US CPA Exam Section Strategy — FAR, AUD, REG, BEC, and BAR

Passing the CPA Exam — Score Requirements and Strategy

The AICPA Uniform CPA Examination requires a minimum score of 75 on each of the four sections. Under the 18-month rolling window rule, all four sections must be passed within 18 months of passing the first section.

Passing Score

Minimum on each section; scale of 0–99

Largest section

FAR Weight

Financial Accounting and Reporting

AUD, REG, BEC/BAR

Other 3 sections

Each roughly equal in length

150 credit hours

Education Requirement

Must be met before licensure in most states

Because the 18-month clock begins when you pass your first section, careful scheduling matters. Most candidates sit for FAR last (or early), and plan AUD and REG together. Make sure your 150-hour education requirement is on track before your Notice to Schedule (NTS) expires.

Education and Credit Hour Requirements

Most state boards require candidates to have 150 semester credit hours to obtain a CPA license, and at least 120 hours (often with an accounting concentration) to sit for the exam.

Requirement	Typical Threshold
Accounting courses	24–30 semester hours
Business courses	24 semester hours
Total credit hours	150 hours for licensure
Exam eligibility	120 hours (varies by state)

Three Common Paths to 150 Hours

① Master of Accountancy (MAcc) — Most Popular

1-year graduate program at an AACSB-accredited school
Covers advanced accounting, auditing, and tax
Cost: $15,000–$ 50,000 depending on program
Downside: adds time before entering the workforce

② 5-Year Integrated BS/MS Program

Some universities offer a combined undergraduate + master’s
Complete both degrees in five years
Lower total cost than standalone master’s
Allows CPA prep to run concurrently

③ Post-Baccalaureate Accounting Certificate

Community college or online coursework to add accounting hours
Fastest path if you already have a non-accounting bachelor’s
Cost: $3,000–$ 8,000 per semester
Flexible; can study while working

Recommended Study Order

CPA section order should factor in overlap with daily work and long-term retention.

Priority 1: FAR (Financial Accounting and Reporting)

US GAAP (ASC codification), governmental and nonprofit accounting, IFRS overview. Foundation for everything else. Allocate 40–45% of total study time. Hardest section for most candidates.

Priority 2: AUD (Auditing and Attestation)

AICPA auditing standards, PCAOB standards for public companies, ethics, risk assessment, internal controls. Study after FAR — you need accounting fluency to understand audit procedures.

Priority 3: REG (Regulation)

Federal tax (individual income tax, corporate tax, partnerships, S-corps, gift and estate tax) plus business law (contracts, agency, secured transactions, bankruptcy). Many candidates with tax experience find this manageable.

Priority 4: BEC or BAR

BEC (Business Environment and Concepts, retiring under 2024 model) covers corporate governance, economics, IT, operations management, and financial management. BAR (Business Analysis and Reporting, new 2024 discipline) covers financial reporting, analytics, and advanced accounting.

FAR — Financial Accounting and Reporting Strategy

FAR covers US GAAP, IFRS, governmental accounting (GASB), and nonprofit accounting. It is consistently rated the most difficult section.

High-Priority FAR Topic Areas

Financial Statement Presentation (ASC 205, 230) — income statement, balance sheet, cash flow statement
Inventory (ASC 330) — FIFO, LIFO, weighted average; lower of cost or NRV
Property, Plant & Equipment (ASC 360) — recognition, depreciation, impairment, disposals
Financial Instruments (ASC 320, 321, 323, 326) — HTM/AFS/trading; CECL expected credit loss
Revenue Recognition (ASC 606) — 5-step model, variable consideration, contract modifications
Leases (ASC 842) — right-of-use asset and lease liability for operating and finance leases
Business Combinations (ASC 805) — acquisition method, goodwill, bargain purchase
Consolidations (ASC 810) — primary beneficiary, intercompany eliminations

Governmental and Nonprofit (unique to FAR)

Fund accounting (governmental funds, proprietary funds, fiduciary funds)
GASB vs. FASB framework differences
Modified accrual basis vs. full accrual
Nonprofit: unrestricted, temporarily restricted, permanently restricted net assets

Time Management (4-hour exam, ~66 MCQ + 8 TBSs)

Multiple-choice: average ~90 seconds each
Task-based simulations (TBSs): average 10–15 minutes each
Strategy: complete all MCQs first → TBSs; flag difficult MCQs

AUD — Auditing and Attestation Strategy

AUD Topic Weights

Topic Area	Weight	Key Content
Ethics, Ind., Professional Responsibilities	15–25%	AICPA Code, PCAOB Rule 3520, independence rules
Assessing Risk & Developing a Response	25–35%	Risk assessment, materiality, audit strategy
Performing Audit Procedures	30–40%	Substantive procedures, controls testing
Forming Conclusions and Reporting	15–25%	Audit opinions, going concern, PCAOB Form AP

CPA-Specific High-Yield Points

AUD for the CPA exam tests both AICPA standards (GAAS) for non-public entities and PCAOB standards for SEC-registered companies. Know when each applies.

REG — Regulation Strategy

Federal Tax — Core Coverage (REG)

Individual income tax: filing status, gross income, deductions (standard vs. itemized), AMT, tax credits, self-employment tax
Corporate taxation: C-corp vs. S-corp vs. partnership; basis calculations; distributions; built-in gains tax
Gift and estate tax: annual exclusion ($18,000 for 2024), unified credit, marital deduction
Business law: contracts (offer, acceptance, consideration, defenses), agency, secured transactions (UCC Article 9), bankruptcy (Ch. 7, 11, 13)

English Proficiency — Not Required for CPA

Unlike many professional licensing exams in other countries, the AICPA Uniform CPA Examination has no separate English proficiency test requirement. The exam is administered in English, which serves as its own language test. International candidates should verify state-specific requirements with the National Association of State Boards of Accountancy (NASBA).