you pass all required sections, you must retake that section. This rolling window makes it important to plan your exam schedule carefully and maintain study momentum between sections.
Can I take multiple CPA sections on the same day?
Yes, you can schedule multiple CPA sections in the same testing window or even on the same day if appointments are available at your Prometric testing center. However, most candidates space their exams 6 to 8 weeks apart to allow adequate study time for each section.
What is the passing score for the CPA exam?
You need a scaled score of 75 or higher to pass each CPA section. This is not a percentage score. The scaling accounts for question difficulty, so a 75 roughly corresponds to answering 60 to 65% of questions correctly. Each section is scored independently, and there is no curve or relative grading against other candidates.
How has the CPA exam changed with the 2024 CPA Evolution?
The CPA Evolution replaced the former BEC section with BAR (Business Analysis and Reporting) and added two discipline sections: Information Systems and Controls (ISC) and Tax Compliance and Planning (TCP). The exam now has six sections total (AUD, FAR, REG, BAR, ISC, TCP), and the overall exam format of MCQs and task-based simulations remains the same.
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