What Is the CPA Exam?

The CPA (Certified Public Accountant) exam is a four-section professional licensing exam administered by the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA). It uses a Core + Discipline structure: three Core sections (AUD, FAR, REG) that all candidates must pass, plus one Discipline section (BAR, ISC, or TCP) chosen by the candidate. Each section requires a score of 75 to pass, and all sections must be completed within an 18-month rolling window (AICPA).

The CPA license is the foundational credential for the accounting profession. It is required for signing audit opinions, and it is the most widely recognized accounting qualification in the United States.

Quick Facts

| Detail | Info |
|--------|------|
| Governing Body | AICPA and NASBA |
| Exam Format | Computer-based; MCQs + task-based simulations (TBS) |
| Number of Sections | 4 (3 Core + 1 Discipline) |
| Duration | 4 hours per Core section; 4 hours per Discipline section |
| Pass Rate | Approximately 50% per section (AICPA) |
| Passing Score | 75 per section (scale of 0 to 99) |
| Total Cost | Approximately $1,500 to $2,500 (exam fees + licensing) |
| Testing Window | Year-round at Prometric centers |

Who Takes This Exam?

The CPA exam is taken by accounting graduates and professionals pursuing careers in public accounting (audit, tax, advisory), corporate accounting, government accounting, and financial reporting. The CPA license is a legal requirement for certain activities (such as issuing audit opinions) and a de facto requirement for advancement at most accounting firms.

Most candidates are recent accounting graduates or early-career professionals at public accounting firms. Many firms encourage (or require) employees to pass the CPA exam within their first two years. Career changers with the required education credits also sit for the exam.

The CPA is state-licensed, meaning eligibility requirements vary by jurisdiction. Most states require 150 semester hours of education (more than a standard bachelor's degree) and a concentration in accounting courses.

Exam Structure and Format

The CPA exam uses a Core + Discipline model (AICPA):

Core Sections (all required):

  • AUD (Auditing and Attestation) - auditing procedures, ethics, internal controls, reporting
  • FAR (Financial Accounting and Reporting) - GAAP, government and not-for-profit accounting, financial statements
  • REG (Taxation and Regulation) - federal tax law, business law, ethics

Discipline Sections (choose one):

  • BAR (Business Analysis and Reporting) - financial statement analysis, valuation, projections
  • ISC (Information Systems and Controls) - IT audit, cybersecurity, SOC engagements
  • TCP (Tax Compliance and Planning) - advanced individual and entity tax planning

Each section includes multiple-choice questions (MCQs) and task-based simulations (TBS). The TBS component tests practical application through realistic scenarios.

Pass Rates

The AICPA publishes pass rates by section. Historical averages (AICPA):

  • AUD: approximately 49%
  • FAR: approximately 44%
  • REG: approximately 52%
  • BAR: approximately 50%
  • ISC: approximately 53%
  • TCP: approximately 55%

FAR consistently has the lowest pass rate among the Core sections, reflecting the breadth of its syllabus (GAAP, government accounting, not-for-profit). Many candidates choose to take FAR first while their study motivation is highest.

The 18-month rolling window adds strategic pressure. Once you pass your first section, the clock starts. If you do not pass all remaining sections within 18 months, your earliest passing scores expire and must be retaken.

How to Prepare

Most candidates need 300 to 400 total study hours across all four sections (AICPA survey data). A typical breakdown:

  • FAR: 100 to 120 hours (8 to 10 weeks)
  • AUD: 80 to 100 hours (6 to 8 weeks)
  • REG: 80 to 100 hours (6 to 8 weeks)
  • Discipline: 50 to 70 hours (4 to 6 weeks)

Active practice is the most effective study method. Aim for at least 500 practice questions per Core section and 300 per Discipline section. Focus on understanding the reasoning behind correct answers, not just memorizing rules.

FreeFellow offers over 6,200 free CPA practice questions across all six sections: AUD, FAR, REG, BAR, ISC, and TCP, with detailed solutions, adaptive practice, and performance analytics.

Cost and Registration

Total CPA exam costs range from approximately $1,500 to $2,500, including:

  • Application fees (vary by state, typically $50 to $200)
  • Exam section fees (approximately $350 per section)
  • Licensing fees (vary by state)
  • Ethics exam (required in some states)

Eligibility requirements vary by state but generally include:

  • 150 semester hours of education (most states)
  • Concentration in accounting courses (specific requirements vary)
  • Bachelor's degree (minimum)
  • Work experience under a licensed CPA (1 to 2 years, varies by state)

Candidates apply through their state board of accountancy and register via NASBA.

Free Practice Resources

FreeFellow provides 6,200+ free CPA practice questions across all six sections, with detailed solutions, three difficulty levels, adaptive practice, full practice exams, and performance analytics. Start your CPA exam preparation today.