The CPA licensure signifies the accounting profession’s highest standards of competence and only the best are able to earn this license. You must pass the CPA exam, which is regarded as one of the most difficult professional licensing exams to pass. Less than fifty percent pass the exam on their first try.

The Importance of Passing Your Exam on the First Attempt

Passing the exam the first time you take it is crucial as this puts you in an elite class of accountants, making you more attractive to employers. In addition to the impact on career prospects, passing the exam on the first try means that you will not have to pay to retake the exam. At an average cost of just over $500 per attempt, taking the exam multiple times can become costly.

How to Prepare for the CPA Exam

The rewards of passing the CPA exam can be great, but the test requires a significant investment of your time. Passing the CPA exam requires knowledge, determination and effort, and many organizations recommend devoting at least 300 to 400 hours to study prior to taking the exam. Part of your exam preparation and study strategy usually includes taking some  Exam Review courses. There are many different review courses and options from which to choose. You should choose a review option that fits your study habits, schedule, and learning style.

A classroom-based course might be a good option if you perform better with a set schedule while self-study courses could be more appropriate if you’re self-directed and learn better on your own. There is a wide array of other options available and CPA exam review materials can include web-based classes, recorded video or audio lectures on CD or DVD, software programs, book study, or combinations of all of these. Regardless of the medium or method of instructional delivery, choose a course that enhances your general accounting knowledge and provides you with plenty of practice questions and exam simulations. Many review courses will also provide you with feedback on areas that you need to brush up on based on how well you perform on practice exams.

How is the CPA Exam Structured?

The Exam consists of four sections:

• Auditing and Attestation
• Business Environment and Concepts
• Financial Accounting and Reporting
• Regulation

The CPA exam is only offered during specific times of the year, called testing windows. There are generally four testing windows each year. Candidates can take the exam sections in any order and can sit for one or more sections during a test period. Candidates must obtain a passing score on each section to be eligible for CPA licensure.

If you don’t pass a particular section, you can retake it as long as the retake is not within the same testing window. While each state board sets its own policy on how long you have to obtain a passing score on all four exam sections, in most cases, candidates have eighteen months beginning from the date of the first exam taken. If you don’t pass all four sections within the allotted time, you may run the risk of having to retake exams on sections you have previously passed.

Earning the Respected CPA Credential

Becoming a licensed CPA is one of the most valuable professional credentials you can obtain. Part of its value lies in the difficulty involved in earning it. With less than fifty percent of exam candidates receiving passing scores, you need to be prepared to spend a significant amount of your time and resources preparing for your exam. With so much at stake, it is vital that you have the discipline and determination needed to carry you through the effort that this rigorous exam requires.

About the Author - Grant writes and reports on updates to the field of Certified Public Accounting and as of late has begun reporting on Six Sigma and its various applications.

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