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For decades, earning the CPA designation was pretty much an essential step for accountants looking to build long-term careers in public accounting, especially at large firms. Interestingly, recent data suggests that fewer people are taking the CPA exam, which is causing firms to respond. One notable example comes from Ernst & Young (EY), which is now offering a $10,000 bonus to employees who pass the CPA exam, according to a report from Going Concern. So, what does all this mean? Has the CPA license lost its appeal? Today we’re going to go over the data and take a look at some theories as to why exam participation has declined over the years.
CPA Exam Participation in Recent Years
Over recent years, CPA exam participation has been a little wonky. The number of new CPA candidates fell from 48,000 in 2016 to around 30,000 in 2020-2022. After a temporary surge in 2023, new candidates dropped again to around 29,000 in 2024. More broadly, CPA exam participation has shown a sustained decline since the mid-2010s, according to AICPA/NASBA trend data.
Changes to the CPA exam have also had an effect. In 2023, candidate numbers jumped to 42,626 ahead of the new CPA evolution format, while in 2024, they dropped by roughly 34% as the new exam rolled out.
Even looking at total test takers, the numbers remain below historical highs. For example, about 74,000 candidates sat for the exam in 2024. This reflects a modest recovery from pandemic-era lows but still signals a somewhat constrained pipeline. Looking at the big picture, the data suggests that while short-term fluctuations occur, the long-term trend is downward, or at best, unstable.
Why Firms Like EY Are Offering Bigger Incentives
This is where EY’s $10,000 CPA bonus becomes particularly telling. Firms don’t increase incentives like this unless they’re trying to solve a real problem. Public accounting firms rely heavily on a steady pipeline of CPA-eligible talent, and the credential isn’t simply a resume booster. Instead, it’s often a requirement for promotions, certain client work, and long-term advancement.
If fewer candidates are pursuing the CPA, firms face a variety of risks, including a smaller talent pool for entry-level hiring, delays in developing future managers and partners, and increased pressure on existing staff. With that in mind, EY’s CPA bonus seems like a strategic move to ensure employees actually complete the CPA process.
Theories About the Decline in CPA Exam Participation
Theory #1: The 150-Hour Requirement Barrier
In most U.S. states, candidates need the equivalent of five years of college education, often including a master’s degree, to even sit for the CPA exam. The 150-hour education requirement could be a reason for declining CPA participation.
For many students and early-career professionals, the cost of additional tuition and delayed entry into the workforce may not seem worth it. It’s worth mentioning that industry groups have acknowledged this, and the AIPCA and NASBA have explored alternative pathways to licensure aimed at reducing time and financial barriers.
Still, for those who are comparing career options, the CPA path can look increasingly expensive and time-consuming.
Theory #2: Competition From Other Career Paths
Accounting isn’t competing in a vacuum, and today’s students have more options than ever, including careers in technology and finance, which may be more appealing or seem more “exciting.” Along with this, these fields may offer higher starting salaries, faster career progression, or greater flexibility.
According to industry data, accounting is increasingly losing out to these alternatives in terms of perceived appeal and compensation. Now, this doesn’t mean accounting lacks opportunity, but it does mean the CPA designation is no longer a slam dunk like it once was.
Theory #3: The CPA Exam Is Difficult
Another factor may be the difficulty of the CPA exam itself. Pass rates have historically hovered around (or below) 50% for many sections. For example, FAR (Financial Accounting and Reporting) pass rates fell to around 40% in 2024, while AUD (Auditing and Attestation) hovered in the mid-40% range. Even under the new CPA Evolution model, the exam remains notoriously rigorous.
For candidates balancing full-time work, studying for the CPA can feel like a second job—one that requires hundreds of hours of preparation.
Theory #4: Burnout and Perception of the Profession
The accounting profession has also faced scrutiny around long hours (especially during busy season), work/life balance, and burnout. At the same time, the profession is dealing with a broader talent shortage, with demand for accountants continuing to outpace supply.
For those who are evaluating career path options, these factors may influence whether pursuing the CPA feels worth the effort.
Theory #5: CPA Evolution May Be Causing Short-Term Disruption
The rollout of the new CPA Evolution exam in 2024 may have also contributed to recent volatility. Historically, major exam changes create a surge in candidates before the change and a drop immediately after. That pattern appears to have repeated here, with 2023 seeing a spike and 2024 seeing a decline.
Over time, candidate numbers may stabilize, but the broader downward trend suggests deeper issues.
What This Means for Students and Professionals
It’s important to remember that firms still value the CPA credential, and there’s still a demand for accountants. In other words, the takeaway here shouldn’t be that the CPA license is no longer integral to a successful career in accounting. If anything, the opposite is likely true.
If fewer candidates are pursuing the CPA credentials, those who do go after it may find stronger job prospects, faster advancement opportunities, and greater differentiation in the job market—something like a $10,000 bonus isn’t too shabby, either. At the same time, if you’re interested in a career in accounting, go into it with clear expectations about the time, cost, and effort required.
The unstable nature of CPA exam participation isn’t the result of one single factor, but rather the product of structural changes in education, career preferences, and the accounting profession itself. EY’s $10,000 bonus is a visible response to the challenge accounting firms are facing in rebuilding the talent pipeline. For candidates, this may serve as an opportunity to stand out in a smaller (but still highly valuable) pool.
Rob Porter is an editor at Vault.
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