The Big Picture
The CPA exam is hard. Across all sections, pass rates consistently fall in the 45–55% range per exam sitting. That means roughly half of all candidates who sit a given section on any given day do not pass it.
Understanding which sections have the lowest pass rates (and why) helps you allocate preparation time appropriately and go into each section with realistic expectations.
Pass Rates by Section (2024–2025 Data)
The AICPA releases pass rate data quarterly. The figures below reflect the general range for 2024–2025 exam windows following the CPA Evolution transition to the new exam format.
FAR (Financial Accounting and Reporting)
FAR consistently records the lowest pass rates of the three core sections, generally in the 40–48% range. The section covers the most material (US GAAP financial reporting, governmental accounting, not-for-profit entities, and the conceptual framework) and requires the highest volume of study hours of any section. Governmental accounting in particular is a major source of failed questions among candidates who come from private-sector accounting backgrounds and have limited GASB exposure.
AUD (Auditing and Attestation)
AUD pass rates typically fall in the 47–54% range. The section is conceptual rather than calculation-heavy, which some candidates find more approachable. However, AUD has the reputation of being unpredictable: the content requires memorising audit standards (AU-C, PCAOB, SSAE, SSARS) and also understanding how to apply them in specific scenario-based questions. Candidates who attempt to study AUD primarily through rote memorisation of standards tend to perform poorly.
REG (Taxation and Regulation)
REG pass rates are broadly similar to AUD, typically in the 58–64% range. The section covers federal income tax for individuals, C corporations, S corporations, partnerships, and trusts, alongside business law and professional ethics. REG tends to be slightly more forgiving for candidates with a tax background, but for candidates without prior tax experience, the volume of detail in individual and corporate income taxation is substantial.
Discipline Sections (BAR, ISC, TCP)
The three discipline sections launched with the CPA Evolution exam format in 2024. Pass rate data is still emerging for these sections as the cohort of candidates who have sat them grows. Early data suggests:
- BAR (Business Analysis and Reporting): Pass rates broadly similar to FAR, likely in the 45–52% range. BAR is the most popular discipline section and covers financial statement analysis, managerial accounting, and technical accounting topics.
- ISC (Information Systems and Controls): Pass rates appear slightly higher than BAR, possibly in the 52–58% range. ISC candidates tend to have IT audit or systems backgrounds that provide relevant prior knowledge.
- TCP (Tax Compliance and Planning): Pass rates broadly similar to REG, likely in the 55–62% range. TCP candidates who have already passed REG carry forward significant tax knowledge.
These discipline section figures should be treated as estimates given the limited data available through early 2026. The AICPA publishes updated pass rate data quarterly, and figures will become more reliable as more candidates complete the new format.
Why FAR Has the Lowest Pass Rate
Candidates and instructors consistently point to the same reasons FAR is the hardest section:
Volume of material. FAR covers more distinct content areas than any other section. A candidate studying for FAR must understand US GAAP for public and private entities, governmental accounting under GASB standards, not-for-profit accounting, and the conceptual framework. That is four distinct sets of standards with different recognition and measurement rules.
Governmental accounting. Most CPA candidates have private-sector accounting backgrounds. GASB standards, fund accounting, modified accrual basis, and the government-wide versus fund-level reporting requirements are entirely foreign to candidates without government accounting experience. This topic has a disproportionate failure rate relative to its exam weight.
ASC 842 leases. The lease accounting standard changed significantly under ASC 842. Candidates who learned lease accounting under the old standard (or under IFRS) need to unlearn prior knowledge and relearn the recognition model from scratch.
Required study hours. Most candidates need 150–200 hours to prepare for FAR adequately. For candidates studying alongside full-time employment, that is 12–16 weeks of consistent effort. Candidates who underprepare (budgeting 8–10 weeks that they would allocate to other sections) are far more likely to fail.
What These Pass Rates Mean for Your Preparation
Take FAR seriously. If you are planning your CPA exam journey, budget the most study time for FAR. The difference between a candidate who passes FAR on the first attempt and one who fails once is often simply the number of hours invested.
AUD is not automatically easier. Some candidates assume that because AUD is conceptual rather than mathematical, it requires less preparation. The pass rate data does not support this. The scenario-based questions in AUD require genuine understanding of when and how audit standards apply, going beyond what they say to how they are used.
Start practice questions early for every section. The CPA exam tests application, not recall. A candidate who reads a comprehensive review course but does not practice under exam conditions will consistently underperform relative to their hours invested.
Practice FAR MCQs and AUD MCQs to build the applied knowledge the exam rewards, rather than just familiarity with the underlying standards.
The 18-Month Window and Pass Rate Pressure
The 18-month rolling window (which begins when you pass your first section) creates a structural pressure that affects pass rates indirectly. Candidates approaching their window deadline sometimes sit a section before they are fully prepared, because the alternative is having an earlier section expire. This lowers pass rates for the specific sections candidates rush.
If you are approaching the end of your 18-month window on a difficult section, consider whether the cost of a section expiring (re-sitting an earlier section) is actually higher than the cost of a failed attempt on the remaining section. In some cases, resitting an easier section you passed three years ago while taking a few more weeks to prepare for FAR is the rational choice.
Tracking Your Own Readiness
Rather than focusing on population-level pass rates, the most actionable metric is your own practice exam score. The CPA exam uses a scaled scoring system where 75 is the passing score. Candidates who consistently score 75% or above on full-length mixed practice questions have demonstrated the level of applied knowledge that correlates with passing.
Use your practice question accuracy by topic to identify your weakest areas. The AICPA exam blueprints publish the content weighting for each section, and a candidate losing points in a high-weighted area is at more risk than one struggling with a lower-weighted topic.
Start your section-by-section practice now and use your accuracy data to direct your remaining study time.