Every CPA candidate asks the same question before booking a single NTS: which section goes first? For most people the honest answer is FAR - but not for everyone. Here’s the 2026 data behind that decision.
What Is FAR in Accounting?
FAR = Financial Accounting and Reporting, one of three mandatory Core sections under CPA Evolution (alongside AUD and REG).
FAR in CPA tests US GAAP financial reporting - statements, balance sheet accounts, transactions, plus basic state and local government and not-for-profit reporting.
It is the broadest section by content volume: 3 content areas spread across 22 blueprint topic groups.
Every candidate must pass FAR. There is no discipline substitute for it.
FAR concepts flow directly into AUD (what you audit), REG (book-tax differences) and especially BAR (which builds on FAR).
“Building the CPA pipeline requires a united effort from all stakeholders.”
- Susan Coffey, CPA, CGMA, CEO–Public Accounting, AICPA
FAR CPA Exam Format (2026)
Element | 2026 Detail |
|---|---|
Duration | 4 hours |
Total questions | 50 MCQs + 7 TBSs |
Testlet structure | Testlet 1: 25 MCQ, Testlet 2: 25 MCQ, Testlets 3–5: 2 / 3 / 2 TBS |
Score weighting | 50% MCQ, 50% TBS |
Passing score | 75 on a 0–99 scaled scale (not a percentage correct) |
Pacing benchmark | ~2 minutes per MCQ, ~18–20 minutes per TBS |
Credit window | 18-month rolling window from your first pass |
TBSs carry partial credit - attempt every sub-item, never leave a cell blank.
Questions are weighted by difficulty, so harder items are worth more.
CPA FAR Syllabus 2026: Content Areas & Weights
Content Area | 2026 Blueprint Weight | What It Covers |
|---|---|---|
Financial Reporting | 30–40% | GP financial statements, disclosures, ratios, basic state & local government, not-for-profit |
Select Balance Sheet Accounts | 30–40% | Receivables, inventory, PP&E, investments, payables, equity, leases (lessee) |
Select Transactions | 25–35% | Revenue recognition (ASC 606), accounting changes, subsequent events, business combinations |
What changed for 2026:
Heavier governmental reporting has shifted toward BAR - FAR now keeps only foundational state and local government concepts. Don’t over-invest study hours here.
Advanced technical topics such as goodwill, stock compensation and derivatives sit in BAR, not FAR.
Simulations frequently blend two or three areas in a single task, so studying in isolated silos is a common trap.
FAR CPA Pass Rate: The 2026 Numbers
Section | Q1 2026 | 2025 Cumulative |
|---|---|---|
TCP | 79.28% | 77.65% |
ISC | 66.79% | - |
REG | 66.65% | 63.12% |
AUD | 47.80% | 48.21% |
FAR | 43.46% | 42.12% |
BAR | 41.30% | 41.94% |
FAR has held the lowest or second-lowest pass rate among core sections for over a decade.
A ~43% rate means fewer than one in two candidates clear it on a given attempt - multiple attempts are normal, not a failure signal.
Low pass rate ≠ unfair exam. Scores are scaled and comparable across test forms; the rate reflects breadth plus application depth, both of which respond to structured prep.
Should You Take FAR First? Pros vs Cons
Take FAR First If… | Consider a Different Order If… |
|---|---|
You want the hardest section done while motivation and the 18-month clock are both fresh | You work in tax and could bank an early win with REG (~67% pass rate) |
You plan to sit for BAR as your discipline - BAR is built on FAR | You’re mid-busy-season and can’t commit 150+ hours in one block |
Your accounting fundamentals are recent (fresh graduate, CA Inter/Final cleared) | You’ve been out of financial accounting for 5+ years and need a confidence build first |
You want maximum retake buffer inside the 18-month window | Your discipline choice is TCP or ISC, which lean on REG and IT/controls |
The strategic case for FAR first:
Failing FAR in month 1 costs you nothing on the clock - the 18-month window only starts when you pass your first section.
Fail it in month 14 and you risk losing an earlier credit. That asymmetry is the single strongest argument for going FAR first.
FAR builds the vocabulary the other three sections assume you already have.
Study Hours & How Long the CPA Course Takes
Milestone | Realistic 2026 Timeline |
|---|---|
FAR study hours | 150–200 hours (120–160 for retakers with a strong base) |
Per section (average) | 8–12 weeks at 15 hours/week |
All four sections | 12–18 months for most working candidates |
Credit window | 18 months from first pass |
Exam sittings are continuous through the year; scores release quarterly, so plan backwards from your target score-release date.
Practising FAR CPA exam questions under timed conditions matters more than passive video hours - most candidates over-drill MCQs and under-prepare TBSs, then lose half the score weight they never rehearsed.
How Much Does a CPA Earn in the USA? (2026)
Role / Stage | 2026 Figure |
|---|---|
Accountants & auditors (median, BLS) | $81,680 |
Entry-level CPA | ~$61,900 |
Senior accountant (Robert Half midpoint) | $94,750 |
Audit & assurance manager | $113,500 |
Compliance director | $164,750 |
Top 10% of accountants & auditors | $141,420+ |
CPA credential premium | 5–15% over non-certified peers |
Robert Half projects 3.7% YoY salary growth for tax, audit and assurance roles in 2026 - versus ~2.1% across finance and accounting overall.
In India, CPA freshers at Big 4 and GCCs typically start at ₹8–12 LPA, moving to ₹18–25 LPA with 3–5 years of experience.
Eligibility: The 2026 Shift Worth Knowing
120 credits to sit for the exam; 150 credits for licensure under the traditional path.
Since the AICPA–NASBA-approved alternative pathway, a majority of state boards have adopted (or are adopting) 120 credits + 2 years of verified experience as a route to licensure.
A 3-year Indian B.Com typically maps to ~90 credits - the gap is closed via M.Com, MBA, CA Inter, or a bridge course.
Check your specific state board before you evaluate transcripts. Check your CPA eligibility here.
Where Miles Education Fits In
At Miles Education, the FAR-first sequence is the default recommendation for most candidates - paired with blueprint-weighted study plans, TBS-heavy practice and state board selection support so the administrative side never becomes the bottleneck.
Miles has also added a layer most CPA prep doesn’t: CAIRA (Certified AI-Ready Accountant) - India’s first AI credential built specifically for accounting and finance professionals, with Level 1 offering 30+ hours of NASBA-approved CPE across AI foundations, applied AI across accounting functions, and AI leadership and governance.
“Accountants who know how to use AI are replacing those who don’t.”
- Varun Jain, CEO, Miles Education
Passing FAR proves you understand the numbers. CAIRA proves you can work the way 2026 employers actually operate.
FAQs
1. Is FAR the hardest CPA exam section?
By pass rate, FAR and BAR are consistently the toughest. FAR’s difficulty comes from breadth - 22 topic groups - rather than any single impossible topic.
2. Should I take FAR first if I’m scared of it?
Yes, in most cases. Failing your first attempt costs nothing on the 18-month clock because the window only starts once you pass a section.
3. How many questions are on the FAR CPA exam?
50 MCQs and 7 task-based simulations across five testlets, in a 4-hour sitting, weighted 50/50.
4. What score do I need to pass FAR?
75 on a 0–99 scaled score. It is not 75% of questions correct.
5. How long should I study for FAR?
Plan 150–200 hours - roughly 10 weeks at 15–20 hours per week for a first-time candidate.
6. Did governmental accounting move out of FAR in 2026?
The heavier governmental reporting content shifted toward BAR. FAR retains foundational state and local government concepts only.
7. How long is the CPA course overall?
Most working candidates complete all four sections in 12–18 months, constrained by the 18-month rolling credit window.
8. Can I sit for the CPA exam with 120 credits?
Yes, in most states. 150 credits are required for licensure under the traditional path, with a 120-credit + 2-year experience pathway now available in a growing number of states.
