What Is the Hardest CPA Exam Section?

Introduction

The Certified Public Accountant (CPA) exam is a rigorous, four-part assessment that evaluates a candidate’s ability to perform the duties of a licensed accountant. It is a vital milestone toward earning a CPA license and is known for its difficulty and depth across multiple exam sections.

While every part of the CPA exam is challenging, one section consistently stands out among CPA candidates as the most difficult. Based on candidate feedback, CPA exam pass rates, and the volume of material tested, the FAR section (Financial Accounting and Reporting) is widely considered the hardest CPA exam section.

Hardest cpa exam
Access Your State’s CPA Exam Requirements

Understanding the CPA Exam Structure

The CPA exam consists of four core sections, each designed to test a unique area of accounting knowledge. As of 2024, BEC (Business Environment and Concepts) has been retired and replaced by three discipline sections, allowing candidates to tailor their exam experience.

Core Sections:

  1. FAR (Financial Accounting and Reporting)
    Tests your knowledge of financial statements, GAAP, IFRS, and governmental/nonprofit accounting.
  2. AUD (Auditing and Attestation)
    Focuses on auditing standards, internal controls, professional responsibilities, and ethics.
  3. REG (Regulation)
    Covers federal taxation, business law, ethics, and property transactions.
  4. Discipline Sections (choose one):
    • BAR – Business Analysis and Reporting
    • ISC – Information Systems and Controls
    • TCP – Tax Compliance and Planning

Each exam part is four hours long and includes multiple choice questions, task-based simulations, and in some cases, written communication tasks.

Criteria for Difficulty

When ranking which CPA exam section is the hardest, several key factors contribute to its difficulty:

  • Volume of material
  • Technical complexity
  • Number and difficulty of task-based simulations
  • Historical CPA exam pass rates
  • Anecdotal input from CPA review course providers and successful candidates

CPA Exam Sections Ranked by Difficulty

1. FAR (Financial Accounting and Reporting) – Hardest CPA Exam Section

  • Massive coverage of financial accounting topics including GAAP, IFRS, and specialized areas like governmental accounting
  • Dense, calculation-heavy content that demands a deep understanding
  • The FAR section includes the most simulations of any section
  • Average pass rate: ~39–42%
  • Considered the most difficult section due to the breadth and complexity of material

2. REG (Regulation)

  • Focuses on federal taxation, business law, and ethics
  • Heavy on memorization and the often-confusing tax regulations
  • Includes federal tax procedures, property transactions, and professional responsibilities
  • Pass rate: ~45–50%

3. AUD (Auditing and Attestation)

  • Tests concepts related to auditing processes, internal controls, and general principles
  • Emphasis on critical thinking rather than math
  • Commonly misjudged as “easier” due to less calculation, but filled with tricky wording
  • Pass rate: ~48–51%

4. New Discipline Sections (Post-2024)

  • Replaces the old BEC section
  • BAR (Business Analysis and Reporting) may be more challenging due to its advanced financial analysis
  • ISC (Information Systems and Controls)
  • TCP (Tax Compliance and Planning) may be considered more manageable depending on a candidate’s background

Why FAR Is the Hardest CPA Exam Section

FAR is often described as the Mount Everest of the CPA exam. Here’s why it’s widely regarded as the most difficult section:

  • Volume and complexity: Includes financial statements, deferred taxes, leases, pensions, consolidations, and nonprofit accounting
  • Intense focus on GAAP vs. IFRS and governmental standards
  • Packed with task-based simulations, which require not just memory, but calculation and application
  • Pass rate is the lowest among all sections
  • Feedback from thousands of candidates and CPA coaches confirms that it requires the most study hours and the highest level of exam preparation

Should You Take the Hardest Section First?

This is a common strategy dilemma. Tackling FAR first has both advantages and drawbacks.

Pros of taking FAR first:

  • You’re likely at your most motivated and energized
  • Retain more from recent college or study
  • Passing it builds momentum and confidence

Cons of taking FAR first:

  • High chance of early failure could demotivate you
  • May delay your CPA timeline if a retake is required

Alternative Strategy:

  • Start with a “lighter” section like AUD or ISC to ease into the process, then tackle FAR second with more exam familiarity

Tips for Preparing for FAR

To adequately prepare for the FAR section and successfully pass:

  • Create a study strategy: Break material into daily goals
  • Master simulations early in your prep
  • Use flashcards to differentiate GAAP vs. IFRS
  • Dedicate extra time to governmental and nonprofit accounting
  • Take mock exams under timed conditions to simulate exam day
  • Choose the right CPA review course for your learning style
Your Journey Starts Here

Conclusion

The Financial Accounting and Reporting (FAR) section is, by consensus and statistics, the hardest CPA exam section. However, with strong exam preparation, a well-planned study strategy, and the right study materials, it’s entirely possible to pass the CPA exam and earn your CPA license.

Remember: understanding the CPA exam structure and planning your journey accordingly is essential. Conquer FAR, and you’re well on your way to becoming a Certified Public Accountant.