The validity of test-based decisions about readiness for a course or a profession depends on the appropriateness of the passing scores used to make the decisions. The interpretation of passing scores, based on judgments about items or examinees, in terms of some standard of performance depends on two assumptions: (a) that the passing score corresponds to the specified performance standard, in the sense that examinees with scores above the passing score are likely to meet the standard and examinees with scores below the passing score are not likely to meet the standard, and (b) that the specified performance standard is reasonable given the purpose of the decision. These two assumptions can be evaluated in terms of the match between the procedures used to set the passing scores and the purpose of the decision, the internal consistency of the results, and comparisons to external criteria. The sources of error in the passing score can be identified by examining these two assumptions.