[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

[jeff]

I still don't understand what happened…

edit – I e-mailed you.

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

[Anonymous]

REG was difficult dont get me wrong but if you put your mind to it you can pass. I got my highest mark on REG. I thought BEC was harder. I think if you have been out of school a while or are not familiar with the material you need a good course. I've been out of school almost 10 yrs now 🙁 and I used Yaeger for REG. I spent the extra money on the course and it paid off.

[WhyEvenTry]

My understanding of a “bell curve” is as follows: The grades aren't curved, so the AICPA assertion (like the verbage here!?!) that they do not apply a curve may be accurate. But, that doesn't change the fact that a “failing” score may be “passing” and a “passing” score “failing.” If, in order to keep the certification's value at the highest level, the # of passing candidates is limited to “x” amount based on their questionable calculations, then their grading procedures will adjust to keep that number within an acceptable range. It is not a foreing language; we have seen this grading method throughout all of college. You just have to hope you can beat out 60% of the people you are testing against in that particular window. So…..as much as you WANT your peers to do well, at the same time, you would like for them to do slightly worse than you….just sayin : )

I found REG to be slightly less diffucult than the rest, but then again I passed that in Nov of 2010. My rank in the difficultness is:

1 – FAR (due to the volume and prep time of studying)

2 – AUD (due to the conceptual memorization and the fact that most people typically do ok on this test, meaning you HAVE to do better) (My last score report averaged a passing grage, but I got a 71…go figure, probably why the took it out in 2011).

3 – REG – (put the hours in, and you should do ok)

4 – BEC – (not sure why, but the one I found to be the “easiest” or “least hardiest” shall I say, is the one I failed most often. Probably a result of my study hours lacking here.

GOOD LUCK TO ALL….a have a Merry Xmas, I mean testing window. Apparently the anxiety involved in both is the same.

Santa

BEC - 71, 74, 77 (Feb - 2011)
FAR - 73, 78 (Feb - 2011)
REG - 83 (Nov 2010)
AUD - 71, 84 (May 2011) - Done!! CPA licensed in TX (July 2011)

[phillyrocks87]

One would think that REG would be the lowest in Q1…with all of the tax people in the deep of busy season.

But, c'mon CPA people. BEC is just terrible. Curve it more…it really has little to nothing to do with any of our jobs.

Here's crossing my fingers that AUD and BEC (both of which i'm taking this test window) will have a lot higher of a % of people who pass.

9,491 FAR Scores Released 42.43% passed

11,828 REG Scores Released 41.28% passed

8,476 BEC Scores Released 42.32 % passed

11,137 AUD Scores Released 43.88 % passed

B: 11/09 55; 01/10 68; 8/10 54; 4/11 68; 8/11 PASSED
A: 07/10 74; 10/10 73; 5/11 65; 7/18 PASSED
R: 11/10 PASSED
F: 10/09 64; 05/10 73; 8/10 73; 1/11 PASSED

[Anonymous]

Do you think we will eventually (over time) see the pass rates drop below 40%? If so, how soon?

[herbert7890]

I actually believe BEC is truly necessary for the CPA professionals. It's probably one of the few good decisions the AICPA has every made, as it lets CPAs take many management/controller/CFO positions, that would normally go for people holding the CMA credential. By including cost accounting and financial management, the value of a CPA holder is further increased, as we basically can work for the public or inside an organization. Thats part of the reason why employers typically hire CPAs over CMAs, as the CPA has much of the skills of a CMA, plus the added benefit of having a license to practice public accounting.

FAR 88 - BEC 86 - AUD 90 - REG 85

[2010Please]

The pass rates fell partially because of the weight changes in the scoring process. 70/20/10 weights changing to 60/40 weights are going to produce different results…no way around it. Not sure on BEC, I really kind of expected those scores to stay roughly the same, or even rise a little.

AUD 92, REG 85, BEC 90, FAR 85
Ethics 100
Obtained License 7/11/11 🙂

[Anonymous]

This worries me now. I took FAR last weekend and am awaiting results. If the passing rates are going down, I am now terrified.

@2010Please- If this drop in passing rates were due to the 60/40 weight change, then it seems as though people relied heavily on Multiple Choice and Written Communications to pass before. Since MCQs are worth fewer points, Sims are worth more, and WC is gone, I'm led to believe that people took the Sims for granted in the past since they were only worth 20%. People got a free 10 points on the WC and did well on the MCQs. Combine that with some guessing on the Sims and you got a passing grade. Now there are no more free 10 points on WC and now you have to do well on the Sims. It seems as though people weren't prepared for that. Just my guess based on your guess, lol.

[2010Please]

@CPAMan – Don't let it scare you. The good news is that the TBSs are on such a wide variety of topics (in my experience) compared to before (where there were only a couple of topics in the two sims), that if you have a pretty good understanding of the varied topics on the exam section you are taking (at least on FAR – only one I can speak to since it is the only one I've taken in 2011), it increases your odds of getting more right on the “sims.” Plus, I liked that there was only one tab for ALL the sims (i.e., didn't have to close out one simulation – forever gone – to open up another that was an unfamiliar topic to me).

Frankly, I feel my performance on my Feb 2011 exam warranted about an 89 (based on my experience with all of my exams in 2010 and how I scored on them in the end), but I ended up with an 85. So, overall, I don't think the weight change makes an incredible difference – if you know the material very well, you should pass – just maybe not as high of a score. Of course, time management is still a very important part of it, no matter how well you know the material. In other words, if you feel pretty good about your performance and you get through most of the info on the TBSs, it is more likely than not that you passed.

Of course, you understand, I'm speaking only from my analysis of my experience with all of the exams…I could be completely wrong. But, changing the format and weights on the exam has to create different results in the score. I don't know how the Board of Examiners will react…they may look at the lower percentage in pass rates this time and adjust it someway in this window. Who knows – its all a big secret. The only thing we can really do is go in as fully prepared as possible with a plan for time management…and pray for at least a 75. 🙂

AUD 92, REG 85, BEC 90, FAR 85
Ethics 100
Obtained License 7/11/11 🙂

[magster]

2010Please – I need to disagree with you on the SIMS. I took AUD on 4/2 and 4 out of 7 tabs (one of them of course research) were on the same topic just asked in a different way. Makes me wonder how random (or not) these sims are picked.

REG - Passed
FAR - Passed
BEC - Passed
AUD - 2-25-12 PASSED - DONE !!!!!!!! WOOHOO

*** One day I will get my life back.... maybe today is the day ***

[2010Please]

@magster….well that stinks. That wasn't my experience with FAR this time. Although I did have two similar.tabs…assuming one was pretest, but maybe not. Overall, I thoght my mcq were more difficult than the tbs. I simply ran out of time before finishing 2 of my tbs (reasearch). However, i had one long tough tbs that most candidates would consider very difficult. I was lucky that i reviewed that topic literally an hour before walking into my exam. You just never know though. Everything took a lot of reading time, whichis frustrating on a timed exam. Felt like I was running the entire time and still ran short. Some questions were poorly worded too.

Good luck on your results!

AUD 92, REG 85, BEC 90, FAR 85
Ethics 100
Obtained License 7/11/11 🙂

[rtg9qd]

Jeff,

These passing rates for Q1 of 2011 for REG really scare me. I took REG for the third time on Saturday 4/9/2011… not even two days removed and already am feeling the pressure of waiting for my scores. Looks like this will be the big one for me, as I have gotten the following

AUD (95)

BEC (78)

FAR (85)

REG (73), (73), ?????

I seemed to think the new format of REG for 2011 seemed easier, but now I'm not so sure looking at Q1's results.

If I don't receive a passing score in June from this time around …… I am doomed to take them all over again…. would it really be worth it? Have you ever had members of your site barely miss the cut off, and lose all their passed credit?

-needing words of hope,

Rebekah

[Anonymous]

I think that the low pass rates are just a reaction to exam changes, and people not being prepared for the uncertainty (which is understandable). It seems that when there are any significant changes to the exams, the pass rates are lowered (which is proof that the exam is not “curved”). I feel that once people get a better understanding of IFRS, the new ethics rules, corporate governance, and how to more effectively answer the TBS's, the passing rates will get back up to about 48-49%. Look, I know it may suck to be on the other side of the barricade, but just think how much better it is to pass the exam when there's that much more of an obstacle to do it. Think about it this way: if everybody could do it, nobody would want to do it, and you wouldn't be hired as eagerly.

[Stewie]

@rtg9qd

Yes, it would be worth it! You made it this far (with a 95 in AUD!) and passed everything else on the first try. I understand what you are saying as I am going to take AUD this time, and my practice exams are not going very well. I am nervous, but I have faith that what brought me here is what is going to allow me to pass.

Not only am I a CPA candidate, but I am a PHR and I am licensed in insurance sales. I have taken many exams and they are all passable, even though it may seem like they are not. KEEP THE FAITH AND STAY THE COURSE!

@Coastergenius,

You are right, pass rates will likely slowly go back up as the study material makes changes to keep up with the changes. I almost ran out of time on the exam too, but I stuck to the way that I was taught. In the TBSs, I did the easy ones first and thought hard about the hard ones. I finished with 22 seconds to spare. This test is not only about knowledge, but about time management, a skill that we all need after becoming CPAs.

I am a US Naval Officer and one thing that I can say, there are a lot of things that can stress a person out, to include combat, but the person that can put their anxiety down and focus on the task at hand will succeed.

Remember that “Fortune favors the prepared mind!”

Good luck all!

REG - 91
AUD - 92
FAR - 88
BEC - OCT 2011

[skigirly33]

There is a lot of fear mongering going on with this international testing. I don't think international testing is going to change the way the exam is graded or the pass rates. It is just a way for the AICPA to make more money. More people taking it = more money.

1) Exam isn't curved, each question is weighted based on difficulty. So, if you get more of the harder questions right, you get more points. It doesn't matter how many international students take the test more points = more points. Please read:

https://www.aicpa.org/BecomeACPA/CPAExam/PsychometricsandScoring/ScoringInformation/DownloadableDocuments/How_the_CPA_Exam_is_Scored.pdf

2) Exam is only offered in English, which is a disadvantage. I don't care how smart you are, there is a lot of terminology and “wordy” questions that are difficult to understand, even for the average American test taker.

3) The exam won't be offered as often to international candidates which I think is a disadvantage. “The international exam, which will be offered in English, is the same as the U.S. exam administered by the AICPA, NASBA, and Prometric in the United States. Future testing months during which the exam will be administered in Japan and the Middle East will be November 2011 and February, May 2012. ” Read: https://www.aicpa.org/Press/PressReleases/2011/Pages/InternationalAdministrationofUSUniformCPAExam.aspx

[Author]

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