Ranking the CPA exam sections by difficulty helps candidates allocate study time, plan their exam order, and set realistic expectations. While every candidate experiences difficulty differently, the data from pass rates, study hour recommendations, and candidate surveys paint a consistent picture. Here is our comprehensive ranking of CPA exam sections from easiest to hardest, along with the factors that make each section unique.
Our Ranking: Easiest to Hardest
Based on pass rate data, content analysis, and candidate feedback, here is the overall ranking:
- REG (Easiest of the core sections)
- AUD
- Discipline Sections (BAR, ISC, TCP - varies by candidate)
- FAR (Hardest)
This ranking reflects the general consensus among CPA candidates and the available data. Your personal ranking may differ significantly based on your background and strengths. Let us explore each section in detail.
1. REG (Taxation and Regulation): The Relatively Approachable One
Approximate pass rate: 50 to 55%
REG ranks as the easiest core section based on its consistently higher pass rate. But make no mistake: a 50 to 55% pass rate still means nearly half of all candidates fail. "Easiest" is relative.
What Makes REG More Manageable
- Structured content. Tax law, while complex, follows logical rules. Once you understand the framework for individual and business taxation, many topics build on each other.
- Professional relevance. Many candidates have professional or academic experience with tax topics, giving them a head start.
- Smaller scope than FAR. While REG covers a lot of material, the total content volume is less than FAR.
- Business law is finite. The business law portion of REG covers a defined set of topics that are relatively straightforward to memorize.
What Makes REG Challenging
- Tax rules are full of exceptions and phase-outs that require careful memorization.
- Basis calculations for various entity types can be confusing.
- Tax law changes can make older study materials less reliable.
- The breadth of entity types tested (individuals, C-corps, S-corps, partnerships, estates, trusts) is substantial.
2. AUD (Auditing and Attestation): The Conceptual Challenge
Approximate pass rate: 46 to 49%
AUD falls in the middle of our ranking. Its pass rate is lower than REG but higher than FAR. The nature of the difficulty is fundamentally different from other sections.
What Makes AUD Unique
- Heavily conceptual. AUD is less about calculations and more about understanding audit methodology, professional standards, and professional judgment. You need to think like an auditor.
- Reading comprehension matters. Many AUD questions present scenarios and ask you to apply audit standards. Careful reading and analysis skills are essential.
- Internal controls. Understanding the design and implementation of internal controls, and how they relate to audit procedures, is a major component.
- Report types. Knowing the differences between various audit and attestation reports, and when each is appropriate, requires precise knowledge.
Why Candidates Struggle with AUD
- Without audit experience, the concepts can feel abstract and disconnected from practical knowledge.
- The answer choices often look similar, requiring careful distinction between subtly different options.
- TBSs in AUD can involve complex document review exercises that test application rather than memorization.
- The emphasis on professional judgment means there is less formulaic studying possible.
3. Discipline Sections: The New Variables
The 2024 CPA exam changes introduced three discipline sections that replace the old BEC section. Candidates choose one discipline based on their career interests. Because these sections are relatively new, comprehensive pass rate data is still emerging.
BAR (Business Analysis and Reporting)
BAR covers advanced financial reporting, data analytics, and business planning topics. It is most closely related to FAR in content and may feel like an extension of FAR for many candidates. Those who found FAR challenging may find BAR similarly difficult.
ISC (Information Systems and Controls)
ISC focuses on IT governance, data security, system development, and technology-related controls. Candidates with IT audit or information systems backgrounds may find this section more approachable. For candidates without that background, the technology focus can feel unfamiliar.
TCP (Tax Compliance and Planning)
TCP covers advanced tax topics including tax planning strategies, compliance for complex entities, and tax research. Tax professionals often gravitate toward this section, and the content builds on REG. If you are strong in tax, TCP may be your most comfortable discipline option.
4. FAR (Financial Accounting and Reporting): The Mountain
Approximate pass rate: 40 to 45%
FAR consistently ranks as the hardest section of the CPA exam, and the data supports this. With the lowest pass rate and the highest recommended study hours, FAR is the section that derails the most CPA journeys.
Difficulty Factors
- Volume. FAR covers more topics than any other section. The AICPA content blueprint for FAR is extensive, spanning financial statements, government accounting, not-for-profit accounting, and numerous specialized transactions.
- Technical depth. Topics like consolidations, pensions, leases under ASC 842, and government fund accounting require deep understanding and multi-step problem solving.
- Government and not-for-profit. These topics are essentially separate accounting frameworks that many candidates encounter for the first time during CPA exam prep.
- Memorization plus application. FAR requires both memorizing standards and applying them to complex scenarios, which is more demanding than either skill alone.
- TBS complexity. FAR simulations can be lengthy and complex, testing your ability to work through multi-part problems under time pressure.
How to Adjust Your Approach Based on the Ranking
Understanding relative difficulty should directly influence your study strategy:
Study Time Allocation
- FAR: Plan for 100 to 150 hours of study time. This is typically the longest preparation period.
- AUD: Plan for 80 to 100 hours. Focus on understanding concepts rather than memorizing facts.
- REG: Plan for 80 to 100 hours. Dedicate time to memorizing tax rules and practicing basis calculations.
- Discipline: Plan for 60 to 100 hours depending on your background. Leverage any professional experience in the discipline area.
Study Method Adjustments
- For calculation-heavy sections (FAR, REG): Practice is paramount. Do hundreds of MCQs and dozens of TBSs. You cannot learn calculations passively.
- For conceptual sections (AUD): Read carefully, understand audit logic, and practice applying standards to scenarios. Flash cards for report types and engagement types can be helpful.
- For discipline sections: Focus on depth in the specific content areas. These sections are narrower but deeper.
Why Rankings Are Not the Whole Story
We present this ranking with an important caveat: the hardest section is the one you are least prepared for. A tax professional may find FAR harder than REG by a wide margin. An auditor may find AUD straightforward but struggle with REG. A financial analyst may find FAR intuitive but AUD frustrating.
Use the overall ranking as a starting point, but personalize your approach based on diagnostic assessments, your academic background, and your professional experience. The candidates who pass most efficiently are the ones who study based on their own data, not just population averages.
Plan Your Path to All Four Sections
Armed with this ranking, you can build a strategic exam plan that allocates time where you need it most, orders sections to maximize your 30-month window, and sets realistic expectations for each stage of the journey.
Think CPA provides section-specific study tools and adaptive practice questions that adjust to your performance. Whether you are tackling the mountain of FAR or navigating the conceptual challenges of AUD, our platform is designed to make your study time as efficient as possible. Explore our resources and start building your personalized CPA exam plan.