Which CPA Exam Section Is the Hardest? What the Pass Rates Say
By pass rate, Financial Accounting and Reporting (FAR) is the hardest CPA Exam section. Its 2026 cumulative pass rate through Q3 was 43.54%, the lowest of all six sections. Business Analysis and Reporting (BAR) came close at 43.88%, and Tax Compliance and Planning (TCP) was highest at 79.75%. Still, your hardest section is the one you are least prepared for.
In the video below, Professor Farhat explains why FAR is often a smart first section: it builds financial accounting knowledge you can use when studying Auditing and Attestation (AUD) and Taxation and Regulation (REG).
Watch: Why take FAR first?
What Is the Hardest CPA Exam Section for You?
There is no single answer that fits every candidate. FAR may feel hardest if your financial accounting foundation is weak. AUD may be more challenging if you struggle to apply audit concepts to a fact pattern. REG can demand extra work when tax rules and business law are unfamiliar. Professor Farhat’s point is practical: identify the gaps in your own preparation before labeling a section easy or hard.
Pass rates add context, but they describe groups of candidates. They are not your personal probability of passing and do not isolate exam difficulty from candidate preparation or experience.
The AICPA also notes that the exam is scored so that it is no harder or easier to pass at different times. When pass rates rise, it means candidates were better prepared.
| Section | Type | 2026 (Q1 to Q3) | 2025 (full year) |
|---|---|---|---|
| FAR | Core | 43.54% | 42.12% |
| AUD | Core | 50.03% | 48.21% |
| REG | Core | 66.32% | 63.12% |
| BAR | Discipline | 43.88% | 41.94% |
| ISC | Discipline | 68.56% | 67.79% |
| TCP | Discipline | 79.75% | 77.65% |
FAR has the lowest cumulative pass rate so far in 2026, at 43.54%. BAR is right behind at 43.88%, and in full-year 2025 BAR was actually a little lower than FAR (41.94% vs. 42.12%). So by the numbers, FAR and BAR are close to a tie. Keep in mind that each Discipline is taken only by the candidates who choose it, so its pass rate reflects that group.
The 2026 figures cover Q1 through Q3, not the full year. Source: AICPA CPA Exam scoring and pass rates, checked October 28, 2026. For quarterly comparisons and an explanation of the passing score, see Farhat Lectures’ CPA passing percentage guide.
Why Is FAR Considered the Hardest CPA Exam Section?
FAR is broad. The AICPA’s Exam Blueprint, the official outline of what each section tests, splits FAR into three content areas:
| Content area | Share of your score |
|---|---|
| Area I: Financial Reporting | 30% to 40% |
| Area II: Select Balance Sheet Accounts | 30% to 40% |
| Area III: Select Transactions | 25% to 35% |
Financial Reporting goes beyond business financial statements. It also includes reporting for not-for-profit organizations and state and local governments. Select Transactions covers topics like revenue recognition, leases, and income taxes, which tend to be calculation heavy.
The format adds pressure
You get four hours for 50 multiple-choice questions (MCQs) and 7 task-based simulations (TBSs). TBSs are case-based tasks where you analyze documents and work through calculations or entries. MCQs and TBSs each count for 50% of your score. BAR uses the same 50 MCQ and 7 TBS format, and the two sections also post the two lowest pass rates.
Common places candidates lose points
- Recording the journal entry correctly but not tracing its effect through every financial statement.
- Mixing up frameworks: Financial Accounting Standards Board (FASB) rules apply to businesses and not-for-profits, while Governmental Accounting Standards Board (GASB) rules apply to state and local governments.
- Making one early calculation error in a simulation that flows into every answer after it.
How Do the Six CPA Exam Sections Compare?
To identify your hardest CPA Exam section, compare the work each section asks you to do with the skills you already use. The following study-planning guide describes possible challenges, not an official ranking of difficulty.
| Section | Possible challenge | Preparation approach |
|---|---|---|
| FAR · Core | Connecting accounting rules, journal entries, and financial statement effects. | Explain the transaction, record the entry, and trace its effect through the statements. |
| AUD · Core | Distinguishing similar procedures and deciding which evidence addresses the stated objective. | Identify the risk or assertion first, then explain why the selected procedure is appropriate. |
| REG · Core | Applying tax and business-law rules to specific facts and exceptions. | Separate the rule, relevant facts, and conclusion; use materials for your testing date. |
| BAR · Discipline | Combining analysis, calculations, and reporting judgments. | Work multistep problems and explain what each calculated result means. |
| ISC · Discipline | Connecting systems, risks, and controls in an unfamiliar scenario. | Describe the system, identify the risk, and explain how a relevant control addresses it. |
| TCP · Discipline | Comparing tax-planning alternatives and their consequences. | State the assumptions, compare alternatives, and explain how a changed fact affects the outcome. |
Use the Farhat Lectures course catalog to find explanations for your section. Candidates take all three Core sections and one Discipline. A higher group pass rate should not replace an assessment of your own knowledge and interests.
Why should you take FAR first?
FAR gives you a framework for understanding financial statements, transactions, and U.S. generally accepted accounting principles (GAAP). In the video, Professor Farhat compares this to building accounting knowledge in college before moving into auditing and taxation. The benefit is a connected learning sequence: later material has something familiar to build on.
How FAR supports AUD
Auditing financial statements is easier to understand when you already know how those statements are prepared. For example, knowing how a sale affects revenue and accounts receivable helps you understand what an auditor is testing. FAR develops the accounting context; AUD adds the audit procedures, evidence, and professional judgment.
How FAR supports REG
Financial accounting also provides a starting point for understanding differences between income reported in the financial statements and income determined under tax rules. Professor Farhat uses deferred taxes and Schedule M-1 as examples of that connection. The underlying lesson is to understand book income before trying to explain book-to-tax adjustments. REG still requires its own focused study of taxation, law, and professional responsibilities.
Here is a quick example. Say a corporation records $10,000 of depreciation in its financial statements but deducts $16,000 on its tax return. Its taxable income is $6,000 lower than its book income (the income shown in its financial statements). That $6,000 is a temporary difference, meaning it reverses in later years.
In FAR, you would record a $1,260 deferred tax liability ($6,000 × 21%), assuming the 21% federal corporate tax rate and no state tax. In REG, the same $6,000 shows up on Schedule M-1, the part of Form 1120 (the corporate income tax return) that reconciles book income with taxable income. Larger corporations use Schedule M-3 instead. Same transaction, two exam sections.
What is the best CPA Exam section order for you?
For a fuller discussion of exam sequencing, read Professor Farhat’s guide to which CPA exam to take first.
Start with FAR when building your accounting foundation is your main priority. A different starting section can make sense if your recent coursework, work experience, or testing schedule gives you a clear reason. NASBA’s CPA Exam Candidate Guide confirms that you may take the sections in any order. Check your jurisdiction’s credit rules before booking. Depending on where you apply, passed sections stay valid for 18, 30, or 36 months, so plan your whole sequence before you start. Also check your Notice to Schedule (NTS), the document that lets you book a section. Depending on your jurisdiction, an NTS is valid for 6 to 12 months.
The current exam requires all three Core sections—AUD, FAR, and REG—plus one Discipline: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). See the AICPA’s CPA Exam overview. The video focuses on the three Core sections; include your chosen Discipline in your full plan.
- Need a stronger accounting base? Consider FAR first and allow time to rebuild the fundamentals.
- Have recent audit or tax experience? Compare your readiness for AUD or REG with your FAR readiness before deciding.
- Choosing a Discipline? Consider your interests, background, and its content relationship to the Core sections. Do not choose solely by pass rate.
- Already studying for a section? Evaluate your progress and deadlines before changing direction just because another section has a reputation for being harder.
Planning to test in 2027? Read about the CPA Exam changes coming in 2027 before you lock in your section order.
How to Study for Your Hardest CPA Exam Section: 5 Tips
- Map what you need to know. Use the current AICPA Exam Blueprints for your testing date.
- Diagnose the gap. Work a short set of unfamiliar practice questions and a simulation. If FAR is your section, the FAR Test Bank is a good place to find fresh questions. Record whether errors come from missing concepts, misreading, or time pressure.
- Repair the concept. Study a focused explanation, then work an example without looking at the solution.
- Try it with new facts. Work a fresh problem with different numbers or details. Explain why the correct answer works and why the alternatives fail.
- Review cumulatively. Revisit earlier topics while learning new ones so your foundation stays usable.
Your hardest CPA Exam section can become more manageable when each study session addresses a specific weakness. Use unfamiliar questions to check whether you can apply what you learned. For a worked practice example and guidance on reviewing mistakes, read how preparation affects CPA Exam difficulty.
For additional explanations, explore the Intermediate Accounting course or the FAR Becker Supplemental Course. Start with the free sample lessons to see Professor Farhat’s teaching approach.
Video highlights
- 0:00 — Rethinking FAR’s reputation
- 0:06 — FAR as an accounting foundation
- 0:27 — Connections to auditing and tax
- 0:57 — Preparation determines your hardest section
Key takeaways
- By 2026 pass rates through Q3, FAR (43.54%) is the lowest, with BAR (43.88%) nearly tied.
- TCP has the highest pass rate (79.75%), and REG is the highest Core section (66.32%).
- You can take the sections in any order. FAR first is a study strategy, not a rule.
- Your hardest section is the one where your foundation is weakest, so diagnose your gaps first.
Frequently asked questions
Is FAR the hardest CPA Exam section?
By pass rate, yes. FAR had the lowest 2026 cumulative pass rate through Q3 (43.54%), just below BAR (43.88%). Your own hardest section still depends on your preparation and background, so Professor Farhat recommends identifying your knowledge gaps first.
Do I have to pass FAR before AUD or REG?
No. NASBA permits candidates to take the CPA Exam sections in any order. Taking FAR first is a learning strategy, not a prerequisite for taking AUD or REG.
Why does Professor Farhat recommend FAR first?
FAR builds financial accounting and GAAP knowledge that helps you understand the statements studied in AUD and the accounting concepts connected to REG. The recommendation is based on developing that foundation.
Does passing FAR make the other sections easy?
No. A stronger foundation can make related ideas easier to connect, but every section has its own content and skills. Prepare separately for each Core section and your selected Discipline.
Which CPA Discipline section is hardest?
By pass rate, BAR. Its 2026 cumulative pass rate through Q3 was 43.88%, compared with 68.56% for ISC and 79.75% for TCP. Each Discipline is taken only by the candidates who choose it, so pick the one that fits your background and career plans, not just the highest pass rate.
What is the easiest CPA Exam section?
By pass rate, TCP, at 79.75% for 2026 through Q3. Among the Core sections, REG has the highest pass rate at 66.32%. A high pass rate does not mean a section will be easy for you.
How many questions are on the FAR section?
FAR has 50 multiple-choice questions and 7 task-based simulations, and you get four hours. Each question type counts for 50% of your score.
What score do you need to pass a CPA Exam section?
You need a 75 on a scale of 0 to 99. The score is not a percentage of questions answered correctly, and the AICPA does not curve scores.
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About the educator: Professor Mansour Farhat, DBA, CPA, CIA, MAcc, is the founder of Farhat Lectures. His lessons explain accounting concepts through practical examples and step-by-step instruction. Learn about Professor Farhat’s background and teaching approach.
This article builds on Professor Farhat’s linked video. Study guidance and Farhat Lectures resources updated October 28, 2026. Pass-rate figures rechecked against the linked AICPA source on October 28, 2026; they cover Q1 to Q3 2026 and full-year 2025. Exam structure and section-order references were originally checked September 15, 2026.
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