An upgraded and better-trained version of ChatGPT retook a practice CPA exam and passed, not unlike the roughly half of human candidates who fail on their first try. But does this experiment mean ChatGPT is coming for accounting jobs?
Key Takeaways
- ChatGPT passed a CPA practice exam on its second attempt, according to researchers.
- Researchers said the study results called into question 'competitive advantage' of the human accountant relative to the machine.
- ChatGPT 4.0 passed the exam in scenario where it had been trained with examples, but failed when it got no examples.
- A prior version, ChatGPT 3.5, failed the CPA exam a few weeks earlier.
So, Is ChatGPT Coming For Accounting Jobs?
Researchers said the latest version of ChatGPT successfully took the CPA exam, just weeks after an earlier version of the chatbot failed.
"This calls into question the 'competitive advantage' of the human accountant relative to the machine.To our knowledge, for the first time, AI has performed as well as a majority of human accountants on a real-world accounting task. This raises important questions of how machine and accountant will work together in the future," the study's authors said.
The fear around artificial intelligence (AI) is that it's coming for human jobs. There are some jobs that a machine just can't do, but then there are those that will change to accommodate AI efficiencies. The question is, do accounting jobs fall into that category? This latest test shows that might be the case, but not without some tweaking to the AI systems.
How ChatGPT Passed The CPA Exam
ChatGPT's success wasn't without help.
Better Equipped With Learning Tools
While ChatGPT has proven its skills in a number of applications, its performance so far in student assessments like the CPA exam has been unimpressive, something the researchers wanted to change.
To tweak the chatbot, the researchers used "chain of thought" prompting and a "10-shot" scenario—where it was trained with 10 examples—to better prepare the AI on the subject matter and improve its retention of key concepts.
Upgraded Version
The version that passed the CPA exam was ChatGPT 4.0, an upgrade from the original version. The researchers found newer models of ChatGPT, which are equipped with better training and reasoning capabilities, outperformed older versions by an average of 16.5%.
The earlier Version 3.5 averaged a score of just 53.1 out of 100 and was unable to pass any section of the exam, while the latest Version 4.0 averaged a score of 85.1 and passed all four sections. In its best section, auditing and attestation (AUD), the chatbot got a score of 87.5.
Earlier this month, trade magazine Accounting Today had Version 3.5 of ChatGPT take the CPA Exam. The chatbot scored just 48% in business environment and concepts (BEC), its strongest category, and a paltry 35% in financial accounting and reporting (FAR), its weakest category.
The results from the researchers' test prove the latest versions of ChatGPT, which comes equipped with the most advanced reasoning capabilities yet, can handle just about any assessment, which could have wide-ranging implications for major industries like accounting and auditing.
ChatGPT has also proven its capabilities in several high-profile exams including the Wharton MBA exam, the bar exam, and various AP exams.
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FAQs
ChatGPT passed a CPA practice exam on its second attempt, according to researchers. Researchers said the study results called into question 'competitive advantage' of the human accountant relative to the machine.
Can ChatGPT pass the CPA Exam? ›
ChatGPT4 averaged a score of 85.1% across all sections of four major accounting exams and passed them all, according to research by a team of US and German scholars.
Is the CPA Exam getting easier in 2024? ›
What has changed in the 2024 CPA Exam? The 2024 CPA Exam has moved to a Core-Plus-Discipline Model which requires candidates to be skilled in a strong core based on accounting, auditing, and tax, as well as one discipline.
Can ChatGPT pass a test? ›
ChatGPT Goes to the University of Minnesota Law School
Researchers found that ChatGPT could pass each exam but wasn't a great student. Human Feedback: Researchers concluded that ChatGPT would've been a mediocre law student and would be able to barely pass at a selective law school.
How many people pass all 4 CPA exams on the first attempt? ›
The overall pass rate of the CPA Exam hovers around 50%, but how many people manage to pass all four sections—including three core and one discipline—on the first try? About 20%. Around 1 in 2 people will pass a specific section of the exam, and about 1 in 5 people will pass each section on their first try.
Why did ChatGPT fail the CPA exam? ›
ChatGPT also fell short in its ability to apply critical judgment. The CPA exam assesses candidates' ability to make sound decisions based on complex scenarios. ChatGPT's responses often lacked nuance and couldn't critically access the implications of different accounting scenarios.
Is a 75% on the CPA exam passing? ›
To pass a CPA Exam section, you must score a minimum of 75. Have you ever wondered how the AICPA calculates your CPA Exam section scores? Scores are reported on a scale that ranges from 0 to 99.
Is it too late to become a CPA at 40? ›
Start Your Accounting Degree Today
Asking 'Is 40 too old for an accounting degree?' reflects a common concern, but the truth is it's never too late.
Can you pass all 4 CPA exams in 6 months? ›
Students, recent graduates, and people with plenty of time to study should aim to sit for and pass 4 sections of the CPA Exam in about 6 months. This would have you taking an exam every 6-7 weeks and studying about 22-26 hours each week.
Which state has the easiest CPA Exam? ›
Colorado's (CO) CPA exam requirements are possibly the most advantageous of all the states. It does not require 150 hours to sit. With no requirement to be a US Citizen, a resident of CO, or a certain age, it makes Colorado one of the easiest states to sit for the CPA exam and become licensed.
To answer the question directly, ChatGPT does not necessarily give the same answers to everyone. The responses generated by ChatGPT are influenced by several factors, including the specific wording of the query, the context provided, and even the evolving nature of the AI model itself.
Can teachers actually detect ChatGPT? ›
The answer is yes. Teachers might not be able to detect ChatGPT-generated text just by reading it because the output can be similar to human writing. However, there are two ways educators can detect AI written text: If a student's submissions vary significantly in style or quality from their usual work.
What exam has ChatGPT failed? ›
Exams ChatGPT failed:
GPT-4 scored 62.4 percent on the American College of Gastroenterology Self-Assessment Test. A minimum score of 70 percent is needed to pass the exam. The chatbot scored less than 50 percent on its first attempt at a practice test used by ophthalmology students.
Is the CPA harder than the bar? ›
The CPA Exam is also a rigorous process. Candidates have an 18-month window to study and sit for the four-part exam once they have been approved as a candidate. The first-time pass rate for all sections is less than the Bar Exam.
Which CPA Exam has the lowest pass rate? ›
| 2021 CPA Exam Pass Rates |
|---|
| Section | First Quarter | Fourth Quarter |
|---|
| BEC | 62.16% | 60.27% |
| FAR | 46.64% | 40.70% |
| REG | 59.29% | 57.78% |
1 more rowThe FAR section of the CPA exam is hard because it's the most comprehensive of the 4 exam sections, and it has a lot of math questions that are mentally taxing to get through. It has the lowest pass rate of all 4 exam sections and is considered the hardest CPA exam section.
Did ChatGPT pass the CFA? ›
Not a chance. GPT-4 has a "decent chance" of passing the CFA level I and level II exams with appropriate prompting, while ChatGPT would not pass under all settings that were tested in a study from a team of researchers from Queens University, Virginia Tech, and J.P. Morgan's AI research division.
What is the easiest CPA exam to pass? ›
Either way, BEC is considered the easiest part of the CPA exam because it has the highest pass rate. The AICPA highlights one reason BEC is higher is because it is the section most commonly taken last, giving students more experience with test-taking after taking other sections.
Can GPT-4 do accounting? ›
In the world of finance and accounting, GPT-4 has the potential to revolutionize many processes, including financial analysis, report generation, and decision-making.
What is the hardest CPA exam to pass? ›
The FAR section of the CPA Exam is hard because it's the most comprehensive of the 4 exam sections, and it has a lot of math questions that are mentally taxing to get through. It has the lowest pass rate of all 4 exam sections and is considered the hardest CPA Exam section.
