How to Pass the CPA Exam

A practical, no-fluff guide to passing the CPA Exam under the CPA Evolution model — the 3 Core + 1 Discipline structure, how scaled scoring works, eligibility and cost, the 30-month credit window, and a section-by-section study plan.

Last reviewed June 7, 2026. Exam logistics change — always confirm current details on the official certification site before you book.

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The CPA Exam is a marathon, not a sprint — four separate exams you pass one at a time, against a fixed scaled bar. Knowing the structure, the scoring, and the credit clock up front is half the battle. This guide covers the logistics, then a section-by-section plan to get you to 75 four times.

The exam at a glance

The CPA Exam is four separate exams, each 4 hours long, totaling a 16-hour assessment you take over weeks or months — not in one day. Under the CPA Evolution model (live since January 2024), the structure is 3 Core + 1 Discipline:

Your Discipline choice does not limit your license — pick the one that plays to your strengths.

The CPA Exam structure under CPA Evolution Three required Core sections (AUD, FAR, REG) plus one chosen Discipline section (BAR, ISC, or TCP), all leading to a single CPA license. 3 Core sections — every candidate takes all three AUD Auditing & Attestation FAR Financial Acct. & Reporting REG Regulation (tax-heavy) + 1 Discipline — choose ONE (any leads to the same license) BAR Business Analysis & Reporting ISC Information Systems & Controls TCP Tax Compliance & Planning One CPA license · any Discipline qualifies
The CPA Evolution model (since January 2024) — 3 Core + 1 Discipline = 4 sections.

Every section follows the same anatomy: 5 testlets — 2 multiple-choice (MCQ) testlets then 3 task-based-simulation (TBS) testlets. TBSs are the realistic, document-and-spreadsheet problems where most candidates win or lose points. Approximate volumes: AUD 78 MCQ / 7 TBS, FAR 50 / 7, REG 72 / 8, BAR 50 / 7, ISC 82 / 6, TCP 68 / 7.

Core sections are offered year-round (continuous testing) at Prometric centers. Discipline sections are offered only in the first month of each quarter (typically January, April, July, and October), so put your Discipline sitting on the calendar early.

How it is scored

Each section is scored on a scaled range of 0 to 99, and you need at least 75 to pass. Two things every candidate must internalize:

Sections are passed independently (no composite average). Scores release on AICPA target dates after each cut-off, viewable in the NASBA portal/app. If you fail, the Candidate Performance Report shows your relative strength by content area — use it to target your retake.

Are you eligible — and what does it cost?

Eligibility is set by your state board, not the AICPA, so rules vary. The general pattern:

Cost (verify with your board): budget roughly $1,100-$1,500 in NASBA/board fees to sit all four sections (per-section exam fees plus an application/registration fee and any transcript-evaluation fee). Section fees in 2026 commonly fall in the high-$200s to ~$390 range each. Add a review course ($1,500-$3,500) and many candidates spend $2,500-$5,000+ total.

Build a realistic study plan

Plan for roughly 300-400 total study hours across all four sections. Take one section at a time; passing one starts your 30-month credit clock, so sequence smartly. A common order is FAR first (broadest, hardest), then AUD, then REG, then your Discipline (which builds on FAR/REG).

A workable 6-8 week rhythm per section:

Block fixed daily study windows and protect them. Consistency beats marathon weekends.

The exam mindset

Master the sections

FAR — Core. The broadest section. Heaviest areas: Financial Reporting (30-40%) and Select Balance Sheet Accounts (30-40%), then Select Transactions (25-35%). Expect calculation-heavy TBSs (journal entries, consolidations, leases, statements). This is where to spend the most hours.

AUD — Core. Most points sit in Performing Further Procedures & Obtaining Evidence (30-40%) and Assessing Risk & Developing a Planned Response (25-35%), with Ethics & General Principles (15-25%) and Forming Conclusions & Reporting (10-20%). Conceptual and judgment-driven — master the audit flow and report language.

REG — Core. Tax-dominant: Federal Taxation of Entities (23-33%) and Individuals (22-32%) carry it, plus Business Law (15-25%), Ethics & Federal Tax Procedures (10-20%), and Property Transactions (5-15%). Learn the rules cold and drill computational TBSs — note REG carries 8 TBSs (one more than the other sections).

Disciplines (choose one):

Common pitfalls

After you pass

Passing all four sections satisfies the exam requirement — you never retake it. To get licensed, complete your state’s education (often 150 hours, or an adopted alternative pathway) and experience requirements and apply through your board. Once licensed, you maintain the credential with Continuing Professional Education (CPE) — commonly around 40 hours/year including an ethics component, but hours and cycles are set by your state board. There is no exam renewal; the ongoing obligation is CPE, not re-testing.

The week before, and exam day

You only need 75. Trust your preparation, work the weights, and bank the easy points first.

Quick-reference: exam tips by domain

Pulled from every term in this subject — a fast last-pass before exam day.

Financial Accounting and Reporting (FAR)

  • Accrual Basis — Accrual accounting, not cash basis, is required under GAAP.
  • Balance Sheet — The balance sheet always balances: assets equal liabilities plus equity.
  • Bonds Payable — A bond sells at a discount when its stated rate is below the market rate, and at a premium when above.
  • Comprehensive Income — Items like certain unrealized gains and pension adjustments flow through other comprehensive income.
  • Consolidation — Control, generally more than 50 percent ownership, triggers consolidation and elimination of intercompany balances.
  • Loss Contingencies — Probable and reasonably estimable: accrue. Reasonably possible (or probable but not estimable): disclose only. Remote: no accrual or disclosure.
  • Accruals and Deferrals — Accruals recognize before cash moves; deferrals recognize after cash moves.
  • Deferred Taxes — Temporary differences create deferred taxes; permanent differences do not.
  • Depreciation — Common methods include straight-line, declining balance, and units of production.
  • Equity Method — Significant influence, often 20 to 50 percent ownership, generally triggers the equity method.
  • Fair Value — The fair value hierarchy ranks inputs as Level 1 (quoted prices), Level 2, and Level 3 (unobservable).
  • Fund Accounting — Governmental funds use modified accrual; proprietary funds use full accrual.
  • U.S. GAAP — GAAP in the U.S. is set primarily by the FASB through the Accounting Standards Codification.
  • Goodwill — Goodwill is not amortized under GAAP but is tested for impairment.
  • Asset Impairment — Under GAAP, an impairment loss generally cannot be reversed for assets held and used.
  • Income Statement — The income statement covers a period, while the balance sheet is at a point in time.
  • Inventory Cost Flow — In rising prices, FIFO yields higher income and LIFO yields lower taxable income.
  • Lease Accounting — Under ASC 842 most leases put a right-of-use asset and a lease liability on the balance sheet.
  • Matching Principle — The matching principle is why expenses like depreciation are spread across periods.
  • Revenue Recognition — ASC 606 uses a five-step model centered on the transfer of control to the customer.
  • Statement of Cash Flows — Know which activities are operating, investing, and financing, and the direct versus indirect method.
  • Statement of Stockholders Equity — It links net income, dividends, and stock transactions to changes in equity.

Auditing and Attestation (AUD)

  • Adverse Opinion — Adverse means the misstatement is both material and pervasive; the statements cannot be relied upon.
  • Analytical Procedures — Analytical procedures are required during planning and in the overall review near the end of the audit.
  • Management Assertions — Audit procedures are designed to test specific assertions like existence, completeness, valuation, and rights and obligations.
  • Attestation Engagement — Attestation includes examinations, reviews, and agreed-upon procedures, not just audits.
  • Audit Evidence — Sufficient (quantity) and appropriate (relevance and reliability) evidence supports the opinion.
  • Audit Opinion — The four opinion types are unmodified, qualified, adverse, and disclaimer.
  • Audit Risk Model — Audit risk equals inherent risk times control risk times detection risk; the auditor only directly controls detection risk.
  • Audit Sampling — Sampling risk is the chance the sample leads to a different conclusion than testing the entire population would.
  • Control Risk — Stronger, well-operating controls lower control risk and let the auditor reduce substantive testing.
  • COSO Framework — The five COSO components are control environment, risk assessment, control activities, information and communication, and monitoring.
  • Detection Risk — Detection risk is the only component the auditor sets directly, by changing the nature, timing, and extent of testing.
  • Disclaimer of Opinion — A disclaimer results from a lack of sufficient evidence, not from a known misstatement.
  • Engagement Letter — The engagement letter documents the understanding with the client and helps prevent misunderstandings.
  • Going Concern — Substantial doubt about going concern requires note disclosure and a separate 'Substantial Doubt About the Entity's Ability to Continue as a Going Concern' section in the auditor's report (AU-C 570 as amended by SAS 134) — no longer an emphasis-of-matter paragraph.
  • Auditor Independence — Independence covers both independence of mind and independence in appearance.
  • Inherent Risk — Inherent risk exists in the nature of the account or transaction itself, independent of controls.
  • Internal Control — Auditors obtain an understanding of internal control to plan the audit, even when they do not rely on it.
  • Management Representation Letter — It is dated as of the auditor's report date and is required for an audit.
  • Materiality — Materiality is set during planning and reassessed as the audit progresses; it drives the scope of testing.
  • Professional Skepticism — Professional skepticism means not assuming management is dishonest, but never assuming unquestioned honesty either.
  • Qualified Opinion — Qualified means material but not pervasive, signaled by the phrase except for.
  • Review Engagement — A review gives limited (negative) assurance; an audit gives reasonable (positive) assurance.
  • SOC Reports — A SOC 1 report addresses controls over financial reporting; a SOC 2 addresses security and related criteria.
  • Subsequent Events — Recognized events adjust the statements; nonrecognized events are only disclosed.
  • Unmodified Opinion — An unmodified opinion (called unqualified for issuers) is the best outcome for the client.

Regulation (REG)

  • Adjusted Gross Income — AGI is the base for many phaseouts and the floor on certain itemized deductions.
  • Agency — An agent with actual or apparent authority can bind the principal in contract.
  • Alternative Minimum Tax — AMT is computed separately; taxpayers pay the higher of regular tax or AMT.
  • Tax Basis — Basis is generally cost, adjusted up for improvements and down for depreciation.
  • Capital Gains — Long-term treatment generally requires holding the asset more than one year.
  • Circular 230 — Circular 230 sets duties on diligence, conflicts, and competence in tax practice.
  • Contracts — A valid contract needs offer, acceptance, consideration, capacity, and a legal purpose.
  • Corporate Taxation — C corporation income is taxed at the entity level and again as dividends, causing double taxation.
  • Tax Deductions — Deductions reduce taxable income, whereas credits reduce the tax itself.
  • Estimated Taxes — Underpaying estimated taxes can trigger a penalty unless a safe-harbor amount is paid.
  • Gross Income — Start with gross income, which is broadly defined, then apply exclusions and deductions.
  • Individual Taxation — Filing status, AGI, deductions, and credits all shape an individual's final tax liability.
  • Like-Kind Exchange — Under current law, like-kind exchange treatment is limited to real property.
  • MACRS Depreciation — MACRS assigns assets to recovery periods and applies prescribed conventions like half-year.
  • Negotiable Instruments — A holder in due course takes the instrument free of most personal defenses.
  • Partnership Taxation — Partnerships file an information return, and partners report their distributive shares.
  • Professional Responsibilities — Preparers face penalties for unreasonable positions and failure to exercise due diligence.
  • S Corporation — S corporations have shareholder eligibility limits and generally one class of stock.
  • Statute of Limitations — A substantial omission of income can extend the normal assessment period.
  • Tax Credits — A credit is more valuable than a deduction of the same amount because it cuts tax directly.
  • Taxable Income — Taxable income, not gross income, is the figure to which tax rates are applied.
  • UCC Sales — The UCC applies to sales of goods; common law applies to services and real estate.

Frequently asked questions

How many sections is the CPA Exam, and do I pick one?
Four sections total. Everyone takes the three Core sections — AUD (Auditing and Attestation), FAR (Financial Accounting and Reporting), and REG (Regulation, which is tax-heavy) — and then chooses ONE Discipline section: BAR (Business Analysis and Reporting), ISC (Information Systems and Controls), or TCP (Tax Compliance and Planning). Each section is a separate 4-hour exam.
Does the Discipline I choose limit what I can do as a CPA?
No. Passing any one Discipline leads to the same full CPA license — the choice does not restrict your future practice. Pick the Discipline that best matches your strengths or career interest: BAR (financial reporting/analysis-heavy), ISC (IT, controls, SOC), or TCP (tax-heavy).
What score do I need, and is 75 a percentage?
You need a minimum of 75 on a 0-99 scaled score for each section. The 75 is NOT 75% of questions right — it is a scaled, difficulty-weighted score and the exam is not curved. There is no penalty for wrong answers, so answer everything. Each section is passed independently.
How long do I have to pass all four sections?
Once you pass your first section, you get a rolling 30-month window to pass the remaining three (extended from the old 18 months under NASBA's 2023 Model Rule change). If a credit expires before you finish, you must retake that section. The 30-month rule has been adopted by most — but not all — state boards, so confirm yours.
Do I need 150 credit hours just to take the exam?
Usually no. Most states let you sit with 120 hours (a bachelor's) and specified accounting coursework; the 150 hours is typically a licensure requirement. A few states differ. As of late 2025 some states are also adopting an alternative bachelor's-plus-two-years-experience pathway to licensure. Rules vary by jurisdiction — always check your state board.
When can I take each section — are there testing windows?
The three Core sections are available year-round under continuous testing at Prometric centers. The Discipline sections (BAR, ISC, TCP) are offered only in the first month of each calendar quarter (typically January, April, July, and October), so plan your Discipline sitting around those windows.
What changed with CPA Evolution and the 2026 blueprints?
In January 2024 the exam moved to the CPA Evolution model — the old four fixed sections were replaced by three Core sections plus a chosen Discipline (the legacy BEC section was retired). Separately, revised CPA Exam Blueprints took effect January 1, 2026, refreshing content within sections. Always study from a review course aligned to the current-year blueprint.
How much does it cost to take the whole exam?
Board and NASBA fees commonly total roughly $1,100-$1,500 to sit all four sections (section fees plus an application/registration fee and any transcript-evaluation fee), and exact amounts vary by state. Adding a commercial review course typically brings total out-of-pocket to about $2,500-$5,000 or more. Confirm current fees with your state board.

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