Ask any group of CPA candidates which section is the hardest and you will get passionate opinions in every direction. Some swear FAR is a nightmare, others insist REG is the worst, and a surprising number struggle most with AUD. But which section is objectively the hardest? The data tells a clear story, though the answer is more nuanced than a single ranking. Let us dig into the numbers and context to give you a data-driven answer.
Pass Rates by Section: The Numbers
The most objective measure of difficulty is the pass rate: the percentage of candidates who score 75 or higher on a given section. The AICPA publishes cumulative pass rate data, and here are the approximate rates based on recent reporting periods:
- FAR (Financial Accounting and Reporting): Approximately 40 to 45% pass rate
- AUD (Auditing and Attestation): Approximately 46 to 49% pass rate
- REG (Taxation and Regulation): Approximately 50 to 55% pass rate
- Discipline sections (BAR, ISC, TCP): Data is still emerging, with early pass rates varying by section
By the numbers, FAR consistently has the lowest pass rate of the core sections, making it the statistically hardest section of the CPA exam. But pass rates alone do not tell the full story.
Why FAR Is the Consensus Hardest Section
FAR earns its reputation as the toughest section for several concrete reasons:
Massive Volume of Content
FAR covers the broadest range of material of any CPA exam section. Topics include financial statements, government accounting, not-for-profit accounting, leases, revenue recognition, consolidations, pensions, bonds, inventory, fixed assets, and much more. The sheer volume of material means candidates must learn and retain an enormous amount of information.
Technical Complexity
Many FAR topics involve complex calculations and multi-step journal entries. Understanding how transactions flow through the financial statements requires deep conceptual knowledge combined with computational skill. Topics like consolidations and pension accounting are notoriously difficult.
Government and Not-for-Profit Accounting
Most accounting programs cover government and not-for-profit accounting in a single course, if at all. These topics represent a significant portion of FAR and are completely unfamiliar to many candidates, effectively requiring them to learn new frameworks from scratch.
Why Each Section Is Challenging in Its Own Way
While FAR may be the statistical hardest, each section presents unique challenges that can make it the hardest section for you based on your background and strengths.
AUD: Conceptual and Judgment-Based
AUD is challenging because it is heavily conceptual. Rather than performing calculations, you are tested on your understanding of auditing standards, professional judgment, and the logical flow of an audit engagement. Many candidates find this difficult because there is less to calculate and more to reason through. The correct answer often hinges on subtle distinctions between similar-sounding options.
REG: Tax Law and Business Law
REG combines individual taxation, corporate taxation, partnership taxation, and business law. The tax portion requires memorizing rules, exceptions to rules, and exceptions to the exceptions. Tax law changes regularly, adding another layer of complexity. Business law, while a smaller portion, introduces legal concepts that some candidates find unfamiliar.
Discipline Sections (BAR, ISC, TCP)
The discipline sections introduced in 2024 bring specialized knowledge requirements. BAR focuses on business analysis and reporting, ISC covers information systems and controls, and TCP addresses tax compliance and planning. Each requires depth in a narrower area, which can be advantageous if the topic aligns with your expertise or disadvantageous if it is outside your comfort zone.
Subjective vs. Objective Difficulty
There is an important distinction between how hard a section is and how hard a section feels. Objective difficulty is measured by pass rates and content complexity. Subjective difficulty depends on your individual background, study habits, and strengths.
Consider these scenarios:
- A tax professional with years of experience may breeze through REG but struggle with FAR government accounting topics.
- An auditor working at a public accounting firm may find AUD intuitive but be tripped up by REG tax calculations.
- A financial analyst may handle FAR calculations well but find AUD conceptual questions frustrating.
- An IT audit specialist may find ISC straightforward but struggle with BAR or TCP.
Your personal difficulty ranking will likely differ from the statistical ranking, and that is perfectly normal. What matters is that you allocate study time based on your perceived difficulty, not just the overall pass rates.
How Your Background Affects Perception
Your educational and professional background plays a significant role in which section you find hardest. Here is how different backgrounds typically correlate with section difficulty:
Recent Graduates
If you are coming straight from an accounting program, FAR may feel more manageable because the topics overlap heavily with your coursework. However, AUD might feel abstract if you have no professional auditing experience. REG can go either way depending on whether your program had a strong tax focus.
Working Professionals in Public Accounting
If you work in audit, AUD concepts will feel familiar. If you work in tax, REG will be more intuitive. FAR tends to be the section where professional experience helps least because the breadth of topics extends well beyond most daily work.
Industry Accountants
If you work in corporate accounting, FAR topics related to financial statements and common transactions will feel natural. Government and not-for-profit topics will still require dedicated study. AUD may feel disconnected from your work experience.
What the Data Says About Preparation Time
Survey data from CPA review course providers and candidate communities suggests the following average study time by section:
- FAR: 100 to 150 hours (the most study time of any section)
- AUD: 80 to 100 hours
- REG: 80 to 100 hours
- Discipline sections: 60 to 100 hours depending on background
The fact that candidates spend the most time on FAR aligns with its lower pass rate and higher content volume. If you are planning your study schedule, use these benchmarks as a starting point and adjust based on your own diagnostic performance.
How to Use This Information Strategically
Understanding relative difficulty should inform your exam strategy in several ways:
- Allocate study time proportionally. Give more weeks and hours to the sections you expect to find hardest.
- Consider exam order carefully. Many advisors recommend tackling the hardest section first while your motivation is high and your 30-month window is longest.
- Do not underestimate any section. Even sections with higher pass rates still fail more than half of candidates. Every section deserves serious preparation.
- Use diagnostic tools. Take practice exams early in your study process to identify your actual weak areas, which may not match the statistical averages.
The Bottom Line
By the data, FAR is the hardest CPA exam section with the lowest pass rate and the broadest content coverage. However, the hardest section for you personally depends on your background, strengths, and preparation quality. Do not let anyone else's difficulty ranking override your own self-assessment.
At Think CPA, we provide section-specific study plans and adaptive practice tools that adjust to your individual strengths and weaknesses. Whether FAR is your biggest challenge or you are dreading REG, our resources are designed to help you build competency where it matters most. Start your preparation with data-driven insights and give yourself the best chance of passing every section.