How CFE Day 1 Is Marked: A Clear Guide for CPA Canada Candidates
Day 1 of the Common Final Examination (CFE) is one of the most misunderstood parts of the CPA Canada exam. Many students know how Day 2 and Day 3 are marked, but Day 1 follows a completely different structure, uses different grading terminology, and evaluates candidates on broader strategic thinking rather than technical depth.
If you’re preparing for the CFE, understanding how Day 1 is marked is essential. This guide breaks down the Day 1 marking system in simple terms so you know exactly what markers expect — and how to pass confidently.
How Day 1 Marking Works
Unlike PEP module cases or CFE Day 2 and Day 3, Day 1 does not use the typical RC / C / CD scale.
Instead, Day 1 uses:
Yes
Marginal / Partial
No
There is no such thing as “getting RC” or “getting C” on Day 1.
Every Assessment Opportunity (AO) is marked using one of the three categories above.
What Day 1 Includes: AOs and SAs
Day 1 contains:
Assessment Opportunities (AOs)
These typically include:
Situational analysis
4–5 strategic issues
1–2 operational issues
Conclusion
Communication
Summative Assessments (SAs)
These evaluate your overall performance:
Situational analysis
Overall strategic + operational analysis
Conclusion
Communication
Overall assessment
SAs are holistic — they look at the big picture of your entire response.
How Strategic Issues Are Marked
Each strategic issue AO has two components:
1. Quantitative Analysis
You must:
Use the correct quantitative tool
Perform a reasonable calculation
Support your conclusion
You do not need a perfect calculation — but you must choose the right tool.
2. Qualitative Analysis
This is where most candidates lose marks.
To earn a Yes, your qualitative discussion must include:
Clear pros and cons
Depth (explain why it matters)
Impact on the company
Impact on stakeholders
Alignment with strategy
A list of bullet points is not enough.
Markers want to see reasoning, not just identification.
What Causes a “Marginal” on Day 1
Most candidates fall into “Marginal” because:
Their qualitative analysis lacks depth
They identify issues but don’t explain impact
They choose the wrong quantitative tool
They don’t connect analysis to company objectives
Depth is the difference between “attempted” and “discussed.”
How Your Overall Day 1 Result Is Determined
Day 1 is marked holistically as:
Pass
Fail
Marginal Pass
Marginal Fail
In practice, Marginal Pass = Pass and Marginal Fail = Fail.
Minimum Required to Pass (Marginal Pass Criteria)
You must achieve:
Yes on at least one strategic issue
Yes on the communication AO
Partial on all remaining AOs
This means:
You cannot miss AOs
You must manage your time across all issues
You must avoid fatal flaws
Fatal Flaws That Lead to an Automatic Fail
These errors can cause a fail even if other AOs are strong:
Missing the big picture (e.g., ignoring constraints)
Not providing useful qualitative or quantitative analysis
Unbalanced analysis (e.g., only quants or only qual)
Missing recommendations or conclusions
Recommending options that violate cash flow or strategic direction
For example, many recent Day 1 cases included cash flow constraints.
If you recommended options requiring more capital than available, you would lose marks for not aligning with the company’s strategic reality.
How to Succeed on Day 1
To pass Day 1 consistently:
Learn how to write deep qualitative analysis
Practice identifying the correct quantitative tool
Understand the company’s strategic direction
Manage your time across all AOs
Avoid fatal flaws
Always conclude and recommend clearly
Day 1 rewards strategic thinking, not technical memorization.
If you need help in your CPA Canada Coaching, please feel free to reach out:
RavGun CPA Academy
https://www.ravguncpaacademy.com/
+1 437 833 9540
