What Order Should You Take the CPA Exam?

The Certified Public Accountant (CPA) examination is a benchmark for individuals pursuing a career in accounting. Passing this exam is a requirement for CPA licensure, opening doors to professional opportunities in public accounting, corporate finance, and government. The exam assesses knowledge and skills essential for protecting the public interest.

Understanding the CPA Exam Sections

The CPA Exam consists of four core sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). Each section focuses on distinct areas of accounting and business knowledge.

The Auditing and Attestation (AUD) section evaluates knowledge of auditing procedures, professional responsibilities, and attestation services. It covers generally accepted auditing standards, internal controls, and audit reports. The Business Environment and Concepts (BEC) section assesses understanding of the business environment and its impact on financial operations. It includes corporate governance, economic concepts, financial management, information technology, and operations management.

Financial Accounting and Reporting (FAR) is often considered the most extensive section, covering U.S. Generally Accepted Accounting Principles (GAAP) for businesses, not-for-profit organizations, and governmental entities. Candidates are tested on financial statement preparation, recognition, measurement, valuation, and disclosure. The Regulation (REG) section focuses on U.S. federal taxation, business law, and professional ethics. It covers individual and entity taxation, property transactions, and the rights and duties of tax practitioners.

Considerations for Sequencing Sections

Candidates consider several factors to determine the most effective sequence for taking the sections. One factor is the potential for content overlap, allowing candidates to leverage recently acquired knowledge. For instance, Financial Accounting and Reporting (FAR) often provides foundational knowledge beneficial for both Auditing and Attestation (AUD) and Regulation (REG). Concepts from FAR can relate to audit procedures in AUD or tax implications in REG.

Candidates assess their personal strengths and weaknesses based on academic background and professional experience. Starting with a confident section can build momentum and reduce initial exam anxiety. Conversely, some prefer to tackle their weakest section first, overcoming the most challenging hurdle early. This approach can alleviate pressure later in the 18-month window.

The perceived difficulty of each section also plays a role. Financial Accounting and Reporting (FAR) is widely regarded as the most comprehensive and challenging section due to its broad scope and detailed content. Some candidates take FAR first to dedicate ample study time, while others save it for last after gaining confidence from passing other sections. This strategic placement allows for focused preparation.

The availability of dedicated study time impacts the chosen order. Candidates with limited time might take shorter, less content-heavy sections first to achieve early passes. This approach helps manage the workload and ensures consistent progress within the 18-month timeframe. Strategic planning around personal schedules maximizes study efficiency and optimizes exam attempts.

Typical CPA Exam Section Orders

Many candidates adopt common strategies when deciding the order to take the CPA exam sections, often based on content flow or managing difficulty.

FAR First

One common sequence begins with Financial Accounting and Reporting (FAR), followed by Auditing and Attestation (AUD), then Regulation (REG), and finally Business Environment and Concepts (BEC). This order is often selected because FAR provides a broad foundation in accounting principles, beneficial for understanding financial reporting in AUD and tax implications in REG. Tackling FAR first allows candidates to dedicate initial study effort.

BEC First

Another common approach involves starting with Business Environment and Concepts (BEC), followed by FAR, AUD, and then REG. Candidates might choose BEC due to its shorter content or a desire to complete a less technically demanding section. Passing BEC early can provide an initial confidence boost and free up time to focus on FAR’s more extensive content.

REG First

Some individuals prefer Regulation (REG) first, then FAR, AUD, and BEC. This strategy might be adopted by candidates with a strong background in tax or business law, allowing them to capitalize on existing knowledge. Taking REG early leverages their strengths and can secure a pass in a section others find challenging due to its legal and tax complexities.

AUD First

Finally, an alternative order might see Auditing and Attestation (AUD) taken first, then FAR, REG, and BEC. This sequence is often chosen by candidates with extensive auditing experience or who find audit concepts intuitive. Starting with AUD can leverage practical experience and allow for a focused study period on audit standards and procedures.

Managing the 18-Month Window

An important aspect of planning the CPA exam journey is understanding and managing the 18-month rolling window. Once a candidate passes their first CPA exam section, they have 18 months to pass the remaining three. If all sections are not passed within this timeframe, credit for any passed sections outside the 18-month window will expire, requiring a retake. This rule necessitates careful planning to avoid losing progress.

This 18-month window influences the choice of exam order, emphasizing the need for strategic planning to maximize the likelihood of passing all sections before credits expire. Candidates often prioritize taking a challenging section, such as Financial Accounting and Reporting (FAR), earlier in their schedule. This allows ample time for potential retakes if the initial attempt is unsuccessful, without jeopardizing the expiration of other passed sections. Attempting challenging sections early reduces pressure later in the window.

To optimize this window, candidates often front-load sections that build upon each other, such as taking FAR before AUD or REG. This allows them to leverage recently studied material, potentially reducing overall study time for subsequent sections and increasing efficiency. Strategically grouping related content can improve chances of passing within the required timeframe. Consistent study habits and scheduling exams with adequate preparation time are also important.

Tracking progress within this timeframe is important, and candidates should regularly monitor credit expiration dates. Many candidates aim to pass at least two sections within the first six to nine months to maintain a comfortable pace. This proactive approach helps avoid a rush towards the end of the 18-month period, reducing stress and allowing for more focused preparation. The chosen order should align with a realistic timeline for study and exam attempts, ensuring efficient use of the entire window.