Under the CPA Evolution model the exam has four sections: three Core sections that every candidate takes - FAR, AUD and REG - plus one Discipline you choose from BAR, ISC or TCP. Each section is its own roughly four-hour exam combining multiple-choice questions with task-based simulations, scored out of 99 with 75 the passing mark.
This page explains what each CPA section covers and how the exam is built, so you can see the whole thing at a glance before you plan. It is a plain-English summary; the AICPA blueprints and your state board are the authoritative source for current content and rules.
The four sections at a glance
| Type | Section | What it covers |
|---|---|---|
| Core | FAR - Financial Accounting and Reporting | Preparing financial statements and the standards (mainly US GAAP) behind them; the broadest section |
| Core | AUD - Auditing and Attestation | The audit and attestation process, independence, evidence and reporting |
| Core | REG - Taxation and Regulation | US federal taxation, business law and professional ethics |
| Discipline (choose one) | BAR - Business Analysis and Reporting | Deeper financial reporting, analysis and technical accounting (extends FAR) |
| Discipline (choose one) | ISC - Information Systems and Controls | IT controls, systems, data, security and SOC engagements (extends AUD) |
| Discipline (choose one) | TCP - Tax Compliance and Planning | More complex individual and entity tax compliance and planning (extends REG) |
FAR - the accounting bedrock
FAR is about how transactions become financial statements. You study the conceptual framework, the elements of the statements, and the specific standards that govern individual areas: revenue recognition, leases, income taxes, inventory, fixed assets, financial instruments and business combinations, among many more. The foundation everything rests on is accrual accounting - recording revenue when earned and expenses when incurred - and the closely tied matching principle. FAR also covers governmental and not-for-profit accounting, which use different reporting models and surprise candidates who expected only corporate GAAP. The volume is the real challenge.
AUD - thinking like an auditor
AUD walks through the audit process end to end: accepting an engagement, assessing risk, planning, understanding and testing internal control, gathering audit evidence, and forming and reporting an opinion. Two ideas anchor it. Independence is the auditor’s freedom from anything that would compromise objectivity, and it is non-negotiable. Professional scepticism is the questioning mindset that corroborates claims with evidence. You also study professional ethics and the different levels of assurance (an audit gives reasonable assurance, a review gives limited assurance). It is conceptual and judgement-heavy rather than computational.
REG - tax and business law
REG covers US federal taxation together with the business law and ethics around professional practice. The taxation material is the bulk: the taxation of individuals and of entities (sole proprietorships, partnerships, corporations including S corporations, and trusts and estates), property transactions, and the professional responsibilities governing tax practice. The business law portion covers contracts, agency, debtor-creditor relationships and business structures. REG is detail-heavy, and it is the section where currency matters most because tax law changes and the exam tests the rules in force.
The Discipline sections (choose one)
The fourth section is a single Discipline you choose, and all three lead to the same licence - the choice is about depth and fit. BAR goes deeper into financial reporting, analysis and technical accounting, extending FAR. ISC focuses on information systems, IT controls, data, security and SOC engagements, extending AUD into the technology domain. TCP goes deeper into taxation, including more complex compliance and tax planning, extending REG. Pick the one that matches your career, ideally the one that overlaps a Core section you have just passed.
Format, scoring and difficulty
Each section is a roughly four-hour exam that mixes multiple-choice questions (testing breadth) with task-based simulations (testing whether you can do the work). The passing score is 75 on a 0 to 99 scaled score - a scaled score, not a raw percentage - and you pass the sections one at a time. By pass rate, FAR is usually the hardest Core section, then AUD, with REG the more forgiving; among the Disciplines, BAR tends to pass lower than ISC or TCP. Beyond the exam, licensure also requires your state board’s education rule (commonly 150 credit hours) and a supervised experience requirement.
Plan your way through
To sequence these sections around your own dates and manage the rolling credit window, see the US CPA study plan, and for how to study each one in depth, the full US CPA study guide.