Will You Pass the CPA Exam?

By Frank Pagani

On November 4 and 5, approximately 7,000 candidates in New York state will sit for the Uniform CPA Examination. What are their chances for passing? According to the CPA Examination Services which administers the exam, only about 30% of all candidates (first timers and repeats) will pass at least two of the required four parts.

The passing grade is 75. For first-time exam takers, the chances of passing all four parts (financial accounting and reporting, business law and professional responsibilities, accounting, and reporting and auditing) are low. Only 9 to 12% accomplish this feat on the first try. In fact, the average candidate takes the exam five times. The New York State Board of Regents, which regulates the CPA profession in New York, grants credit to candidates who pass two or more parts, provided they pass the remaining parts of the examination within a three-year period.

The main reason why first-time exam takers do not fare well is lack of preparation. According to the Fox Gearty CPA Review Course, studies have consistently shown that successful candidates (passing all four parts) spend between 300 and 500 hours preparing.

Although an understanding of accounting is essential to pass the test, CPA candidates are also urged to pursue a broad-based education in order to be successful. According to an article on the AICPA's website, "...students should have a good balance of accounting, business administration, and general (i.e., liberal arts) education....A strong general education is also important because it forms the foundation for lifelong learning, development, and growth. CPA candidates should have a general understanding of history, philosophy, languages, as well as the arts and sciences."

See the student section at www.aicpa.org/edu/ index.htm for more advice from the AICPA on what it takes to succeed. The New York State Association of CPA Candidates also will unveil a new site in the next few weeks in conjunction with the launch of the NYSSCPA's redesigned website. Among the features will be information on candidates' benefits such as discounts to CPA exam review courses.

The NYSSCPA and the CPA Candidates Association wish all November exam takers the best of luck and remind candidates to make the commitment and invest the time and effort needed to succeed.