Encouraging signs from the new CPA Exam

Note: Coffey is CEO–Public Accounting at the Association of International Certified Professional Accountants.

The CPA Evolution-aligned version of the CPA Exam, introduced in January 2024, is one of the biggest changes to the test since it was first offered for licensure more than 100 years ago. Understandably, there’s a lot of interest in how it’s performing so far.

While it’s early, all signs show the new exam is performing in line with expectations. Pass rates appear to be stabilizing. Volumes are increasing.

The ecosystem around the exam is still adjusting, with more to be done, but I’m encouraged by what I see.

There’s a reason why we resist snap judgments in the wake of major changes to the CPA Exam. We routinely see a pattern in which CPA candidates are eager to test in the year before a major update, with many preferring to complete the more familiar version. That rush of test taking is followed by a dip in the new exam’s first year.

We’re grateful to those early adopters, who are putting their knowledge to the test in pursuit of their CPA while also putting the exam through its paces.

That smaller group of test-takers in 2024 weren’t the only ones adjusting to a new exam –– their support systems of professors, mentors, review course providers, and coaches were, too. Some candidates struggled. Some did well.

Pass rates for test sections taken in the second quarter of 2025, recently posted on our website, suggest the ecosystem is adapting to how to best prepare for the new exam, including how and when to take one of the three new Discipline sections.

For example, Business Analysis and Reporting (BAR), the Discipline section with lower pass rates in 2024, saw a pass rate of 47% in the second quarter this year — a significant improvement from the aggregate 38% pass rate for the section in 2024. Those results are in line with what we expected, given we’re only six quarters into the new exam.

BAR covers a wide range of topics, including complex concepts in lease accounting and revenue recognition, as well as accounting for state and local governments and historical, current, and prospective analysis of financial statements. While I’d like to see the pass rate for the section climb higher, it is trending in the right direction.

The normal adjustment period following a new exam also is coinciding with out-of-the-ordinary factors — specifically, the impact of the coronavirus pandemic on education and test taking, expansion of the window of time in which to pass four parts of the exam, and the uniqueness of the new exam’s structure itself.

Under the new exam, all candidates are required to pass three Core sections:

• Auditing and Attestation (AUD)
• Financial Accounting and Reporting (FAR)
• Taxation and Regulation (REG)

What’s new is they must also choose one of the following Discipline sections:

• Business Analysis and Reporting (BAR)
• Information Systems and Controls (ISC)
• Tax Compliance and Planning (TCP)

So far, the data indicates that candidates are passing the Core sections first before taking a Discipline section. In 2024, candidates sat for 128,000 Core sections but only 19,900 Discipline sections. Discipline section volume is picking up, with the number of sections administered in the first half of 2025 nearly eclipsing 2024’s full-year total.

That lower base of 19,900 does not yet allow us to effectively assess the impact of Discipline section pass rates. It’s simply too early to draw conclusions on such limited numbers. That said, the collective through-line we’re seeing over multiple quarters is more or less where I expected it to be at this point.

We’re also seeing that embracing best practices — such as selecting the Discipline section that best fits you, rather than the one you think might be easiest, and following consistent study habits in both task-based simulations and multiple-choice questions — is paying off.

The CPA Evolution project that generated the new exam was a deeply researched initiative to recognize the rapidly changing knowledge and skills that accounting professionals must possess. We’ll continue to monitor the exam closely, but, for now, we’re encouraged by the start. — Susan S. Coffey, CPA, CGMA, is CEO–Public Accounting at the Association of International Certified Professional Accountants. She leads the Association’s strategy to advance the practice of public accounting, including strengthening the talent pipeline and competencies of U.S. licensed CPAs. To comment on this article or to suggest an idea for another article, contact Jeff Drew at Jeff.Drew@aicpa-cima.com.