The Certified Public Accountant license is a designation that endorses the knowledge and integrity of accountants. In addition to meeting several requirements, such as possessing a bachelor’s degree and specialized professional experience, applicants must pass a comprehensive CPA Exam. The exam tests the fundamentals of auditing, accounting, and tax. The CPA Exam is typically attempted by individuals with backgrounds in economics, finance, business, and accounting.
The CPA exam is a difficult test, and even the most well-prepared applicants may struggle to pass on their first attempt. Proper planning and practice are the keys to CPA exam prep success. Here are five tips that can help enhance your likelihood of passing the CPA test on your first attempt.
What Is the CPA Credential?
To become a CPA, you must meet certain education, exam, and experience requirements. Everyone must take and pass the Uniform CPA Examination. This test consists of four main sections: auditing, business concepts, financial accounting, and regulation. The process of studying for the exam helps applicants broaden their knowledge in the areas that are crucial to success in the accounting field.
In addition to passing the test administered by the American Institute of Certified Public Accountants, the other requirements include:
- Possess a bachelor’s degree with 150 hours of relevant coursework
- Meet residency requirements
- Proficiency in written and spoken English
- Meet the ethical conduct admission criteria
Some states set their own requirements for CPAs. Certain states require applicants to be at least 21 years of age, while others have a minimum age of 18. Here are some tips to help you succeed on the CPA exam:
Focus on Relevant Material
You do not need to be an expert in every aspect of accounting to pass the CPA exams. The most relevant topics are listed on the AICPA’s website. All candidates must pass the main CPA exam, which comprises four sections. The four sections on the test include:
- Auditing
- Financial Accounting
- Business Concepts
- Regulation
All applicants have four hours to complete each test section, with a total test time of 16 hours. Each section is taken individually, and you can choose which test you want to take first. Candidates must pass all four tests within 18 months. Keep in mind this testing time frame requirement may vary by jurisdiction.
Don’t Waste Time
The AICPA and most exam prep courses recommend approximately 300 hours of study. However, you should maximize each study hour by having a plan and not wasting time. For example, setting aside distractions and studying in a quiet zone can help you prepare for the exam in about 120 hours. Have a plan, outline a purpose, and do not let anything distract you from your mission of mastering relevant content.
Start Studying At Least Six Months Before the Test
Whether you plan to study for 300 hours or 50 hours, it’s crucial you set aside enough time to learn appropriately. By spreading the work over several months, you give yourself enough time to digest all the proper materials. This length of time also gives you enough breathing room to get on track if you fall behind. Setting aside only a month or two for studying is not enough time to properly study and retain information.
Take a Prep Course
Even the most diligent students can find it hard to tune out distractions without the help of a prep course. The amount of studying it requires to be successful on the CPA exam can be challenging to tackle independently. A good prep course means staying on top of deadlines and focusing on the most relevant course material. UWorld offers several CPA exam prep courses that are proven to help test takers retain more information and more efficiently manage their time. Most experts advise enrolling in a self-paced prep course so you can go at your own pace and spend extra time on more complex material.
Be Methodical
CPAs are expected to analyze content, identify accounting errors, and grasp concepts. Because accounting regulations and software constantly change, CPAs must cover more complex projects early on in their career. Therefore, you should slow down with studying for the exam and focus on key concepts. Memorizing concepts is no longer enough to pass the test. You should learn the most important concepts while familiarizing yourself with other key concepts so you can easily recall information.