CPA candidates around the world received their latest Uniform CPA Examination (CPA Exam) scores this month. Like all high-stakes exam results, the CPA Exam score release is met with everything from elation to disappointment to perseverance.
With the CPA Evolution-aligned CPA Exam reaching the one-year milestone in January, this score release period has also raised questions. There’s some discussion about whether parts of the CPA Exam are too hard and other parts are too easy.
The CPA Exam is trusted to help assure boards of accountancy that candidates who pass it have enough technical knowledge and skill for initial licensure to protect the public interest. The CPA Exam’s passing scores (which determine pass rates) were set by the diverse members of the Board of Examiners (BOE) in spring 2024. Since then, CPA Exam stakeholders have been closely monitoring Exam trends, including pass rates, testing volumes, and Discipline choice. The AICPA and the BOE, a senior committee of the AICPA comprising volunteers from all areas of the profession will conduct a review this Spring. For more information on how the CPA Exam is scored, go here.
Given the uncertainty in the CPA candidate population driven by various policy, format and content changes combined with a set of remarkable external factors, such as Covid’s impact on college students now eligible for the CPA Exam – drawing comparisons to previous years provides limited information.
The full impact of CPA Evolution on candidate testing volumes and pass rates will not be known until late 2026, but it will be constantly monitored. Let’s take a closer look:
Background
The CPA Evolution Licensure Model (CPA Evolution), launched in 2024, established a foundation for the most important and relevant topics that all newly licensed CPAs need to know to protect the public interest, while providing an opportunity for candidates to choose one of three Disciplines.
Under CPA Evolution, all candidates are required to pass three Core Exam sections covering: Auditing and Attestation (AUD); Financial Accounting and Reporting (FAR); and Taxation and Regulation (REG). Each candidate will also choose one Discipline Exam section (i.e. Business Analysis and Reporting (BAR); Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP)).
Regardless of a candidate’s chosen Discipline, CPA Evolution leads to CPA licensure. CPA professional practice is not limited by the Discipline passed; professional standards provide guidance related to required competence and due care when performing professional services.
Impact of CPA Evolution
It is important to remember that CPA Evolution, launched in 2024, was the largest change to the CPA Exam since computerization in 2004. CPA Evolution launched the Core and Discipline model for the CPA Exam, which makes comparison to previous versions of the CPA Exam difficult. The element of choice must be considered when analyzing the performance of Discipline Exam sections.
Various policy decisions, mainly designed to help candidates navigate this period of change, impacted testing in 2024 and will continue to impact testing throughout 2025. Those include:
The 2024 CPA Exam Transition Policy, which addressed remaining testing requirements for candidates holding unexpired credits on 1/1/2024 from previous testing
A one-time Credit Extension Policy, whereby credits held on 1/1/24 were extended until 6/30/25
The shift implemented by state boards to allow 30 months or more (depending on jurisdiction) to pass all required sections of the CPA Exam.
The Credit Relief Initiative (CRI) whereby some state boards are restoring the credits expired between 1/1/20 and 5/13/23 during the state of emergency caused by Covid.
CPA Exam Volumes
CPA Evolution launched successfully in January 2024, with no operational issues to report. As expected, candidates rushed in to test in 2023 to avoid CPA Evolution changes. Global sections taken in 2023 were approximately 204,000 sections, as compared to 148,000 sections in 2024.
CPA Exam Pass Rates
It’s important to recognize the limits in comparing current pass rates with pass rates from prior versions of the CPA Exam. Each time an updated CPA Exam is launched, there is an updated CPA Exam Blueprint, updated content, and updated test questions. The CPA Exam sections are built from the practice analysis and are not designed to have the same pass rate as the previous CPA Exam.
2025 brings a return to continuous testing of Core sections of the CPA Exam. That flexible scheduling had to be put on hold to support quality assurance and scoring accuracy of a radically new model. After a successful first year with the implemented changes, candidates can expect shorter wait times to receive Core section scores.
CPA Exam stakeholders will continue to monitor, evaluate, and discuss pass rates, testing volumes, and Discipline choice to ensure the CPA Exam remains a trusted assessment of the knowledge and skill needed for initial licensure.