Failing a Certified Public Accountant (CPA) Exam section can be a discouraging experience, but it is not uncommon. With average pass rates around 50%, many candidates need to retake at least one section before passing all four.
The CPA Exam is known for its difficulty, depth, and breadth of material, making it one of the most challenging professional certification exams.
While failing a CPA Exam section may feel like a setback, it is important to remember that it does not define your ability to succeed as a CPA. Instead, it provides an opportunity to reassess your study strategies, refine your approach, and perform better on your next attempt.
Understanding why you failed, how to improve, and what steps to take next will help you regain momentum and move forward with confidence.
Understanding CPA Exam Scoring and the 75-Point Passing Requirement
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The CPA Exam is scored on a scale of 0 to 99, with a minimum passing score of 75 for each section. A score below 75 means that the candidate did not meet the passing threshold but does not necessarily indicate failure in every exam area.
Each section of the CPA Exam includes a mix of:
- Multiple-choice questions (MCQs)
- Task-based simulations (TBSs)
- Written communication tasks (for the BEC section)
The scoring process is weighted, meaning that some sections contribute more heavily to the final score than others. Failing an exam section does not always mean a complete lack of understanding; it may be due to weaknesses in specific areas, poor time management, or test-taking anxiety.
When candidates receive a failing score, NASBA provides a Candidate Performance Report that breaks down their strengths and weaknesses. This report is a valuable tool for determining which areas need improvement before a retake.
What Happens If I Fail a CPA Exam Section?
1. You Can Retake the Exam Section
Failing a CPA Exam section does not mean you have to start over completely. Candidates are allowed to retake any failed section in the next testing window. The CPA Exam follows a continuous testing model, meaning that you can retake a failed section as soon as scores are released and you receive a new Notice to Schedule (NTS).
2. The 18-Month Rule Still Applies
Candidates must pass all four sections of the CPA Exam within an 18-month rolling window. If a section is failed, the clock continues ticking, and candidates must plan their retake to ensure that previously passed sections do not expire before completing all four.
For example, if a candidate passes FAR in January 2024, they must pass the remaining three sections by July 2025 (18 months later). If they fail REG and wait too long to retake it, they risk losing credit for FAR if the deadline expires.
3. Your Previous Exam Score Does Not Carry Over
Each time you retake a CPA Exam section, it is treated as a new attempt. Even if you scored close to 75 in a failed attempt, the score does not carry over. You will need to start fresh and complete all exam questions again to earn a passing score.
Why Did You Fail? Common Reasons and How to Improve
Failing a CPA Exam section can happen for many reasons. Identifying why you struggled will help you adjust your study approach and improve your score on the next attempt.
1. Insufficient Study Time
One of the most common reasons for failure is not dedicating enough time to studying. The CPA Exam requires consistent, structured preparation, often 15-20 hours per week per section for at least 6-8 weeks.
Solution: Adjust your study schedule to include daily review sessions, practice exams, and topic-focused study blocks. Ensure that you are studying actively rather than passively rereading notes.
2. Weak Performance in Specific Areas
The Candidate Performance Report highlights which exam topics were weak points. Some candidates perform well in MCQs but struggle with task-based simulations, or vice versa.
Solution: Identify weak areas and focus on targeted practice. If you struggled with simulations, dedicate more time to hands-on problem-solving rather than just memorization.
3. Poor Time Management on Exam Day
Many candidates fail because they run out of time before completing all questions. Spending too much time on difficult MCQs or simulations can prevent you from answering high-scoring questions later in the exam.
Solution: Practice timed mock exams to build endurance and develop a pacing strategy. If you are stuck on a question, flag it and move on, returning later if time allows.
4. Anxiety and Exam-Day Stress
Test anxiety can impact decision-making and recall ability, leading to unnecessary mistakes. If nerves played a role in your performance, it’s important to find ways to stay calm and focused during the exam.
Solution: Use breathing exercises, positive visualization, and relaxation techniques before and during the exam. Taking multiple simulated exams under test conditions can also help reduce stress on the actual exam day.
Steps to Take After Failing a CPA Exam Section
1. Review Your Candidate Performance Report
Once you receive your failing score, carefully analyze your Candidate Performance Report. This will show:
- Stronger and weaker exam topics
- Performance in MCQs versus simulations
- Comparisons to other candidates
Use this information to adjust your study plan and focus on weak areas before your retake.
2. Modify Your Study Approach
If your previous study method didn’t work, make necessary changes. Consider:
- Switching CPA review courses or adding supplemental materials.
- Studying in shorter, more frequent sessions instead of cramming.
- Using flashcards, mnemonics, and concept maps for better retention.
3. Register for a Retake and Adjust Your Schedule
Apply for a new Notice to Schedule (NTS) and select a test date that allows for sufficient preparation time. Avoid rushing into a retake without reviewing weak areas first.
4. Take Full-Length Practice Exams
One of the best ways to improve your score is by taking full-length CPA practice exams under real test conditions. This will:
- Help you improve time management.
- Identify which sections still need improvement.
- Increase familiarity with exam question formats.
5. Stay Positive and Keep Moving Forward
Failing a CPA Exam section does not mean you are not capable of passing. Many successful CPAs have had to retake at least one section before earning their license. The key is to stay motivated, learn from mistakes, and continue improving.
Frequently Asked Questions
Can I retake a CPA Exam section if I fail?
Yes, you can retake any failed CPA Exam section as soon as scores are released and you receive a new Notice to Schedule (NTS). The continuous testing model allows candidates to retake sections without waiting for specific testing windows.
Does failing a CPA Exam section affect the 18-month window?
Failing a section does not restart the 18-month rolling window, but it does reduce the time available to pass the remaining sections before previously passed ones expire. It’s important to schedule your retake strategically to avoid losing credit for other sections.
Will my previous CPA Exam score carry over if I fail?
No, each CPA Exam attempt is scored independently, meaning a failing score does not contribute to your next attempt. You must start fresh and complete all exam questions again to achieve a passing score.
How can I improve my score on a CPA Exam retake?
To improve your score, analyze your Candidate Performance Report, identify weak areas, and adjust your study plan accordingly. Using timed practice exams, improving time management, and focusing on weak topics will help increase your chances of passing on your next attempt.
Bottom Line
Failing a CPA Exam section is a temporary setback, not a permanent failure. With a strategic approach, persistence, and an improved study plan, candidates can successfully retake and pass any failed section.
By analyzing what went wrong, adjusting study methods, and maintaining a strong mindset, candidates can turn failure into a learning experience and achieve CPA certification. Remember, passing the CPA Exam is a journey, and every challenge is a step toward success.
