CPA Exam Pass Rates Guide

Right before the 2018 CPA Exam blueprints launched in April, the AICPA released the final set of pass rates from the old CPA Exam. The numbers show that the CPA Exam received some of its highest pass rates since the AICPA began publishing them online in 2006.

There continued to be strong performances in all four CPA Exam sections throughout 2018. The cumulative average pass rate for the year was 52.43%! A record high!

See the CPA Exam pass rates for 2018 in the chart. We’ve also analyzed the 2018 passing percentages and compared them to pass rates from previous years, including the 2017 pass rates.

2018 CPA Exam pass rate observations

Pass rates tend to rise in Q2 and Q3. We saw record-high passing data in Q2, and Q3 numbers decreased slightly overall, excluding REG, but scores remained high.

Even though FAR’s figures were historically low during Q1, it achieved one of its highest pass rates ever in Q2 after the 2018 Blueprint update. In Q3, FAR scores fell again, though they decreased by only 0.8%.

Even in Q4, when scores usually fall back down to Q1 levels, we saw much higher averages.

We’re likely seeing higher FAR scores because the integration of Microsoft Excel has made FAR’s multiple-choice question calculations much smoother. This bodes well for future candidates and explains the strong pass rates we’re seeing.

We’re taking a close look at 2018 because it’s the first time we have an entire year of data for the new CPA Exam version that launched in April 2017.

Observations by quarter

Auditing and Attestation (AUD)
The Q1 2018 pass rate was 49.27%

• The highest recorded AUD Q1 pass rate
• 5.8% higher than the AUD Q1 2017 pass rate
• Higher than the next best AUD Q1 (47.61% in 2009) by 1.66%
• The 12th highest recorded AUD pass rate for any quarter

The Q2 2018 pass rate was 54.70%

• The highest recorded AUD pass rate for any quarter
• +2.7% compared to AUD Q2 2017
• +5.43% compared to AUD Q1 2018
• Higher than the next best AUD pass rate (53.09% in 2008 Q2) by 1.61%

The Q3 2018 pass rate was 51.07%

• –1.08% compared to AUD Q3 2017
• +3.63% compared to AUD Q2 2018
• Higher than the best annual AUD pass rate reported since 2006 (49.79% in 2009)

The Q4 2018 pass rate was 48.54%

• +0.85% compared to AUD Q4 2017
• –2.53% compared to AUD Q3 2018

Business Environment and Concepts (BEC)
The Q1 2018 pass rate was 56.43%

• The highest recorded BEC Q1 pass rate
• +6.04% compared to BEC Q1 2017
• Higher than the next best BEC Q1 pass rate (55.40% in 2016) by 1.03%
• The 11th highest recorded BEC pass rate for any quarter

The Q2 2018 pass rate was 60.31%

• The highest recorded BEC pass rate for any quarter
• +5.22% compared to BEC Q2 2017
• +3.88% compared to BEC Q1 2018
• Higher than the next best BEC pass rate (59.22% in 2015 Q3) by 1.09%

The Q3 2018 pass rate was 60.17%

• +4.82% compared to BEC Q3 2017
• –0.14% compared to BEC Q2 2018
• Higher than the best annual BEC pass rate reported since 2006 (56.48% in 2013)

The Q4 2018 pass rate was 60.13%

• +4.8% compared to BEC Q4 2017
• –0.04% compared to BEC Q3 2018

Financial Accounting and Reporting (FAR)
The Q1 2018 pass rate was 41.59%

• The lowest recorded FAR pass rate for any quarter
• –1.55% compared to FAR Q1 2017
• Lower than the next worst FAR Q1 pass rate (42.19% in 2006) by 0.6%

The Q2 2018 pass rate was 49.17%

• +5.41% compared to FAR Q2 2017
• +7.58% compared to FAR Q1 2018
• The 13th highest recorded FAR pass rate for any quarter
• Lower than the best FAR pass rate (53.93% in 2008 Q3) by 4.76%

The Q3 2018 pass rate was 48.85%

• +1.27% compared FAR Q3 2017
• –0.32% compared to FAR Q2 2018
• Lower than the best annual FAR pass rate reported since 2006 (49.2% in 2008

The Q4 2018 pass rate was 44.57%

• +2.07% compared to FAR Q4 2017
• –4.28% compared to FAR Q3 2018

Regulation (REG)
The Q1 2018 pass rate was 49.99%

• The highest recorded REG Q1 pass rate
• +3.89% compared to REG Q1 2017
• Higher than the next highest REG Q1 pass rate (49.17% in 2014) by 0.82%
• The 13th highest recorded REG pass rate for any quarter

The Q2 2018 pass rate was 55.75%

• The highest recorded REG pass rate for any quarter until Q3 raised the bar further
• +7.43% compared to REG Q2 2017
• +5.76% compared to REG Q1 2018
• Higher than the next best REG pass rate (54.03% in 2010 Q3) by 1.72%

The Q3 2018 pass rate was 56.55%

• The highest recorded REG pass rate for any quarter
• +7.24% compared to REG Q3 2017
• +0.8% compared to REG Q2 2018

The Q4 2018 pass rate was 50.22%

• +4.33% compared to REG Q4 2017
• –6.33% compared to REG Q3 2018

2018 CPA Exam pass rate interpretations

We witnessed a jump in pass rates and saw multiple records set, likely due in part to the user experience improvements made by the AICPA at the beginning of Q2 2018. But there’s no question: passing the exam is hard. Even with some sections hitting record high pass rates, the total pass rate for the CPA Exam in 2018 remains 52.43%. A record high for the CPA Exam, but it still means that nearly half of all candidates don’t pass.

The user experience improvements may mean pass rates will permanently be a little higher. Or, the AICPA could influence the pass rates by increasing the difficulty of the CPA Exam to compensate. The AICPA explains that pass rates are low because it protects the public by ensuring CPAs are competent. Additionally, when pass rates are low, the CPA certification remains prestigious. There’s a limited supply of CPAs, so organizations and individuals in need of one have to come prepared to pay a premium.

Whether or not pass rates stay high, the exam still rewards candidates who prepare. Whatever the future holds, Gleim CPA Review can help you meet your career goals.

With the launch of a new CPA Exam version and a delayed score release, 2017 was a momentous period in CPA Exam history. The cumulative average pass rate for 2017 was 48.31%, but that only tells us part of the story.

The new version of the CPA Exam wasn’t released until April, so it’s useful to consider the 2017 cumulative average pass rate using only Q2-Q4 data, which was 49.58%. This might make it seem as though the new version of the exam was easier, but when you account for the fact that Q1 pass rates are typically much lower than those of Q2 and Q3, it appears the opposite is true: the new 2017 version of the CPA Exam was, on the whole, harder for candidates than the older version.

We’ve analyzed the 2017 pass rates and compared them to the 2016 CPA Exam pass rates so we can try to understand how the new exam version has affected CPA candidates.

*Please note: The 2017 Q2, Q3, and Q4 pass rates reflect those of a CPA Exam with a new passing standard. Comparisons to past years and quarters are of limited value due to the changes made to the Exam in April 2017. The AICPA Board of Examiners regularly monitors pass rates.

2017 CPA Exam pass rate observations

• AUD was the only section to produce a cumulative pass rate in 2017 that was higher than that of 2016. AUD’s cumulative pass rate for 2017 was 2.73% higher than the 2016 AUD cumulative pass rate, and was actually the third highest ever recorded.
• BEC, FAR, and REG had lower cumulative pass rates in 2017 than in 2016.
• The cumulative FAR pass rate for 2017 was not only lower than that of 2016, but it was also the lowest ever recorded cumulative FAR pass rate.
• The cumulative 2017 pass rate for REG was not lower than that of 2016 by very much (1.21%), but it was the fourth lowest ever recorded cumulative pass rate for REG.

Observations by quarter

The cumulative average pass rate for Q1 2017 was 45.78%.

• All of the Q1 2017 pass rates were lower than those of Q1 2016.
• The biggest pass rate difference of the year came from BEC, which fell from 55.40% in Q1 2016 to 50.39% in Q1 2017. This decrease is more than three times greater than that of any other section between these quarters.
• AUD, FAR, and REG averaged a decrease of 1.48% between their Q1 2016 and Q1 2017 pass rates.
• The Q1 2017 pass rate for AUD was the second lowest Q1 pass rate AUD had reached in the preceding 11 years, likely due to candidates scrambling to prepare before the new CPA Exam version was released.
• The Q1 2017 CPA Exam pass rate for REG at least was higher than its lowest reported 2016 quarter.

The cumulative average pass rate for Q2 2017 was 49.79%.

• This is the first pass rate data for the new version of the CPA Exam, which makes it difficult to compare to data from past years.
• The pass rates for all four sections increased since Q1. While Q2 is typically the time of the year to see pass rates rise, the April 1 release of the new exam version could have left pass rates the same or lower as candidates acclimated. Therefore, it is encouraging to see these pass rates adhere to the Q2 tendencies of the past.
• The BEC CPA Exam section again boasted the highest pass rate, which has been the trend since 2011. This consistency was reassuring for CPA Exam candidates because the recent exam changes added Task-Based Simulations to BEC for the first time.
• The AUD CPA Exam section came in second place for the quarter as a result of an unprecedented pass rate boost. The increase of 8.53% was not only the greatest from Q1 to Q2 that AUD has seen in the last 12 years, but it was also the greatest increase for AUD from any quarter. Only the jump of 8.43% in Q2 of 2008 rivals such an impressive pass rate spike for AUD. In fact, no other CPA Exam section pass rate shot up as much from one quarter to the next in the preceding 11 years.
• The fact that the pass rates for each section remained relatively stable despite the massive changes was a huge accomplishment for the AICPA.
• All sections except for AUD saw slightly lower pass rates than in Q2 2016.

The cumulative average pass rate for Q3 2017 was 51.10%.

• The second quarter pass rate data for the new version of the CPA Exam assured us that the Q2 data should be indicative of future performance because the Q2-Q3 seasonal trend appeared to be preserved. The pass rates for all four sections increased since Q2 2017.
• All sections except for AUD saw slightly lower pass rates than in Q3 2016. In the last 11 years, the AUD Q3 pass rates have only increased 6 times. During these years (2017, 2012, 2007, 2006), the Q3 AUD pass rate was the highest for the year.
• Not since 2011 has the Q3 BEC pass rate been as low as the Q3 2017 BEC pass rate. While the BEC pass rate for Q3 did rise compared to Q2, the pass rate was still not as high as the lowest BEC pass rate of 2016 (55.40%). Due to pass rates typically declining again in Q4, we were not hopeful that BEC pass rates would climb as high in 2017 as they did in 2016.
• The Q3 2017 FAR pass rate was the second lowest Q3 pass rate FAR had seen in the preceding 11 years. Only in 2006 did the Q3 FAR pass rate stoop lower, to 47.31%.
• The 2017 Q3 REG pass rate was the third lowest Q3 REG pass rate in the preceding 11 years. The last time REG saw a Q3 pass rate lower than 2017’s was in 2011, when the Q3 pass rate was 45.37% (during the last big batch of CPA Exam changes). The 2011 Q3 REG pass rate was actually the second lowest REG Q3 pass rate, as it came in slightly above the 2006 Q3 REG pass rate of 45.19%.

The cumulative average pass rate for Q4 2017 was 47.85%.

• The final set of pass rates for 2017 took the typical Q4 tumble, but AUD, FAR, and REG fell much further than BEC.
• AUD and BEC actually boasted higher Q4 pass rates in 2017 than in 2016.
• The Q4 2017 AUD pass rate was higher than the Q4 2016 AUD pass rate by a significant margin: 3.28%. This was the largest difference between any Q4 2016 and Q4 2017 pass rates.
• The difference between the Q3 BEC pass rate and the Q4 BEC pass rate was practically negligible at a 0.02% decrease. Though the 2017 BEC pass rates did not reach as high they did in 2016, they were much more consistent in the last 3 quarters, with a range of just 0.26% between Q2, Q3, and Q4.
• With a drop of 5.08%, FAR experienced the greatest decrease between Q3 and Q4 pass rates of any exam section in 2017. That said, FAR has a history of much bigger Q4 declines than that, as this is only the fourth smallest decrease in a little more than a decade.
• Though the REG Q4 2017 pass rate was lower than REG Q3 2017 and REG Q4 2016, the decrease between Q3 and Q4 was less for REG in 2017 than in 2016. In fact, the 2017 decrease was the fifth lowest decrease between Q3 and Q4 pass rates for REG in the preceding 12 years.

2017 CPA Exam pass rate interpretations

Overall, with the exception of the BEC Q4 and AUD Q2, Q3, and Q4 2017 pass rates, the 2017 pass rates were lower than those of 2016.

Therefore, as expected, the new version of the exam seemed to be more challenging than the previous version. Going off of just the Q2, Q3, and Q4 2017 CPA Exam pass rates, the FAR CPA Exam section remained the most challenging and BEC was still the least challenging, but as AUD demonstrated with its Q2 and Q3 shockers, the new version of the CPA Exam is challenging candidates’ expectations.

A possible explanation for the spike in AUD performance is what happened in 2016: thousands more candidates than usual sat for the exam in an attempt to pass before the CPA Exam changed in April 2017. The AUD section saw the greatest jump in attempts. Because of that, pass rates for AUD plummeted. It’s possible that some of the 2017 increase is due to retakes.

With the launch of a new CPA Exam version slated for April 2017, thousands more candidates than usual decided to sit for the CPA Exam before it changed. 2016 is the last full year of data we have for the old version, which remained relatively stable after the 2011 CPA Exam changes.

The cumulative average pass rate for 2016 was 48.82%. We’ve analyzed the 2016 numbers to see how the influx of candidates affected pass rates.

2016 CPA Exam pass rate observations

• The Q4 pass rates for all sections were the lowest for 2016.
• The Q4 2016 pass rates were generally lower than those of Q4 2015. Only the pass rate for FAR showed an increase from Q4 2015 to Q4 2016.
• The Q4 2016 pass rates presented the smallest average decrease between Q3 and Q4 in the preceding 10 years.
• The cumulative pass rate for all sections for 2016 was lower than the rates for 2015, 2014, and 2013.
• When compared to the 2012 pass rates, only BEC and REG had higher pass rates in 2016.
• The trend of a 55% or higher BEC pass rate that began in 2014 continued.
• The 2016 cumulative pass rate for FAR also continued its steady decrease, dropping to its lowest point in the preceding 9 years.
• The cumulative pass rate for AUD in 2015 was the highest in the preceding 5 years, while the cumulative pass rate for AUD in 2016 was the lowest over that same time frame.
• The declining REG cumulative pass rate from 2016 was the second lowest of the past 5 years, coming in only slightly higher than the 2012 REG cumulative pass rate.

2016 CPA Exam pass rate interpretations

According to NASBA, a total of 102,323 candidates sat for 268,933 sections of the CPA Exam in 2016. The total number of candidates for 2016 is significantly higher than for 2015, which saw 93,693 candidates sit for the exam. Not only did almost 9,000 more candidates sit in 2016, but the group of unique candidates who started the CPA Exam process in 2016 was larger than the group that began in 2015. Clearly, the April 2017 launch of the new CPA Exam version compelled more candidates than usual to take on the exam in 2016.

More candidates means more section attempts, which can contribute to lower pass rates if those candidates are under-prepared. That was certainly the case in 2016, because many candidates were rushing to complete the process before the April 2017 CPA Exam changes.

In 2016, CPA Exam candidates attempted AUD more than any other section, with 70,449 overall attempts. AUD consequently had the second lowest Q4 pass rate and the second lowest cumulative pass rate.

Of the 268,933 exam sections attempted, 157,655 were first attempts, and demonstrated higher pass rates than repeat attempts for the same section. Candidates passed first attempts at a rate of 54.4%, while they only passed repeat attempts 40.7% of the time. Furthermore, the candidates who sat for and passed an exam section the first time they attempted it were younger than those who sat for the same section again. The average age of first attempt candidates was 27.8, and the average age of repeat attempt candidates was 30.4. This result demonstrates that candidates can prepare adequately enough to pass an exam section the first time and that they are more likely to do so when they take the exam closer to graduation.

The CPA Exam became computerized in 2004, and the AICPA began reporting CPA Exam scores online in 2006. For as long as we’ve had access to the data, the overall CPA Exam pass rate has hovered between 45% and 50%, and pass rates for individual sections have ranged from 39% (REG) to 60% (BEC). Disregarding the 2011 dip, the overall pass rate gradually climbed from 2006 to 2015, the year the pass rate peaked before the new version was released in 2017.