The Certified Public Accountant (CPA) exam is widely recognized as one of the most challenging professional certification exams. Comprising four sections—Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG)—each section tests different skills and knowledge areas.
While the answer depends on individual strengths and backgrounds, most candidates agree that FAR, with its extensive content and technical complexity, is the most challenging. This guide explores why FAR is often considered the hardest section, the challenges posed by other sections, and strategies to conquer each one.
What is the Most Difficult CPA Exam Section?
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The hardest CPA exam section, based on pass rates, is considered to be Financial Accounting and Reporting (FAR) because of it length.
That said, the hardest section can vary depending on individual strengths and weaknesses. For example, someone with limited tax knowledge might find Regulation (REG) harder, while others without auditing experience might struggle with Auditing and Attestation (AUD). It’s important to assess your background and study effectively to succeed in any section.
Why FAR Is Considered the Hardest CPA Exam Section
FAR is often labeled as the hardest section for several reasons:
Volume of Material
FAR has the largest syllabus of all the sections, covering a wide range of topics, including financial statements, U.S. GAAP, IFRS, and governmental accounting. Including:
- Financial reporting for businesses, governments, and non-profits.
- Recognition, measurement, and disclosure of transactions.
- International Financial Reporting Standards (IFRS).
The sheer volume of content makes FAR particularly daunting for candidates.
Technical Complexity
FAR requires a deep understanding of technical concepts such as:
- Consolidations
- Revenue recognition
- Pension accounting
Mastering these areas involves not only memorization but also the ability to apply concepts in various scenarios.
Time Management Challenges
With 66 multiple-choice questions and 8 task-based simulations, FAR demands efficient time management. Candidates often struggle to complete all testlets within the allotted four hours.
Application Over Memorization
Candidates must not only memorize significant amounts of information but also apply it accurately in various scenarios. FAR emphasizes application, requiring candidates to solve complex problems rather than recall straightforward facts. This makes preparation more demanding.
Challenges in Other CPA Exam Sections
While FAR is widely regarded as the hardest, each section has its unique challenges that can be difficult depending on a candidate’s background.
Auditing and Attestation (AUD)
Why It’s Challenging:
- AUD requires a conceptual understanding of auditing procedures, internal controls, and risk assessments. Many candidates find it challenging to grasp the abstract nature of auditing principles.
- The emphasis on professional judgment and ethics can also be difficult to navigate.
Key to Success: Focus on understanding the “why” behind auditing processes and practice applying concepts through simulations.
Business Environment and Concepts (BEC)
Why It’s Challenging:
- BEC covers a wide range of topics, from corporate governance to IT and financial management. The diversity can be overwhelming.
- Written communication tasks require clear, concise, and technically accurate responses, which may be unfamiliar to some candidates.
Key to Success: Develop a broad understanding of key concepts and practice written communication under timed conditions.
Regulation (REG)
Why It’s Challenging:
- REG involves memorizing complex tax rules and applying them to various scenarios. Keeping up with changing tax laws adds to the difficulty.
- Business law topics, though less technical, require detailed understanding and precise application.
Key to Success: Break down tax topics into manageable sections and use mnemonics or other memory aids for retention.
How to Approach the Most Difficult CPA Exam Section
#1 Start with FAR
If FAR is the hardest section for most candidates, tackling it first can be a strategic move. Starting with FAR allows you to focus on the most challenging material when your motivation is highest.
#2 Allocate More Study Time
Given FAR’s content volume and complexity, plan to dedicate at least 100–150 hours of study time. Break this into consistent daily or weekly sessions to avoid burnout.
#3 Use CPA Review Courses
Invest in a high-quality CPA review course that provides structured materials, video lectures, and practice questions tailored to FAR. Adaptive learning platforms can help identify weak areas and target them effectively.
#4 Practice Time Management
Simulate exam conditions with full-length practice tests. Time yourself for each testlet to ensure you can complete all questions within the allotted time.
#5 Focus on High-Weight Topics
Review the AICPA blueprint to identify heavily tested topics. Prioritize these areas in your study plan to maximize your scoring potential.
#6 Stay Consistent
Consistency is key when preparing for FAR. Dedicate regular time to studying, even if it’s just an hour a day, to build and retain knowledge over time.
While individual experiences vary, most candidates and CPA exam experts agree that FAR is the hardest section due to its extensive syllabus and the need for both memorization and practical application. The breadth and depth of topics require significant preparation time and a deep understanding of complex accounting principles.
However, other sections can be equally challenging depending on your strengths and weaknesses. For example:
- REG can be tough for those unfamiliar with tax laws.
- AUD is tricky for candidates without real-world auditing experience.
- BEC may pose difficulties for candidates less adept at multitasking across diverse topics.
Factors That Make a Section Hard for You
Background and Education: Your academic and professional experience will influence which section feels the hardest.
Study Habits: Ineffective study techniques can make any section more challenging.
Exam Strategy: Poor time management during the exam can lead to stress and missed questions.
Learning Style: Some candidates excel with conceptual topics (like AUD), while others prefer numerical problem-solving (like FAR).
Tips for Conquering the Hardest Section
Start with Your Weakest Section
Tackling the hardest section first ensures you have more time and energy for preparation.
Use Quality Study Materials
Invest in reputable CPA review courses that match your learning style.
Practice, Practice, Practice
Work on multiple-choice questions, simulations, and practice exams to build confidence.
Create a Study Plan
Allocate sufficient time for each section and stick to a consistent study schedule.
Take Care of Yourself
Maintain a healthy lifestyle, including proper sleep, nutrition, and exercise, to improve focus and retention.
Join a Study Group or Seek Mentorship
Engaging with peers or mentors can provide new insights and keep you motivated.
Frequently Asked Questions
Which CPA exam section should I take first?
Many candidates start with FAR due to its difficulty. Passing FAR first can boost confidence and momentum for the remaining sections.
How long should I study for FAR?
On average, candidates spend 100–150 hours preparing for FAR, depending on their familiarity with the material and study habits.
What happens if I fail FAR?
If you fail FAR, review your score report to identify weak areas and adjust your study plan accordingly. Remember, you can retake the section as long as it’s within the 18-month rolling window.
Bottom Line
While FAR is widely regarded as the hardest CPA exam section due to its extensive content and technical demands, each section presents unique challenges. Success requires a strategic approach tailored to your strengths and weaknesses.
By dedicating sufficient time, using high-quality review materials, and practicing consistently, you can overcome the challenges of FAR and the other CPA exam sections. With persistence and preparation, earning your CPA designation is an achievable goal.