Complete CPA Exam Study Guide 2026: The CPA Evolution Format Explained

The CPA Exam underwent its most significant restructuring in decades when the CPA Evolution format launched in January 2024. If you have studied for the old exam (Auditing, Business Environment, FAR, REG) and then taken a break, or if you are starting fresh, you need to understand the new structure before you can plan your preparation effectively.

This guide covers everything: the new section structure, what each section tests, how scoring works, how many hours you need, and a realistic timeline for completing all four sections while working.

Key Facts

• Exam administrator: AICPA (American Institute of CPAs) and NASBA
• Format since 2024: CPA Evolution — 3 Core sections + 1 Discipline section
• Core sections (all required): FAR (Financial Accounting and Reporting), AUD (Auditing and Attestation), REG (Regulation)
• Discipline sections (choose one): BAR (Business Analysis and Reporting), ISC (Information Systems and Controls), TCP (Tax Compliance and Planning)
• Pass rate by section: Approximately 40–50% per section (varies by window)
• Passing score: 75 (on a 0–99 scale)
• Testing window: 18 months to pass all four sections after first section credit
• Total study hours (typical): 300–500 hours total across all four sections

Table of Contents

• The CPA Evolution: What Changed and Why
• The Four-Section Structure Explained
• Section-by-Section Content Overview
• Scoring: MCQs, TBSs, and Weighted Scoring
• How Many Hours Do You Need?
• Section Ordering Strategy
• The 18-Month Testing Window
• Study Materials for 2026
• FAQ

The CPA Evolution: What Changed and Why

The Old CPA Exam (pre-2024)

The previous CPA Exam (which was significantly updated in 2017 but had the same four-section structure for many years) consisted of:

• AUD (Auditing and Attestation)
• BEC (Business Environment and Concepts)
• FAR (Financial Accounting and Reporting)
• REG (Regulation)

All four sections were required for all candidates.

The CPA Evolution (2024–Present)

The new CPA Exam reflects the AICPA's CPA Evolution initiative, which aimed to align the exam with the changing skill requirements of modern accounting practice. BEC was eliminated, and a new "Discipline" tier was added to allow candidates to demonstrate specialized knowledge in one of three practice areas.

The rationale: accounting has specialized significantly. A tax-focused CPA and an IT audit-focused CPA need different advanced knowledge. The Evolution format acknowledges this while maintaining a common core foundation that all CPAs must share.

What This Means for Candidates

If you started the old exam format and have unexpired credits (AUD, FAR, or REG from before January 2024), these credits typically transferred to the new format's equivalent sections. BEC credits did not transfer to any new section directly. Check with NASBA and your state board for specifics on your credited sections.

All new candidates starting in 2024 or later follow the Evolution format exclusively.

The Four-Section Structure Explained

Core Sections (All Required)

FAR — Financial Accounting and Reporting The most comprehensive section. Covers U.S. GAAP for public and private entities, governmental accounting, not-for-profit accounting, SEC reporting, and IFRS comparisons. Historically has the lowest pass rate of all sections (~40–45%) due to breadth and depth.

AUD — Auditing and Attestation Covers audit and assurance services: audit planning, evidence gathering, internal controls, audit reports, and professional standards (PCAOB and AICPA). Requires significant conceptual understanding and application of professional judgment.

REG — Regulation Covers federal taxation (individual and business), business law, and professional ethics. Heavy on tax law memorization and application.

Discipline Sections (Choose One)

BAR — Business Analysis and Reporting The closest successor to the old BEC section. Covers business analysis, financial statement analysis, technical accounting for specific topics (business combinations, variable interest entities), and managerial accounting. Most closely aligned with financial reporting and analysis roles.

ISC — Information Systems and Controls Covers IT governance, information security, systems controls, and IT auditing. Best suited for candidates pursuing careers in IT audit, cybersecurity, or systems-focused accounting roles.

TCP — Tax Compliance and Planning Covers advanced individual and business tax compliance, tax planning strategies, and tax accounting. Best suited for candidates pursuing careers in tax advisory, compliance, or planning.

Choosing Your Discipline

Most candidates choose based on their intended career path:

| Career Path | Recommended Discipline | |------------|----------------------| | Public accounting (audit) | BAR or ISC | | Public accounting (tax) | TCP | | Corporate accounting/finance | BAR | | IT audit or cybersecurity | ISC | | Tax consulting | TCP | | No clear preference | BAR (most familiar content, broadest applicability) |

BAR is the most commonly chosen discipline because its content is most similar to the old BEC section and most broadly applicable across accounting roles.

Section-by-Section Content Overview

FAR: Financial Accounting and Reporting

| Content Area | Approximate Weight | |-------------|-------------------| | Financial reporting (public entities, U.S. GAAP) | 30–40% | | Governmental accounting | 15–25% | | Not-for-profit accounting | 15–25% | | Financial statements (balance sheet, income, cash flows) | 10–20% | | SEC reporting + IFRS | 5–10% |

FAR is the most content-heavy section. It requires deep knowledge of U.S. GAAP across all entity types, plus knowledge of governmental and NFP accounting standards (GASB and ASC 958). The breadth is what makes FAR the hardest section for most candidates.

AUD: Auditing and Attestation

| Content Area | Approximate Weight | |-------------|-------------------| | Ethics, independence, professional responsibilities | 15–25% | | Assessing risk and developing a response | 25–35% | | Performing further procedures and obtaining evidence | 30–40% | | Forming conclusions and reporting | 10–20% |

AUD is conceptually oriented — it tests professional judgment about audit procedures, risk assessment, and evidence evaluation more than calculation ability. Many candidates find AUD more accessible than FAR but require strong memorization of professional standards.

REG: Regulation

| Content Area | Approximate Weight | |-------------|-------------------| | Federal taxation of individuals | 20–30% | | Federal taxation of entities (corporations, partnerships, S-corps, trusts, exempt orgs) | 35–45% | | Business law | 10–20% | | Professional responsibilities, ethics | 10–20% |

REG is memorization-intensive. Tax law has specific rules, thresholds, phase-outs, and effective dates that must be known precisely. Business law covers contracts, agency, bankruptcy, and other legal principles.

BAR: Business Analysis and Reporting (Most Common Discipline)

| Content Area | Approximate Weight | |-------------|-------------------| | Business analysis | 40–50% | | Technical accounting topics (business combinations, VIEs, etc.) | 20–30% | | Financial statement analysis | 20–30% | | Managerial accounting | 10–20% |

BAR requires data analytics skills in addition to accounting knowledge. It includes tasks involving working with large data sets and using analytical tools to answer business questions — reflecting the modern CPA's need to work with data.

Scoring: MCQs, TBSs, and Weighted Scoring

The Question Types

Every CPA Exam section contains two types of questions:

Multiple Choice Questions (MCQs): Traditional multiple choice with four answer options. Delivered in two testlets with 78 total MCQs per section.

Task-Based Simulations (TBSs): Complex mini-cases requiring you to complete a tax form, research a topic in the authoritative literature, produce a schedule or analysis, or answer questions within a realistic work scenario. TBSs are more complex, time-consuming, and realistic than MCQs.

Scoring Weights

Under the CPA Evolution format, TBSs are more heavily weighted than MCQs in the overall section score:

| Section | MCQ Weight | TBS Weight | |---------|-----------|-----------| | FAR | ~50% | ~50% | | AUD | ~50% | ~50% | | REG | ~50% | ~50% | | BAR | ~50% | ~50% |

Exact weights may vary slightly; the general structure is approximately equal weighting with TBSs weighted more heavily in practice due to their complexity and diagnostic value.

The 0–99 Score Scale

The CPA Exam score is reported on a 0–99 scale. Passing requires a 75. This is not a percentage correct — it is a scaled score that incorporates item difficulty weighting. Do not assume that 75% correct = 75 score. The AICPA uses a scaled scoring methodology.

MCQ Adaptive Testing

Each section delivers MCQs in two testlets. The difficulty of the second testlet adapts to your performance on the first: if you performed well on Testlet 1, Testlet 2 will be harder. Harder questions have more value in the scoring algorithm. Receiving difficult questions in Testlet 2 is a positive sign, not a problem.

How Many Hours Do You Need?

AICPA Recommendation

The AICPA suggests that candidates typically need approximately 350–450 hours total to pass all four sections. Many candidates find this roughly accurate, though it varies by background and study efficiency.

Section-by-Section Hour Estimates

| Section | Typical Study Hours | |---------|-------------------| | FAR | 120–150 hours | | REG | 80–110 hours | | AUD | 70–100 hours | | BAR (most common discipline) | 60–90 hours | | ISC | 60–90 hours | | TCP | 80–110 hours |

These estimates are for candidates with accounting degrees or comparable professional experience. Candidates without strong accounting backgrounds may need 20–30% more hours.

What Determines Your Hours

Accounting background: CPA candidates with recent accounting degrees and relevant work experience typically need fewer hours for each section than candidates who have been away from formal accounting education.

Work experience relevance: Candidates whose jobs directly involve the content being tested (e.g., an auditor studying for AUD) need fewer study hours for that section.

Study efficiency: Active learning (practice questions, simulations) is more hour-efficient than passive reading. Candidates who spend most hours reading and less time on practice need more total hours.

Section Ordering Strategy

The Strategic Considerations

The 18-month testing window starts ticking when you pass your first section. If you pass FAR in March 2026, you must pass all remaining three sections by September 2027 to avoid losing your FAR credit.

Section ordering matters for two reasons:

1. Knowledge dependencies: Some content in later sections builds on earlier sections
2. Window management: Harder sections early in the window give you time to retake if needed

Recommended Orderings

Most common recommended order:

1. FAR (hardest section; highest failure rate; take when content is freshest from education)
2. AUD (conceptual; builds on FAR knowledge)
3. REG (heavy memorization; benefits from dedicated focused period)
4. Discipline (BAR/ISC/TCP — take after completing cores)

Tax-focused candidates:

1. REG (content closest to their specialty)
2. FAR
3. AUD
4. TCP

IT audit-focused candidates:

1. AUD (closest to their specialty)
2. FAR
3. REG
4. ISC

The FAR-First Rationale

Most CPAs and prep providers recommend starting with FAR because:

• FAR has the lowest pass rate and is most content-intensive
• FAR requires the most study hours, so starting with it uses your strongest period (fresh, high motivation)
• Knowledge from FAR (accounting fundamentals) helps in AUD and REG
• If you fail FAR, you have more window time to retake it than if you take it last

The 18-Month Testing Window

How the Window Works

Once you receive credit for your first CPA Exam section, an 18-month clock starts. All three remaining sections must be passed within this window.

Example: Pass FAR on March 15, 2026 → all remaining sections must be passed by September 15, 2027.

If the window expires before you complete all sections, you lose your oldest passing credit and must retake that section.

Planning Around the Window

For a four-section plan in 18 months, a rough pacing target is:

• Section 1 in months 1–4
• Section 2 in months 4–8
• Section 3 in months 8–12
• Section 4 in months 12–16

This leaves 2 months of buffer before the window closes — important for potential retakes.

State Board Requirements Beyond the Exam

Note that passing all four sections is necessary but not sufficient for the CPA license. State board requirements also include:

• 150 semester credit hours of education (in most states)
• 1–2 years of qualifying work experience under a licensed CPA (varies by state)
• Ethics exam (required in most states; usually AICPA Professional Ethics)

Plan for these requirements alongside your exam preparation timeline.

Study Materials for 2026

Top CPA Exam Review Providers

| Provider | Approx. Price | Best Known For | |---------|--------------|---------------| | Becker CPA Review | $2,999–$3,499 | Market leader; most comprehensive | | Roger CPA Review (UWorld) | $1,599–$2,199 | Engaging instruction; video-forward | | Wiley CPAexcel | $1,299–$1,799 | Detailed explanations; flexible | | Surgent CPA Review | $1,499–$1,999 | Adaptive learning; efficiency-focused | | Gleim CPA Review | $999–$1,499 | Question volume; self-study depth |

What to Look For in 2026 Materials

Verify that your materials specifically cover the CPA Evolution format (2024 curriculum update). Any materials published before 2024 do not cover the new section structure, including the BAR, ISC, and TCP disciplines.

For BAR specifically, ensure your materials include data analytics tasks and financial statement analysis content, which are new emphases in the Evolution curriculum.

FAQ

Q: Can I take all four CPA Exam sections simultaneously? A: Yes — you can schedule multiple sections in the same testing window period. Some candidates take all sections within a few months. The risk: if you fail one or more, the 18-month window may not give you enough time to retake without losing early credits.

Q: What is the passing score for each section? A: All sections require a scaled score of 75 on the 0–99 scale.

Q: How many times can I retake a section if I fail? A: As many times as needed, subject to waiting periods and the 18-month window constraint. There is a minimum waiting period between attempts for each section (check current NASBA rules).

Q: Does the 150-hour education requirement need to be met before taking the exam? A: In most states, you can take the exam before meeting the 150-hour requirement, but you cannot receive your license until you meet it. Some states require 150 hours before the exam. Check your specific state board requirements.

Q: Which section should I take first? A: FAR is the most common recommendation because it is the hardest, most content-intensive, and benefits from being taken when accounting knowledge is freshest. However, if you work in tax, starting with REG may be more natural.

Q: Is the CPA Exam getting harder with the Evolution format? A: The Evolution format emphasizes higher-order thinking skills, data analytics, and professional judgment more than the previous format. Many candidates and prep providers report that the TBS tasks in the Evolution format are more complex. However, the AICPA's standard-setting is designed to maintain consistent passing standards.

Q: How do I register for the CPA Exam? A: Applications are submitted to your state board (not directly to NASBA or the AICPA). Your state board determines eligibility, issues your Notice to Schedule (NTS), and you then schedule through Prometric. The process typically takes 4–8 weeks.