Before setting your study schedule, it’s important to understand which CPA exam to take first
When it comes to becoming a certified public accountant, the first major hurdle you will face when getting started in your career is passing the CPA exam. It is a brutally hard test, and will require lots of hard work to pass. Whether you want to start with the easier sections first or with the most challenging is ultimately up to you. Let’s take a look at the benefits of each method.
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The CPA exam consists of four separate tests, and you have to pass all four to get your CPA license. Pretty simple.
The four tests you will be taking are the Financial Accounting and Reporting (FAR), Audit (AUD), Regulation (REG), and the Business Environment and Concepts (BEC) tests. You are allowed four hours per test, and you have 18 months in which to complete and pass all four tests.
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Something you may have noticed while readying yourself for your certification exam is that you get to choose the order you take your test. Some students choose to take the most difficult section and get it out of the way first while others choose to start easier and work their way up the difficulty scale.
Make sure to look into the benefits of each order before you decide on how you are going to get through your exam. At the end of the day, the best order for you all boils down to personal preference and your personal test-taking skills and abilities.
Overview Of Each Exam Section
Before you can decide which order to take your tests, it is important to know what the contents of each exam will be. Having a general idea of what to expect from each test will allow you to rank each section by difficulty level.
Financial Accounting and Reporting (FAR)
The FAR section consists of: state and local governments, select transactions, conceptual framework, standard-setting, select financial statement accounts, and financial reporting.
Half of the test will be multiple-choice questions and the other half will be task-based simulations.
Audit (AUD)
The AUD exam covers: forming conclusions and reporting, assessing risk, and developing a planned process, professional responsibilities, ethics, general principles, and obtaining evidence.
Half of the test will be multiple-choice questions and the other half will be task-based simulations.
Regulation (REG)
The REG section of your test is comprised of: professional responsibilities, federal taxation, business law, federal tax procedures, and ethics.
Half of the test will be multiple-choice questions and the other half will be task-based simulations.
Business Environment and Concepts (BEC)
The content of the BEC exam is: operations management, information technology, corporate governance, financial management, and economic concepts and analysis.
Half of the test will be multiple-choice questions, 35% is task-based simulations, and 15% will be written communication memos.
Reasons To Take The FAR Section First
The most comprehensive of the tests you will take on your journey towards becoming a CPA is the Financial Accounting and Reporting (FAR) section. This test goes over all of the basics and builds a solid base of both financial statement knowledge and accounting principles.
The FAR section covers standard setting, financial reporting, select financial statement accounts, state and local governments, and conceptual framework. Half of the test will be multiple-choice questions and the other half will be task-based simulations.
Many students choose to take the FAR exam first to get it out of the way since it is perceived by many as the most difficult of the exams, due primarily to the vast amount of information it covers. Some of the information in the FAR section you will likely see in other sections as well.
Since this exam encompasses more material, it makes sense that it will also require more time and effort to prepare. Keeping that in mind when scheduling your study plan can help in deciding if you be best served by taking the FAR first.
Many students feel that taking the most difficult exam first will give them the edge to more easily pass the remaining tests. Others simply want to get the FAR out of the way to make way for the easier exams. If you are the type of candidate who feels success in knocking down barriers, taking the FAR section first may be the way to go.
Reasons To Take The Easiest Section First
Starting with the easiest section of your CPA exam may seem like a smart plan and for many candidates. Beyond the FAR, there are three additional sections that you will be dealing with.
Those are the AUD, REG, and BEC. The easiest sections differ from candidate to candidate. For some, it might be the content covered in a course they most recently completed.
For others, it might be a subject in which they have work experience. The easiest section for some might simply be that it is a topic or theme that they enjoy the most.
Many believe that if you start with the section you believe to be the easiest, it allows you to become comfortable with the testing format and the experience of taking the exam before moving on to more difficult sections.
This might make it much easier to keep your spirits high and build momentum. If you are the type of person who gets discouraged easily, taking the easier sections could help build your confidence so you can power through the rest of the exams.
Many people choose to start easier and work towards the hardest section because if you don’t get the score you were hoping for on the FAR, it won’t dampen your spirits for the rest of the test.
Starting with an easier section can provide a sense of accomplishment and be a motivating factor moving forward. For those who want to keep that motivation going, taking the easiest section first might be a smart way to approach your CPA examinations.
Conclusion
When you are preparing to take your CPA exam, one of the most important things you can do is determine which order you will be taking the four exams. There are many people who prefer to start with the test they feel will be the easiest and work their way towards the hardest.
Others take the opposite approach and tackle the most difficult test they will be facing. It may seem like a difficult decision to make but it all comes down to your personal strengths and weaknesses, and how you prefer to take tests.
Starting with the easiest section and working your way up through the difficulty level is a smart way to go for a couple of reasons. First, if you find a section to be easier, you can likely get through it more quickly, allowing you to be closer to finishing with your tests.
It is also helpful because seeing the great scores on the easier tests provides a feeling of accomplishment and is good motivation moving forward.
If you prefer to start with the hardest test, there are benefits to this method as well. The main reason people choose to take the hardest section first is that it is done and out of the way, meaning you don’t have the pressure of a difficult exam lingering over you.
Regardless of which order you decide on when taking your CPA exam, there is one thing you can count on, you are closer than ever to your new career.
FAQ
What is the best order to take the CPA exam?
Studies show the best order to the CPA exam is FAR – REG – AUD – BEC. FAR is widely considered the toughest section and has the lowest pass rate, followed by AUD. AUD comes third because REG offers a reprieve between the two hard sections.
What order should I take the CPA exam in?
Which order to take the CPA exam in is ultimately up to you, and should be considered with strategy in mind. Most test takers prefer to get the toughest sections out of the way first (FAR and AUD), while others prefer to start easy (BEC) and work their way up to the tough stuff.
