CPA Exam Strategy: Choosing Your First Section Wisely

Choosing the right section to begin with in the CPA exam can significantly impact your overall preparation and success. This decision hinges on personal strengths, study preferences, and scheduling considerations. Let's explore the four sections in detail and provide guidance on which might be best for you.

Introduction to the CPA Exam Sections

The CPA exam is divided into four sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and Business Environment and Concepts (BEC). Each section covers distinct and critical aspects of accounting and finance, making the choice quite significant.

Breaking Down the CPA Exam Sections

Auditing and Attestation (AUD)

This section focuses on auditing processes, internal controls, and professional responsibilities. If you have a strong background in auditing or a keen interest in this area, starting with AUD may be beneficial. It is a structured and manageable section that can help you get a feel for the exam format.

Financial Accounting and Reporting (FAR)

Often considered the most challenging due to its breadth of content, FAR covers financial accounting theories, standards, and reporting regulations. If you are confident in your accounting knowledge and prefer to tackle the hardest section first while it is still fresh in your mind, this might be the best choice for you.

Regulation (REG)

REG deals with tax laws, business law, and ethics. If you have a good grasp of these areas, particularly federal taxation, REG could be a suitable starting point. This section requires strong understanding and application of legal and ethical standards, making it relevant if you have a background in law or taxation.

Business Environment and Concepts (BEC)

BEC is generally seen as less technical and more straightforward. It includes topics like corporate governance, economic concepts, and financial management. Many candidates find this section a good starting point due to its relatively manageable content and structure.

Recommendations

Consider Your Background

Choose a section that aligns with your existing knowledge and experience. For instance, if you previously studied for a similar certification like the CMA (Certified Management Accountant), starting with a section where your conceptual clarity is strong might be beneficial. This can help build confidence and provide a solid foundation for the remaining sections.

Study Plan

Select a section that fits your study schedule and allows you ample preparation time. Ensure that the section you choose does not compromise your preparation for more critical sections that may come later.

Exam Format

Consider your comfort with the exam format. For example, BEC includes a written communication component, which might be more suitable if you are more comfortable with writing.

Personal Experience

As illustrated in the story, many candidates find it beneficial to start with a familiar section, such as BEC, and then proceed to more challenging sections. Here is the personal experience of one candidate:

After completing a previous certification like CMA, BEC was a familiar territory, allowing the candidate to navigate the CPA exam structure quickly. The confidence gained from passing BEC positively influenced their approach to the remaining sections, such as FAR, AUD, and REG. Taking FAR next, given its unfamiliarity, helped this candidate tackle the most challenging section early and fresh. The candidate then completed AUD and REG together, aligning with their schedule and deadlines.

Exam Changes Overview

Starting from 2024, all testing for the BEC section ends on December 15, 2023. Any candidate who loses credit for BEC after December 31, 2023, must select one of the three Discipline sections to be tested. As of now, none of the current sections will be available for testing after December 31, 2023.

Conclusion

The optimal section to start with is personal and depends on your strengths, study habits, and preparation time. Many candidates choose BEC or AUD due to their relatively manageable content and structure. It is crucial to consider your comfort level and the impact on your study plan when selecting the first section.

Ultimately, choose a section that helps you feel most prepared and confident. Personal experience can provide valuable insights, but the right strategy tailored to your specific needs is key to success in the CPA exam.