How to Study for the CPA Exam
Published on: August 7, 2024
The certified public accountant (CPA) designation is one of the most prestigious and recognized credentials in the accounting profession. It opens doors to advanced career opportunities, higher earning potential and greater professional credibility. However, achieving this designation is no small feat—it requires passing the CPA exam. This rigorous exam is known for its difficulty and comprehensive coverage of accounting principles, taxation, auditing and more.
Read on to gain insights and actionable strategies to help you effectively prepare for the CPA exam.
Why Become a CPA?
Becoming a CPA offers significant benefits for your career, enhancing both your professional opportunities and earning potential. As a CPA, you can access a wider range of job opportunities, including roles in auditing, tax planning, financial analysis and consulting. Many high-level accounting positions require or prefer candidates with a CPA designation. In addition to career advancement, CPAs often command higher salaries than non-licensed accountants.
The CPA credential not only boosts your resume but also provides professional recognition. It signals to employers and clients that you have met rigorous educational, ethical and experiential standards. For those with ambitions to rise to leadership positions in accounting firms or corporate finance, obtaining a CPA license is often a key step.
Understanding the CPA Exam
The CPA exam is a comprehensive test designed to ensure that candidates possess the knowledge and skills necessary to become licensed as public accountants. The exam is administered by the American Institute of Certified Public Accountants (AICPA).
Exam Structure
The CPA exam is composed of four distinct sections.:
- Auditing and Attestation (AUD)
- Business Environment and Concepts (BEC)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
Each section covers specific aspects of accounting, ranging from understanding financial statements to mastering taxation laws. CPA candidates must pass all four sections within an 18-month period to become licensed. The sections can be taken in any order, but each requires thorough preparation due to their comprehensive nature. You can learn more about how CPA exams are scored here.
Format and Types of Questions
The exam is primarily computer-based and consists of multiple-choice questions, task-based simulations and written communication tasks:
- Multiple-choice questions assess your knowledge of various accounting principles and concepts.
- Task-based simulations involve applying your skills to real-world accounting scenarios, such as preparing financial statements or conducting an audit.
- The written communication tasks (which are primarily found in the BEC section) require candidates to craft written responses based on prompts that assess their ability to communicate clearly and effectively in a business context.
Exam Requirements
To sit for the CPA exam, you must meet certain educational and experiential requirements, which vary by state. Understanding these prerequisites and the CPA exam process is key to a smooth application process.
Educational Prerequisites
Most states require CPA candidates to have a bachelor’s degree with a focus on accounting, finance or a related field. Additionally, most states mandate that candidates complete 150 semester hours of education, which typically exceeds the requirements for a standard bachelor’s degree. Many students fulfill this requirement by pursuing a master’s degree or taking additional coursework in accounting and business.
Experience Requirements
Aside from educational prerequisites, candidates often need to gain relevant work experience under the supervision of a licensed CPA. The experience requirement varies from state to state but usually ranges from one to two years. The experience must be in accounting, auditing, tax or a related field.
Application Process and Fees
Applying for the CPA exam involves submitting your transcripts, completing the necessary forms and paying the required fees. The fees for each exam section can vary, but they generally range from $200 to $250 per section. There may also be application fees, which are often required by the state board of accountancy. It is crucial to budget for these costs and ensure you meet all application deadlines.
How to Prepare for the CPA Exam
Preparing for the CPA exam requires a well-thought-out strategy, discipline and consistency. Below are some effective methods regarding how to study for the CPA exam that can help you succeed:
Set Realistic Goals
Before diving into your study materials, it’s critical to set clear, realistic goals. Consider factors such as how much time you can dedicate daily or weekly to studying, when you plan to take each exam section as well as your strengths and weaknesses in different subject areas. Break down your study plan into manageable milestones, such as completing specific topics within a set period. Having clear goals will help you stay focused and track your progress.
Develop a Study Plan and Schedule
Consistency is also critical when preparing for the CPA exam. Develop a detailed study schedule that allocates specific time slots for each subject. Identify your peak productivity times—whether it’s early mornings, late evenings or weekends—and stick to a consistent routine. Ensure that your schedule balances intensive studying sessions with breaks to avoid burnout. A solid study schedule should be flexible enough to accommodate any unforeseen events while keeping you on track.
Leverage Online Resources, Tools and Review Courses
Today’s CPA candidates have access to a wealth of online resources, including video tutorials, webinars, study apps and flashcards. Popular CPA review courses like Becker, Wiley and Roger CPA Review offer comprehensive study packages that include video lessons, practice questions and mock exams. Leverage these resources to reinforce your learning and test your knowledge. Joining online study groups or forums can provide additional support, too, allowing you to interact with fellow candidates and gain insights from their experiences.
Take Practice Exams
Taking practice exams is one of the most effective ways to prepare for the CPA exam. These exams simulate the testing environment and help you familiarize yourself with the format and timing of the actual test. In addition, practice exams highlight areas where you need to improve and help build your confidence. Aim to take full-length practice exams under timed conditions to mimic the pressure you’ll face on exam day. Reviewing your answers thoroughly afterward will provide valuable feedback.
Mental and Physical Preparation
The CPA exam is as much a test of endurance as it is of knowledge. When it comes to how to prepare for the CPA exam, mental and physical prep is essential for staying sharp and focused throughout your study period and on exam day.
How to Prepare for the CPA Exam: Stress Management Techniques
Managing stress effectively is crucial to maintaining peak performance. Techniques such as meditation, deep breathing exercises and regular physical activity can help reduce anxiety and improve concentration. Incorporating short breaks during study sessions, practicing mindfulness and maintaining a healthy diet are core components of stress management as well. Remember, taking care of your mental health is just as important as studying hard.
The Importance of Mock Exams and Practice Questions
Regularly taking mock exams and practice questions helps in two significant ways: improving your time management and enhancing your familiarity with the types of questions you’ll encounter. Mock exams provide a realistic gauge of your preparedness and help you develop strategies for tackling difficult questions, such as when to skip questions and when to spend extra time on certain tasks. This practice builds both knowledge and confidence.
On the Day of the Exam
The day you’ve been working toward has arrived, and it’s essential to approach it with confidence. Being familiar with the testing environment and key strategies will help you navigate the day smoothly and stay focused on your goal.
What to Expect at the Testing Center
The CPA exam is administered at Prometric testing centers. Arrive early to allow time for check-in procedures, which include verifying your identification and completing security checks. You will be provided with a locker to store your personal belongings, as items like phones, study materials and food are not allowed in the testing area. Once inside the testing room, you will be given noise-canceling headphones, scratch paper and a calculator. Familiarizing yourself with these procedures in advance can help you stay calm and focused.
Last-Minute Tips and Strategies
In the final hours before the exam, try to avoid cramming. Instead, review formulas, concepts and strategies that you’ve identified as essential. Take a few deep breaths and visualize yourself performing well on the exam. Remember to eat a light, balanced meal before heading to the testing center to ensure your energy levels are stable. Trust your preparation and focus on one question at a time, maintaining a steady pace throughout the exam.
Interested in Becoming a Certified Public Accountant?
With a better grasp on how to study for the CPA exam, it’s time to take the next steps toward becoming an accountant. Fortunately, Husson University offers an online Bachelor of Science in Accounting degree program that equips students with knowledge of advanced accounting principles. This 100% virtual program is led by instructors who are licensed certified public accountants themselves and have hands-on experience in the field. Get in touch by requesting further information today.
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