This paper explores common concerns about competency testing as they relate to the certification of high school graduates seeking a diploma in the United States. Competency testing is widespread in the United States, with 40 states engaged in competency testing in at least one grade. In general, and particularly for graduation requirements, the certification of minimum competency is the objective, as fears that the minimum levels defined would become the accepted standards for all students have been discredited. A number of standard setting methods exist to determine standards for minimum competency. Numerous test-centered continuum models have been proposed for competency testing programs, and the most common of these are reviewed. Two examinee-centered continuum models are also described. Several authors have compared standard setting methods, as it is apparent that the standard setting procedures used to arrive at justifiable standards for competency tests vary in method and results. Careful consideration should be given to the choice of any single standard setting method, and the wisest course of action may be to use several procedures to attempt to reach convergence at an appropriate cut score. (Contains 20 references.) (SLD)