The CPA exam consists of four main sections, each with its own level of difficulty:
1. Financial Accounting and Reporting (FAR)
Difficulty Level: Generally considered the hardest.
Reasons:
Volume of Material: Covers a wide range of topics including financial reporting standards for businesses, non-profits, and government organizations.
Technical Complexity: Involves complex topics such as consolidations, pension accounting, and revenue recognition.
Application Over Memorization: Requires not only memorization but also the ability to apply concepts in practical scenarios.
2. Regulation (REG)
Difficulty Level: Second hardest.
Reasons:
Complex Tax Rules: Involves memorizing and applying complex tax rules for both businesses and individuals.
Business Law: Requires a detailed understanding of business law topics.
3. Auditing and Attestation (AUD)
Difficulty Level: Moderately difficult.
Reasons:
Conceptual Understanding: Requires a conceptual understanding of auditing procedures, internal controls, and risk assessments.
Professional Judgment: Emphasizes professional judgment and ethics.
4. Business Environment and Concepts (BEC)
Difficulty Level: Generally considered the easiest.
Reasons:
Less Technical Content: Covers a broad range of topics but is less technical compared to other sections.
Familiar Topics: Many candidates find the topics more familiar, such as corporate governance and IT.
The difficulty of each section can vary depending on an individual's strengths and background. For example, someone with a strong accounting background might find FAR less challenging, while someone with limited tax knowledge might struggle with REG. It's important to assess your own strengths and weaknesses when planning your study strategy.