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Accounting educators and CPA Exam candidates are always looking for ways to increase exam pass rates. While many studies have identified factors that increase exam performance, very little research has been done concerning the order in which CPA Exam sections should be taken by exam candidates. This study extends prior research by examining pass rates for individual CPA Exam sections. Findings indicate that while first-time candidates typically take the BEC section first, evidence suggests that it might be more beneficial to take the FAR section of the CPA Exam first.
Keywords: CPA exam, pass rates, certification, exam sections, public accounting
INTRODUCTION
Becoming a licensed Certified Public Accountant (CPA) is critical for a successful career in public accounting. One step toward earning a CPA license is passing the Uniform CPA Examination (CPA Exam). The CPA Exam is a professional licensing test which serves to safeguard the public interest by certifying that only qualified individuals become licensed CPAs. Public accounting firms often recruit for entry level positions that require new hires to be CPA Exam eligible upon graduation. The majority of states/jurisdictions require a minimum of 150 semester hours of higher education from an accredited university as a prerequisite to CPA certification. High pass rates on the CPA Exam provide evidence of having a quality accounting program and are used by universities to attract prospective students. With so much riding on successfully passing the CPA Exam, accounting educators and exam candidates are always looking for ways to increase CPA Exam pass rates.
The CPA Exam consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR) and Regulation (REG). Prior research studies have identified several factors that increase overall CPA Exam performance, including factors such as: qualifications of accounting faculty, accounting faculty scholarly research productivity, highest degree level obtained for candidates, undergraduate grade point average, effectiveness of CPA Exam review courses, type of university accreditation, and the impact of taking CPA exam sections within one year of graduation, just to name a few. However, with the exception of Bline et al. (2016a), very little research has been done concerning the order in which CPA Exam sections should be taken by exam candidates.
Becker CPA Exam review recommends students strongly...