CPA Exam Performance and Environmental and Other Opportunity Factors

Abstract

CPA certification is an important measure of professional achievement and a critical element to advancement in the accounting profession. The CPA exam is rigorous, with overall lower pass rates relative to other professional exams, and even lower pass rates for historically disadvantaged groups. Thus, a key policy question is how to improve candidates’ performance on the CPA exam. In this paper, we examine the role that environmental (community segregation, socioeconomic status, and education and income gaps) and other factors representing opportunity play in CPA exam performance. The results of univariate analysis of CPA exam performance across various demographic and opportunity factors and those of several multivariate models indicate that opportunity affects exam performance of all candidates and more so for the disadvantaged groups. Finally, we offer recommendations for programs to help meet the profession’s need for an increasing number of qualified CPAs and its diversity and inclusion goals.