The three levels of CPA financial statement services, which provide varying degrees of assurance to stakeholders, are audits (highest assurance), reviews (limited assurance), and compilations (no assurance). These levels define the depth of scrutiny applied to financial reports, ranging from comprehensive examination to basic assistance in preparation.
The CPA exam consists of four sections: FAR (Financial Accounting & Reporting), AUD (Auditing & Attestation), REG (Taxation & Regulation), and BAR (Business Analysis & Reporting or alternative discipline options).
Level 1 can also include tasks that can be executed with a lower level of autonomy. Level 2 is experience expected of a newly certified CPA. Completed tasks can be both complex and undertaken with autonomy. Highly complex tasks undertaken with a moderate level of autonomy may also count as Level 2 experience.
The hierarchy of accounting positions begins with the chief financial officer (CFO) at the top and progresses down through vice president of finance, controller, accounting manager and assistant controller, senior accountant, accountant, staff accountant and accounting clerk, to payroll and bookkeeper.
Yes, many candidates find that starting with FAR, followed by AUD, then REG, and finishing with a discipline section is the most effective sequence. This order builds a strong foundation and keeps topic overlap fresh between sections.
Statistically, BAR has the lowest pass rate at 40%, followed closely by FAR at 41%, making them the hardest to pass, while TCP has the highest pass rate at 76%. However, when CPA candidates were surveyed, FAR was overwhelmingly chosen as the most difficult by 63% of respondents, with AUD in second place at 24%.
Auditors typically earn more money than accountants because employers tend to pay for their services at higher rates.
Can accountants make 300k? Yes, it is possible for accountants to make $300,000 a year or more, especially those working in public accounting or executive finance roles. However, salaries at this high level typically require extensive experience, professional qualifications, and a track record of success.
A CPA's salary is often in the high five figures, with senior CPAs in management earning six figures. CPAs work in a variety of sectors, including forensic accounting, tax preparation, auditing, bookkeeping, and information technology, in both the commercial and public sectors, as well as for the federal government.
How Is the CPA Exam Scored? The Discipline sections (BAR, ISC, TCP) were introduced under the updated (2024) CPA Exam structure. Each section is scored on a scale of 0–99, with a score of 75 required to pass.
The PICPA recognizes the four (4) sectors by which a CPA may be in practice: namely, Public Practice, Commerce and Industry, Education / Academe and Government.
CPA Exam Overview
The Core sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). The Discipline sections are Business Analysis and Reporting (BAR), Information Systems and Control (ISC), and Tax Compliance and Planning (TCP).
Accountants need to be proficient in basic arithmetic, algebra, and statistics to analyze financial data, prepare reports, and ensure accuracy in their work. They may also use mathematical principles to perform tasks such as budgeting, forecasting, and financial analysis.
We're also seeing very high demand for many accounting positions through 2025, from entry-level positions up to senior-level management positions. Staff accountants are essential to the day-to-day accuracy of an organization's financial operations and are often the backbone of an accounting department.
A $400K salary job typically refers to a high-paying position in industries like medicine, law, finance, or technology. These roles often require advanced degrees, specialized skills, and years of experience. Examples include surgeons, top-level executives (CEOs, CFOs), investment bankers, and successful entrepreneurs.
Can you make $500,000 a year as an accountant? It is possible, but labor market data suggests it is rare for accountants to earn such a lofty annual salary.
The primary role of an accountant is to handle a variety of tasks including tax preparation, financial planning and audits.