The certified public accountant (CPA) exam, also known as the Uniform CPA Exam, assesses the core skills you need to become a public accountancy professional.
The American Institute of Certified Public Accountants (AICPA) develops and continually revises the exam. It evaluates candidates’ understanding of essential accounting principles, auditing procedures, business law, and ethical standards.
The exam is just one step—albeit a highly important one—on the path to becoming a licensed CPA. It’s one of the “4 E’s” of CPA licensure: education, experience, ethics, and examination. These might vary depending on your state’s board of accountancy but generally include:
- Completing 150 hours of relevant education, such as via a degree in accounting or a related field
- Gaining practical work experience, typically about 2,000 hours of practical working experience
- Upholding rigid ethical standards
Here, we’ll focus on the CPA exam. We’ll cover everything you need to know about it—the format, what’s on it, its eligibility requirements, how to register, and more. Read on to find out what it takes to tackle this milestone exam.
CPA Exam format
So, what’s on the CPA Exam? The exam breaks down into four sections—3 Core sections and your choice of 1 of 3 Discipline sections. In total, the exam’s Core sections contain 200 multiple-choice questions and 22 task-based simulations. The Discipline sections range from 50 to 82 multiple-choice questions and 6 to 7 task-based simulations (more on what’s in those sections soon).
You’ll have 4 hours to complete each section, totaling 16 hours of exam time. You can take the sections in any order you choose, providing you the flexibility to approach the exam in a way that best fits your thought process and test-taking skills.
One thing to keep in mind as an exam candidate is the time window you have to pass the CPA Exam. Generally, you must pass it within 30 months of starting it. In 2023, the National Association of State Boards of Accountancy (NASBA) recommended that state boards of accountancy extend the window from 18 to 30 months. That said, not all state boards of accountancy apply the same criteria for when that clock officially starts. And some states, like Washington, even have different time windows (36 months).
Core CPA Exam sections
The CPA Exam is a monumental step toward becoming a CPA, so let’s break down each exam section in detail.
The 3 Core exam sections are:
- Auditing and Attestation (AUD): This section contains 78 multiple-choice questions and 7 simulations based on CPA tasks and ethical behavior. This section covers things like government auditing standards, legal compliance, communication standards, and ethical behavior.
- Financial Accounting and Reporting (FAR): This material covers financial statements, local and state government regulation, and other key financial reporting concepts. The FAR section has 50 multiple-choice questions and 7 task-based simulations.
- Taxation and Regulation (REG): Business law, federal taxes, ethics, and legal and professional responsibilities all fall under this section. These topics are covered in 72 multiple-choice sections and 8 task-based simulations.
CPA Exam Discipline sections
Your options for the Discipline section are:
- Tax Compliance and Planning (TCP): This section focuses on complex tax scenarios you might encounter if you become a tax preparer, including tax compliance for businesses and individuals. It also covers personal financial planning, entity planning, and what’s included and excluded in gross income. This section is valuable for those aspiring to work in tax-related fields, whether in public accounting, private industry, or government. It spans 68 multiple-choice questions and 6 task-based simulations.
- Business Analysis and Reporting (BAR): The BAR section covers concepts such as data analytics, some financial planning methods, and financial risk management in 50 multiple-choice questions and 7 task-based simulations. Choosing this section makes sense if you plan to pursue careers in financial analysis, management accounting, controllership, and government finance, among other roles.
- Information Systems and Controls (ISC): This section has 82 multiple-choice questions and 6 task-based simulations and covers the information technology (IT) side of the CPA realm, including business processes, internal controls, and their relationship with technology. This section is valuable if you’re seeking roles in IT auditing, information security management, systems analysis, risk management, or compliance. It’s also a solid fit for accounting and finance positions where technology plays a significant role.
CPA Exam eligibility requirements
Future accountants must be aware of the three eligibility requirements you must satisfy if you want to sit for the CPA Exam: education, residency, and work experience. Some of this overlaps with the 4 E’s we talked about earlier.
For starters, you’ll typically need to be at least 18 years old and meet certain criteria, each of which can vary by state or jurisdiction. Check your state board of accountancy to be absolutely sure of what you need to do. However, here are some general requirements CPA candidates can expect to fulfill.
Education
Most states and jurisdictions require you to have 150 credit hours of study under your belt before taking the test. Typical bachelor’s programs will meet 120 credit hours of the requirement, which is why many aspiring candidates pursue their master’s as well. Aspiring candidates can sometimes get these extra 30 credits by demonstrating competency in other ways, like continuing education, workshops, or volunteer opportunities.
Experience
While you can usually take the CPA Exam before fulfilling the work experience requirement, you’ll need relevant experience to become a licensed CPA.
Your experience requirement toward your CPA consists of 40 hours per week of relevant work experience for one year or at least 20 hours of relevant work per week over a maximum of 24 months (2 years). That’s roughly 2,000 hours of practical experience.
The source of your work experience hours needs to cover the following skills:
- Management advising
- Tax
- Financial strategy
- Attest
- Consulting service
- Accounting
- Tax
- Compilation
Residency
In addition to education and experience, some CPA candidates may have to comply with a state- or jurisdiction-specific residency requirement. Certain states (like Florida) don’t require this at all. Within the states that do require it, the number of days or criteria necessary to establish residency varies.
Again, this is why it is extremely important to check your local guidelines and regulations to see exactly what they require.
CPA Exam application and scheduling process
The CPA Exam application process involves several steps. After meeting the eligibility requirements, you’ll need to apply through your state board of accountancy.
The testing process involves three key organizations: the AICPA, NASBA, and Prometric. The AICPA develops and scores the test, while the NASBA maintains the national database of candidates. Prometric facilitates nationwide testing centers.
Here’s the step-by-step process to apply for the CPA Exam.
1. Gather transcripts
Contact your university to send you your college transcripts. Typically, you can do this through the college’s admissions (or registrar’s office). Depending on the university you attended, you may either receive them or have them sent directly to your state board of accountancy. Some state boards of accountancy require sealed transcripts to be sent directly to them from the university.
2. Submit application and pay fee
You can submit your application to any state board of accountancy you like, at any time of year, but you can only submit to one jurisdiction at a time. You’ll also have to pay your application fee at this time (more on that later). These fees vary by jurisdiction. Finally, make sure the name on your application exactly matches the name on your two IDs you’ll provide on test day.
3. Receive your Authorization to Test (ATT)
Once your application is approved, you’ll receive a document known as your ATT. This is normally good for 90 days, but it’s valid for six months in some states.
4. Receive Notice to Schedule (NTS)
You’ll also receive an NTS, which confirms you’re eligible to schedule and sit for the exam. The next step is to visit Prometric’s website to schedule your exam and pay your fees.
5. Schedule your test and take the exam
Once you receive your NTS, you can schedule your test. If you receive your NTS during a testing window, you’ll have to schedule for the next available testing window.
Your state will also require you to bring proper identification to take your exam. Each state may differ on what they consider proper identification, but something like a driver’s license or passport is generally acceptable.
CPA Exam fees and costs
Similar to professional licensing exams in various industries, you’ll have to pay fee(s) to sit for the CPA Exam. The fee structure involves separate charges for each section of the exam you plan to sit for at any given time. So, for example, if you want to sit for three sections at once, you’ll pay a fee for each of the three sections.
These fees are nonrefundable, so schedule your exam only when you feel ready. They also vary by state, so be sure to check with your local accountancy board where you plan to apply for exact amounts.
Although how much you pay will vary depending on where you’re located, here’s how CPA Exam fees break down on average:
- First-time application fee: $100-$200
- Application fee (4 sections): $100-$400
- Examination fee (4 sections): $1,400
- Total: $1,600-$2,000
How to prepare for the CPA Exam
Properly preparing for the CPA Exam takes a significant amount of time. Becker, a well-known professional education company, says candidates should expect to spend 320 to 420 hours in total study time. This breaks down to 80 to 100 hours for each core section and anywhere from 80 to 120 hours for your discipline section, depending on which one you choose.
With that much time to invest, knowing where to start can be a challenge. Here are some helpful tips to guide your study habits and get you prepared as possible:
- Learn the format: Each section contains multiple-choice and task-based questions. Multiple-choice is straightforward, but you may not be familiar with the task-based questions. These are questions with long-form, essay-type answers based on real-world accounting scenarios. Familiarize yourself with this complex question format and study the content in each section until you’re confident you know both well enough.
- Customize your plan: Assess your strengths and weaknesses. If your knowledge of auditing is rock solid, but you struggle with taxation and regulation, allow yourself more study time for that section.
- Strategize your scheduling: Decide how much time you can devote to studying each day or week and how fast you want to complete the process, and schedule your exam based on that.
- Take practice questions: Practice questions are great for getting you more comfortable with the CPA Exam content and format. The AICPA offers free practice questions and exams. You’ll also get practice questions if you sign up for a CPA Exam review class through a provider such as Becker or Surgent.
- Identify improvement areas: Revisit your practice exams after you take and grade them. Review your incorrect answers, read the explanations for the correct answers, and revisit those questions until the concepts and answers come naturally to you.
CPA Exam scoring criteria
Candidates can score up to 99 points on each section of the CPA Exam. Test-takers need a score of 75 or higher to pass a particular section.
Scores on the CPA Exam aren’t calculated as a percentage, and there is no curve. Your final score considers the difficulty of each question, with multiple-choice and task-based questions carrying equal weight.
You’ll receive your final score for the exam based on NASBA’s scoring release timetables. Typically, scores come out within 48 hours of the scheduled release date. The AICPA updates these release dates every two years.
CPA Exam pass rate
The AICPA provides the pass rate of the CPA Exam section by section. The pass rates for the first quarter of 2024 were as follows:
- Core exam sections:
- AUD: 44.63%
- REG: 63.42%
- FAR: 41.92%
- Discipline exam sections:
- BAR: 42.94%
- TCP: 82.63%
- ISC: 50.93%
Can you retake the CPA Exam?
The AICPA offers anyone taking the CPA Exam unlimited retakes. The only stipulation is that you typically must pass all four sections within 30 months (for most states) of starting the exam process. Remember that this can vary by state or jurisdiction, so check with your state board of accountancy for the exact timeframe. If you do need to retake the test, you’ll only be able to do so during the designated testing windows throughout the calendar year.
Final thoughts
The CPA Exam, although challenging, shouldn’t be intimidating. Take the time to understand the test structure, questions, and procedures, and provide yourself ample study time. Of course, if things end up not going your way, you always have unlimited chances to retake the test.
Regardless, there’s nothing to be nervous about. Choose your discipline section, study hard, strategically schedule your exam date, and get down to business.
This guide is just one blog in our larger collection of resources related to tax preparer jobs. If you’re pursuing a career in tax, check out the rest of our guide to get a better understanding of what to expect and possible career paths.