What Is the CPA Pass Rate & What Does It Mean?

The Certified Public Accountant (CPA) designation is a highly regarded credential for accounting professionals across the United States. Obtaining this designation signifies a mastery of accounting principles, auditing standards, and tax regulations, opening doors to diverse career opportunities. The rigorous CPA exam serves as the gateway to this esteemed profession, and its difficulty is often reflected in its pass rates.

Understanding CPA Exam Pass Rates

A CPA exam pass rate represents the percentage of candidates who successfully pass a specific section within a testing window. The American Institute of Certified Public Accountants (AICPA), which develops and scores the Uniform CPA Examination, compiles and reports these statistics. The exam assesses the knowledge and skills necessary for newly licensed CPAs.

Historically, the CPA exam comprised four main sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). However, with the implementation of the CPA Evolution initiative in 2024, the exam structure transformed. Candidates now take three “Core” sections—AUD, FAR, and REG—and then choose one of three “Discipline” sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP).

Pass rates are reported individually for each section, providing insights into their difficulty. Historically, the cumulative average pass rate for the CPA exam has fluctuated between 45% and 60%. In the first quarter of 2024, core section pass rates were AUD 44.63%, FAR 41.92%, and REG 63.42%.

In Q1 2024, discipline section pass rates were BAR 42.94%, ISC 50.93%, and TCP 82.36%. Financial Accounting and Reporting (FAR) has consistently maintained one of the lower pass rates, often considered the most challenging section due to its extensive and dense content, which includes complex topics like U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Conversely, the new TCP discipline section has shown the highest pass rates.

Factors Influencing Pass Rates

Several factors contribute to CPA exam pass rates. The rigorous and comprehensive exam content covers a vast body of knowledge, including auditing, financial reporting, taxation, business law, and information technology. Candidates must possess a deep understanding of these diverse areas and apply them in various scenarios.

The structure of the exam itself plays a significant role in determining pass rates. Each section includes a combination of multiple-choice questions (MCQs) and task-based simulations (TBSs). While MCQs test foundational knowledge, TBSs are more complex, case-study questions that require candidates to apply their understanding to real-world scenarios, often involving detailed calculations, document analysis, or data entry. For most sections, MCQs and TBSs each account for 50% of the total score, though the ISC section weights MCQs at 60% and TBSs at 40%.

The AICPA continuously updates exam content to reflect changes in accounting standards, tax laws, and business regulations, such as the CPA Evolution in 2024. This ongoing evolution means candidates must stay current with the latest pronouncements from bodies like the Financial Accounting Standards Board (FASB) for GAAP or the Internal Revenue Service (IRS) for tax codes. These changes are integrated into sections like FAR, requiring candidates to demonstrate knowledge of specific rules.

Even with strong academic backgrounds, the exam’s difficulty ensures pass rates remain challenging. The exam is not curved; candidates are evaluated against an established standard of competence. An increase in pass rates indicates better-prepared candidates, not a less difficult exam. The exam requires analysis of complex financial data, information synthesis, and professional judgments, mirroring the demands of a licensed CPA.

Accessing Official Pass Rate Data

For individuals seeking accurate and current CPA exam pass rate statistics, the official website of the American Institute of Certified Public Accountants (AICPA) is the source. The AICPA, as the developer and scorer of the exam, compiles and releases this data to the public. It is important to consult this official source to ensure the information obtained is both precise and up-to-date.

The AICPA releases these statistics quarterly, following each testing window. Their website provides pass rates broken down by exam section, including the core (AUD, FAR, REG) and new discipline (BAR, ISC, TCP) sections. Historical data is also available to identify trends over time.