How Long Is the FAR Exam and How to Prepare
Gain essential insights into the FAR exam. Learn about its design and develop effective strategies for successful CPA preparation.
The Financial Accounting and Reporting (FAR) exam is a core section of the Uniform CPA Examination. It assesses a candidate’s proficiency in financial accounting and reporting standards. Success on this section demonstrates a foundational understanding of accounting principles and frameworks used by businesses, governmental entities, and non-profit organizations. Passing the FAR exam is a required step for all aspiring CPAs.
FAR Exam Duration and Format
The FAR exam is a four-hour assessment structured into five testlets. It includes multiple-choice questions (MCQs) and task-based simulations (TBSs). The exam comprises 50 MCQs and 7 TBSs, with each question type contributing equally to the overall score.
The first two testlets consist of 25 MCQs each. Following the third testlet, which contains two TBSs, candidates can take a 15-minute break that does not count towards the total exam time. The remaining two testlets are dedicated to additional TBSs, with the fourth having three and the fifth having two. Strategies suggest approximately two minutes per MCQ and 18-22 minutes per TBS to complete all sections within the four-hour limit.
Preparing for the FAR Exam
Preparation for the FAR exam involves dedicating 100 to 200 hours to study. This translates into an average timeframe of 8 to 12 weeks. The extensive coverage of topics, including governmental and non-profit accounting, requires a comprehensive study approach.
Study strategies involve creating a structured plan for concept review, practice questions, and simulations. Utilizing review courses, which provide organized materials, video lessons, and practice exams, is common. Consistent practice with MCQs and TBSs reinforces understanding and improves time management. Familiarity with spreadsheet software is beneficial for calculations and analysis.
Navigating the CPA Exam Journey
The Uniform CPA Examination consists of three core sections and one discipline section. Core sections include Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG). Candidates select one discipline from Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).
The CPA exam journey includes a 30-month window to pass all four sections, which begins once a candidate passes their first section. This provides flexibility for candidates navigating study and professional commitments. Many candidates strategically choose to take the FAR exam early because its extensive content often provides a strong foundation for other sections.