How Hard Is the CPA Exam?

Overall, the average CPA pass rate is around 50%. According to the AICPA, the 2023 cumulative pass rates for the CPA Exam through the third quarter are:

AUD: 46.92%
BEC: 56.52%
FAR: 42.94%
REG: 59.19%

Please note that the BEC section is no longer available for the 2024 CPA Exam. Instead, there are three new discipline sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP).

Which is the hardest section of the CPA Exam? As you can see, FAR has the lowest pass rate and that is consistent with recent trends.

Check out our free resource on CPA Exam pass rates to learn all about CPA pass rates, how the CPA Exam is scored, and much more.

Most candidates do end up failing at least one section of the exam and having to retake it, so it’s helpful to study with a CPA review course, like UWorld CPA, that gives you unlimited access to your study plan until you pass all 4 parts.

The CPA Exam is notoriously difficult for a number of reasons. Overall, it covers an extensive amount of information—everything newly licensed CPAs will need to know to perform their jobs well. And each section of the exam has its own unique challenges.

So, why is the CPA Exam difficult? Let’s talk about some of the main reasons CPA candidates find it so challenging.

Amount of material

The sheer amount of material tested on the CPA Exam is reason #1 why it is so difficult. In order to pass, candidates need to demonstrate they have a deep understanding of auditing and attestation, the business environment and related concepts, financial accounting and reporting, tax law, and current regulations.

Time management to prepare for the exam

You will need to budget about 100 hours of study time per exam section to adequately prepare for exam day. So, time management to stay consistent and fit these study hours in is challenging but crucial. It’s also important to budget in time for rest and basic self-care during your exam preparation phase.

Time management while taking the exam

Another challenge presented by the CPA Exam is time management. You get 4 hours to take each section of the exam, and each exam is broken down into 5 testlets (or sets of questions).

Once you complete a testlet, you can’t return to those questions again, so having a time management strategy is key. It’s usually best to give yourself a certain amount of time per question type, which we’ll talk about next.

Application and practice for MCQs

The multiple-choice questions (MCQs) can be tricky, because you will be presented with 4 answer choices, and you need to pick the best answer. The other 3 will be distractors based on common misconceptions.

So, it’s essential to use flashcards to understand and memorize the concepts and to complete a lot of practice questions where you will learn how to read the questions and answer choices and then apply the concepts.

TBS questions

Task-based simulations (TBSs) are often the most challenging question type for CPA candidates. First off, TBS testlets are always after the MCQ testlets, so brain fatigue may already be setting in. And they are just challenging in general because they are designed to present candidates with a common task they will have to face as a CPA.

This could involve research, preparing journal entries, analyzing ratio changes, or correcting memos, and the answer formats can include fill-in-the-blank, matching, or another format.

Yearly updates for REG

A challenge for the REG CPA Exam in particular is making sure you are studying the most up-to-date information. This is critical because the CPA Exam is updated yearly based on new laws and regulations.

UWorld CPA courses are regularly updated with the most current information. So, it’s a good idea to study with a CPA review course to make sure you aren’t missing anything as you prepare for the exam.

The CPA Exam is separated into 4 parts, and each part has a possible score of 0 – 99. You must score 75 or higher to pass each exam part.

Your grade is not a percentage of the number of questions you answered correctly, but rather a weighted combination of your multiple-choice question answers and task-based simulations.

Learn all about how the CPA Exam is graded by reading our free guide to CPA Exam sections.

Multiple-Choice Questions (MCQs)

Multiple-choice questions make up 50% of your final score on all four parts of the CPA Exam. (AUD, FAR, REG, and the discipline sections).

Task-Based Simulations (TBSs)

Task-based simulations make up 50% of your final score for the AUD, FAR, and REG sections of the CPA exam. And they make up 35% of your final score on the BEC exam.

Very hard. Regardless of whether you did well in your accounting and finance classes in school, it’s very difficult to pass the CPA Exam without studying. You will be tested on a lot of different topics and must memorize a lot of those concepts – concepts that you have not looked at since you were in school. So, it’s not advised to take the CPA Exam without studying.

Good preparation is key, including making a study plan, planning the order in which you will take the sections, pacing your studies, investing in the right study materials, and making sure to get enough sleep so you can retain the information you are learning.

Having the right study materials makes preparing for the CPA Exam a lot easier. Reading over your old textbook is just not going to cut it. If you invest in the right CPA review course, you will get support like:

• A personalized exam planner
• Updated study materials based on the latest CPA exam blueprint
• Adaptive review
• Video lessons
• Unlimited access until you pass

UWorld CPA Review Courses come with all of these features and more. So, studying for the CPA Exam is a lot easier when you have the right study materials and support.