Findings are reported based on an overall assessment of the impact of the North Carolina mandated competency test on eleventh graders of the class of 1980. The first part of the study examines the extent to which students who failed the first test showed improvement on subsequent testing. The second part studied those students who failed the initial test and passing students with whom they could be compared. It was found that a sample of students who failed initially showed improvement on re-examination and that the gains on the first retest were apparently related to remedial programs on an individual basis or in small group instruction. However, scores on subsequent retests remained fairly stable, the certain groups of students, especially the handicapped, showed little improvement. It was concluded, based on school-to-school differences, that the content of remedial courses is more important than how or how much is taught. It was also determined that neither test failure or success nor involvement in remedial classes affected students' final grade average or discipline status within the school. (MH)