Preparing to take the Uniform Certified Public Accountant (CPA) exam can be a nerve-racking experience for many accounting school graduates. This exam is very comprehensive (consisting of four separate sections) and takes up to sixteen hours to complete.
The good news is that preparing for the CPA exam doesn't have to be daunting. With a solid understanding of what to expect from the exam experience and how to create a study plan that works for you, you can improve your chances of passing on your first attempt. This blog will cover all of that, plus how to study for the CPA exam and the next steps you can take for support on the CPA exam.
Understand the CPA Exam Structure
First, it's a good idea to get a sense of the overall format and layout of the CPA exam itself, including the sections covered and how scoring works.
CPA Exam Sections
The CPA exam, which is written with collaboration from the AICPA and NASBA, is divided into four sections on the following topics:
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
- Discipline
The first three sections take four hours each. The discipline section also consists of four hours of testing, but test-takers get to choose one of the following topics based on their interests and career goals:
- Tax Compliance and Planning (TCP)
- Information Systems and Control (ISC)
- Business Analysis and Reporting (BAR)
The CPA exam consists of multiple-choice questions, task-based simulations, and written tasks. Because of its comprehensive nature, many test-takers choose to take just one or two sections on the same day.
CPA Exam Scoring
The CPA exam uses a scaled scoring system, which factors in the difficulty of each question and whether the test-taker answered correctly or incorrectly. In other words, getting a more difficult question correct counts for more points than an easier question.
The test itself is scored from 0-99 points, and a minimum of 75 points on each section is required to pass. There is no limit to the amount of times you can attempt the CPA exam, and it is not uncommon for test-takers to need to retake one or more sections before passing.
Review CPA Exam Blueprint
It is worth noting that there were some minor changes made to the CPA exam beginning in 2024. You can read about these more in this Becker exam blueprint review.
Most notably, some content has been moved to different sections. Previously, candidates had to pass four different sessions (including one on Business and Environment Concepts (BEC) without an option for a discipline section, but this has been changed for 2024. No changes have been made to scoring or time allotted, and those who passed the exam prior to 2024 are not required to retake any sections of the updated exam.
Create a CPA Study Plan
According to AICPA and CIMA data, around 50 percent of candidates pass the CPA exam on the first attempt. This means that you shouldn't get discouraged if you must take some sections of the exam more than once to pass. Still, there are some proactive steps you can take to create a study plan that increases your chances of success.
Set a Timeline
First, give yourself enough time to prepare for the exam. You can schedule your exam as soon as you meet all the eligibility requirements to take the test. However, you shouldn't necessarily schedule it for the first available date. Instead, give yourself at least a few months to prepare. From there, you can set a realistic timeline to study for each individual section of the exam and possibly even take some practice tests to figure out where you need to focus more of your time studying.
Choose the Order of Sections
Also remember that you'll need to schedule each section of your exam individually. Some test-takers will take more than one section on the same day, whereas others prefer to spread them out more. The section you should schedule first will depend on your strengths, but it's generally best to start with the section you feel most confident in. This way, you'll have more time to study for other sections that may be more challenging.
Break Down Study Sessions
Attempting to study for the CPA exam will feel daunting, but breaking things up into smaller study sessions will be much more manageable. As you embark on your CPA exam preparation journey, it can be helpful to create a detailed study that allows you to spend time preparing for each section of the exam.
Utilize CPA Exam Prep Materials
In addition to the above study tips, you'll also want to take advantage of the CPA exam prep materials available. From practice exams to review courses, the right prep materials can make all the difference.
Popular CPA Exam Review Courses
Some test-takers find the most success in taking a review course specifically designed to prepare them for the CPA exam. These courses are ideal for candidates who may prefer more structured guidance rather than creating their own study plan from scratch. Some popular CPA exam review courses include those offered by:
- Becker
- Yaeger
- Surgent
- Gleim
Mock Exams
Taking practice CPA exams can also be a great way to get a feel for what the actual exam is like. These mock exams are also scored so you can determine which areas you may need to focus more of your study time on. Mock exams are an essential tool when learning how to study for the CPA exam, as they simulate the test-taking environment.
Free Resources
While review courses and mock exams may cost money, they are often worth the initial investment. Still, plenty of free resources can help you prepare for the CPA exam as well. You can explore some free test prep tools directly on the AICPA and CIMA website.
Employ Effective Study Techniques
Here are a few more practical study tips to keep in mind as you prepare for your CPA exam.
Active Learning Methods
Active learning methods are ideal for studying because they can improve comprehension and recall. Consider, for example, exploring case studies and real-world examples to solidify your understanding of abstract accounting concepts.
Employ Spaced Repetition
As a study method, spaced repetition involves reviewing information progressively and for increased intervals of time. Following this strategy can help increase retention and may make it possible to retain more information as you prepare for the exam (espcially when compared to "cramming").
Focus on Weak Areas
If you know there are certain areas or sections of the exam that you may struggle with, be sure to set aside some extra time to focus on these weaker areas. Doing so will improve not only your comprehension but also your confidence heading into the exam.
Education Required to Become a CPA
To take the CPA exam, candidates must have a minimum of a bachelor's degree in accounting or a related field. In some states, candidates may also need a certain amount of experience working in accounting or a related field.
Upon passing the exam, candidates will need to follow their state's specific requirements to obtain their CPA license. This typically includes submitting CPA test scores, academic transcripts, and paying an application fee. Some states may also require candidates to submit to a background check or additional screening.
Learn More in an Accounting Degree Program
As one of the most popular accounting certifications, CPA licensure is a viable path for many accounting degree graduates. However, it is worth noting that taking the CPA exam is not a requirement to work in the field. Many accountants lead successful careers without becoming CPAs, but passing the CPA exam can open up some exciting doors of opportunity.
Regardless of whether you end up taking the CPA exam or not, the right accounting degree program can prepare you for the realities of working in this rewarding field. At Champlain College Online, we take great pride in our online bachelor's degree in accounting program. With flexible scheduling and a career-focused curriculum, this program can help you build the foundational skills you need to differentiate yourself in the field. By following these tips on how to study for the CPA exam, you can set yourself up for success on test day.
Get in touch to learn more about our accounting degree program, or get the ball rolling by filling out an online application for admission.
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