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CPA (Certified Public Accountant)

The gold standard credential for accountants in the United States. CPA licensure is required for signing audit reports, offering certain services to the public, and is often mandatory or preferred for senior accounting and finance roles.

✓ Best for: Accounting professionals pursuing public accounting, audit, tax, or senior finance roles—especially those in or targeting Big 4 firms, public company accounting, or CFO-track positions

Who Is CPA For?

✓ This credential is essential if you…

  • Want to work in public accounting (audit, tax, advisory at CPA firms)
  • Plan to sign audit opinions or attest to financial statements
  • Are targeting Big 4, regional, or local CPA firm careers
  • Want to reach senior accounting roles (Controller, VP Finance, CFO)
  • Work in industries with strict regulatory requirements (banking, insurance, SEC-reporting companies)
  • Plan to open your own accounting practice
  • Have or are pursuing 150 credit hours of education

✗ You might consider alternatives if you…

  • Don't have (or can't get) 150 credit hours—CPA requires this in most states
  • Work in corporate finance/FP&A without audit/compliance focus—CMA may be more relevant
  • Are in investment management—CFA is the standard credential
  • Work outside the US—CPA is US-specific; other countries have their own designations
  • Are in bookkeeping without plans to advance—certification may not be necessary

Prerequisites (In Plain English)

CPA requirements are set by individual states, but most require:

  • 150 semester hours of college education (this is more than a typical 4-year degree—often requires a master's or additional coursework)
  • Bachelor's degree (minimum) with specific accounting and business course requirements
  • Accounting coursework: Typically 24–30 credit hours in accounting subjects
  • Business coursework: Often 24+ additional credits in business-related subjects

Experience requirement (for licensure): Most states require 1–2 years of work experience under a licensed CPA to receive your license after passing the exam. You can often take the exam before completing experience.

State variations: Requirements vary significantly by state. Some states allow you to sit for the exam at 120 credits but require 150 for licensure. Check your specific state board's requirements.

Common paths to 150 hours:

  • Bachelor's + Master's in Accounting (MAcc)
  • 5-year integrated bachelor's/master's programs
  • Bachelor's + additional undergraduate credits
  • Bachelor's + MBA with accounting concentration

The CPA Exam Structure

The CPA Exam consists of 4 sections (you must pass all 4):

  1. AUD (Auditing and Attestation):
    • Audit procedures, evidence, and reporting
    • Professional responsibilities and ethics
    • Attestation engagements
    • 4 hours, ~78 MCQs + task-based simulations
  2. FAR (Financial Accounting and Reporting):
    • Financial statement preparation and reporting
    • GAAP for businesses, nonprofits, governments
    • Often considered the hardest/most content-heavy section
    • 4 hours, ~66 MCQs + task-based simulations
  3. REG (Regulation):
    • Federal taxation (individuals, entities)
    • Business law and ethics
    • 4 hours, ~76 MCQs + task-based simulations
  4. Discipline Section (choose one):
    • BAR (Business Analysis and Reporting) — financial analysis, data analytics
    • ISC (Information Systems and Controls) — IT, cybersecurity, systems
    • TCP (Tax Compliance and Planning) — advanced taxation
    • 4 hours each

Note: The CPA Exam was restructured in January 2024 (CPA Evolution). The new format includes the discipline sections replacing the former BEC section. Make sure your study materials are updated for the current exam.

Exam Format & Scoring

Testing windows: Continuous testing available year-round (with brief blackout periods around score release).

Time per section: 4 hours each.

Passing score: 75 on a scale of 0–99 for each section. Scores are not percentages—they're weighted and scaled.

18-month window: Once you pass your first section, you have 18 months to pass the remaining three. If you don't, passed sections expire and must be retaken.

Testing locations: Prometric testing centers only. No online proctoring option.

Score release: Scores are released on specific dates (check AICPA for the schedule). Typically 2–4 weeks after testing.

Cost breakdown:

  • Application fee: $50–200 (varies by state)
  • Exam fees: ~$240 per section ($960 total)
  • Registration fees: Varies by state
  • Total exam costs: $1,000–$1,500 (not including retakes)
  • CPA review course: $1,500–$3,500 (most candidates use one)
  • Total investment: Often $3,000–$5,000+

Recommended Study Plan

Standard Track

12–18 months

For those working while studying:

  1. Months 1–4 (FAR): Start with FAR—it's the most content-heavy and foundational. Study 15–20 hours/week. Most review courses recommend 120–150 hours for FAR.
  2. Months 5–7 (AUD): Move to AUD while FAR concepts are fresh. ~100 hours of study.
  3. Months 8–10 (REG): Tax and business law. ~100–120 hours of study.
  4. Months 11–14 (Discipline): Choose based on career interests. Study dedicated discipline content.
  5. Months 15–18: Buffer for retakes if needed. Don't let passed sections expire.

Accelerated Track

6–9 months

For full-time students or those with dedicated study time:

  1. Months 1–2: FAR intensive. 30–40 hours/week.
  2. Month 3: AUD intensive.
  3. Month 4: REG intensive.
  4. Month 5: Discipline section.
  5. Months 6–9: Retake buffer if needed.

This schedule is aggressive and requires near full-time dedication to studying.

Common wisdom: Most candidates study for 300–400+ total hours across all sections. Treat it like a part-time job. Consistent daily study beats cramming.

Prep Resources

Disclosure: Some links below are affiliate links. We may earn a commission at no extra cost to you. Learn more

Most Popular

Becker CPA Review

The industry standard. Comprehensive course with high pass rates. Expensive but thorough. Many employers reimburse or provide Becker.

~$2,500–$3,500

View Becker (affiliate)
Best Value

Surgent CPA Review

Adaptive learning technology focuses study time on weak areas. Highly rated and more affordable than Becker. Strong pass rate guarantee.

~$1,500–$2,500

View Surgent (affiliate)

Roger CPA Review (UWorld)

Engaging video lectures with Roger Philipp's energetic teaching style. Good for auditory learners who struggle with dry content.

~$2,000–$3,000

View Roger (affiliate)

Gleim CPA Review

Known for large question bank and comprehensive coverage. More affordable option with solid content.

~$1,500–$2,000

View Gleim (affiliate)

Supplementary Resources

  • NINJA CPA Review: Budget-friendly supplement with MCQ practice and audio
  • r/CPA: Active Reddit community with study tips, score release info, and support
  • Another71: Free forum and paid supplements

Official Information

The CPA Exam is administered by the AICPA but regulated by individual state boards:

AICPA CPA Information → Find Your State Board →

Check your state board for specific education and experience requirements.

Alternative Credentials to Consider

📊

CMA (Certified Management Accountant)

If you're focused on corporate finance, FP&A, or internal accounting rather than public accounting or audit.
📈

CFA (Chartered Financial Analyst)

If you're targeting investment management, equity research, or portfolio management rather than accounting.
🔍

CIA (Certified Internal Auditor)

If you're focused on internal audit specifically. Different from external audit CPA work.
📋

EA (Enrolled Agent)

If you want to specialize in tax without the full CPA requirements. Can represent clients before the IRS.

Frequently Asked Questions

How hard is the CPA Exam?

Very challenging—pass rates typically hover around 45–55% per section. FAR and AUD tend to have lower pass rates than REG. Most candidates don't pass all four sections on their first attempt. With a quality review course and consistent study, most eventually pass, but it requires serious dedication.

How much do CPAs earn?

CPA salaries vary widely by role, location, and experience. Entry-level public accounting typically starts at $55,000–$75,000. Senior accountants and managers earn $80,000–$120,000+. Partners at CPA firms and CFOs can earn $200,000–$500,000+. The CPA credential often leads to 10–15% higher salaries than non-certified accountants.

What's the 150-hour requirement?

Most states require 150 semester hours of college education (not 150 credit hours) for CPA licensure. A typical bachelor's degree is 120 hours, so you need 30 additional hours. This can come from a master's degree, additional undergraduate courses, or other qualifying education.

Can I take the CPA Exam without 150 hours?

Some states allow you to sit for the exam at 120 hours but won't grant the license until you complete 150. Check your state's rules. This can let you start testing while finishing a master's degree.

What's the 18-month window?

Once you pass your first section, you have 18 months to pass the remaining three. If you don't, passed sections expire and must be retaken. This creates urgency—don't spread your exam attempts too thin.

Which section should I take first?

Most experts recommend FAR first because it's the most content-heavy and foundational. Others start with their strongest area to build confidence. Avoid saving FAR for last—its scope makes it risky if you're running low on time.

Will my employer pay for CPA review?

Many accounting firms (especially Big 4 and large regionals) provide CPA review courses and/or reimburse exam fees. This is a common recruiting and retention tool. Ask about CPA support when evaluating job offers.

Do I need a CPA review course?

Technically no, but practically yes. Pass rates are significantly higher for candidates using structured review courses. The exam is too broad and complex for most people to self-study effectively. Consider it a necessary investment.