Failed CPA CFE 3 Times? You Still Have Options

CPA Canada allows candidates to attempt the CFE three times. At each unsuccessful attempt, candidates can appeal and ask for re-marking. After three unsuccessful attempts and remarkings, candidates will automatically be de-registered from the CPA PEP program. If you’re in this situation, here are some options to consider.

1. Request 4th Attempt at the CFE.

Officially, you have three attempts at the CFE. However, it’s possible to write it for the 4th time. Candidates can present a letter to CPA Canada asking for a 4th attempt. I have consulted candidates and successfully got them the 4th attempt. To be successful in this request, you must have a situating that was extraordinary, outside of your control and well documented. 

  • CPA Ontario: You’ll get this email: “We regret to inform you that your recent attempt of the Common Final Examination (CFE) was unsuccessful. Since this was your third unsuccessful attempt at the CFE, you will be deregistered as a student with CPA Ontario. Deregistration will be effective from 45 days following the  release of your third unsuccessful CFE result or, if an appeal of your CFE result has been filed, immediately upon a denial of the appeal.”
  • If you inquire for the 4th attempt, you’ll get the following email: “As per Regulation 9-1, s. 58A, a Student who has been deregistered, shall not be reregistered except in extraordinary circumstances at the discretion of, and on the restrictions and conditions deemed appropriate by the Registrar. Extraordinary circumstances are external, unanticipated and beyond the control of the individual. They do not include events that could have been foreseen, controlled or avoided. The applicant is responsible for providing evidence of the extraordinary circumstances. Processing time for a request for student reregistration is 6-8 weeks upon receipt of all documentation.”
    • What it means: You have to wait 45 days to be de-registered. Once you have been de-registered, you can submit your student re-registration request to be reviewed by the Registrar’s office. Supporting documents must be provided (send the documentation to transcriptregistration@cpaontario.ca). You’ll have to wait 6-8 weeks to get the answer.
  • CPA Western: You can submit a written request through the My CPA portal to waive the attempt without waiting. Supporting documents must be provided (send the documentation to cpapplication@cpawsb.ca and cpamodule@cpawsb.ca).

If your appeal is approved, you’ll see “Approved” in your My CPA Portal:

2. Wait until 2027

As you may know, PEP and CFE are being changed from 2027. The new CPA certification program will not have Core 1/2, electives, MCQs, nor CFE. It will not focus on technicals, but rather on case writing and decision making. At the time of writing this article, we don’t have official details on the new program structure, however it’s my belief that the new program will be simpler for students who are currently struggling with technicals. Therefore, you can choose to wait until 2027 and register into the new program.

A word of caution: we don’t have concrete information on the new program policies; it’s possible that they won’t let you enroll into the new program because you were de-registered (didn’t pass three times) from the current CFE. The final decision on this policy rests with CPA Canada. 

3. Re-start PEP from Core 1.

This means taking Core 1 and going through PEP modules (Core 1, Core 2, Electives, Capstones) and CFE again. It will take 1.5-2 years and is not worthwhile for most students. You would need special approval from CPA Canada to proceed with this option. 

4. Take the U.S. CPA.

This is a good alternative that I recommend to most students. To take the US CPA exams, you don’t have to be a US citizen or go to the US. You can apply online and study from Canada. US CPA costs less than the Canadian CPA and there are only MCQs and short-form answers in the exam. I wrote a detailed post comparing both designations here.

Most Canadian employers want to see the three “CPA” letters, it doesn’t have to be local Canadian CPA. Exception to this is if you’re applying for specific positions that require knowledge of Canadian ASPE, CAS standards and Income Tax Act. For example, Tax Analyst, Auditor, sole practitioner, government related jobs.

You can read more and apply for the US CPA here. If you’re thinking to transfer your US CPA to Canadian CPA, it won’t be easy. CPA Canada requires that you have a university degree from the US and work for a US company for at least 1 year. Realistically, once you get the US CPA, you will keep it as US CPA and your CV in Canada will say: Name, CPA (State), for example: John Doe, CPA (Illinois).

Note: Every state has different rules. Some require you to physically work in the US for 1-year before you get the CPA letters. I’ve been told that Illinois is the simplest state to register in as a Canadian. However, COVID has changed many rules. Please call AICPA, using the phone number in the link above, and have all your questions answered before proceeding. 

5. Get ACCA

Becoming ACCA is another good alternative. ACCA stands for Association of Chartered Certified Accountants, it’s a globally recognized designation with strong recognition in the UK, Asia, Europe, and it’s highly valued in Canada too. Canadians can enroll in the ACCA program without leaving Canada, study online, and write the exams in designated exam centers. The program is modular, with 13 exams in total, but many students with degrees in accounting can receive exemptions for the early exams. Once you complete the exams and required work experience, you become an ACCA member. ACCA can’t be used as a pathway to get the Canadian CPA, but it still opens doors to local and global job opportunities. You can get started by sending a message to ACCA Global to inquire about enrollment, associated costs, deadlines, and so on.

6. Pursue the CFA designation.

CFA (Chartered Financial Analyst) is a good certification if you want to grow in Financial Planning and Analysis (FP&A) role. You can expect the same salary as a controller / director who’s a CPA. Read more about the CFA program here.

7. Pursue Masters in Accounting degree.

The Masters in Accounting (MAcc) program will teach you the same technical competencies as PEP and give you post-grad certification. Some employers consider MAcc to be equivalent to CPA. The major downside of MAcc is that schools require full-time studies, so you will need to quit your work to complete it. I’ve been told some universities in Quebec, like Concordia, allow you to take the MAcc degree part-time. You can read more about MAcc program here

8. Become a Registered Professional Accountant (RPA)

Did you know that CPA Canada is not the only designation in Canada that issues licenses for tax and compilation services? Based in Ontario, the Registered Professional Accountant (RPA) designation lets members practice accounting services, including tax and compilations (CSRS 4200). Established in 1938, the RPA is less known than CPA, but it’s getting popular. The RPA lets you start your own tax services company and perform income tax returns and compilation engagements. To earn the RPA, you need to pass exams and get 2 years of accounting experience. Since 2020, the RPA has gained traction as an alternative designation in Canada.

9. Focus on your career.

I have worked with several managers in the finance/accounting departments who did not have CPA or other certifications. Instead, they had extensive work experience and great networking skills. Employers tend to look closer at what companies applicants worked for, not their education.

Instead of pursuing certifications, you can actively network, attend career events, study the latest technologies and build a strong personal brand. By having a wide network, you can ask someone inside the company to give you a reference, which will give you an upper hand in the selection process, including over other CPAs.

Some job titles where our experience matters more than your education are: FP&A Manager, Supply Chain Reporting Manager, Business Analyst (BA) Manager, Process Improvement Lead, Business Process Improvement Manager, AI Specialist. I’ve worked with individuals in these roles who did not have a CPA, but still earned high six-figure salaries.

Conclusion

As you can see, there are many viable alternatives to the CPA. Step back and assess your professional goals. If pursuing CPA was for growth and a high salary, consider other designations or careers. Don’t give up and stay motivated!