CPA Exam in 2026: New Format, Discipline Sections, and What to Expect

The CPA Exam Has Changed

The Uniform CPA Examination underwent its most significant restructuring in over a decade with the introduction of the Core + Discipline model. If you are preparing for the CPA exam in 2026, understanding the new structure is essential — both for choosing your discipline section and for building an effective study plan.

This guide explains the updated format, walks through each discipline option, and provides strategies for selecting the right path and studying efficiently.

The New Core + Discipline Structure

Under the updated model, every CPA candidate completes three core sections plus one discipline section of their choice. The core sections test knowledge that all CPAs need regardless of specialization. The discipline section allows candidates to demonstrate deeper expertise in their chosen area.

The Three Core Sections

AUD — Auditing and Attestation

AUD tests your ability to plan and perform audit engagements, evaluate evidence, and form conclusions. Topics include audit planning and risk assessment, internal controls evaluation, substantive testing procedures, audit reports and modifications, professional ethics and independence, and quality management standards.

The section emphasizes professional skepticism and judgment. Expect task-based simulations that present you with a scenario — such as a mid-size retailer with inventory valuation concerns — and ask you to identify appropriate audit procedures, evaluate evidence, or draft report language.

FAR — Financial Accounting and Reporting

FAR covers the broadest range of technical accounting content. It tests US GAAP for business entities, government and not-for-profit accounting, financial statement preparation, select IFRS differences, and the conceptual framework underlying accounting standards.

FAR is widely considered the most content-heavy section. Candidates at firms like Thornfield & Associates often tackle it first to establish a strong technical foundation. The section includes both multiple-choice questions and simulations requiring journal entries, financial statement preparation, and reconciliations.

REG — Regulation

REG covers federal taxation for individuals, entities, and property transactions, along with business law and professional ethics. The tax content draws heavily from the Internal Revenue Code and IRS regulations. Topics include individual income taxation, entity taxation (partnerships, corporations, S corporations), property transactions (basis, gains, losses), and business law concepts (contracts, agency, debtor-creditor relationships).

Choosing Your Discipline Section

This is the most consequential decision in your CPA exam journey. Each discipline section takes approximately 100 additional study hours, so choose wisely.

BAR — Business Analysis and Reporting

BAR is the natural choice for candidates headed toward financial reporting, corporate accounting, or advisory roles. It covers advanced financial reporting topics including business combinations, consolidations, and derivatives. It also tests financial statement analysis, data analytics, and prospective financial information. Technical accounting topics such as revenue recognition complexities and lease accounting are emphasized.

If you are joining a Big Four audit practice or plan to become a corporate controller, BAR aligns most directly with your day-to-day work. A senior associate at a firm like Clearwater Advisory would use BAR-tested skills when evaluating complex transactions for audit clients.

ISC — Information Systems and Controls

ISC is designed for candidates interested in IT audit, cybersecurity, systems assurance, and technology governance. It covers IT general controls and application controls, data governance and management, system development and change management, cybersecurity risk assessment, and SOC engagement considerations.

With the growing importance of technology in accounting and audit, ISC positions you at the intersection of finance and IT. Candidates who plan to specialize in IT audit or advisory services, or who want to complement their accounting skills with technology expertise, should strongly consider ISC.

TCP — Tax Compliance and Planning

TCP goes deeper into taxation than what REG covers, adding individual and entity tax planning strategies, multi-jurisdictional tax considerations, wealth transfer and estate planning, tax-advantaged retirement strategies, and special tax situations (exempt organizations, trusts).

If you plan to build a career in tax — at a public accounting firm, in corporate tax departments, or in private practice — TCP is the clear choice. It also pairs well with the Enrolled Agent credential for practitioners focused on tax representation.

How to Choose: A Decision Framework

Ask yourself three questions:

1. What does your employer value? If you have a job offer or are already at a firm, ask your manager or recruiter which discipline is most relevant to your practice group. An IT audit team will value ISC; a tax team will value TCP.

1. What are your long-term career goals? Think beyond your first role. If you want to become a CFO, BAR gives you the broadest financial reporting foundation. If you want to run your own tax practice, TCP is indispensable.

1. What are your strengths? If you excelled in your advanced accounting courses, BAR will feel familiar. If you have a technology background, ISC may come more naturally. Playing to your strengths can reduce study time and improve your pass probability.

Study Strategy for the New Format

Sequencing Your Sections

There is no required order, but experienced candidates and review course providers generally recommend one of two approaches:

Approach A: FAR First — Start with the most content-heavy section while your motivation is highest and your study habits are fresh. Follow with AUD (which overlaps with FAR on financial reporting concepts), then REG, and finally your discipline.

Approach B: Discipline First — If your discipline aligns with your current work (for instance, you are working in tax and chose TCP), start there while the material is fresh from daily practice. Then complete the core sections.

Regardless of sequence, remember the 30-month rolling window. Plan your timeline so that you complete all four sections within this window, with buffer for potential retakes.

Time Allocation

Total preparation typically runs 12 to 18 months for candidates studying while working full-time. Setting a consistent daily study schedule — even just 90 minutes before work — is more effective than marathon weekend sessions.

Practice Questions Are Non-Negotiable

The single strongest predictor of CPA exam success is the volume and quality of practice questions completed. Aim for at least 2,000 multiple-choice questions across your core sections and 500 or more for your discipline section. Focus on understanding why wrong answers are wrong, not just why right answers are right.

Task-based simulations require a different preparation approach. Practice navigating the authoritative literature (which is available during the exam), building Excel-style workpapers, and writing concise memo-style responses.

Passing Scores and Results

Each section is scored on a scale of 0 to 99, with 75 as the passing threshold. Scores are released on a rolling basis, typically within a few weeks of your testing window close date. The AICPA publishes a score release schedule at the beginning of each year.

A score of 74 is painful but common. If you fall just short, resist the urge to immediately rebook — take a few days to review your performance report, identify weak areas, and adjust your study approach before diving back in.

Your Path Forward

The Core + Discipline model is a positive evolution for the profession. It ensures all CPAs share a common knowledge base while allowing specialization in areas that matter most to your career. Choose your discipline thoughtfully, build a realistic study timeline, and commit to consistent daily preparation.

AcadiFi's CPA preparation courses cover all three core sections and each discipline option, with video lessons, practice simulations, and a community of fellow candidates to keep you motivated through the process.