Which CPA Exam Section Should You Take First?

The Certified Public Accountant (CPA) designation is a highly respected credential in accounting and finance. Earning this license signifies a deep understanding of financial principles, auditing standards, and tax regulations, distinguishing individuals as experts. It opens doors to diverse career opportunities. The journey to becoming a CPA culminates in passing the Uniform CPA Examination, a rigorous assessment.

Overview of the CPA Exam Sections

The CPA Exam underwent significant changes in January 2024, transitioning to a new Core-plus-Discipline model. This updated structure requires all candidates to pass three core sections and one chosen discipline section. The core sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG), which cover foundational knowledge expected of all newly licensed CPAs. Candidates then select one of three discipline sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). This shift allows for specialization while maintaining a robust common core.

The Auditing and Attestation (AUD) section focuses on the knowledge and skills required for performing audit, attestation, and accounting and review services. Content areas include ethics, professional responsibilities, risk assessment, internal controls, obtaining evidence, and reporting on engagements.

The Financial Accounting and Reporting (FAR) section covers financial accounting and reporting frameworks used by various entities, including for-profit, not-for-profit, and governmental organizations. Key topics include U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and Government Accounting Standards Board (GASB) pronouncements.

The Regulation (REG) section covers U.S. federal taxation for individuals and entities, as well as business law and ethics in tax practice. It includes federal tax compliance and planning strategies, and the legal duties and responsibilities of CPAs.

The Business Analysis and Reporting (BAR) section covers advanced financial reporting, management accounting, and financial analysis, including economics, strategy, risk management, and valuation. The Information Systems and Controls (ISC) section focuses on information systems concepts, data management, security, and System and Organization Controls (SOC) engagements. The Tax Compliance and Planning (TCP) section covers advanced federal taxation for individuals and entities, as well as personal financial planning strategies. Candidates choose the discipline that aligns with their interests and career aspirations.

Key Considerations for Choosing Your First Section

Selecting the initial CPA Exam section involves assessing individual strengths and circumstances. Academic background is a foundational indicator; coursework where you excelled might suggest a stronger starting point. Conversely, areas where you struggled may require more intensive study. Prior work experience also plays a role, with audit professionals often finding AUD more familiar, and those with tax experience gravitating towards REG or TCP.

Your preferred study style and habits are another factor. Some candidates prefer to begin with a challenging section to build confidence. Others find it beneficial to start with an easier section to build momentum and refine study routines. Time availability and commitment are also crucial, as comprehensive sections like FAR or BAR may demand more dedicated study hours.

Exam logistics, specifically the rolling window for passing all sections, also warrant consideration. Most jurisdictions require candidates to pass all four sections within an 18-month period, though some have extended this to 30 months. This window typically begins on the date you pass your first section. Choosing a section you can pass within a reasonable timeframe helps establish a positive trajectory and manages the overall timeline.

Popular Approaches to Section Sequencing

Many candidates adopt common strategies for sequencing CPA Exam sections, often based on content overlap or difficulty. One popular approach involves tackling FAR first, as it is often considered the most comprehensive section and forms a foundational basis for many accounting concepts. The broad scope of financial reporting principles in FAR can provide a strong knowledge base for subsequent sections like AUD or BAR.

Alternatively, some candidates begin with a section less extensive or more aligned with their recent academic or professional experience, such as AUD or REG. The rationale is to secure an early pass, building confidence and understanding the exam format. This strategy can help establish a rhythm for studying and test-taking.

A third strategy focuses on leveraging content overlap. For instance, there is a natural progression from FAR to the BAR discipline, given BAR’s focus on advanced financial reporting and analysis. Similarly, a candidate strong in taxation might take REG followed by the TCP discipline, as TCP builds upon federal tax concepts introduced in REG. Likewise, AUD can provide a solid foundation for the ISC discipline, particularly regarding internal controls and SOC engagements. While these approaches offer general guidance, the most effective sequencing aligns with an individual’s learning style, background, and career aspirations.