For professionals working in Internal Audit, achieving CPA certification represents a significant milestone in career advancement. Understanding the best order to take the CPA exam can dramatically impact your success rate and study efficiency. This comprehensive guide will explore how internal auditors can leverage their unique experience to navigate the CPA exam sections strategically.
The Strategic Advantage of Internal Audit Experience in CPA Preparation
As an Internal Audit professional, you bring valuable experience to the CPA examination process. Your daily involvement with risk assessment, internal controls, and compliance procedures provides a solid foundation for certain exam sections. This background knowledge should significantly influence your recommended CPA exam order.
Key Skills That Transfer From Internal Audit to CPA Success
- Deep understanding of internal control frameworks and risk assessment methodologies
- Experience with compliance requirements and regulatory standards
- Practical knowledge of financial statement analysis and reporting procedures
- Familiarity with audit documentation and evidence collection
- Strong analytical skills developed through audit planning and execution
Understanding the CPA Exam Structure
Before determining the optimal CPA Exam order, it’s crucial to understand the four distinct sections and their relationship to Internal Audit work:
Auditing and Attestation (AUD)
This section aligns closely with internal audit work, covering:
- Ethics and Professional Responsibilities
- Risk Assessment and Response
- Internal Control Evaluation
- Evidence Gathering and Documentation
- Forming Conclusions and Reporting
Financial Accounting and Reporting (FAR)
FAR builds upon financial analysis skills common in internal audit:
- Financial Statement Preparation and Analysis
- Standard-Setting and Conceptual Framework
- Select Financial Statement Accounts
- Government and Not-for-Profit Accounting
Regulation (REG)
This section expands on compliance knowledge:
- Ethics and Professional Responsibilities
- Business Law
- Federal Tax Procedures
- Property Transactions
Business Environment and Concepts (BEC)
BEC complements strategic thinking skills:
- Corporate Governance
- Economic Concepts and Analysis
- Financial Management
- Information Technology
Optimal CPA Exam Order for Internal Auditors
Based on extensive research and success patterns, here’s the most strategic recommended CPA exam order for internal audit professionals:
1. Start with Auditing and Attestation (AUD)
Beginning with AUD maximizes your Internal Audit experience. This approach allows you to:
- Build confidence through familiar material
- Reinforce existing knowledge from your daily work
- Establish a strong foundation for other sections
- Maintain momentum through early success
2. Progress to Financial Accounting and Reporting (FAR)
Following the best order to take the CPA exam, FAR comes second because:
- It builds upon financial analysis skills from internal audit work
- The concepts complement AUD knowledge
- It’s often considered the most challenging section, making it ideal to tackle while momentum is high
- The material provides context for later sections
3. Tackle Regulation (REG)
As the third step in the optimal CPA Exam order, REG allows you to:
- Apply compliance knowledge from internal audit experience
- Build upon legal concepts encountered in previous sections
- Expand your understanding of regulatory frameworks
- Prepare for the final section with a strong regulatory foundation
4. Complete Business Environment and Concepts (BEC)
Finishing with BEC is strategic because:
- It incorporates concepts from all previous sections
- The material often feels more intuitive after completing other sections
- You can apply comprehensive knowledge gained from earlier studies
- It typically has the highest pass rate, providing a strong finish
Comprehensive Study Strategies for Success
Following the optimal CPA Exam order requires a well-planned approach to studying. Here are detailed strategies for each phase of your preparation:
Initial Preparation Phase
- Conduct a detailed skills assessment to identify strengths and weaknesses
- Create a comprehensive study timeline that accounts for work commitments
- Invest in quality study materials and practice exams
- Set up a dedicated study space free from distractions
- Develop a system for tracking progress and maintaining motivation
Section-Specific Study Techniques
Each section of the recommended CPA exam order requires unique preparation strategies:
AUD Study Approach
- Focus on differences between internal and external audit procedures
- Practice multiple-choice questions that test conceptual understanding
- Review audit sampling techniques and statistical methods
- Study attestation standards and professional ethics
- Complete task-based simulations regularly
FAR Preparation Techniques
- Create detailed study notes for complex accounting topics
- Practice calculating adjusting entries and corrections
- Focus on governmental and non-profit accounting principles
- Review consolidations and business combinations thoroughly
- Work through comprehensive practice problems daily
REG Study Methods
- Master fundamental tax concepts before moving to complex topics
- Practice calculating various tax scenarios
- Study business law cases and precedents
- Review recent tax law changes and updates
- Complete practice sessions on tax form preparation
BEC Study Strategy
- Focus on written communication skills and format
- Practice time management for written responses
- Master cost accounting and variance analysis
- Study IT concepts and systems controls
- Review economic principles and financial management
Advanced Time Management Techniques
Success in following the best order to take the CPA exam requires sophisticated time management strategies:
Daily Study Schedule
- Allocate 2-3 hours for focused study sessions
- Use the Pomodoro Technique for maximum concentration
- Schedule regular breaks to maintain mental freshness
- Review notes during lunch breaks or commute time
- Set aside time for practice questions and mock exams
Weekly Planning
- Dedicate specific days to different topic areas
- Schedule longer study sessions on weekends
- Plan review sessions of previously covered material
- Allow flexibility for work commitments
- Set aside time for practice exams and performance analysis
Leveraging Technology and Resources
Modern Internal Audit professionals can utilize various tools to enhance their CPA exam preparation:
Digital Study Tools
- Mobile study apps for practice questions
- Digital flashcards for key concepts
- Online practice exams and simulations
- Video lectures and tutorials
- Progress tracking software
Professional Resources
- CPA review courses and materials
- Professional association resources
- Study groups and forums
- Mentorship programs
- Online communities and discussion boards
Maintaining Work-Life Balance
While following the recommended CPA exam order, it’s crucial to maintain balance:
Physical and Mental Health
- Maintain regular exercise routines
- Practice stress management techniques
- Ensure adequate sleep and rest
- Plan healthy meals and snacks
- Schedule regular breaks and relaxation time
Professional Balance
- Communicate study plans with supervisors
- Use vacation time strategically
- Set realistic work deadlines
- Maintain professional relationships
- Continue professional development activities
Post-Exam Section Strategies
After completing each section of your chosen CPA Exam order, consider these steps:
Review and Analysis
- Evaluate performance and identify areas for improvement
- Document effective study strategies
- Adjust study plans for upcoming sections
- Maintain knowledge through periodic review
- Share insights with study groups or mentors
Conclusion
As an Internal Audit professional, your path to CPA certification can be optimized by following this strategic exam order. The recommended CPA exam order leverages your existing knowledge while building progressively toward success. Remember that while this best order to take the CPA exam provides a proven framework, your individual circumstances and strengths should ultimately guide your journey to becoming a CPA.
By following these comprehensive guidelines and leveraging your Internal Audit background, you can maximize your chances of success on the CPA exam. Remember that the journey to CPA certification is a marathon, not a sprint, and proper planning using the optimal CPA Exam order is key to your success.
About the Author
Shaun Stoltz is a seasoned project management professional with over 30 years of experience spanning project management, financial accounting, Audit, and information technology. As a certified Project Management Professional (PMP), Agile Certified Practitioner (PMI-ACP), and Certified Internal Auditor (CIA), he brings deep expertise in managing complex projects and implementing innovative solutions.
With an MBA from Durham University Business School and extensive experience at organizations including PricewaterhouseCoopers, Bank of America, Citi, and HSBC, Shaun specializes in optimizing project management processes and delivering successful outcomes. He is a Fellow Member of The Association of Chartered Certified Accountants (FCCA) and an active member of both the Association for Project Management (MAPM) and the Project Management Institute.For more insights into Internal Audit best practices, methodologies, and practical implementation strategies, visit www.shaunstoltz.com.