Ultimate Guide to the CPA Exam in 2025-26

Ultimate Guide to the CPA Exam in 2025–26: Discover the latest exam updates, new CPA Evolution format, expert prep tips, and proven strategies to pass all four sections faster and smarter! The CPA Exam is evolving fast, and if you’re planning to take it in 2025–26, there’s more at stake than ever before. From the sweeping changes of the CPA Evolution Model to new discipline-based exam sections, this isn’t the same test your mentors took. Whether you’re a first-timer or halfway through the journey, this ultimate guide will reveal everything you need to know—before it’s too late. Ready to tackle the future of accounting head-on? Let’s break it down, step by step.

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What is the CPA Exam?

The CPA exam is probably familiar to business students, but you may be weighing your alternatives and attempting to determine whether this is the best course of action for you. You might be a senior or graduate student who is prepared to buckle down and devote yourself entirely to rigorous test preparation. In any case, before taking the CPA exam, students need to be aware of the time and money commitment required.

With substantial assistance from the National Association of State Boards of Accountancy, the American Institute of Certified Public Accountants developed the computer-based CPA exam. Each of the exam’s four separate portions has a four-hour time limit. Candidates can sign up to take two units on the same day or to take each component on a different day.

History of CPA

The first CPA exam was administered in New York in 1896. The three parts of the test were auditing, practical accounting, and theory of accounts. Starting with the first exam, candidates were required to score a 75 or higher in order to pass. Up until 1917, states designed their own exams. In 1917, the American Institute of Accountants, which is today the AICPA, issued a standardized CPA exam as a requirement to attain membership in their exclusive organization. This test was also used by state accounting boards to award CPA licenses, and by 1952, it was required of all applicants for CPA licensing in every state.

Up until 2003, the exam was only offered on paper and pencil twice per year, in May and November. Candidates who didn’t pass would have to wait half a year to reattempt the test, which could be very discouraging and lead to many accountants entering the profession, but never receiving those unique three letters attached to their job title. The CPA exam has been given electronically since 2004. Until July 2020, there were four test windows annually.

Continuous testing was launched in July 2020, which added 75 additional test dates to the calendar and made it easier for candidates to schedule exams when they have the most time to study and retest quickly if needed. The CPA credential is still the most prestigious mark of professional achievement for accountants, even though the exam’s curriculum has changed to accommodate shifting corporate needs.

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Eligibility

To take the CPA exam, you must have at least a bachelor’s degree. The “three E’s,” or education, exam, and experience, are additional qualifying requirements that differ from one jurisdiction to the next. Therefore, it is crucial to confirm that you meet all requirements by contacting the Board of Accountancy. For instance, in many countries, advanced-level accounting courses beyond the bachelor’s degree are required for 30 credit hours. The requirement of 150 credit hours should be satisfied by earning an MBA or Master of Accounting.

A minimum of two years of expertise in professional public accounting is another typical requirement. In exchange for teaching experience, government work, or self-employment, this may occasionally be waived. To obtain a license, several states may demand citizenship, domicile, and/or a Social Security number. Certain states additionally need an ethics exam. The fact that this 40-question test is open-book, meaning it can be taken with no preparation, will be welcomed by students who reside in states that need it.

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CPA Exam Format

The CPA exam is divided into four sections: Regulation, Financial Accounting and Reporting, Business Environment and Concepts, and Auditing and Attestation. The 72 multiple-choice questions in the AUD portion cover four main topics: evaluating risk and creating a planned response; professional responsibilities and ethics; doing additional procedures and gathering evidence; and drawing conclusions and reporting.

Enterprise Risk Management, Economics, Financial Management, Information Technology, and Operations Management are all covered in the 62 questions of the BEC section. The 66 questions that make up the FAR component test knowledge of the following topics: State and Local Governments, Financial Statement Accounts, Financial Reporting, Transactions, and Conceptual Framework. To demonstrate mastery of Federal Tax Procedures, Business Law, and Federal Taxation of Property Transactions, Individuals, and Entities, students must answer 76 questions for the final element, REG.

Five testlets, or smaller portions, make up each section. Every area, except for the BEC, receives 50% of the score from multiple-choice questions and 50% from simulations that call for real-world application. There is a writing component to the BEC as well. The point distribution is 15% for written responses, 35% for simulation, and 50% for multiple-choice questions.

Scoring and Pass Rates

Each part is assigned a score between 0 and 99. Students must receive at least a 75 on each unit within 18 months of attempting the first section to pass. The 2020 pass rates for the extremely difficult CPA exam are as follows:

• AUD (Auditing and Attestation) 47.97%,
• BAR (Business Analysis and Reporting) 61.76%,
• FAR (Financial Accounting and Reporting) 46.37%, and
• REG (Regulation) 55.42%.

Pass rates have often been in the neighborhood of 50%.

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Ultimate Guide to the CPA Exam

How to Prepare for the CPA Exam?

Candidates should create a realistic timeline for completing all four sections of the exam. Carve out ample study time and try focusing on one section at a time. Most individuals spend a minimum of two to three months studying for each section. When establishing a schedule, aim to complete all four areas within one year.

Candidates have an 18-month window to pass all four sections, but setting a 12-month goal allows an extra six months for any sections that you may need to retest on. This will prevent scrambling in panic mode with mere weeks or days to reschedule and pass a section. You can take the exam modules in any order, so you can focus on studying for the areas you believe will be the most difficult after finishing the easy ones.

Study Tips

Since you’ve spent much of your life taking tests, consider the study methods that have been most effective for you in the past and use them to prepare for the CPA exam. Consider your most productive and focused moments, for instance. Try to study during those hours if you can. Also, try studying one to two hours per day, rather than cramming.

If you work full-time, you can try to study for a couple of hours after work each day and spend longer studying on the weekends. Don’t forget to plan study breaks and reward yourself for passing practice exams. Breaks may feel like you are wasting precious study time, but your brain can only process and retain a certain amount of information at once. If you are exhausted from studying, you won’t remember as much information as if you are alert.

Think about what type of learner you are. If you are a visual learner, try watching accounting videos and taking notes that you can turn into flashcards. You will be more likely to remember the material if you write it down in your own words, even if the test preparation tool includes flashcards. It can also be beneficial to draw a basic picture on each flashcard. Lectures and study materials can be read aloud to auditory learners.

Studying in a group or with a partner may be beneficial for hands-on learners. You can join virtual study groups or look for study groups that meet in your area on internet forums if you don’t know anyone who is currently getting ready for the CPA. Ask a CPA you know if they are willing to mentor or coach you. They can walk you through the process of solving any problems you don’t comprehend. An added benefit of studying with someone else is the accountability component. You are less likely to cancel a study session when you know others are counting on you.

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Resources

The CPA Exam Blueprints, which provide a comprehensive overview of all exam subjects, are one of the many helpful resources the AICPA provides to assist students in succeeding. Sample tests are also available with practice questions to help familiarize students with the test format. These tests also allow candidates to practice using the technology tools that will be available to them during the actual exam.

The research tool can be used during the simulation exercises. Brush up on Microsoft Excel because it is available during the entire exam and can be a valuable tool for solving calculations. There are many other practice exams available online and study guide books. After taking a practice test, don’t just read the explanations for the correct answer choice, but also why the other options were incorrect.

These explanations will give you a more profound knowledge of the content being tested. Don’t limit your resources to just practice tests. There are a variety of podcasts that are informative and entertaining. For instance, Next Stop: CPA is a monthly podcast featuring interviews, guidance, and Q&A sessions for anyone pursuing a career in certified public accounting.

Courses

Since a business school’s ranking is based on its CPA pass rates, CPA preparation courses are usually incorporated into the curriculum of MBA and Master of Accountancy programs. Specializations in auditing, financial accounting, forensic accounting, and taxation are commonly offered by these graduate schools. These accounting specialist courses offer top-notch training and let students earn college credits as they get ready for the CPA exam. Even if a post-graduate degree is not required for your jurisdiction, it will open additional doors and make a candidate more coveted.

Preparation programs are also offered through private review course providers. In addition to task-based simulations, over 400 videos, the Accounting for Empires game, over 1,400 digital flashcards, synchronous and asynchronous review courses, and one-on-one tutorials taught by actual CPAs, Becker, one of the biggest and most respected CPA exam preparation companies, provides creative and captivating study methods.

Another choice among actual certified public accountants is Surgent CPA Review. Surgent was listed as one of the Top New Products for Accountants by Accounting Today in 2018. This prep program, which has won numerous awards, takes pride in its effectiveness. Through this method, students can fully prepare for a section in as little as three weeks, averaging only 46 hours of study time per section. Customized study schedules are ready for each student, and Surgent courses are designed and taught by first-rate accounting professors.

Surgent states they have an 88% pass rate, which is significantly higher than the national average. A free trial period is provided by each of these programs so that applicants can determine which format best suits their learning preferences. Since there are numerous alternative programs available, candidates may find it useful to receive recommendations from peers in their accounting classes, college teachers, or CPAs at their firm.

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What is the profile of a CPA career?

CPAs are highly respected accountants who oversee many financial aspects of a business or individuals. Some of their responsibilities include planning business mergers, managing a company’s budget, preparing grant applications, and helping clients reach their financial goals. CPAs typically work in offices full-time. For CPAs, tax season is one of the most taxing times of the year. During peak season, which lasts approximately five months per year, CPAs should anticipate overtime.

Accounting Firms

CPAs are in great demand due to their proficiency in accounting. The “Big Four” are Pricewaterhouse Coopers, KPMG, Ernst & Young, and Deloitte. These prestigious organizations audit financial accounts for most Fortune 500 corporations, including Amazon, Apple, Berkshire Hathaway, Exxon Mobil, and Ford Motor Company. Many certified public accountants aspire to work for one of these firms.

With operations across the globe, these four companies employ about a million people. The need for CPAs is strong since even small businesses require financial support. Public accountants can work in a variety of fields, such as government, non-profit organizations, education, and specialized businesses. The FBI hires CPAs to conduct federal audits and investigate financial fraud. CPAs who speak multiple languages can also work in international business.

Salary

According to the Bureau of Labor Statistics, the annual median salary for accountants and auditors in 2019 was $71,550. The top 10% of accountants earned more than $124,450. CPAs can make up to 10% more than non-CPAs, according to NASBA, and are better suited for leadership positions, which typically entail a sizable raise. Opportunities for advancement into CEO and CFO roles are available to senior-level CPAs.

Top executives at both big and small businesses frequently make well over six figures. After tax season, a lot of companies also provide paid vacation time and large bonuses. Exam fee reimbursement, preparatory classes, and on-the-job study hours to be ready for the CPA exam are additional benefits that come with many accounting jobs.

CPAs are listed among the 100 Best Jobs and 13th among the Best Business Jobs by U.S. News. High upward mobility and above-average flexibility are contributing variables. In order to achieve a healthy work-life balance, certified public accountants may be able to do the majority of their job from home.

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The Future of the CPA Exam and the Profession: 2025–26 Outlook

The CPA Exam is changing along with the accounting profession to meet the demands of a more complex global economy. The modern CPA is expected to possess not only technical expertise in accounting, auditing, and taxation but also strong proficiency in emerging technologies, data analysis, and regulatory compliance.

Three primary sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG), as well as a discipline-based section of the candidate’s choosing, are now part of the new exam structure with the adoption of the CPA Evolution Model in 2024:

• Business Analysis and Reporting (BAR)
• Tax Compliance and Planning (TCP)
• Information Systems and Controls (ISC)

This model reflects the AICPA’s effort to modernize the credential and ensure CPA licensure remains future-ready.

A transition plan was created for candidates who began the exam under the previous model but didn’t complete all four parts by 2024. Those who passed all sections before the transition are grandfathered in and do not need to retake any portions.

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Impact of COVID-19 on Testing and Professional Development

The COVID-19 pandemic briefly disrupted testing schedules in 2020, with Prometric centers closing in April and operating with limited capacity in May. While the CPA exam’s 18-month completion window remained unchanged, the crisis underscored the importance of resilience, adaptability, and remote learning. Candidates were encouraged to stay engaged through virtual webinars, online networking events, and continuing education tools such as podcasts and e-learning platforms.

For job seekers and recent graduates, enhancing your LinkedIn profile, joining professional accounting organizations, and updating your résumé with relevant skills have become strategic advantages in a post-pandemic job market.

Next Steps for Aspiring CPAs

The demand for CPAs remains stable, with the U.S. Bureau of Labor Statistics (BLS) projecting 4% job growth between 2019 and 2029, equating to over 60,000 new roles. CPAs continue to enjoy a competitive edge in hiring due to their specialized knowledge and cross-functional capabilities. With businesses increasingly relying on accurate financial data and risk management, there has never been a better time to pursue CPA licensure.

Scheduling and Preparing for the Exam

The U.S. has 55 Boards of Accountancy, each with slightly different application and licensing procedures. On average, it takes 3+ weeks for applications to be processed. Once approved, candidates receive a Notice to Schedule (NTS), valid for six months, allowing them to choose from year-round testing dates via Prometric’s online scheduling system.

International candidates may take the CPA exam in approved locations across the U.S., Canada, Europe, and parts of Asia. The International Qualification Examination (IQEX) also offers pathways for foreign-trained professionals.

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On Test Day

On exam day, candidates should arrive 30 minutes early with a valid government-issued ID, their NTS, and appropriate attire (e.g., long sleeves, as personal items must be stored). COVID-related mask mandates may still apply in some centers.

The exam is divided into multiple testlets, and a 15-minute break is offered after the third testlet—helpful for managing fatigue and strategizing for the remaining sections. Note: Once you move past a testlet, you cannot return to it.

Score Release and Retesting

CPA exam scores are typically released within two weeks after testing. An applicant has eighteen months to pass the remaining sections if they fail a section. There is no limit to the number of times a candidate may retake a failed section. Many successful CPAs needed more than one attempt. Persistence is key.

After Passing: What Comes Next?

Congratulations! Passing all sections is a major milestone. Your next steps include:

• Submitting your CPA license application
• Providing proof of experience, if required by your state
• Completing an ethics exam (varies by jurisdiction)
• Beginning your Continuing Professional Education (CPE) credits

Once certified, update your résumé, celebrate your accomplishment, and step into the professional world as a licensed CPA, ready to lead in a fast-changing financial landscape.

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In conclusion, the ultimate guide to the CPA Exam in 2025–26 represents more than just a gateway to one of the most respected and rewarding careers in finance and accounting. With the rollout of the CPA Evolution Model, the exam is now more aligned with the demands of a modern, tech-driven profession, allowing candidates to specialize in areas like tax, information systems, or business analysis. This guide has outlined everything from eligibility and registration to exam structure, study tips, and post-exam licensing.

Whether you’re a recent graduate or a working professional, strategic preparation, consistency, and leveraging the right resources will be key to your success. Earning your CPA designation not only enhances your career prospects and earning potential but also positions you as a trusted advisor in an increasingly complex global economy. Start planning today, stay disciplined in your studies, and take the next step toward becoming a certified public accountant in 2025–26.