CPA Scaled Score

26/04/2021 by Catherine

CPA Scaled Score

What is the CPA Scaled Score and what score do I need to pass my exam?

Why are Scaled Scores used by CPA?

Because CPA Australia uses multiple exams for each subject – it is necessary for scaled scores to be used to measure student performance. Scaled scores ensure fair and equivalent results are awarded to each student – reflecting the level of difficulty in the version of the exam completed.

For example, a student achieving 50% in a very hard version of the exam may achieve the same scaled score as a student achieving 60% in an easier version of the exam.

Each semester, there is a very large cohort of students completing the CPA, which provides plenty of data points for CPA Australia to appropriately calibrate the exam grading process. If you found an exam very hard, it is likely that other students did to, and your result will be calibrated accordingly.

So, what is the pass mark?

The pass mark for CPA exams is a scaled score of 540. This is a score within the range of 100 to 900 set by CPA – it is very important not to confuse this score with being equal to 60% (= 540 / 900).

This scaled score is designed to reflect the minimum competency level for the subject being completed. As CPA Australia has the responsibility of ensuring all members carrying the CPA Australia designation have a certain level of understanding of the relevant content, the standard set is high. No doubt, this perspective helps explain the high fail rates across the CPA Program (you can read more about that here).

The Candidate Exam Report received by each student reinforces this message around competency. The second page of the Exam Report shows the relative competency demonstrated by the student for each module of the relevant subject. This enables candidates to understand their areas of strength and weakness and how their performance in each module influenced the overall exam result.

What does the Candidate Exam Report look like?

If you have any queries on the CPA scaled score or would like to discuss your recent exam results, please get in touch via email!

CPA results – Semester 2, 2020

11/01/2021 by Catherine

CPA Results - Semester 2, 2020

A tough semester with online, proctored exams and digital whiteboards

CPA Australia recently released the Exam Report for Semester 2, 2020.

Despite the extra challenges presented by COVID-19 closing most testing centres and the transition to online exams, the results reflected similar trends to previous semesters.

Key observations are as follows:

Ethics and Governance consistently has a high fail rate, and Semester 2, 2020 was no exception to the rule. Ethics and Governance is often the first subject new students attempt in their CPA journey and many students withdraw after an unsuccessful attempt at Ethics and Governance.
Although Strategic Management Accounting is of a similar difficulty to Ethics and Governance, the fail rate is usually much lower. This is likely because Strategic Management Accounting is often the second subject completed by students, and the additional exam experience has a positive impact on grades.
As all CPA students know – Financial Reporting is a tough subject for students to pass – it’s always a relief to complete it successfully! Financial Reporting again recorded a fail rate of approximately 30% for the most recent semester.
With respect to the electives, Australia Taxation – Advanced continues to stand out as the most challenging elective to pass with a fail rate of 46%.

Semester 2, 2020 results - all subjects

The chart below shows the grade split across the four core subjects. These results can be compared to the results in 2018 in the second chart, and the following observations can be made:

Although the fail rate was similar (an average of 31% across the four subjects in 2020 vs 30% in 2018), it was significantly harder to achieve a High Distinction in 2020.
Global Strategy and Leadership recorded substantially better results in 2018 vs 2020 – with 12% of the cohort achieving a High Distinction in 2018 vs only 6% in 2020 and 22% achieving a Credit in 2018 vs 16% in 2020.

Overall, all students should be very proud of passing subjects in Semester 2, 2020 – CPA is not an easy course and the added challenges of COVID-19 only increased the pressure experienced by students. The fact that results remained consistent with previous semesters shows a very high level of commitment from students.

The Best Order to Complete your CPA

11/02/202120/09/2020 by Catherine

STUDY SHORTCUT – STUDY TIPS

The Best Order to Complete your CPA

Completing the CPA subjects in a clever order can contribute to your success

Structuring your CPA Program in response to your commitments, career objectives and prior learning will set you up for success.

At Study Shortcut, we agree with CPA Australia’s recommendation of completing Ethics and Governance as your first subject. E&G is a great introduction to the program and is of moderate level difficulty to help you gauge the effort required for the course.

Following Ethics and Governance, we recommend completing Strategic Management Accounting and Financial Reporting. These subjects, along with E&G, provide a strong base for the remaining subjects that you choose (two electives and Global Strategy and Leadership).

It is important not to underestimate Financial Reporting – it is the hardest subject in the CPA Program and requires you to complete at a time when your other commitments are manageable. Study Shortcut recommends completing Financial Reporting in Semester 1, which is a longer semester and one that does not overlap with end of financial year work commitments.

Electives – which should I choose?

Many candidates are required to complete Advanced Audit & Assurance and Australian Taxation if they don’t have previous learning in their undergraduate degree in these areas.

If you have flexibility in the electives you choose, you can consider which subjects are most appropriate for your career objectives.

Contemporary Business Issues is suited to candidates working in corporates or in consulting roles.

Financial Risk Management would be perfect for candidates in the banking industry or corporate treasury roles.

Advanced Taxation is for taxation professionals or those in public practice.

Please reach out to the Study Shortcut team if you’d like to discuss your specific career objectives.