CPA Exam Section Order: What to Take First and Why It Matters

Looking for the best approach on how to study for the CPA exam? This guide explores why the order in which you take your CPA exam sections matters more than you think. With the 2024 CPA Evolution updates, choosing the right starting point can boost your confidence, improve study efficiency, and help you pass all sections within the 18-month window. Discover proven strategies, tailored section orders, and expert tips to create a smart, personalized study plan.

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Introduction

Most CPA candidates spend months learning how to study for the CPA exam, often juggling work and personal life in the process. However, many overlook a crucial question: Which section should you take first?

The CPA exam is divided into four CPA exam sections: FAR (Financial Accounting & Reporting), AUD (Auditing & Attestation), REG (Regulation), and BEC (Business Environment & Concepts). Starting in 2024, the CPA Evolution will introduce additional discipline sections like BAR (Business Analysis & Reporting), ISC (Information Systems & Controls), and TCP (Tax Compliance & Planning).

Choosing the right order to take these sections can significantly impact your success. The right order can boost your psychological momentum, improve study efficiency, and even align with your professional role. In this article, we’ll explore why exam order matters, the most popular strategies, and expert tips for selecting the best section order for you.

Quick Overview of the CPA Exam Sections (Post-2024 Update)

The CPA exam is designed to assess your ability to perform the responsibilities of a licensed Certified Public Accountant (CPA). Under the new CPA Evolution structure, the exam will include:

Core Sections:

  1. FAR (Financial Accounting & Reporting): Tests your understanding of financial accounting principles, financial reporting, and accounting for business transactions.
  2. AUD (Auditing & Attestation): Focuses on auditing processes, including professional standards, procedures, and ethics.
  3. REG (Regulation): Covers taxation, ethics, and business law.

Discipline Sections (Choose One):

  1. BAR (Business Analysis & Reporting): Focuses on business analysis, strategies, and reporting.
  2. ISC (Information Systems & Controls): Tests knowledge of information systems and internal controls.
  3. TCP (Tax Compliance & Planning): Focuses on advanced tax compliance issues and planning.

The changes under CPA Evolution offer more flexibility, but they also introduce new considerations for how to approach the CPA exam. For instance, the difficulty of the sections may vary based on your background and experience, and certain sections now have a more significant overlap in content than before. For example, AUD and FAR share some common themes, making it easier for candidates to prepare for both if studied in the correct order.

Why CPA Exam Order Matters

When deciding how to study for the CPA exam, the order you take the sections can shape your entire exam experience. Here’s why:

1. Psychological Momentum:

Starting with a section that plays to your strengths and results in a pass can give you a psychological boost. On the flip side, starting with a particularly challenging section might discourage you if you don’t pass on your first try. How to study for the CPA exam effectively means managing your mental state just as much as mastering the content.

2. The 18-Month Clock:

Once you pass the CPA exam’s first section, you have 18 months to pass the remaining sections. Choosing the right order can help you pace yourself and ensure that you complete the entire uniform CPA examination within the designated time frame.

3. Study Efficiency:

Some sections have more overlap in content than others. For instance, FAR and AUD cover similar concepts, which means that study for the CPA exam in a logical order can save you time. This overlap allows you to use the same study material, like task-based simulations and multiple choice questions, for both sections.

4. Professional Relevance:

Tailoring your section order to your professional role or area of expertise can make a huge difference. If you’re already in a taxation role, starting with REG (Regulation) might be more efficient. Alternatively, if you are involved in financial accounting, beginning with FAR could make sense.

Choosing the right strategy is essential in how to study for the CPA exam. Let’s explore common section orders and who they work best for. Each strategy can be effective depending on your unique background and CPA review course.

A. Start with FAR First

Pros:

  • FAR is the most comprehensive section, covering a large portion of accounting concepts and financial reporting.
  • It overlaps with AUD and REG, providing foundational knowledge for other sections.
  • Builds a strong foundation for understanding other CPA exam sections.

Cons:

  • FAR is also the most difficult and time-consuming to study for.
  • Requires deep knowledge of accountancy and may feel overwhelming to start with.

Best for: Full-time students or candidates with recent accounting coursework.

B. Start with AUD First

Pros:

  • More conceptual than other sections, with a moderate difficulty level.
  • Shares significant content overlap with FAR.

Cons:

  • AUD can be difficult if you don’t have an auditing background.

Best for: Candidates working in public accounting or auditing roles.

C. Start with REG First

Pros:

  • Focuses heavily on tax compliance and is a great starting point if you’re already in a tax-related role.
  • More memorization-heavy, which can make it easier to tackle for those with strong memorization skills.

Cons:

  • Can be dense and might require a lot of practice and focused review.

Best for: Tax professionals or those coming off tax season.

D. Start with Your Discipline Section (BAR, ISC, or TCP)

Pros:

  • Relevant to your career and can provide a motivation boost.
  • If you work in business analysis, starting with BAR can be particularly rewarding.

Cons:

  • May lack overlap with other sections, so additional preparation might be needed for other sections later on.
  • Fewer review resources might be available for certain discipline sections.

Best for: CPA Candidates confident in their specialty.

E. Start with the “Easiest” Section to Build Momentum

Pros:

  • Some candidates believe starting with the easiest section builds momentum. For example, BEC was often considered the easiest, and its updated equivalent may also have a lower overall difficulty.

Cons:

  • You may risk starting with something too simple and losing focus for the more difficult sections.

Best for: Candidates looking to pass the CPA exam with confidence early on.

Expert Strategies for Choosing the Right Order

Before you make your decision, consider the following strategies to choose the best CPA exam order for you:

  1. Evaluate your strengths, academic background, and work experience.
    • If you’re strong in taxation, consider starting with REG.
    • If you recently graduated with a degree in accountancy, FAR may be your best bet.
  2. Use a diagnostic test or CPA review course recommendations.
    • Many CPA review programs, such as Becker, offer diagnostic tests to help you gauge which section to take first.
  3. Consider your busiest time of year.
    • If you’re preparing during busy season, you might want to avoid taking a particularly challenging section at that time.
  4. Talk to mentors, colleagues, or alumni.
    • Ask others who have been through the Certified public accountant journey for advice and insight.
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Sample CPA Exam Section Orders (Based on Common Scenarios)

Here are some suggested CPA exam section orders based on specific scenarios:

Scenario 1: Full-Time Working Professional in Audit

Suggested Order: AUD → FAR → REG → Discipline (e.g., BAR)

Scenario 2: Recent College Grad with Accounting Degree

Suggested Order: FAR → AUD → REG → Discipline

Scenario 3: Tax Associate During Busy Season

Suggested Order: REG → Discipline (TCP) → AUD → FAR

FAQs

What happens if I fail the first section?

You can retake the section, but the 18-month time frame will continue, so you’ll need to plan carefully.

Can I change my discipline section later?

Yes, you can change your discipline section if needed. Just check with your state boards for any additional requirements.

Is there a “best” order for everyone?

No, the best order varies depending on your background, strengths, and CPA exam prep recommendations.

What if I don’t pass all four within 18 months?

You may need to retake sections, and your scores will expire after 18 months, so staying on track is crucial.

How do the AICPA Blueprints impact my study plan?

The AICPA Blueprints provide a detailed outline of the skills and knowledge you need to demonstrate for each section of the CPA exam. They are a crucial tool for tailoring your study plan. By using the AICPA Blueprints as a guide, you can focus on the most important topics and ensure you’re preparing for the exam as it’s designed. Many CPA review courses incorporate the Blueprints into their study materials, so be sure to review them to align your studies with the exam content.

What CPA exam prep course should I use?

You can’t go wrong choosing the CPA review course that is right for you. Options such as Becker, NINJA CPA and Roger Uworld are just a few.

Final Thoughts: Choose Your Strategy, Then Commit

There’s no one-size-fits-all approach to the CPA exam, but with thoughtful planning, you can optimize your path to success. Carefully evaluating your strengths, resources, and study plan will help you pass the CPA exam more efficiently and with less stress.

By following a tailored strategy and using the right CPA review resources, such as task-based simulations, multiple choice questions, and expert advice, you can prepare for the CPA exam confidently.

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