How Long is the CPA Exam?

Passing the CPA exam is the first step toward becoming a certified public accountant.

You might be wondering how long the CPA exam is.

Put simply, the test takes 16 hours total, with each exam lasting about four hours. These sections consist of three core tests: Auditing and Attestation (AUD), Financial Account and Reporting (FAR), and Tax and Regulation (REG). The fourth section includes a discipline section, for which test takers are allotted four hours to complete.

But this isn’t all you need to know about the CPA exam.

Because the exam has undergone significant shifts, there is much more to know than just how long you’ll sit in on exam day.

I’ll discuss the CPA exam, its format and content, and what you can expect from each section. Then, I’ll explain how the exam is scored.

Key Takeaways

• Length and Structure: The CPA exam is divided into three core exams and three discipline exams. Each section is 4 hours long and covers various question formats, including multiple-choice and task-based simulations.
• Core Exam Focus: The core exams—Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG)—assess essential skills in auditing, financial reporting, and tax compliance. Candidates must complete all sections.
• Discipline Exams: Depending on their career focus, candidates must pass one of the three specialized Discipline Exams—Business Analysis and Reporting (BAR), Information Systems and Control (ISC), or Tax Compliance and Planning (TCP). Candidates choose one section.

Overview of the CPA Exam

The CPA exam is one of the three “E’s” (Education, Examination, and Experience) required to become a licensed CPA in the United States. It is accepted in all U.S. jurisdictions.

CPA Exam Format and Content

The CPA exam includes three core sections—Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG)—plus a chosen discipline section: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). Each section assesses skills in knowledge, application, analysis, and, for AUD, evaluation. The exam is structured around multiple-choice questions (MCQs) and task-based simulations (TBSs), with each section lasting four hours.

The CPA exam is regularly updated to reflect changes in tax laws and industry standards, ensuring it accurately tests the skills and knowledge needed by today’s accounting professionals.

Core Exam Sections

The CPA exam’s core sections are designed to assess critical knowledge and skills across three main areas: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG). Each section covers specific content areas and skills essential for professional practice.

Auditing and Attestation (AUD)

The AUD section consists of 72 multiple-choice questions (MCQs) and 8 task-based simulations (TBSs). This section evaluates your understanding of the auditing process, including ethics, standards, and risk assessment, as well as your ability to apply auditing principles in various scenarios.

Key topics include:

• Ethics for Accountants: Principles such as integrity, objectivity, professional competence, confidentiality, and professional behavior.
• Risk Assessment: Identifying potential threats, evaluating internal controls, and assessing risks within an audit.
• Attestation Services: Collecting audit evidence to ensure that control systems function as intended and that financial information is accurate.

Financial Accounting and Reporting (FAR)

The Financial Accounting and Reporting (FAR) section of the CPA exam consists of 66 multiple-choice questions (MCQs) and 8 task-based simulations (TBSs). This section assesses candidates’ knowledge of financial accounting and reporting standards applicable to both for-profit and nonprofit organizations, covering a broad range of GAAP principles.

Key areas tested include:

• Financial Statements and Accounting Principles: Understanding balance sheets, income statements, statements of cash flows, and changes in equity. This includes applying standards for various financial statements and ensuring compliance with GAAP.
• Reporting and Disclosures: Preparing accurate financial reports, forecasting future performance, and analyzing financial information to assess risks and overall financial health of an organization.

The FAR section emphasizes technical accounting skills and requires a deep understanding of the standards and frameworks that guide financial reporting for diverse entities. Candidates should be prepared to demonstrate their ability to apply these standards accurately in various scenarios.

Regulation (REG)

The Regulation (REG) section of the CPA exam consists of 76 multiple-choice questions (MCQs) and 8 task-based simulations (TBSs). This section assesses candidates’ understanding of federal taxation, ethics, business law, and professional responsibilities relevant to CPA practice.

Key areas tested include:

• Professional Responsibilities and Ethics: Covers CPAs’ legal and ethical duties, including standards for tax practice, professional conduct, and ethical obligations in client interactions, as outlined by the AICPA.
• Federal Taxation: Emphasizes individual, corporate, and property taxation, as well as federal compliance regulations. Topics include income, deductions, credits, and tax calculations, along with laws governing different types of entities.
• Business Law and Legal Compliance: Examines essential concepts in U.S. business law, such as contracts, torts, and agency law, which impact both CPAs’ responsibilities and client advising.

This section requires a solid grasp of both the principles and applications of federal tax law, along with a comprehensive understanding of legal responsibilities in tax practice. Candidates are expected to apply their knowledge to complex scenarios reflective of real-world compliance and ethical situations.

Discipline Sections

The CPA exam offers three discipline sections, allowing candidates to specialize in a specific area: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). In addition to the three core sections, passing one discipline section is required to earn CPA licensure. Each discipline section is designed to align with different career paths within accounting.

1. Business Analysis and Reporting (BAR):
Ideal for those interested in financial reporting and advisory roles. This section dives deeper than FAR in areas related to business reporting and analysis.

• Question Breakdown: 50 MCQs and 7 TBSs
• Focus Areas: Advanced financial accounting topics, such as consolidations, financial statement analysis, and governmental and not-for-profit accounting. It also includes:
  • Data analytics and capital structure
  • Budgeting and forecasting for business reporting

2. Information Systems and Controls (ISC):
Focused on IT governance and cybersecurity, ISC is suited for candidates interested in technology roles within accounting.

• Question Breakdown: 82 MCQs and 6 TBSs
• Focus Areas: Emphasizes IT infrastructure, data management, and cybersecurity. Topics include:
  • System and organization control (SOC) engagements
  • Information security, data analytics, and emerging technologies

3. Tax Compliance and Planning (TCP):
Geared towards candidates aiming for tax advisory or compliance roles, TCP covers in-depth tax planning and compliance.

• Question Breakdown: 68 MCQs and 7 TBSs
• Focus Areas: Detailed tax topics, including:
  • Entity taxation, individual tax planning, and property transactions
  • Federal tax compliance and strategies for minimizing tax liability

Each discipline section complements the core exams by allowing candidates to tailor their certification to a particular area of expertise. Selecting a discipline based on career interests can provide a competitive edge in specialized areas of the accounting field.

CPA Exam Scoring and Passing Requirements

You might be wondering:

What are the requirements for passing?

How will I be scored?

Simply put, focus on studying for the CPA and remembering the material. Here is how you’ll be graded:

1. The exam assesses a candidate’s skills in key areas, including financial accounting, business analysis, and personal financial planning.
2. Each section is scored on a scale from 0 to 99.
3. A candidate must score 75 or higher to pass.
4. Multiple-choice questions and task-based simulations are weighted equally, except for the ISC section, where, according to the AICPA, multiple-choice questions are weighted 60%, and task-based simulations are weighted 40%.

How Long Do I Have to Take the Test?

Candidates have from 18 to 30 months from the date they pass their first section to complete all sections of the CPA exam. Many states have given an extension, which allows for more flexibility in scheduling and preparing for each exam section. Choosing one of the best CPA study materials will help you create a custom study schedule with adaptive tech that targets your weak points.

It is still crucial to strategically plan the order of each exam section and schedule appointments as soon as you receive your Notice to Schedule (NTS). That said, there is no limit to exam attempts.

Candidates on Reddit recommend reviewing your score report to identify weak areas before retaking the test. This allows you to create a targeted strategy for passing the CPA exam.

Conclusion

The Uniform CPA Exam is a comprehensive and rigorous test that ensures future accountants possess the knowledge and skills to earn their licensure. The combination of core and discipline exams covers many topics and requires understanding theoretical concepts and practical applications of tax laws, regulations, conduct, and informational technology in accounting. Each section is 4 hours long, with a total testing time of 16 hours. Remember to manage your time wisely and take your time with each section.

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