NASBA Reports Improved CPA Exam Pass Rates and Discusses Legislative Pathways

The Board of Accountancy Board Meeting held on July 29, 2025, in Tennessee, focused on several significant topics affecting the accounting profession, including updates on the CPA exam, continuing professional education (CPE) standards, and advancements in technology within the field.

One of the primary discussions centered around the CPA exam pass rates, which have shown notable improvement in the first half of 2025. The pass rates for the Business Analysis and Reporting (BAR) section, which has faced scrutiny for its low scores, increased from 38% to 47%. Meanwhile, the Information Systems Controls (ISC) section achieved a remarkable 72% pass rate. The Board noted that 60% of candidates who fail the Financial Accounting and Reporting (FAR) section do not retake the exam, highlighting a need for strategies to support these candidates.

The meeting also addressed an exposure draft on proposed standards for CPE programs, with encouragement for board members to review and comment on the draft. This initiative aims to enhance the quality and relevance of continuing education for CPAs.

In addition, the Board discussed the transition of CPA exam operations in Guam to Guam University, which will take over in October. This change is part of a broader effort to streamline exam administration and improve candidate experiences.

Technological advancements were another key focus, with updates on NASBA's initiatives, including the development of a mobile app for candidates and the exploration of artificial intelligence tools to enhance customer service and operational efficiency. The Board expressed excitement about the upcoming release of the ALD rewrite, which is expected to improve internal processes.

Finally, the meeting highlighted the importance of alternative practice structures, with discussions on their implications for independence in the profession. The Board acknowledged the need for ongoing monitoring and evaluation of these structures as they evolve.

Overall, the meeting underscored the Board's commitment to improving the CPA examination process, enhancing educational standards, and embracing technology to better serve the accounting profession in Tennessee.