CPA Exam Subjects & Syllabus 2026: All Sections Explained
CPA Subjects & Syllabus 2026: All 6 Sections, Weights & Difficulty
The 2026 CPA Exam has six sections — three Core and three Discipline. This guide breaks down every subject area, the MCQ and TBS split, skill levels, difficulty ranking, and how to choose the right Discipline for your career.
Updated June 2026 · Based on AICPA Blueprints effective January 2026 · 12 min read
The 2026 CPA Exam requires passing three Core sections — AUD, FAR, and REG — plus one Discipline section of your choice: BAR, ISC, or TCP. All six sections are four hours each, with a mix of MCQs and Task-Based Simulations, and a passing score of 75 on each. If you are becoming a CPA from India, you sit the same exam as every other candidate worldwide.
- Every CPA candidate must pass AUD, FAR, and REG — the three Core sections — regardless of career path.
- You choose exactly one Discipline section: BAR (accounting/reporting), ISC (technology/controls), or TCP (advanced tax).
- MCQs and TBSs each carry 50% of the score in all sections except ISC, where MCQs carry approximately 60%.
- FAR is consistently the hardest section; ISC the most approachable — based on pass rates and study hours.
- The January 2026 Blueprint updates are minor refinements — they do not restructure the exam or change section time.
How the 2026 CPA Exam Is Structured
The AICPA's CPA Evolution model reshaped the exam from four legacy sections into a six-section framework built around what newly licensed CPAs actually do. All candidates share the same three Core sections. The Discipline sections let you signal specialisation — a deliberate move to align the licence with modern accounting practice.
Each section follows the same five-testlet format. Testlets 1 and 2 are MCQ blocks; Testlets 3, 4, and 5 contain the TBSs. A mandatory, unpaid 15-minute break is offered at the midpoint — taking it does not affect your exam clock. Any break outside this window runs against your four hours.
| Section | Type | MCQs | TBSs | MCQ Wt. | TBS Wt. |
|---|---|---|---|---|---|
| AUD – Auditing & Attestation | Core | 78 | 7 | 50% | 50% |
| FAR – Financial Accounting & Reporting | Core | 50 | 7 | 50% | 50% |
| REG – Taxation & Regulation | Core | 72 | 8 | 50% | 50% |
| BAR – Business Analysis & Reporting | Discipline | 50 | 7 | 50% | 50% |
| ISC – Information Systems & Controls | Discipline | 82 | 6 | ~60% | ~40% |
| TCP – Tax Compliance & Planning | Discipline | 68 | 7 | 50% | 50% |
CPA Subjects Ranked by Difficulty
Difficulty is best read through two signals: the AICPA's published pass rates and the study hours most candidates need. FAR is consistently the hardest on both; ISC the most approachable. The ranking below reflects typical candidate experience — your own background shifts it (a CA finds FAR easier; an IT auditor finds ISC trivial).
| Section | Typical Difficulty | Why |
|---|---|---|
| FAR | Highest | Largest content volume; 150–200 study hours; heavy Application + Analysis |
| REG | High | US tax from scratch for most; 8 TBSs; entity tax depth |
| BAR | Medium-High | Extends FAR into valuation, GASB, public-company reporting; multi-standard TBSs |
| AUD | Medium | Conceptual; the only section testing Evaluation-level judgement |
| TCP | Medium | Application-heavy tax, but narrower scope than REG |
| ISC | Lowest | Most recall-based; ~60% MCQ weight; definitional content |
Pass rates shift slightly each quarter — check the AICPA's published section pass rates for the current window.
AUD — Auditing and Attestation (Core)
AUD tests the knowledge and skills a newly licensed CPA needs to plan, perform, and report on audit and attestation engagements. It is the only section with Evaluation-level questions (around 5–15%), reflecting the professional judgement audit work demands.
| Area | Topic | Weight |
|---|---|---|
| I | Ethics, Professional Responsibilities and General Principles | 15%–25% |
| II | Assessing Risk and Developing a Planned Response | 25%–35% |
| III | Performing Further Procedures and Obtaining Evidence | 30%–40% |
| IV | Forming Conclusions and Reporting | 10%–20% |
The January 2026 update revised AUD's references to reflect the AICPA Quality Management standards and added emphasis on entity-level controls in Area II. If your materials pre-date August 2025, confirm the SQMS references are current before you sit.
FAR — Financial Accounting and Reporting (Core)
FAR is the most content-heavy section of the CPA exam. It covers US GAAP for public companies, non-public companies, and not-for-profit entities, plus state and local government accounting under GASB. Skill allocation is weighted toward Application (45–55%) and Analysis (35–45%) — rote memorisation alone will not pass FAR.
| Area | Topic | Weight |
|---|---|---|
| I | Financial Reporting (including NFP and governmental concepts) | 30%–40% |
| II | Select Balance Sheet Accounts (cash, receivables, inventory, PP&E, investments, debt, equity) | 30%–40% |
| III | Select Transactions (revenue recognition, leases, income taxes, contingencies, subsequent events) | 25%–35% |
FAR does not test any content at the Evaluation skill level. Every question demands recalling a standard, applying a calculation, or analysing a scenario. Candidates who over-invest in "understanding why" the rules exist — without drilling the actual application — frequently run short on time in the TBS testlets.
REG — Taxation and Regulation (Core)
REG covers US federal tax law for individuals and entities, business law, and tax-practice ethics. It is the only Core section with eight TBSs, signalling the AICPA's expectation that candidates can work through multi-step tax calculations under exam conditions.
| Area | Topic | Weight |
|---|---|---|
| I | Ethics, Professional Responsibilities and Federal Tax Procedures | 10%–20% |
| II | Business Law (contracts, agency, employment, bankruptcy, secured transactions) | 10%–20% |
| III | Federal Taxation of Property Transactions | 10%–20% |
| IV | Federal Taxation of Individuals | 25%–35% |
| V | Federal Taxation of Entities (C-corps, S-corps, partnerships, trusts, estates) | 28%–38% |
Areas IV and V together account for roughly 55–70% of REG content. Candidates without US tax experience routinely underestimate the entity-level volume. Allocate at least 40% of your REG hours to S-corp, partnership, and C-corp taxation before touching property transactions.
Choosing Your Discipline Section: BAR, ISC, or TCP
You must register for one Discipline section. The choice is permanent for a given exam window, but you can sit a different Discipline later if needed. Most candidates — including those weighing the CPA against the Indian CA — pick the Discipline that aligns with their job offer or intended career path. Passing requirements are identical across all three.
Best CPA Discipline by Career Goal
| Career Goal | Discipline | Why |
|---|---|---|
| External / financial audit | BAR | Extends FAR; technical accounting depth |
| Corporate finance / FP&A | BAR | Valuation, metrics, reporting |
| Investment banking / M&A | BAR | Business analysis and valuation models |
| Internal audit (tech focus) | ISC | IT controls and SOC engagements |
| IT audit / IT risk | ISC | Core ISC territory |
| Cybersecurity / infosec | ISC | NIST, access controls, incident response |
| Tax (public practice) | TCP | Advanced entity and individual tax |
| Wealth / estate / financial planning | TCP | Personal financial planning, wealth transfer |
| Transfer pricing / corporate tax | TCP | Entity tax planning and multi-state |
Your Discipline does not restrict your licence — it signals specialisation. Any CPA can work in any area; choose the section that matches where you are heading.
- Public accounting (audit or advisory)
- Corporate financial reporting or FP&A
- Investment banking / M&A advisory
- Technical accounting at public companies
- Government or NFP finance leadership
- IT audit or IT risk advisory
- Cybersecurity and information security
- SOC 1 / SOC 2 attestation engagements
- ERP implementation or systems advisory
- Internal audit with a technology focus
- Tax practice at a public accounting firm
- In-house corporate tax or transfer pricing
- Financial planning and wealth management
- Estate and trust tax work
BAR — Business Analysis and Reporting (Discipline)
BAR extends FAR into advanced financial analysis and adds State and Local Government accounting under GASB. It also introduces financial valuation models, the COSO ERM framework with ESG applications, and public-company reporting under SEC Regulation S-X and S-K — topics absent from the Core sections.
| Area | Topic | Weight |
|---|---|---|
| I | Business Analysis (financial metrics, valuation models, COSO ERM, ESG risks) | 40%–50% |
| II | Technical Accounting and Reporting (goodwill, internally developed software, stock comp, business combinations, derivatives, lessor leases, public-company reporting) | 35%–45% |
| III | State and Local Governments (GASB financial statements, fund accounting, reconciliation) | 10%–20% |
BAR TBSs in Area II often present a business combination, a variable interest entity consolidation, or a foreign currency translation and ask candidates to prepare or analyse specific line items. Unlike FAR TBSs, which tend to test one standard each, BAR TBSs frequently require knowledge from two or three related standards at once.
ISC — Information Systems and Controls (Discipline)
ISC is the most distinctive Discipline. Its content draws from IT governance, cybersecurity frameworks (NIST, COBIT), data management, and SOC engagement standards — knowledge bases that traditionally belong to IT auditors rather than general accounting practitioners.
| Area | Topic | Weight |
|---|---|---|
| I | Information Systems and Data Management (IT governance, data architecture, databases, system development lifecycle) | 35%–45% |
| II | Security, Confidentiality and Privacy (cybersecurity risks, NIST framework, access controls, incident response) | 35%–45% |
| III | System and Organisation Controls (SOC) Engagements (SOC 1 / SOC 2 / SOC 3, trust service criteria, reporting) | 15%–25% |
ISC has 82 MCQs — the highest of any section — and the Blueprint sets its MCQ:TBS weighting at approximately 60:40. Much of ISC knowledge is definitional (frameworks, terminology, governance concepts), so thorough MCQ drilling typically builds a strong base score before the TBS testlets.
TCP — Tax Compliance and Planning (Discipline)
TCP is the advanced tax section. Where REG establishes foundational federal tax knowledge, TCP builds on it with planning strategies, complex entity structures, and property disposition analysis. Its skill allocation is the most Application-heavy of all six sections at 55–65% — knowing the rules is not enough; you must apply them to novel fact patterns.
| Area | Topic | Weight |
|---|---|---|
| I | Tax Compliance and Planning for Individuals and Personal Financial Planning (AMT, retirement plans, wealth transfer) | 25%–35% |
| II | Entity Tax Compliance (C-corps, S-corps, partnerships, consolidated returns, multi-state) | 30%–40% |
| III | Entity Tax Planning (tax minimisation strategies, restructuring, international considerations) | 20%–30% |
| IV | Property Transactions — Disposition of Assets (gains, losses, instalment sales, like-kind exchanges) | 10%–20% |
TCP Area II contains multi-state apportionment rules and consolidated return regulations not covered in REG. Do not assume REG preparation covers TCP entity content — budget specific study time for these additional topics.
Skill Levels Tested Across All Six Sections
The AICPA uses a modified Bloom's Taxonomy framework to define the cognitive level each question demands. The distribution tells you what kind of question to expect — and how to prepare.
| Section | Remember & Understand | Application | Analysis | Evaluation |
|---|---|---|---|---|
| AUD | 30%–40% | 30%–40% | 15%–25% | 5%–15% |
| FAR | 5%–15% | 45%–55% | 35%–45% | — |
| REG | 25%–35% | 35%–45% | 25%–35% | — |
| BAR | 10%–20% | 45%–55% | 30%–40% | — |
| ISC | 55%–65% | 20%–30% | 10%–20% | — |
| TCP | 5%–15% | 55%–65% | 25%–35% | — |
ISC rewards thorough reading and recall; FAR and TCP reward relentless calculation practice; AUD is the only section where you must practise professional judgement calls — not just right answers.
What Changed in the January 2026 Blueprint Update
The AICPA Board of Examiners approved Blueprint revisions on 18 August 2025, effective 1 January 2026. They are targeted refinements — not structural redesigns, and they leave exam length, section count, passing score, and content weights unchanged.
- AUD: references updated to AICPA Quality Management standards (SQMS); entity-level controls emphasised in Area II; external confirmations refined in Area III. Ensure your materials reference SQMS No. 1 and No. 2, not the older SQCS framework.
- FAR: the AICPA Practice Aid on cash and tax basis financial statements removed from references (no longer maintained) — a supplementary reference, not primary content.
- REG, BAR, ISC, TCP: minor representative-task wording refinements only; no change to content areas or weightings.
Recommended Study Sequence for the Four Sections
Most candidates and prep providers recommend sitting the Core sections before the Discipline, since BAR and TCP build directly on FAR and REG respectively.
All four required sections must be passed within a rolling 30-month window from the date you pass your first section. Missing it means the earliest-passed section expires and must be retaken. Note that passing the exam is not the same as licensure — see passing vs licensing for the steps after your final section.
CPA Subjects for Indian Candidates: What You Need to Know
Indian candidates — particularly CA, ACCA, and commerce graduates — often ask whether prior qualifications reduce the study burden for a specific CPA section. The honest answer is: yes, partially, and it depends on the section.
- FAR: ICAI CA knowledge of accounting standards overlaps with US GAAP concepts, though codification references differ
- AUD: SA (Standards on Auditing) maps to the conceptual framework of US GAAS, though the standards are distinct
- BAR: financial analysis and valuation content feels familiar to CA Finance electives
- REG: US federal tax has no overlap with Indian tax — full study required
- TCP: same as REG, with greater depth on US entity tax planning
- ISC: COBIT and NIST frameworks are new content for most accounting graduates
Before planning your subjects, it helps to know what the CPA exam costs for Indian candidates — evaluation, exam, and review-course fees together shape how you sequence your sittings.
CPA Subjects Compared to ACCA Papers
For the many Indian candidates weighing or holding ACCA, here is how the CPA sections map conceptually to ACCA papers. These are knowledge overlaps that make study faster — not exemptions. Neither qualification grants paper-for-paper credit against the other; an ACCA affiliate still sits all four CPA sections.
| CPA Section | Closest ACCA Paper(s) | Overlap |
|---|---|---|
| FAR | FR + SBR | Strong — financial reporting core |
| AUD | AA + AAA | Strong — audit and assurance |
| BAR | AFM / APM elements | Partial — analysis and performance |
| REG | No ACCA equivalent | US federal tax + business law — new content |
| TCP | ATX-style thinking | Conceptual only — US tax differs entirely |
| ISC | No ACCA equivalent | IT controls — new content for most |
For the credential-level comparison rather than subject overlap, see CPA vs CA. ACCA coursework is evaluated case-by-case by a NASBA-approved evaluation service toward the credit requirement — it is not an automatic exemption.
Which CPA Review Course Covers the Subjects Best?
All major review courses cover the full Blueprint. The real difference is study style and price.
| Provider | Best For | India Price |
|---|---|---|
| Surgent (via Eduyush) | Working professionals & CAs — adaptive engine targets weak areas | ₹32,000 |
| Becker | Traditional classroom learners; Big 4 standard | ₹1,80,000–2,50,000 |
| Gleim | Heavy self-study; deepest MCQ bank | ₹1,00,000–1,40,000 |
See the full CPA review course comparison, or go straight to the Surgent CPA Review course.
Frequently Asked Questions
📚 Complete your CPA journey
Talk to an Eduyush advisor who has guided Indian candidates through every section of the 2026 CPA exam.
Talk to an advisor →
AUD CPA Exam 2026: Syllabus, Pass Rates & Study Plan
CPA Section Guide · AUD AUD CPA Exam 2026: Syllabus, Format and How Indian Candidates Pass It AUD...
REG CPA Exam 2026: Syllabus, Pass Rates & Study Plan
CPA Section Guide · REG REG CPA Exam 2026: Syllabus, Format and How Indian Candidates Pass It REG...
NIES Evaluation Guide for Indian CPA Candidates
Updated June 2026 · 2,400 words · By Vicky Sarin, CA — 25 years mentoring CPA candidates Before...
Leave a comment