How Hard Is the CPA Exam? Key Insights and Preparation Tips

How difficult is the CPA exam?

I. Executive Summary: The Strategic Imperative of CPA Licensure

The Uniform Certified Public Accountant (CPA) Examination stands as one of the most rigorous and challenging professional credentialing examinations globally. Success on the examination requires demonstrating a deep command of diverse accounting, auditing, regulatory, and technological domains, reflecting the foundational competency necessary for newly licensed CPAs (nlCPAs) to protect the public interest.

A. Overall Difficulty Assessment: The Threshold of Competency

The examination’s intrinsic difficulty is evidenced by its persistently challenging performance metrics. The cumulative average pass rate for all sections typically fluctuates between 45% and 60%, indicating that approximately half of the candidates fail any given section on their first attempt. To secure a passing result, candidates must achieve a scaled score of 75, reported on a range of 0 to 99. It is essential for test takers to understand that this minimum score does not represent a simple percentage of correctly answered questions, but rather signifies performance relative to a rigorously established standard of competence, independent of peer performance (scores are not curved).

B. Key Analysis: Passing as a Measure of Application, Not Just Knowledge

The most significant driver of the CPA Examination's rigor, particularly under the modified 2024 CPA Evolution structure, is the requirement to demonstrate high-order cognitive skills rather than merely recalling information. The examination gauges professional readiness by testing Application, Analysis, and, in the case of Auditing, the highest skill level, Evaluation.

An analysis of candidate performance confirms that rote memorization is insufficient for success. Sections that place the highest emphasis on application and analysis skills, such as Financial Accounting and Reporting (FAR) and Business Analysis and Reporting (BAR), exhibit the lowest pass rates. This correlation underscores that the examination is fundamentally an assessment of a candidate’s professional judgment and ability to apply complex accounting standards and principles to real-world, dynamic scenarios, especially within the Task-Based Simulations (TBSs). Conversely, sections relying heavily on lower-order cognitive skills like Remembering and Understanding, such as Information Systems and Controls (ISC), tend to exhibit higher initial pass rates, confirming the differential impact of required cognitive depth on difficulty metrics.

C. Snapshot of the 2024 CPA Evolution Model

Launched in January 2024, the CPA Evolution initiative transformed the licensure structure to reflect the growing demands of technology and data within the profession. This model requires all candidates to pass three foundational Core sections and select one of three specialized Discipline sections :

• Core Sections (Required): Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG).

• Discipline Sections (Choose One): Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).

II. Definitional Difficulty: Understanding the CPA Exam Challenge

The Uniform CPA Examination’s demanding nature is a function of its broad content coverage, rigorous structural mechanics, and the enormous temporal commitment it demands of candidates.

A. Quantifying the Difficulty and Commitment

Achieving CPA licensure demands a substantial investment of time, often extending over many months of intensive, dedicated study. Preparation companies recommend that candidates commit between 300 to 500 total hours to mastering the material across all four required sections.

The time investment per section is considerable, ranging from 80 to 120 hours for most parts. However, sections known for their breadth and technical complexity, such as FAR, can necessitate preparation periods approaching 190 hours. This commitment is further intensified by the 18-month rolling credit window. This rule mandates that all four sections must be successfully completed within 18 months of passing the first section. This strict timeline creates intense pressure, as the expiration of credit for one section forces a retake, potentially jeopardizing the entire timeline for obtaining the license.

B. Intrinsic Factors Contributing to Exam Rigor

1. Vast and Heterogeneous Content Scope

The comprehensive nature of the exam is a primary factor contributing to its difficulty. Candidates must achieve mastery across highly disparate domains, including complex U.S. Generally Accepted Accounting Principles (GAAP), specialized standards for Governmental and Not-for-Profit (NFP) entities (FAR/BAR), advanced auditing standards (AUD), detailed U.S. Federal Taxation and Business Law (REG), and specialized skills in areas like data management and IT controls (ISC) or complex tax planning (TCP).

2. Multifaceted Question Formats and Scaled Scoring

Each 4-hour examination section incorporates a variety of question types, specifically Multiple-Choice Questions (MCQs) and Task-Based Simulations (TBSs). The scoring methodology reinforces difficulty by emphasizing quality and complexity over sheer volume. The total reported score is a weighted combination of scaled scores derived from the performance on both MCQs and TBSs.

For MCQs, the examination historically used a multi-stage adaptive test delivery model (MST) where questions were matched to the candidate’s perceived proficiency level. While this model has been simplified in the CPA Evolution era for certain sections (e.g., FAR now uses a linear test design), the core principle of scaled scoring persists. This scaling incorporates the relative difficulty of each question, ensuring that answering a more challenging question correctly provides a greater contribution to the final scaled score of 75.

3. Critical Role of Task-Based Simulations (TBSs)

Task-Based Simulations are complex, scenario-based case studies designed to replicate real-world professional judgment challenges. TBSs represent 50% of the total score for most sections (40% for ISC), and they are widely regarded as the most challenging format. Unlike MCQs, TBSs require candidates to actively apply knowledge, analyze supporting documents (such as charts, memos, and emails), and synthesize data to derive conclusions or perform required actions, thereby testing high-order application and analysis skills. Partial credit is applied for multiple-response TBSs, rewarding candidates who demonstrate partial proficiency even if the entire task is not completed perfectly.

C. Comparative Difficulty Analysis

To accurately gauge the rigor of the CPA Examination, it is useful to benchmark it against other major professional certifications:

• CPA vs. Certified Management Accountant (CMA): The CPA examination is considered substantially more challenging than the CMA examination. The CMA curriculum is narrowly focused on managerial accounting, while the CPA requires broad proficiency across public accounting domains, including financial reporting, auditing, and tax.

• CPA vs. Enrolled Agent (EA): Professionals who have completed both certifications characterize the CPA as exponentially more difficult than the EA. The EA focuses exclusively on IRS tax law and compliance, whereas the CPA exam covers a "miles wide" curriculum encompassing financial accounting, auditing, regulation, and information systems.

• CPA vs. Chartered Financial Analyst (CFA): While both certifications demand extensive study and commitment, some professionals who hold both credentials cite CFA Level 2 as significantly more difficult in terms of analytical and mathematical depth. However, the CPA's administrative requirements, such as the 150-credit hour education requirement and the 18-month window, add a unique layer of difficulty to the overall acquisition process.

III. The Structure of the Modern CPA Examination (CPA Evolution 2024)

The CPA Evolution model requires candidates to pass four distinct 4-hour sections—three Core sections and one Discipline section. The design mandates that all nlCPAs possess a common foundational knowledge while allowing candidates to demonstrate deeper skill in a chosen area of specialization.

A. The Foundational Core: Three Mandatory Sections

All candidates must demonstrate competency in the three Core sections, which cover the most critical, globally applicable aspects of public accounting.

1. Financial Accounting and Reporting (FAR)

FAR is traditionally the most feared section due to its vast scope. It assesses knowledge of financial reporting and transactions under GAAP for for-profit entities, as well as complex concepts related to Governmental and Not-for-Profit (NFP) entities. The section is scored with equal weighting (50% MCQs / 50% TBSs). Content is allocated among Financial Reporting (30-40%), Select Balance Sheet Accounts (30-40%), and Select Transactions (25-35%).

2. Auditing and Attestation (AUD)

The AUD section covers professional ethics, the process of risk assessment, developing planned responses, executing further procedures to obtain evidence, and ultimately forming and reporting conclusions. AUD is unique among the sections because its skill profile includes the Evaluation level (5-15% weighting), requiring candidates to use professional judgment to draw final conclusions based on evidence and standards.

3. Taxation and Regulation (REG)

REG tests a candidate’s grasp of U.S. federal taxation for individuals and entities, U.S. business law concepts, and the ethical and professional responsibilities related to tax practice. The skill profile for REG is distributed across Remembering/Understanding, Application, and Analysis, with a slightly higher weighting toward Application.

B. The Specialized Discipline: Candidate Choice

The Discipline sections allow candidates to choose a specialization, although the choice does not limit their subsequent CPA practice privileges.

1. Business Analysis and Reporting (BAR)

BAR focuses on technical accounting topics, financial analysis, risk management, data usage in decision-making, and specialized State and Local Government (SLG) accounting. BAR closely relates to the technical complexity of FAR. Content is split between Business Analysis (40-50%), Technical Accounting and Reporting (35-45%), and SLG (10-20%). BAR has a high weighting on Application (45-55%) and Analysis (30-40%) skills.

2. Information Systems and Controls (ISC)

ISC emphasizes data management, information systems, security, confidentiality, privacy, and considerations for System and Organization Controls (SOC) engagements. ISC presents a unique structure: it consists of 82 MCQs and 6 TBSs and is scored 60% MCQs / 40% TBSs. Critically, ISC’s skill profile is heavily weighted toward Remembering and Understanding (55-65%), suggesting a focus on the recall of frameworks, standards, and procedures.

3. Tax Compliance and Planning (TCP)

TCP tests advanced topics beyond the scope of REG, covering complex tax compliance and planning for individuals, entities, personal financial planning, and property transactions. TCP shares the standard 50% MCQ / 50% TBS weighting and places the highest emphasis on Application (55-65%) among all sections, requiring candidates to demonstrate expert proficiency in applying complex tax laws.

C. CPA Evolution Exam Structure and Skill Weighting

The table below summarizes the quantitative structure of the examination sections, emphasizing the skill levels assessed, which directly dictates the type of preparation required.

CPA Evolution Exam Structure and Scoring (Post-2024)

IV. Data-Driven Difficulty Analysis: Pass Rates and Content Depth

A. Analysis of Recent Pass Rates (2024-2025)

Examination performance data confirms that difficulty is highly sectionalized, primarily driven by the required cognitive skills and the complexity of the content domain. An examination of recent pass rates clearly identifies the most challenging components of the CPA licensure process.

The data indicates that FAR and BAR are statistically the most difficult sections. The cumulative 2024 pass rate for FAR was 39.59%, and early 2025 results show a continued low trend around 42%. BAR, the accounting-heavy Discipline, exhibited a cumulative 2024 pass rate of 38.08%, ranking it among the most difficult sections. Conversely, Regulation (REG) maintains a strong pass rate above 62%. Tax Compliance and Planning (TCP) shows exceptional candidate performance, with pass rates consistently above 74% and reaching over 80% in some quarters of 2025.

B. CPA Exam Pass Rates and Relative Difficulty Ranking

The following table presents a clear ranking of difficulty based on reported performance data under the CPA Evolution model.

CPA Exam Pass Rates and Relative Difficulty Ranking (2024-2025 YTD)

C. Deep Dive: The Causal Factors Behind FAR and BAR Difficulty

The statistical challenge presented by FAR and BAR is intrinsically linked. The Business Analysis and Reporting (BAR) Discipline covers complex technical accounting and reporting concepts that are fundamentally extensions of the knowledge base established in FAR. The low pass rates for both sections are therefore compounded by two structural factors: volume and high-level skill assessment.

In terms of volume, FAR requires coverage of the broadest range of topics, including complex specialized areas like Governmental Accounting (GASB standards), Leases, Pensions, Deferred Taxes, and Business Combinations. To succeed, candidates must commit extensive hours to both memorizing these rules and immediately applying them.

The necessary cognitive engagement is exceptionally high for both sections. BAR, for instance, dedicates approximately 85% of its assessment weight to Application and Analysis skills. This demanding skill profile means candidates cannot rely on passive recognition; they must interpret financial scenarios, perform calculations, and analyze complex regulatory requirements. If a candidate struggles with the fundamental, voluminous GAAP and GASB concepts in FAR, they are highly likely to encounter commensurate difficulty in the specialized, high-application-level environment of BAR. Consequently, professional guidance must caution against selecting BAR unless the candidate possesses strong existing technical accounting proficiency.

V. Strategic Preparation: Maximizing the 18-Month Window

The rigorous nature of the CPA Examination necessitates a highly structured and disciplined approach to preparation, specifically tailored to the temporal constraints imposed by the 18-month credit window.

A. Required Time Commitment and Consistency

The total study commitment spanning 320 to 500 hours requires sustained effort over many months. Successful preparation relies heavily on consistency, requiring candidates to dedicate reliable study time weekly to maintain focus and ensure effective retention across the massive content scope. As the content breadth varies significantly by section, so too should the allocated study time.

Recommended Study Hour Allocation per CPA Exam Section

B. Optimal Section Sequencing and 18-Month Strategy

The 18-month rolling credit rule is the defining administrative constraint of the CPA journey. If credit for a passed section expires, the candidate must retake that section, potentially leading to a cascading failure of the entire sequence. Therefore, scheduling must be highly strategic.

A prevalent and effective strategy is the "hardest first" approach, which advocates taking the most difficult section, typically FAR or BAR, as the initial test. This approach is prudent because the 18-month clock does not begin until the first section is passed. Clearing the largest, most content-heavy hurdle early provides a significant psychological advantage and ensures that the material requiring the most study time is completed before the time pressure intensifies later in the 18-month window.

The choice of Discipline section serves as a mechanism for risk management within the 18-month window. If a candidate is aiming for maximum efficiency and speed, selecting the Discipline section with the highest statistical likelihood of success minimizes the probability of a failure that could compromise the credit earned on previously passed Core sections (like FAR). Given that TCP consistently reports pass rates between 72% and 82%, it presents the lowest risk profile, making it a strategically sound choice for candidates prioritizing timely completion over extreme specialization.

C. Preparation Tactics for the Working Professional

Many candidates undertake the CPA exam while maintaining full-time employment, requiring additional strategic planning.

• Mindset and Time Allocation: Cultivating discipline and a resilient mindset is essential, as the data confirms that many candidates fail at least one section on the first try. Efficiency is paramount; studying should occur when cognitive ability is highest, often in the early morning. Furthermore, professionals can leverage "dead time," such as commuting, by listening to audio lectures or reviewing digital flashcards, utilizing small increments of time that would otherwise be unproductive.

• Leveraging Experience and Resources: Candidates should utilize their professional experience to their advantage; for example, working in an audit capacity can significantly reinforce understanding of the AUD section material. Using high-quality CPA review courses with customizable study planners is crucial for maintaining a routine and ensuring efficient, targeted preparation.

VI. Tactical Mastery: Conquering Task-Based Simulations (TBSs) and Test Mechanics

A. The Centrality of Task-Based Simulations

Task-Based Simulations are the primary element differentiating the CPA Exam from simpler credentialing tests. TBSs’ complexity stems from their design as detailed case studies that require candidates to integrate knowledge across multiple topics, demanding application, analysis, and judgment. Given that TBSs account for half of the score in most sections (40% in ISC), failure to master this format significantly reduces the likelihood of achieving the passing score of 75.

B. Strategies for TBS Success

Success on TBSs requires moving preparation beyond simple recognition of correct answers to deep, contextualized application of accounting principles.

1. Prioritize Deep Conceptual Understanding: Successful candidates emphasize focusing on the underlying concepts and understanding the causal relationship (the "why") behind the rules, enabling them to solve problems from multiple perspectives. This active approach is superior to relying on rote memorization.

2. Simulation Practice and Pacing: Candidates must practice a variety of simulations under timed, exam-like conditions to improve pacing and familiarize themselves with the testing software. Extensive practice helps mitigate the discomfort and confusion often associated with complex TBS formats. Review courses that provide video explanations for simulations are highly valuable, as they show the candidate how a problem should be methodically attacked, rather than merely explaining the numerical solution.

3. Mastering Authoritative Literature (AL): Candidates must practice using the Authoritative Literature function, particularly for research-based TBSs. This function requires skills separate from content knowledge—specifically, the ability to quickly navigate and search professional standards to cite relevant documentation, simulating a critical real-world CPA skill.

4. Maximize Partial Credit: The CPA Exam does not impose a penalty for incorrect answers. Given that TBSs offer partial scoring for multi-part responses, candidates are strongly advised to attempt to answer every single question within a task to maximize any potential partial credit earned.

C. Understanding Test Mechanics and Scoring

The examination’s scoring framework is standardized and weighted to ensure that a score of 75 reflects a consistent standard of competency over time. The score calculation is a weighted combination of scaled scores from the MCQ and TBS portions, with the complexity or difficulty of the questions answered correctly factored into the final scaled score. Although the adaptive testing model has evolved, the non-equal weighting of questions ensures that candidates are rewarded for demonstrating proficiency on the most challenging material.

VII. Pitfalls, Preparation Investment, and Financial Reality

A. Top Reasons for Failing the CPA Exam

The low cumulative pass rates demonstrate that failure is common, yet often preventable through strategic adjustments. Only about 20% of candidates successfully pass all four sections on the first attempt. The recurring reasons for failure often relate to strategic execution rather than material competency :

1. Underestimation of Exam Difficulty: Failing to acknowledge the technical rigor and content breadth leads many candidates to allocate insufficient study time.

2. Insufficient Study Time: Not meeting the 300-500 hour threshold typically results in surface-level recognition of concepts, which is insufficient for the Application and Analysis demands of the exam.

3. Inefficient Study Methods: Passive studying (reading and listening) without engaging in active recall via practice questions and complex simulations leads to poor retention and application skills.

4. Incorrect Time Management: Poor pacing during the examination, often resulting in spending too much time on MCQs and insufficient time on the high-value TBSs, is a critical issue that leads to low scores.

5. Internal Barriers: Succumbing to the pressure, intimidation, or lack of sustained motivation required for this demanding credentialing process.

B. The Financial Investment

The journey to CPA licensure represents a significant financial commitment. The total cost is composed of non-negotiable exam fees and the essential investment in high-quality preparation materials.

1. Mandatory Examination Fees: The examination fees are state-dependent but are standardized by NASBA for many jurisdictions. The fee for all four sections on the first attempt is approximately $1,379.20 ($344.80 per section). Additional costs include application fees ($50–$200), registration fees ($60–$340), and initial licensure and ethics exam fees.

2. Review Course Investment: Given the necessity of structured, high-volume practice, comprehensive CPA review courses are considered essential for success. Premium packages from leading providers (e.g., Becker, Gleim, UWorld) often cost between $2,000 and over $4,000 for unlimited access, though these costs are critical investments given the low cumulative pass rate.

The estimated total initial investment, assuming a first-time pass on all sections, is approximately $3,779 to over $6,500.

Estimated Total Financial Cost for CPA Examination (Approximate Range)

The calculated total estimated investment represents the minimum required for a successful candidate. Given the statistical reality that approximately half of the attempts result in failure , the expectation must include retake fees, which approximate $355.64 per section. Consequently, the total actual financial outlay for the average candidate is often significantly higher, and this exponential cost of failure reinforces the imperative to prioritize high-quality, efficient preparation from the outset.

VIII. Conclusion and Final Recommendations

The Uniform CPA Examination is an exceptionally challenging professional assessment defined by the breadth of its technical scope, the high cognitive skill levels it demands, and the compressed 18-month timeline for completion. The difficulty is not merely theoretical; it is quantified by the historically low pass rates, particularly in the Application-heavy sections like FAR and BAR.

A. Synthesis of Difficulty Factors

The CPA examination’s rigor is a convergence of three interconnected vectors:

1. Vast Scope: Requiring mastery across heterogeneous domains including technical financial accounting, complex tax code, auditing standards, and information technology.

2. High Skill Requirement: Testing the ability to apply, analyze, and evaluate complex scenarios, particularly within Task-Based Simulations (50% score weight).

3. Temporal Constraint: The unforgiving 18-month rolling credit window, which magnifies the cost and risk associated with strategic planning errors or retakes.

B. Roadmap for Success

Based on analysis of candidate performance and examination structure, the following prescriptive guidance is offered to maximize efficiency and the probability of first-attempt success:

1. Commitment Quantification: Commit a mandatory 320 to 500 total hours to study, maintaining a consistent weekly schedule tailored to the demanding sections like FAR.

2. Strategic Sequencing: Initiate the testing process by tackling the most challenging material first (FAR or BAR) to ensure the 18-month credit window starts after the most formidable obstacle has been overcome.

3. Discipline Selection as Risk Mitigation: Select the Discipline section based not only on career specialization but also on risk mitigation. The Tax Compliance and Planning (TCP) Discipline, with its high pass rates (over 75%), provides the most statistically reliable route to securing the final credit and completing the examination within the strict 18-month mandate.

4. Prioritize Application and Simulations: Allocate significant study time to Task-Based Simulations, understanding that the capacity to apply concepts, use authoritative literature, and manage time effectively during these complex scenarios is the primary determinant of passing (50% score weight).

5. Utilize Adaptive Technology: Leverage comprehensive review courses that utilize adaptive learning technologies to ensure that study efforts are focused precisely on weak areas and high-difficulty concepts, thereby maximizing the return on the substantial time and financial investment required.