CPA Certification – Exam, Requirements, Cost & Career Guide
CPA Exam Structure
The Uniform CPA Examination consists of four sections, each taken separately. You must pass all four within an 18-month rolling window (30 months in some states).
| Section | Focus | Format | Avg. Pass Rate |
|---|---|---|---|
| AUD (Auditing & Attestation) | Audit procedures, ethics, internal controls | MCQ + task-based simulations | ~46% |
| FAR (Financial Accounting & Reporting) | GAAP, government/nonprofit accounting, financial statements | MCQ + task-based simulations | ~44% |
| REG (Regulation) | Tax law, business law, ethics | MCQ + task-based simulations | ~55% |
| TCP, BAR, or ISC (Discipline) | Choose one: Tax Compliance, Business Analysis, or Info Systems | MCQ + task-based simulations | ~50% |
Each section is scored on a scale of 0–99. A score of 75 is required to pass. The exam format evolved in 2024 with the CPA Evolution model, introducing discipline-specific sections that allow specialization.
Eligibility Requirements
CPA requirements vary by state, but most jurisdictions require:
| Requirement | Typical Standard |
|---|---|
| Education | 150 credit hours (bachelor’s + additional coursework) |
| Accounting Credits | 24–30 hours in accounting courses |
| Business Credits | 24 hours in business-related courses |
| Work Experience | 1–2 years under a licensed CPA’s supervision |
| Ethics Exam | AICPA ethics exam (separate from CPA exam) |
The 150-credit-hour requirement is the biggest hurdle for many candidates. A standard bachelor’s degree is 120 credits, so most people need a master’s degree or additional coursework. Some states allow you to sit for the exam with 120 credits but require 150 for licensure.
Cost and Timeline
| Cost Item | Amount (USD) |
|---|---|
| Application fee | $50–$200 (varies by state) |
| Exam fee (per section) | $350–$400 |
| Total exam fees (4 sections) | $1,400–$1,600 |
| Review course | $1,500–$3,500 |
| License fee | $50–$200 |
| Total estimated cost | $3,000–$5,500 |
Most candidates complete all four sections in 12–18 months. Plan for 300–400 total study hours across all sections. FAR is widely considered the hardest section and often takes the most study time.
Career Paths with a CPA
The CPA unlocks career paths that are difficult to access without it:
| Career Path | Role Examples | Salary Range |
|---|---|---|
| Public Accounting | Auditor, Tax Associate, Advisory at Big 4 | $55K–$150K+ |
| Corporate Accounting | Controller, Accounting Manager, VP Finance | $80K–$200K+ |
| Corporate Finance | FP&A Manager, CFO, Treasury | $90K–$300K+ |
| Tax Advisory | Tax Manager, Tax Director, Partner | $80K–$250K+ |
| Forensic Accounting | Forensic Accountant, Fraud Examiner | $65K–$150K+ |
CPA vs. CFA
| Factor | CPA | CFA |
|---|---|---|
| Primary Focus | Accounting, auditing, tax compliance | Investment analysis, portfolio management |
| Best For | Accounting firms, corporate accounting, CFO track | Asset management, equity research, buy-side |
| Regulatory Requirement | Required for public accounting practice | Preferred but not legally required |
| Number of Exams | 4 sections | 3 levels |
| Time to Complete | 12–18 months | 2.5–4 years |
| Total Cost | $3,000–$5,500 | $2,500–$5,000+ |
Key Takeaways
- The CPA has four exam sections (AUD, FAR, REG, + discipline) with pass rates around 44–55%. Score 75+ to pass each section.
- Most states require 150 credit hours, accounting/business coursework, and 1–2 years of supervised experience.
- Total cost ranges from $3,000–$5,500 including exam fees, review courses, and licensing.
- The CPA is required for public accounting and highly valued for corporate finance, controllership, and CFO tracks.
- Most candidates complete all four sections in 12–18 months — plan for 300–400 total study hours.
Frequently Asked Questions
Can I take the CPA exam without 150 credits?
Some states allow you to sit for the exam with 120 credits (a standard bachelor’s degree) but require 150 credits for licensure. Check your specific state board’s requirements. If you’re close to graduating, you may be able to start studying and take your first section before completing the extra credits.
Which CPA exam section should I take first?
Most candidates start with FAR because it’s the most content-heavy and has the lowest pass rate. Getting it out of the way first gives you momentum. Others prefer to start with AUD or REG for a confidence boost from a slightly higher pass rate. There’s no single best order — choose based on your strengths and timeline.
How does the CPA help in investment banking?
The CPA gives you a strong foundation in accounting, which is essential for financial modeling and due diligence. It’s particularly valuable for restructuring and financial institutions groups. While not required for IB, it demonstrates technical credibility.
Do I need to maintain my CPA license?
Yes. CPAs must complete continuing professional education (CPE) — typically 40 hours per year — and pay annual renewal fees. Requirements vary by state. If you let your license lapse, you can usually reinstate it by completing outstanding CPE requirements and paying fees.
Is the CPA exam getting harder?
The 2024 CPA Evolution changes restructured the exam with a new discipline section, but overall difficulty is comparable. The core sections (AUD, FAR, REG) are similar in rigor. The discipline section allows you to specialize, which many candidates find more manageable than the previous BEC section.