US CPA Exam Pass Rate: What You Need to Know to Crack the CPA Pass Rate

Obtaining a US CPA is a preferred choice for candidates interested in venturing into the professional world of finance and accounting. Undoubtedly, it is a promising course to pursue, and the certification means new global opportunities knocking at the door for candidates to shape their careers. However, what you want is not that easy to get!

It requires stellar dedication and commitment to crack the toughest of exams. Nobody can stop you if you are all set to take up the challenge and study hard by fighting the odds! If the CPA exam score is a deterrent to chasing your career goals, don’t let it dampen your spirit. Why not look at it the other way? Passing the US CPA requires effort, dedication, and hard yet smart work. Have faith that you can be one of the promising candidates, passing the exam with flying colors.

Key Takeaways

• A Look At The US CPA Exam Format

• Know About the New Format: US CPA 2024

• Online Coaching Centre Helps Candidates Pass the CPA Exam

Why is the CPA Exam Hard?

The cumulative pass rate of the last decade shows that the CPA exam is tough, and there are no two doubts about it. This can be due of several reasons. The complex nature of the exam and the strict scoring process of the American Institute of Certified Public Accountants (AICPA) are considered deterrent factors. 

On the other hand, the dip in the pass percentage can also be due to:

• The unpreparedness of the candidates 
• Some candidates take the exam lightly 
• Some fail to give their 100 percent while juggling other commitments

The pass rates, of course, vary when you look into the pass rates of the years gone by. 

A Look At The US CPA Exam Format:

A candidate has to take the exam in four sections. The 3 core sections are:

• Auditing & Attestation (AUD)
• Financial Accounting & Reporting (FAR)
• Taxation & Regulation (REG) 

For the 4th section, a candidate can choose 1 section from:

• Business Analysis and Reporting (BAR)
• Information Systems and Controls (ICS)
• Tax, Compliance and Planning (TCP)

And, of course, they have to clear the section they decide upon!

The AICPA conducts the exam and releases the pass rates stringently. As per the rules, candidates who study for the CPA exam must score at least 75 on a scale of 0 to 99 in every four sections. 

If you look at the bigger picture and holistically consider an average pass percentage, the slab will be 45–50%.

If you look at the CPA pass rate section-wise, for AUD, the trajectory dipped down in 2021 CPA exam pass rates. The pass rates for all 4 sections were quite similar in 2022, too. 

FAR, considered one of the toughest exams among all 4 sections, had a dip in 2021 from the 2020 CPA exam pass rate percentage. 2022 CPA Exam pass rates for FAR did not improve much.

This doesn't necessarily mean you need to linger on these stats. Stop stressing about the CPA exam pass rate in 2023. Prepare yourself to learn more about the CPA exam details and to study for at least 500 hours (that's what the experts suggest) before the test. Your chances of passing the uniform CPA examination will be higher.

Know About the New Format: US CPA 2024

• Business Environment and Concepts (BEC), one of the core exam sections, does not exist in the new CPA format.
• The content of the BEC exam has been spread and distributed across other exam sections. In the two core sections, namely AUD and FAR, and two of the optional disciplines, BAR and ICS, you get the content of BEC.
• The experts suggest that FAR is considered the toughest nut to crack until now and has higher pass rates.
• Awareness of the significant changes in the exam format, curriculum, and syllabus is crucial for educators and CPA exam candidates. So, when you enroll with the best coaching center, you get the best guidance. 

Impact on CPA Pass Rate: A Look into The 4 Quarters And Seasonal Trends

If you study the pass rate according to the 4 quarters of a year:

• In quarter 1, from January to March, we find that tax consultants and accountants are occupied quite rightfully. Those candidates who are already a part of the professional world cannot devote enough hours to studying and might be unable to pass the exam. Full-time workers also find it difficult to clear the exam while trying to juggle between professional commitments and exam prep time. 

Candidates who are not working but choose Quarter 1 for their exam right after the holidays and festive season often get deviated and distracted from studying. They cannot give their best while taking the exam. Such an ill-suited period for studying leads to fewer candidates passing the exam.

• Quarter 2, which is from April to June, is the preferred choice of college students who sit for the CPA exam. They start preparing for CPA during their ongoing sessions in college, and though they are fresh from college, they often remain less prepared to clear a tough exam like the US CPA. The pass rates in Q2 are relatively better, but if the same lot appeared for the exam in Quarter 3, the CPA pass rate would have been higher.
• Quarter 3, from July to September, is the most opportune time for just-completed college graduates to take the plunge. Students who complete their graduation in May can prepare themselves for 2–3 months in a row. During this time, the candidates are fresh from the exam and armed with the knowledge and skills required to pass the USA CPA exam. This quarter has fewer holidays, thus making the US CPA pass rate impressive. 
• Quarter 4, starting from October and ending in December, exhibits the lowest CPA pass rate percentage, which is most likely because of the holiday season setting in. The urge to study hard with full effort and dedication often fluctuates. 

If you are confident enough and choose a quarter that suits your study time after prioritizing your professional commitments and personal preoccupations, nothing can be a hindrance! If there is a will, there's a way, and it is not a mere saying but a hardcore truth. 

How an Online Coaching Centre Helps Candidates Pass the CPA Exam?

The Right Mentorship

When you consult the right mentor, they will let you address your fear of the US CPA exam. You do not have to run away from it. The best mentor teaches you about the overall pass rate so that you can prepare yourself accordingly for CPA exam tests. Their training and guidance help you achieve the CPA exam passing score.

The Right Guidance 

When you are preparing for the 2024 CPA exam, your approach matters. From effective suggestions and tips to the best methods of studying each section of the CPA exam in detail, you get to know the format and structure of the exam sections. The instructors and educators lucidly break down complex topics in different digital formats, making the CPA exam's preparation process worthwhile.

Access to the Best Online Resources and Study Materials 

CPA candidates who enroll for the CPA exam can lay their hands on comprehensive CPA review materials updated with the latest CPA exam syllabus. A reputed online coaching center flexibly designs the study materials so that adapting to the recent CPA exam changes is not challenging. An online coaching center does it all to help the candidate become a CPA and equip the students with:

• Practice Questions
• Task-Based Simulations
• Digital Flashcards
• Group Discussions
• Quizzes and problem-solving Sessions

Conclusion

There is no need to just focus on the CPA pass rate and feel bogged down by the low average. It is good to be updated with the right knowledge about scoring, pass rate, and more, but never let your confidence stagger. A top online coaching center, NorthStar Academy, with its mentor at the helm, Irfat Sir, can be the guiding light to help you with CPA exam prep and pass the four sections of the exam easily. Innumerable students have weaved their success stories with the right guidance offered by NorthStar Academy. What are you waiting for? Enrol now!