CPA Exam Practice Test

How to Approach FAR, AUD, and REG

Financial Accounting & Reporting (FAR) is the broadest Core section and often the one candidates fear most. Build a solid mental model of the financial statements first — how the balance sheet, income statement, and cash flows connect — then layer in specific topics like revenue recognition, leases, and consolidations. Because FAR rewards understanding over memorization, focus on why an entry hits a given account rather than rote rules.

Auditing & Attestation (AUD) tests how you think, not just what you know. Ground yourself in the audit process — assessing risk, testing controls, gathering evidence, and forming an opinion — and learn to distinguish the types of audit reports and the situations that trigger each. Many AUD questions turn on professional skepticism and ethics, so practice reasoning through scenarios rather than matching keywords.

Regulation (REG) covers federal taxation, business law, and ethics. Prioritize the underlying frameworks — how individual and entity taxation work, the structure of contracts and agency, and a CPA's professional responsibilities — over the exact dollar thresholds, which change yearly and which our practice deliberately avoids. Understanding the logic of a rule lets you adapt when the specific numbers shift.

Across all sections, mastering the core concepts first pays off: the Discipline section you choose builds on the same foundations, and deep understanding travels better than memorized facts. Remember that state boards set the education and experience requirements for licensure, and those rules vary — so confirm your eligibility and testing windows with your own board before you plan your path.