[jeff]

The CPA Exam pass rates for the First Quarter of 2011 have been released by the AICPA.

Auditing and Attestation:

2009 Q1: 47.61%

2010 Q1: 46.86%

2011 Q1: 43.88%

AUD passing rates are down 7.8% over 2009 and 6.4% over 2010.

Business Environment and Concepts:

2009 Q1 46.23%

2010 Q1: 46.59%

2011 Q1: 42.32%

BEC passing rates are down 8.5% over 2009 and 9.2% over 2010.

Financial Accounting and Reporting:

2009 Q1 45.54%

2010 Q1: 44.95%

2011 Q1: 42.43%

FAR passing rates are down 6.8% over 2009 and 5.6% over 2010.

Regulation:

2009 Q1: 47.96%

2010 Q1: 49.00%

2011 Q1: 41.28%

REG passing rates are down 13.9% over 2009 and 15.8% over 2010.

Analysis:

Wow. The lowest passing rates in 3 years. Q1 is historically the worst quarter of the year for CPA Exam passing rates (tax season), but this is a little surprising. I figured pass rates would stay pretty close to 2010, maybe a little lower. What’s up with REG?? I’ve heard people say that REG was brutal in January/February. Now I believe them.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Smbundy13]

freaking b.s.

these passing rates are manufactured….. the AICPA curves the grades to make whatever pass rate they want.. otherwise, I dont think it would be such a uniform 40 ish %

I wouldnt be so bitter if it werent that I scored well above 75 on everything in my audit exam 4th qtr of 2010 and still made a 72..

I just wish we would be given the information about how grades are figured.. why all the secrecy?

FAR - 75 (Expires April 30, 2012)
BEC - 74,74,69,83
AUD - 72,65,70, 4/20 Last Score???
REG - 69,84

[Study Chair]

@Jeff, REG was brutal and (I believe) the scores now prove that. You mentioned that Audit may be the second most difficult exam (FAR being the first). I believe REG now takes the #2 spot in overall difficulty. The TBSs' were really tough.

BEC 86
FAR 87
REG 86
AUD 93 DONE!!

[Anonymous]

What do you think is causing this downwards slope in pass rates? I would think the pass rates would be consistent or slightly higher do to the economy. Less people working, more people finding time to study while looking for jobs. Is it possible they are slowly aiming towards a lower pass rate? Thoughts?

[mla1169]

Well it takes the sting out of failing REG a little (but very little) knowing that the odds were stacked against us so high.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[tableleg]

@ErinBrookeTX

I think you are correct. They are seeking to reduce supply of CPA's. I think everyone agrees that the exam is curved. So now they are curving toward less people passing. I don't see any other reasons for lower pass rates.

My big question is what will happen when they open up the non-US sites?

I guess we just study harder. Now we have to be more prepared than about 60% of the candidates. I guess less times on another71.com forums for me.

[Anonymous]

Cash grab. Plain and simple.

[Herbieherb]

Will get way more competitive once international testing debuts…The bright international candidates from Asia and middle east will curve it down.

NEW YORK- DONE

[Anonymous]

Kinda' doubt that Herb. They'll keep passing percentages as low (or not high) as they want no matter who or how many folks take it.

There's less money in passing people.

I once had the great-great grand-daughter of Chairman Mao teaching a business stats course. For sport, she would have us give her a number or a small reduced equation as an “answer” to the problem. She would then ask the class a few well-worded questions and then proceed to work the problem from its answer and tell us what the question was.

What did I learn from this sporting jest of hers??

I learned that if you know the answer, with a little effort you can determine all the factors, all the players all the variables involved in the “problem”.

Lets not fool ourselves. The answer is money…you can figure out the “problem” if you just look at the variables: More test takers, less transparency, less feedback on grades and grading processes, longer times to get grades back (lessening your time to re-schedule, shortening effective 18 month window) = more $$$ feeding the machine.

[Herbieherb]

Say 5000 Japanese candidates take the exam and the majority of them are above the 40% passing ratio…it will be more competitive.. Asian students are very competitive.

NEW YORK- DONE

[Anonymous]

Yes, but you know nothing about the scoring process.

I can easily make 40% of people “pass” whether 1 or 100,000,000,000 million people sit for the exam in any given window.

[Anonymous]

well, I guess I couldn't massage the numbers to make 40 percent of one person pass. Otherwise…..

[tableleg]

carolina_blues

I am confused with your response. I think the point is if more non-US students pass, more US students will fail. Surely NASBA is not curving based on where you sat for the exam.

[tableleg]

Could more students be taking the exam that are just not prepared for it? Maybe more students that have not done a review course?

[Herbieherb]

Exactly…the 5000 Japanese will sit on top of the 40% which means 5000 Americans will fail. Just my opinion of course, nothing guaranteed!!!!

NEW YORK- DONE

[tableleg]

Why do Japanese students want to take the CPA exam? Are they working for multi-national firms in Japan? Are they planning on coming to the US and working?

[Author]

Replies