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CPA Exam Pass Rates [Updated for 2019]

The CPA Exam pass rates, which average about 50%, are one of the most intriguing aspects of the CPA certification process. The AICPA releases the pass rate for each exam section once a quarter. These percentages reveal how well candidates who sat for the CPA Exam during the previous exam testing window performed. Historically, the average CPA Exam pass rate for each section ranges between 45-55%. But the pass rates shouldn’t discourage you, because they don’t mean you can’t pass.

Candidates, review providers, and other individuals invested in the CPA industry try to read the pass rates like tea leaves. They look to these 4-digit percentages to divine the future of their success with the exam. However, the numbers never really say as much as we would like them to. But I myself find the pass rates fascinating, so I’ll tell you about the most recent pass rates, possible explanations for them, and the historical data. Most importantly, I’ll let you know what the CPA Exam pass rates really mean for you so you don’t get too obsessed with them.

CPA Exam Pass Rates Release

As you may recall, CPA candidates can only sit for the CPA Exam during the 4 annual testing windows. The testing windows are open during the first 2 months and the first 10 days of the third month of every quarter. Usually, the AICPA gives the CPA Exam scores for a testing window to the state boards and NASBA on several score release dates each quarter. But the AICPA only publishes the pass rates for that testing window in the following quarter. Pass rates from 2006 to the present used to accompany the latest pass rates. But now, the AICPA’s pass rates web page only features the current year’s pass rates.

2019 CPA Exam Pass Rates

Section First Quarter Second Quarter Third Quarter Fourth Quarter Cumulative
AUD 48.56%       48.56%
BEC 58.00%       58.00%
FAR 44.43%       44.43%
REG 50.23%       50.23%

2018 CPA Exam Pass Rates

Section First Quarter Second Quarter Third Quarter Fourth Quarter Cumulative
AUD 49.27% 54.70% 51.07% 48.54% 50.97%
BEC 56.43% 60.31% 60.17% 60.13% 59.35%
FAR 41.59% 49.17% 48.85% 44.57% 46.22%
REG 49.99% 55.75% 56.55% 50.22% 53.16%

2017 CPA Exam Pass Rates

Section First Quarter Second Quarter Third Quarter Fourth Quarter Cumulative
AUD 43.47% 52.00% 52.15% 47.69% 48.59%
BEC 50.39% 55.09% 55.35% 55.33% 52.99%
FAR 43.14% 43.76% 47.58% 42.50% 44.42%
REG 46.10% 48.32% 49.31% 45.89% 47.24%

2019 CPA Exam Pass Rate Facts

This year is already off to a great start when it comes to 2019 CPA Exam pass rates. Several of the CPA Exam sections are already putting up higher pass rates in 2019 than they did for the same time in 2018. When we hold the 2019 CPA Exam pass rates up to pass rates of the more distant past as well, we can make these observations:

Q1 AUD CPA Exam Pass Rate

  • The AUD Q1 2019 pass rate was 5.09% higher than the Q1 2017 pass rate but .71% lower than the Q1 2018 pass rate.
  • The Q1 2019 AUD pass rate was the only Q1 2019 CPA Exam pass rate to be lower than its corresponding 2018 pass rate.
  • However, AUD’s Q1 pass rate for 2019 was the second highest AUD Q1 pass rate since 2006 (when the AICPA first recorded CPA Exam pass rates online). Only the Q1 2018 pass rate was higher.
  • The Q1 2019 AUD pass rate supplanted the Q4 2018  AUD pass rate as the 17th highest overall AUD pass rate in the last 13 years.
  • The next highest AUD pass rate was the 48.54% from Q4 2018, which was .02% lower.

Q1 BEC CPA Exam Pass Rate

  • The 2019 Q1 BEC pass rate was higher than both the Q1 2018 and Q1 2017 BEC pass rates. It surpassed the 2018 Q1 pass rate by 1.57% and the Q1 2017 pass rate by a whopping 7.61%.
  • This was the highest BEC Q1 pass rate in the last 13 years.
  • The Q1 2019 BEC pass rate was the 7th highest BEC pass rate overall.
  • The next highest BEC pass rate was a 57.9% from Q3 2014.

Q1 FAR CPA Exam Pass Rate

  •  The 2019 Q1 FAR pass rate was also higher than the pass rates for the same quarter in 2018 and 2017. This FAR pass rate rose above the corresponding 2018 pass rate by 2.64% and the 2017 pass rate by 1.09%.
  • This pass rate was the 6th highest FAR Q1 pass rate in the last 13 years.
  • The Q1 2019 FAR pass rate was only 38th highest overall FAR pass rate in almost a decade and a half.
  • The next highest FAR pass rate was a 44.27% from Q2 2011.

Q1 REG CPA Exam Pass Rate

  • The REG Q1 2019 pass rate was last but not least because it was one of the 3 CPA Exam pass rates for this quarter that was higher than the same quarter pass rates of 2017 and 2018. REG’s 2019 Q1 pass rate was .24% higher than its 2018 Q1 pass rate and 4.13% higher than the 2017 Q1 pass rate.
  • Furthermore, this was the highest Q1 REG pass rate since 2006.
  • The REG Q1 2019 pass rate was also the 14th highest REG pass rate overall in almost 15 years.
  • The next highest REG pass rate was the 50.22% from Q4 2018.

2018 CPA Exam Pass Rate Facts

When we compare the 2018 CPA Exam pass rates to those of 2017, we see that almost all the 2018 pass rates were higher than the 2017 pass rates. When we compare the 2018 CPA Exam pass rates to those of the past as well, we learn the following:

Q4 AUD CPA Exam Pass Rate

  • AUD ended the year on a low note. In fact, the Q4 2018 AUD pass rate was the lowest pass rate AUD put up this year.
  • The Q4 2018 AUD pass rate was only the 17th highest AUD pass rate for any quarter in the last 12 years. However, it was the highest Q4 pass rate during that time period.
  • AUD’s Q4 2018 pass rate was 2.53% lower than the AUD Q3 2018 pass rate. But it was .85% higher than the Q4 2017 pass rate for AUD.
  • The next highest AUD pass rate was a 48.7% from Q2 2016.

Q4 BEC CPA Exam Pass Rate

  • The Q4 2018 pass rate was the third lowest for the year for BEC. It was the lowest of BEC’s 2018 pass rates that broke 60%, but still 3.7% higher than the Q1 pass rate for the year.
  • The Q4 2018 pass rate was the third highest BEC pass rate in the last 12 years. It was also the highest Q4 pass rate for BEC in that time period.
  • BEC’s 2018 Q4 pass rate was just .04% lower than the Q3 pass rate and still 4.8% higher than the Q4 2017 pass rate.
  • The next highest BEC pass rate in more than a decade was the Q3 2018 pass rate.

Q4 2018 FAR CPA Exam Pass Rate

  • FAR closed out 2018 with a series of average to very far below average pass rates. And the Q4 pass rate was the second lowest of the 4.
  • The Q4 2018 pass rate was FAR’s 37th highest pass rate in the last 12 years.
  • The Q4 2018 FAR pass rate was 4.28% lower than the Q3 2018 pass rate. However, surprisingly enough, the Q4 2018 FAR pass rate was 2.07% higher than the Q4 2017 pass rate.
  • The next highest FAR Q4 pass rate was a 44.74% from Q1 2016.

Q4 2018 REG CPA Exam Pass Rate

  • REG also did not end the year with its lowest pass rate. Instead, like BEC, REG’s Q4 2018 pass rate was the third lowest of the year.
  • The Q4 2018 pass rate was REG’s 14th highest pass rate in the last 12 years. However, it was the highest Q4 REG pass rate in that time period.
  • The Q4 2018 REG pass rate was 6.33% lower than the Q3 2018 REG pass rate. But it was still 4.33% higher than the Q4 2017 pass rate.
  • The next highest REG pass rate was a 50.29% from Q3 2007.

Q3 AUD CPA Exam Pass Rate

  • No broken pass rate records here. The Q3 2018 AUD pass rate is only the 8th highest AUD pass rate for any quarter in the last 12 years. However, it is the 4th highest Q3 pass rate for AUD during this time.
  • The Q3 2018 AUD pass rate is 3.63% lower than the Q2 2018 pass rate and 1.08% lower than the Q3 2017 pass rate.
  • This is the 11th time a quarterly AUD pass rate has risen above 50%.
  • The Q3 2018 AUD pass rate is .19% lower than the next highest AUD pass rate, which was a 51.26% from Q3 2007.

Q3 BEC CPA Exam Pass Rate

  • The Q3 2018 BEC pass rate is the 2nd highest BEC pass rate for any quarter in the last 12 years. It is the highest Q3 pass rate BEC has ever had.
  • This pass rate is .14% lower than the Q2 2018 pass rate and 4.82% higher than the Q3 2017 pass rate.
  • This is the second time the BEC pass rate has extended above 60%.
  • The Q3 2018 BEC pass rate is .95% higher than the next highest quarterly BEC pass rate, which was a 59.22% from Q3 2015.

Q3 FAR CPA Exam Pass Rate

  • The 2018 FAR pass rates still have yet to set any records. The Q3 2018 FAR pass rate was only the 16th highest FAR pass rate in the last 12 years, and the 4th lowest Q3 FAR pass rate in that time.
  • The Q3 2018 FAR pass rate was .32% lower than the Q2 2018 pass rate and 1.27% higher than the Q3 2017 pass rate.
  • The FAR pass rate has only been in the 48% range 4 times in the last 12 years.
  • The Q3 2018 FAR pass rate was just .05% lower than the next highest FAR pass rate, which was a 48.9% from Q2 2015.

Q3 REG CPA Exam Pass Rate

  • ALERT: Another pass rate record broken! REG broke its own highest pass rate record again, and it happened just one quarter later. The Q3 2018 REG pass rate was the highest REG pass rate in the last 12 years. Of course, it was also the highest Q3 REG pass rate in this time.
  • The Q3 2018 REG pass rate was .8% higher than the Q2 2018 pass rate (the previous record holder) and an astounding 7.24% higher than the Q3 2017 pass rate.
  • This was the 14th time the REG pass rate has exceeded 50%.
  • The Q3 2018 REG pass rate was 2.52% higher than the next highest Q3 REG pass rate, which was a 54.03% from 2010.

Q2 AUD CPA Exam Pass Rate

  • ALERT: Pass rate record broken! Yes, the Q2 AUD pass rate was the highest AUD pass for ANY quarter in the last 12 years.
  • This pass rate was 5.43% higher than the Q1 2018 pass rate and 2.7% higher than the Q2 2017 pass rate.
  • This was the 10th time the AUD pass rate for any quarter had breached 50%.
  • The second highest AUD pass rate was the 53.09% seen all the way back in Q2 of 2008. Exactly 10 years ago! The most recent AUD pass rate was 1.61% higher than the highest AUD pass rate of yesteryear.

Q2 BEC CPA Exam Pass Rate

  • ALERT: Another pass rate record broken! What??? The Q2 BEC pass rate was also the highest BEC pass rate for ANY quarter in the last 12 years. It was incredible!
  • This pass rate was 3.88% higher than the Q1 2018 pass rate and a whopping 5.22% higher than the Q2 2017 pass rate.
  • The BEC pass rates have been in the clouds for some time now. In the last 12 years, BEC boasted of a pass rate above 50% 28 times. In fact, the BEC pass rate had been above 50% every quarter for the last 6 years.
  • Though this BEC pass rate broke the record, it did so by a small margin. The next highest BEC pass rate was 59.22% from Q3 2015. That was only 1.09% lower than this new all-time high.

 Q2 FAR CPA Exam Pass Rate

  • While FAR didn’t break any records this quarter, it still made a good showing. This was the 13th highest FAR pass rate since 2006.
  • This was the fourth highest Q2 pass rate FAR ever had. It was a massive 7.58% higher than the Q1 2018 pass rate and 5.41% higher than the Q2 2017 pass rate.
  • Throughout the last 12 years, the FAR pass rates have struggled to get into the 50% range. Only 11 times have more than half the FAR candidates from a given testing window passed.
  • The Q2 2018 FAR pass rate was just .22% lower than the next highest FAR pass rate, which was a 49.39% that appeared in Q2 2013. The first FAR pass rate to push past 50% was 50.35% debuting in Q3 2015, and this FAR pass rate was 1.18% lower than that.

Q2 REG CPA Exam Pass Rate

  • ALERT: A THIRD pass rate record broken! That’s right; in just 1 quarter, we were 3 for 4 with new pass rate records. This was the highest REG pass rate ever (in the last 12 years).
  • The Q2 2018 pass rate was a sizable 5.76% higher than the Q1 2018 pass rate and a huge 7.43% higher than the Q2 2017 pass rate.
  • The REG pass rate rose above 50% a total of 13 times since 2006. Therefore, it came in second to BEC’s above-50% streak, but REG only accomplished this feat half as often.
  • The Q2 2018 REG pass rate was 1.72% higher than the next highest REG pass rate, which was a 54.03% from Q3 2010.

Common Explanations for CPA Exam Pass Rate Changes

So, what causes the pass rates to rise and fall? Well, we can never know for certain which factors had the greatest effect on the pass rates from a particular quarter. But we can offer possible explanations that can probably account for most of the changes.

Right above the pass rates on their website, the AICPA reminds us that “candidates are evaluated against an established standard of competence, and the Exam is scored and scaled so that scores are comparable across test forms and over time.” To summarize this concept, the AICPA simply states, “The Exam is not harder or easier to pass at different times”. The AICPA then offers their own theory about the pass rates flux: “An increase in pass rates simply means that candidates are better prepared.”

So, the AICPA believes candidates are better prepared for the CPA Exam each time the pass rates rise. However, I also have a few other speculations as to why we’ve seen some higher pass rates (and even record-breaking pass rates) in recent quarters. One of these simply elaborates on the AICPA’s statement. Additionally, I have some theories as to why we’ve seen some pass rates drop when we didn’t expect it.

Possible Explanations for Q1 2019 CPA Exam Pass Rates

The first quarter’s worth of CPA Exam pass rates for 2019 was fairly interesting. Half of them (BEC and FAR) stayed true to form by being lower than the Q4 2018 pass rates, but the other half (AUD and REG) were higher than the Q4 2018 pass rates (though not by much). However, as mentioned, only AUD’s Q1 2019 pass rates were lower than the Q1 2018 pass rates. BEC, FAR, and REG all outshone their 2018 quarterly counterparts.

Therefore, 2019 already has the potential to beat 2018 in the CPA Exam pass rate race. This possibility becomes even bigger when we consider that more candidates sat for the exam during Q4 2018 (55,870) than sat in Q1 2019 (41,554). Normally, higher candidate numbers help improve pass rates, but in this instance, this smaller batch of candidates was apparently just more prepared, as the AICPA says.

The pass rate increase from Q4 2018 to Q1 2019 was especially good news for REG takers, as REG incorporated new tax law changes on January 1, 2019. In an attempt to avoid being caught off guard by these changes and having to repeat REG, the Q1 2019 candidates managed to outperform the Q4 2018 candidates who were trying to dodge the 2019 version of REG altogether. Looks like the Tax Cuts and Jobs Act of 2017 may have made tax preparation easier.

Possible Explanations for Q4 2018 CPA Exam Pass Rates

Honestly, Q4 followed the trends. The pass rates were still pretty high for Q4 pass rates, but they all went down from Q3, which is to be expected. There are generally fewer people sitting in Q4 than in Q3, and Q4 is a hard season in which to study with the holidays and rush to end the year well. Therefore, Q4 2018 looked like most other CPA Exam Q4s.

Plausible Reasons for the Q3 2018 CPA Exam Pass Rates

The Q3 2018 pass rates were a bit surprising due to the fact that 3 of them bucked the typical Q3 pass rate trend.

Historically, both the number of candidates and the pass rates are higher in Q3 than any other time of year. For both students and accountants alike, Q3 is a less hectic time. Classes have ended for the summer, and busy season has concluded for the year. Consequently, candidates have more time to study and sit for the exam. Their sufficient preparation then serves to push the pass rates up.

Q2 also sees a swell of candidate numbers and pass rates, potentially for similar reasons as those of Q3. But Q2 doesn’t have as much of a reputation for high pass rates as Q3. The 2017 pass rates, in particular, illustrated the common scenario. In 2017, all of the pass rates were higher in Q3 than in Q2. However, no pass rate other than that of BEC went above 50% until Q2 (AUD), and no exam section other than BEC could maintain such a high pass rate past Q3. As the pass rates for Q2 2018 have already outpaced those of 2017, I was hopeful Q3 2018 would continue the trend.

But strangely enough, Q3 2018 supplied fewer pass rate thrills than Q2. What was the deal?

The number of candidates who sat for the CPA Exam dropped from Q2 to Q3.

First of all, fewer candidates sat during Q3 2018 than sat during Q2 2018. While NASBA processed 49,479 scores in Q2, they processed just 18,325 in Q3. That’s a significant drop. However, a smaller number of candidates sitting for the exam in 2018 seems to have been the theme, as only 11,517 scores were processed for Q1. So, that was the first way that Q3 broke with testing window tradition, and this could have contributed to the lower pass rates.

Candidates may have assumed too much about this quarter-old version of the exam.

Secondly, the Q3 candidates may have been less prepared for the CPA Exam than Q2 candidates. Potentially, the Q3 candidates might have suspected that the CPA Exam was easier to take now since the new version launched on April 1, 2018. Consequently, some of them probably underestimated the exam and did not study as much as necessary.

Candidates really, really wanted to pass REG.

But what about the REG situation? Well, I have one theory for that surprising pass rate rise as well.

The REG CPA Exam section changed on January 1, 2019, to reflect the recent tax law changes. Prior to this occurrence, the tax law changes were still so new that many accountants and accounting professors were still adapting to them. For this reason, current CPA Exam candidates were probably more familiar with the old tax law than the new. Therefore, many candidates who had yet to take REG were most likely motivated to pass this section ASAP before 2019. It looks like those candidates who sat for REG in Q3 maxed out their preparations so they could avoid a retake with the coming version. And thankfully, their efforts paid off.

Plausible Reasons for the Q2 2018 CPA Exam Pass Rates

The Q2 2018 CPA Exam changes made the testing experience easier (as intended).

At the end of 2017, we learned that the CPA Exam would be changing on April 1, 2018, once again (just like it did on April 1, 2017). These changes arrived right on time, and they seem to have positively affected the Q2 pass rates.

Unlike the 2017 exam changes that altered the content, question counts, skill levels tested, and overall difficulty of the exam, the 2018 revisions modernized the exam design and functionality. The purpose of the 2018 changes was to make the testing experience easier for candidates. The AICPA even integrated the desktop version of Microsoft Excel into the exam so candidates could use a spreadsheet they were more familiar with.

Knowing these changes should help alleviate the challenges of the exam, many candidates seem to have waited to take the exam until those changes launched. I say this because, on February 5, 2018, NASBA announced that they had processed a total of 11,517 scores for Q1. While this figure doesn’t directly represent the number of unique Q1 candidates, it does suggest that not a lot of people came out to Prometric during the first testing window of 2018.

In contrast, NASBA processed 49,479 scores on June 27 and 28. The number of candidates sitting for the exam each quarter has actually been decreasing in the last few years. Yet, that enormous digit hearkens back to the golden age of exam candidate populations from 5 years ago. With the jaw-dropping Q2 pass rates these candidates achieved, that decision was totally worth it.

The CPA review courses available sufficiently readied candidates to face the latest CPA Exam changes.

This is just another way of saying the candidates were better prepared, but it includes a reason why. In the last 2 years, several CPA review providers released courses with major technological upgrades. At this point, almost all current candidates will be using one of these courses. Therefore, this enhanced exam prep seems to have been just what candidates need to manage the more challenging exam version that arrived in 2017.

Predictions for Future CPA Exam Pass Rates

If you’re anything like me, you’re probably wondering, “So, what will happen next with the pass rates?” Well, based on the historical data, we can make predictions about the future of the pass rates.

Pass rates will cycle again in 2019.

As we all know, what goes up must come down. When it comes to pass rates, the going down usually starts again in Q4 and continues into the following Q1. The last quarter of the year seems to be the busiest for candidates. School is back in session, and the holidays overwhelm the calendar. While the number of candidates sitting for the exam often decreases between Q3 and Q4, the pass rates do too. It seems that candidates just can’t prepare as well when the year is coming to a close.

And when the new year arrives, busy season begins again, a new semester starts, and everyone is trying to get into a new pattern for life. At this point as well, fewer candidates are sitting for the exam. Some have already started studying for Q2, but others are just initiating the application process. But when Q2 and Q3 come around again, the majority of candidates who will sit that year have their testing appointments scheduled. Therefore, pass rates typically go back up during this time.

Though 2018 broke its fair share of CPA Exam pass rate records, 2019 will not necessarily do the same. No major changes are yet scheduled for the rest of this year, so the exam will be pretty much the same, with a few content changes here and there.

Therefore, pass rates may also go down again as new candidates come to the CPA certification process underestimating the difficulty of the exam. This is apt to happen because when pass rates are low, the majority of the candidate populace consists of only the most committed individuals. These candidates often match their preparation to their dedication and consequently pull the pass rates up again with their high scores.

As the pass rates go up, the more apprehensive candidates chill out a bit. They soon convince themselves the exam isn’t so hard after all and start sitting for it. As less-prepared candidates infiltrate the exam process again, the pass rates slip down once more. At this point, the cycle refreshes.

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CPA Exam Pass Rates History

Now that we have learned so much about the present and have speculated so much about the future of the pass rates, let’s travel back in time to relive the pass rates of the past.

12 Years of Pass Rates

cpa exam pass rates

As we look at these lines representing more than a decade of pass rates, we see that pass rates for most exam sections have congregated together in the same areas at the same time. BEC broke away from the pack at one point and pushed the limits of what’s possible in pass rates. Yet, the pass rates for the remaining exam sections rested right around 45-49% for a while there.

That is until we entered 2018. Then we witnessed the amazing happen as 3 pass rates crested the 50% mark in 1 quarter, which was unheard of for the last 12 years. We can get a better idea of how exceptional this year’s pass rates have been by looking at the pass rates for each section separately.

AUD CPA Exam Pass Rates

aud cpa exam section pass rates

AUD hasn’t had quite as impressive pass rates as BEC in the last decade. Nevertheless, AUD has made a notable effort to compete for first place. From 2006-2010, the AUD pass rate was content to settle for second, but in 2011, it almost gave up the fight. AUD had the lowest pass rate for several years. Yet, especially in the last few quarters, it’s made quite the resurgence. AUD is now neck-and-neck with REG, and they’re both creeping up on BEC.

AUD’s pass rate history is understandable. This exam section has had a stint putting up the lowest pass rates. This may be due to the fact that AUD looks relatively straightforward, but then the vagueness of the questions often catches people off-guard. There are often multiple correct answers, but you must pick the best one.

This deception has made the exam a lot more difficult. Still, candidates have apparently been able to fortify themselves against AUD’s schemes in the last several quarters. The fact that AUD is making a run for the top spot is actually surprising. AUD is the only section to test at the Evaluation level of skill, which is the most difficult in the context of the CPA Exam.

BEC CPA Exam Pass Rates

bec cpa exam section pass rates

BEC’s pass rate story is the opposite of AUD’s. BEC seems to have been the hardest exam section from 2006-2011. Then, the exam change of 2011 positioned candidates for better BEC success. Ever since BEC has stolen the show by sporting the top pass rate for 7 years straight. And things didn’t change in 2018 either, as BEC continued to reach new heights.

How has BEC managed to become the reigning king of pass rates? BEC is the least technical part of the exam. Additionally, more than half of BEC only tests for Application, the second lowest skill level. Furthermore, BEC has only had task-based simulations (TBSs) for about a year and a half now, having received them in 2017. But with only 4 total TBSs compared to the other exam section’s 8, BEC remains half as hard in the realm of simulations.

BEC also has the fewest multiple-choice questions (MCQs) with 62. And finally, BEC has 3 written communications (WCs). The BEC WCs account for 15% of your score and are basically there to ensure that you can write an organized, well-developed document of clearly expressed correct information.

FAR CPA Exam Pass Rates

far cpa exam section pass rates

As you can see, FAR’s pass rates have been a bit of a roller coaster. They have only been the highest for 2 of the past 12 years. After that, they firmly positioned FAR as one of the hardest, if not the hardest, exam section for the past 5 years. When the exam experienced big changes, the FAR pass rate responded with big falls. While FAR’s pass rates have had their quarterly moments in the 50s, even jumps above 49% have been uncommon.

As we’ve seen, some of the other pass rates have already skyrocketed beyond 50% this year. Yet FAR’s passing percentages are still stuck in the 40s as they have been for some time. With an overall average of just 46.67% and the most candidate-centric exam changes of late already in place, the FAR pass rate seems destined to dwell below 50% indefinitely.

Most everyone finds FAR to be the toughest exam section. This is not because its questions are the most difficult, but because its scope is the broadest. Basically, FAR covers a lot of content, and you need more time to study for FAR than other exam sections. Candidates who don’t take FAR first but try to squeeze such an extensive amount of studying into their 18-month window may just run out of time and contribute to FAR’s low pass rates.

Furthermore, FAR features some tricky concepts, like bond, pension, and stockholder equity or governmental accounting. Candidates who don’t commit to mastering their weak areas but instead simply hope they won’t see that material on exam day are very likely to be disappointed. And, based on the pass rates, they are almost as likely to fail.

REG CPA Exam Pass Rates

reg cpa exam section pass rates

Last but not least, we have REG. This section has also undergone some major pass rate shifts in the last 12 years. REG rose and fell rapidly from 2006 to 2011, then popped up above 45% and leveled off from 2012-2017. The REG CPA Exam section had its time at the top but comes in at second or third more often. It actually kept AUD at bay from the second-place position from 2012-2016 but had a minor mishap with third place in 2017. Now it seems that REG won’t stay down, as it came back from behind to best AUD for 4 quarters in 2018 and doesn’t show signs of stopping.

REG has reason to be a hard exam section. It has the greatest number of MCQs (76) and ties with FAR for testing the most at Analysis, the second highest skill level on the exam. But considering its pass rates, REG also has the potential to be less difficult for select candidates.

REG’s content mainly revolves around taxation, though it also covers business law and ethics. Candidates who love taxation have a good chance of performing well on this section and helping preserve its high pass rate. You just can’t underestimate the business law and ethics section, or they may get the better of you. Candidates who don’t really love taxation seem motivated to avoid sitting for REG ever again. So, they’ve prepared well enough to one-and-done this section, especially in Q2 2018, from the looks of it.

The Meaning of CPA Exam Pass Rates

As accountants, we may find all of these numbers interesting. But in the end, you need to know: What do the pass rates really mean for you?

Well, pass rate changes, especially those occurring from one quarter to the next, shouldn’t affect your CPA Exam preparations. Even with pass rates on the rise, the CPA Exam is still a sizable challenge requiring a lot of time and effort to overcome. The BEC pass rate has been quite high for some time, but you still have to review all of the content and study effectively, or you won’t pass it. The same goes for the other exam sections.

In truth, with pass rates ranging around 50%, you still have almost a 50% chance of failing. Clearly, now is not the time to slack off in your studies. There are no shortcuts to CPA Exam success, even if the passing percentages seem to be trending in your favor.

What’s more, we may have come to an unprecedented moment in exam history, but additional changes are on the horizon. The REG CPA Exam section will update for the new 2018 tax law changes on January 1, 2019. The other content changes revealed in the recently released Blueprints will go into effect at that time as well. There are no guarantees that the pass rates will ever be so high again.

In fact, as I said, it’s extremely likely that they will go back down. Therefore, the key to passing hasn’t really changed. You still have to practice, practice, practice, and practice some more. If you don’t, you may not succeed, no matter what the pass rates are.

Your Hope for a High Personal CPA Exam Pass Rate

The AICPA is continuing to credit candidate preparation levels to pass rate variations. What’s the best way to prepare for the exam? Use a CPA review course. With a realistic study schedule and the right CPA review course for you, you can understand all of the exam content and be completely comfortable with the exam questions by test day.

To find the best course for you, check out my analysis of the top CPA Exam review courses on the market. You should also visit this page if you didn’t pass in Q2 and feel your failure had more to do with your review materials than your study habits. Complete this self-evaluation and use these additional tools as well if you failed to pass the CPA Exam.

You may be thinking, “I know I should study hard no matter what, but should I schedule my exam during a quarter with a higher pass rate?” My answer to that question is, No, I don’t think so. While the differences between the highest and lowest quarters are statistically significant (~5%), you can’t take the exam only in the summer. The 18-month window makes this impossible. But the quarterly discrepancy between pass rates further proves that when people have more time to study, the pass rate is higher.

Help for Passing the CPA Exam

Whether the pass rates are high or low, thousands of candidates pass the CPA Exam every year, and you can be one of them. Passing the CPA Exam is absolutely doable, and I am more than happy to help you along the way. Get the answers you need to the CPA candidate’s frequently asked questions, or sign up for my free mini-course today!

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