​Pass Rates for the FAR Section of the CPA Exam

The FAR (Financial Accounting and Reporting) section of the CPA (Certified Public Accountant) Exam is known for being one of the most challenging sections of the exam. The FAR section tests candidates' knowledge and skills in financial accounting and reporting, including topics such as financial statements, revenue recognition, inventory, long-term assets, liabilities, equity, leases, and pensions. Due to the level of difficulty of the FAR section, pass rates are often a concern for candidates and those in the accounting industry.

Pass rates for the CPA FAR section vary from year to year and can be influenced by a variety of factors, such as changes in exam content, candidate preparation, and testing conditions. The American Institute of Certified Public Accountants (AICPA) releases pass rates for each section of the CPA Exam on a quarterly basis. The following are pass rates for the FAR section from the last few years:

2021 Q1: 44.22%

2020 Q4: 53.13%

2020 Q3: 58.59%

2020 Q2: 59.20%

2019 Q4: 44.37%

2019 Q3: 46.88%

2019 Q2: 48.72%

2018 Q4: 45.34%

2018 Q3: 45.54%

2018 Q2: 49.31%

As you can see, pass rates for the FAR section of the CPA Exam can vary widely, with some quarters showing pass rates in the low 40s, while other quarters show pass rates in the high 50s. It is important to note that the overall pass rate for the CPA Exam across all sections is typically around 50%, meaning that roughly half of all candidates who take the exam fail at least one section.

Several factors can contribute to the difficulty of the FAR section and the resulting pass rates. One reason is the breadth of topics covered on the exam. The FAR section tests candidates' knowledge of a wide range of financial accounting and reporting concepts, and candidates must be able to apply this knowledge to real-world scenarios presented in task-based simulations. This requires a deep understanding of the material, as well as the ability to think critically and solve complex problems.

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Another reason for the low pass rates on the FAR section is the constantly changing landscape of accounting regulations and standards. Candidates must stay up-to-date on changes to accounting standards, such as the transition to the new revenue recognition standard, which has been a major topic in recent exams. This requires continuous learning and adaptation, as well as the ability to apply this knowledge in different contexts

Preparing for the FAR section of the CPA Exam requires a significant amount of time and effort. Candidates should plan to spend several hundred hours studying and practicing in order to fully prepare for the exam. Review courses and study materials can help candidates to stay on track and ensure that they are fully prepared for the exam.

In conclusion, the pass rates for the FAR section of the CPA Exam can vary widely from quarter to quarter. The difficulty of the exam is due to the broad range of topics covered, the complexity of the accounting concepts, and the constantly changing landscape of accounting regulations and standards. Candidates should plan to invest a significant amount of time and effort in preparing for the exam, using review courses and study materials to stay on track and ensure success. Ultimately, passing the FAR section of the CPA Exam is an important step towards becoming a Certified Public Accountant and demonstrating proficiency in financial accounting and reporting.