The CPA Evolution Licensure Model (CPA Evolution)-aligned CPA exam had reached its one-year mark in January. The AICPA said that this score release period has raised questions. There is currently "some discussion about whether parts of the CPA exam are too hard and other parts are too easy," the AICPA noted.
As background, the CPA Evolution, which launched in 2024, created a foundation for the most important and relevant topics that all newly licensed CPAs need to know to protect the public interest, while offering a chance for candidates to choose one of three disciplines.
Under the program, 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). Additionally, every candidate has to choose one discipline exam section. These sections are: Business Analysis and Reporting (BAR); Information Systems and Controls (ISC) or Tax Compliance and Planning (TCP).
AICPA reminded CPA candidates that "the exam is not harder or easier to pass at different times. An increase in pass rates simply means that candidates are better prepared."
In Q4, the highest pass rates for the core exam section was REG 60.52 percent, while for the discipline exam section it was TCP at 72.1 percent.
GoingConcern featured CPA Dr. Josh McGowan's post on X where he said that "the CPA exam remains broken." He explained that the consensus on the new exam was the FAR section would see higher pass rates as difficult material moved to BAR, adding that, unfortunately, the profession saw "the lowest quarterly FAR pass percentage in at least the last 15 years. Additionally, BAR’s pass rate is almost 40% lower than TCP’s. The difference in difficulty between discipline sections is 100% influencing decisions on which section to attempt. This is a major issue and needs to be corrected ASAP."
McGowan noted that fourth quarter results for the AUD section also raise concerns. There was only one other quarter in the past 15 years that resulted in a lower pass percentage. "Overall, current test-takers seem to be at a major disadvantage compared to those that sat for the exam in the past." he stated.
Meanwhile, according to the AICPA, there has been uncertainty with CPA candidates due to the different policy, format and content changes together with a set of remarkable external factors, which include COVID's impact on college students currently eligible for the CPA exam.
Thus, the association said that drawing comparisons against prior years offers limited information. The AICPA emphasized that CPA Evolution's full impact on candidate testing volumes and pass rates will not be known until late 2026, although it will be continually monitored.