50 Things You Must Know About the CPA Exam - 2010 Edition

2010 Edition Jeff Elliott, CPA Editor, Another71.com ! Copyright © 2010 – Jeff Elliott, CPA All rights reserved worldwide. No part of this e-book may be copied or sold. Table of Contents Introduction Study Strategy 1. What section should I take first? 2. How do you rank the exams from hardest to easiest? 3. I’m thinking about buying some used books from 2007. Any advice? 4. My 18 month window is coming to a close and I’m about to lose credit for one of my passed sections. What if I take my exam, but don’t get my score back for several weeks? Will I lose my credit? 5. I can’t pass BEC! What should I do? 6. Information Technology is heavily tested on BEC and I hate it! Any tips on how to study for IT? 7. What was the main difference between your back-to-back 74s on Regulation and your 92? 8. I can’t pass Auditing! You’re not an auditor – how did you pass it? 9. Did you memorize the different audit reports in order to pass Auditing? 10. What are the areas of FAR that you think makes candidates stumble on exam day? 11. Do you have any nuggets of wisdom aside from the usual mainstream advice? 12. I’ve heard that they are changing the CPA Exam starting in 2010. Should I wait to buy my review materials? 13. What is the best way to study for the CPA Exam with audio lectures? 14. I bought a cram course. When is the best time to watch it? 15. I’m going through my review process and scoring low on multiple choice questions that I was scoring in the 80s and 90s on just a few weeks ago. Any advice? ! Copyright © 2010 – Jeff Elliott, CPA All rights reserved worldwide. No part of this e-book may be copied or sold. 16. No part of this e-book may be copied or sold. How do I know if I’m getting the “hard” testlets? 29. Should I be worried? 25. Is the exam easier than it used to be? ! Copyright © 2010 – Jeff Elliott. Did my answers get saved? 23. What should I do? 24. How long should I study for each section? 18.5 hours and is basically a rehash of everything we learned in college. Shouldn’t BEC be the easiest section of the CPA Exam? It’s only 2. Does your performance on the multiple choice questions have any effect on the simulations that you get? 30. Can I still pass? 21. right? 26. If I have to guess on my exam. My boss keeps telling me how easy I have it now that I can take the CPA Exam on a computer. 28. What is the best strategy for scheduling an exam? 17. Should I be worried? 31. but the computer wouldn’t accept any of it. . what strategy should I use? 32. How many questions on the CPA Exam are pre-test? 27. I’m getting ready to take my first exam. CPA All rights reserved worldwide. Is BEC adaptive? I swear the questions were getting harder each testlet. I just took my exam and found it to be pretty easy. Will this hurt me? 22. My exam ended before I could click “DONE” on my last simulation. What is the best approach for attacking simulations on the CPA Exam? 20. I didn’t finish my second simulation and left several tabs blank. I finished Auditing with 30 minutes to spare. I had computer problems during my exam. What should I expect? 19. I couldn’t get my research tab to work! I thought I found the right text to insert. Ethics Exam 45. I passed my final section of the CPA Exam. I failed again and I’m thinking about throwing in the towel. How long do I have to wait before I can take my state’s required ethics exam? ! Copyright © 2010 – Jeff Elliott. Does this mean I’m borderline or failed? I’m freaking out! Please help! 38. I scored a 74. What does that mean? How do I know if I live in a “NASBA state”? 35. What time of day do scores come out? 37. What does this mean? 41. but it’s gone today. but I took my exam early in the testing window. I had to re-take a section and my old score was there online yesterday.Score Reporting 33. I hate this exam. What is the difference between the “AICPA release” and “NASBA release” of exam scores? 34. CPA All rights reserved worldwide. Should I appeal? 40. How can this be? 39. I sat for my exam on _______. at the same time. When will NASBA send me a confirmation letter? 44. My diagnostic report says that I am comparable or stronger than the average passing candidate in all areas except written communication where I am weaker. yet she received her score in Wave 1 and I didn’t. My friend and I sat for the same section of the exam on the same day. If I am comparable or stronger in 90% of the exam compared to the average passing candidate – how could I have scored a 73? 42. How do I know if my state requires an ethics exam prior to getting my certificate? 46. When can I expect my score? 36. No part of this e-book may be copied or sold. . If I pass. I’ve been at this for too long. I just sat for an exam. I didn’t get my score in Wave 1. I’m done. I see the term “NASBA state” on your website. I received an advisory score and I PASSED! It’s not going to change. in the same testing center. is it? 43. I just passed my final section! I’m DONE! Can I call myself a CPA? 49. Should I order it through my friend? Certification and Licensing 48. I’m licensed. . Should I expect to get a raise or be promoted after passing the CPA Exam? ! Copyright © 2010 – Jeff Elliott. I have my certificate. My friend is an AICPA member and can buy the course at a discount.47. and I’m done! (Right?) 50. CPA All rights reserved worldwide. No part of this e-book may be copied or sold. but it is mostly written by people who have never actually taken the computerized version of the Exam. Jeff Elliott. I see the same questions being asked over and over. Since I started another71. . I hope that I have succeeded in this and that this book helps you in your journey to becoming a Certified Public Accountant. CPA All rights reserved worldwide. I have also included some additional pieces of information that I think will benefit the people who read it. It was my goal to put together a quality resource that will help keep candidates sane through an exam process that could be described as anything but transparent. They simply apply their experience with the paper and pencil version of the exam and rely on second-hand accounts of what the computerized examination is actually like. Another71.Introduction Why should you read this book? This book was written for candidates by someone who understands the ups and downs of navigating the computerized CPA Examination.com. CPA Editor. This book answers those questions. It is a collection of the most-asked questions that I see on a regular basis. I have conversed with hundreds of thousands of candidates both through my site and e-mail. What I have found is that candidates have many questions surrounding different aspects of the CPA Exam that have gone unanswered. No part of this e-book may be copied or sold. I know this because month after month and testing window after testing window.com ! Copyright © 2010 – Jeff Elliott. I know and understand the frustrations and struggles that candidates go through on today’s CPA Exam because I have been there myself. There is a lot of advice floating around out there about the CPA Exam. pensions. . What section should I take first? Different people have their own opinions on this subject. and finished with FAR. My personal advice is to take the “hardest” section first. ! Copyright © 2010 – Jeff Elliott.Study Strategy 1. you could potentially be putting yourself in a position where the 18 month clock is going to expire and you have one shot at passing FAR before you lose Auditing or whatever section it may be. REG is a beast. If there is one section that CPA candidates fear the most. Just when you think you’ve covered it all. then I would call Regulation #1a. Before you know it. as candidates forget that it makes up 40% of your overall exam score. You want your 18 month clock to start after you have passed the hardest exam. and struggle with a few sections along the way. it can be a nightmare. you have to know individual. If you put FAR off until the end. 2. In addition to taxation. No part of this e-book may be copied or sold. FAR is not a fun exam. consolidations. If Financial Accounting and Reporting is the #1 most difficult exam. you have covered everything and it’s time to review and then sit for the exam. CPA All rights reserved worldwide. leases. The reason behind this is the “18 month rule”. in my opinion. I’ve heard it described as “a mile wide and an inch deep”. people who don’t work in tax hate REG. The key to studying for this section is to focus on one subject at a time and chip away at it. You must know bonds. it is Financial Accounting and Reporting. Tax people hate FAR. but you still have to have a working knowledge of it and be able to answer the basic questions on the exam. There is just so much information to know and the breadth of the material can overwhelm candidates. Whatʼs the exam order from hardest to easiest? As stated above. you have governmental accounting and notfor-profit accounting to look forward to. which often gets underestimated. corporate. REG also covers business law and ethics. and partnership taxation really well. For people who are weak in tax. It’s best to get FAR out of the way first. Whatever FAR topic your review course begins with. and inventory – to name a few. start there and work your way to the end.e. With REG. which is generally regarded as Financial Accounting and Reporting. whatever section best fits your background) first so that you have a “quick win” under your belt. Some say to take the “easiest” section (i. He sat for BEC. which is 20% of your overall exam score. REG. I have a friend who is a CMA and a CIA and he took BEC first because it fit his background better than the other sections. then AUD. Gift/Estate tax isn’t tested to the degree that the other types of taxation are. FAR is generally regarded as the hardest section of the CPA Exam. I think that people tend to skimp on the financial management and cost accounting sections because they can be somewhat hard or just plain boring to study. bad idea. leaving you feeling like you’re giving the “best” answer instead of some cut and dry tax calculation or bond amortization. 2008 books were written in the fall of 2007 and you’re taking a 2010 exam.Next is Business Environment and Concepts. No part of this e-book may be copied or sold. I didn’t really struggle with it either or find it as difficult as the other sections. It’s different than the other exams. I was one of them. Finally. I have spoken to people who hate Auditing like I hated BEC. but donʼt get my score back for several weeks? Will I lose my credit? You have to take (and PASS) your exam(s) prior to the expiration date of your 18 month window in order to not lose credit for previously passed exam sections. we have Auditing.” it is far from easy and don’t take it for granted. Candidates also underestimate the coverage of information technology on the BEC exam and it ends up costing them. On the other hand. “easy” is a relative term. Remember. My 18 month window is coming to a close and Iʼm about to lose credit for one of my passed sections. .5 hours) with no simulations that covers topics that you learned in college. ! Copyright © 2010 – Jeff Elliott. 4. This issue is confusing to candidates and I get asked this question a lot. right? People walk into their BEC exam and limp out. Auditing has a different feel to it. What if I take my exam. Some people really struggle with it. This is still the CPA Exam. CPA All rights reserved worldwide. 3. The date that matters is when you take the exam. BEC is the #1 exam section that I get e-mailed about. Iʼm thinking about buying some used books from 2008. Every question seems subjective. It seems like such a benign and relatively short exam (2. and many people share the sentiment. Do you have any advice? That’s a bad. They just can’t seem to pass it. I know people who blew through Auditing with a 95 like it was no big deal. The road to a 68 on the CPA Exam is paved with outdated CPA review materials. It’s odd that I rank BEC as the third mostdifficult because I truly hated BEC. While Auditing is listed here as the “easiest. not when you get your results. Easy. a decent amount of Economics and business structures. ! Copyright © 2010 – Jeff Elliott. I knew enough about monopolies. I did every IT question in the Wiley BEC book the day before the exam and it was fresh in my mind. but that’s not the case. No part of this e-book may be copied or sold. My answer to this is simply my answer for passing BEC myself: Buy a Yaeger CPA Review BEC course. Going into the exam. There's no need to memorize every derivative of the base formulas .just the base formulas themselves.5. I canʼt pass BEC! What should I do? I get this question after every testing window. Not only did I do the questions. In particular. you can algebraically solve for any variable. From there. To save money on the Yaeger CPA Review HomeStudy. respectively. I had those straight in my head and could answer those questions accordingly. oligopolies. I recommend getting the BEC HomeStudy. You would think that I would get e-mailed about FAR the most. Another71. 2. which is exactly what Yaeger has with their main BEC instructor Cindy Simpson and it is why so many people that I’ve come into contact with finally pass BEC after using a Yaeger product. With time value of money calculations. but I also read the explanations to the all of the answers. 4. CPA All rights reserved worldwide. There are several aspects of BEC that are in my opinion a “watered down” version of the CMA exam. 3. I passed BEC with an 80 knowing a lot about IT. you have to know which factor to use depending on if the payments are at the beginning or end of the year. Cost accounting: There are a couple of formulas to memorize and I would recommend memorizing the base formulas and then writing them down on your scratch paper. You want both a CPA and a CMA teaching you BEC. . To expand further: 1. etc. or A71PART to save $100 on a single section of their course. and enough about financial management and cost accounting to get it done. to be dangerous. enter the discount code A71FULL to save $355 on their complete course.com’s Club 75 members save an additional $100 and $50 on the complete and single HomeStudy courses. I thought “You know…this really isn’t that bad…” and also thought the same thing about 1231. I absolutely hated these subjects and basically refused to study them and somehow thought that I could pass REG with this approach. so I like to mix in some application (i. and like-kind exchanges. and 1250 assets like I should. I honestly cannot think of more boring subjects than AMT.e. If possible. 1231 assets. Information Technology is heavily tested on BEC and I hate it! Any tips on how to study for IT? IT topics are a pain for an accountant to learn. I understand why they test them on the CPA Exam. and 1250 assets – as well as like-kind exchanges. 1245. I think it’s because I’m an active learner and the Yaeger DVDs cater to people who learn this way. up until getting the Yaeger HomeStudy and forcing myself to learn AMT and 1231. ! Copyright © 2010 – Jeff Elliott. 1245. you have to be able to answer the questions. They test you on IT topics that you will probably never need to know and couldn’t care less about as an accountant. work these questions as close to your exam day as possible so that they will be fresh in your mind. I found that the best way to learn the material is actually very simple: do every single IT question in the Wiley book. even for the CPA Exam. What was the main difference between your back-to-back 74s and your 92 on Regulation? If I could point to one thing (besides getting the Yaeger REG HomeStudy). . When I passed BEC and had to tackle the IT topics head-on. so it’s best to figure out a way to learn the material. Get a Wiley CPA Review BEC book (you can get one for around $30 with free shipping through a link on my site under the “Discounts” page) and work every IT question at least once (twice if you have time) and read every answer – both the correct answer as well as the three answers that are incorrect. Studying for the CPA Exam can be yawn-inducing. CPA All rights reserved worldwide. this sounds very simplistic but it was one of the keys to my success on BEC after failing it three previous times. enough is enough – I’m going to study AMT and 1231. but the examiners go overboard with the depth of the IT questions. Reading about IT topics is an extreme bore. It makes the time go faster. Regardless.” Let me tell you. After watching the AMT lecture. the Yaeger DVDs made it palatable. 1245 and 1250 assets. Again. it would be that I finally said “Okay.6. No part of this e-book may be copied or sold. 7. Yet. working MCQs) as I learn the concepts. management assertions. you do need to know the different language that separates one audit opinion from another. I referred back to my mnemonics constantly and answered the questions accordingly. as well as the language included in the various exceptions – including how each one varies with regard to the paragraph order and structure. so you must do this quickly – i. and you will be able to successfully answer the questions on the exam. nor did I know the slightest thing about auditing prior to passing. I derived my answers by frantically writing down all of my mnemonics on my scratch paper prior to beginning my exam. During the exam. Did you memorize the different audit reports in order to pass Auditing? No.8. The questions on Auditing can be very subjective and you find yourself staring at two answers that both seem correct. I don’t think it’s necessary to memorize the audit opinions – even the unqualified opinion. eventually you will build a base of knowledge about auditing on subjects like internal control where mnemonics don’t really work that well. My NTS was running out and I had to take it or lose it. so I took Auditing the same day as another exam I had studied for (I ended up failing that one too). within 3-4 minutes and then get started. but you do need to be very familiar with them and be able to read a sentence in a multiple choice question on exam day and be able to identify what audit opinion has that particular sentence and in what paragraph it’s found. keep in mind that if you take too long. The fact that I scored a 69 the first time still baffles me to this day. 9. I memorized everything that I could – the steps to an audit. No part of this e-book may be copied or sold. ! Copyright © 2010 – Jeff Elliott. . There are also a number of topics such as internal control that you can only learn by doing countless multiple choice questions. I’ve never done an audit in my life. your exam session will lock. I scored a 69 on my first try without really studying. CPA All rights reserved worldwide. With that said. etc. You don’t need to memorize the audit opinions word for word. because I didn’t deserve a score that high. With that said. I passed Auditing on my second try with a 79 through memorization. If you work enough questions. You have to choose the “most correct” answer.e. I canʼt pass Auditing! Youʼre not an auditor – how did you pass it? Auditing scared me to death. total revenue goes up. Do you have any nuggets of wisdom aside from the usual mainstream advice? AUD – Learn tick marks. You’ll be glad that you did. so total revenue goes up and vice versa. the increase in price is greater than the decrease in demand. Most people are generally unfamiliar with NFP accounting and it’s usually the last topic covered in their review course. Candidates tend to glance over these areas and maybe work a few questions in hopes that they’ll be able to identity some familiar nugget on exam day and don’t actually do their due diligence in preparing for FAR. Bonds and leases are very similar and they are also a pain to study. due to losing my FAR credit. Be able to calculate it given several variables and know that when demand is elastic and you raise the price. FAR – Do you understand Dollar Value LIFO (or at least know how to quickly calculate it)? ! Copyright © 2010 – Jeff Elliott. you should Google it and read up on tick marks so that you have a basic understanding of what they are and how they work. . McMillan’s (Yaeger CPA Review instructor) lecture on the topic. This is based on my own experience with studying for FAR and needing to pass it not just once. If a candidate runs out of study time and they aren’t able to re-schedule their exam.10. BEC – Know price elasticity of supply and demand inside and out. then preparation for this section usually falls short of what is recommended. They require a decent amount of studying and many candidates just “give it the old college try” on exam day and come up short because of it. When you lower the price. What are the areas of FAR that you think makes candidates stumble on exam day? The area where candidates cut the most corners while studying for Financial Accounting and Reporting is the area of bonds and leases. but twice. People treat bonds and leases on FAR like candidates do AMT and 1231 assets on REG. total revenue goes down. I have also talked to thousands of candidates since I started my blog and I feel confident in saying that bonds and leases are where candidates tend to get lazy while studying for this section of the exam. it “clicked”. All of a sudden. Another area would also have to be not-for-profit accounting. CPA All rights reserved worldwide. When demand is inelastic and you raise the price. as NFP accounting can make up 10% of your overall score. which can be very detrimental to their exam score. No part of this e-book may be copied or sold. 11. I didn’t really understand price elasticity of supply and demand until I listened to Dr. If your review course doesn’t cover tick marks. Personally. I attended a meeting in New York City with some members of the AICPA Examination Team and they used the term “bilingual” to describe a candidate’s need to know both GAAP and IFRS. I can’t drive and focus on audio lectures at the same time. 13. No part of this e-book may be copied or sold. While I can’t drive and listen to CPA review audios. CPA All rights reserved worldwide. will go from having no simulations or written communication sections to having several written communication problems where candidates will be expected to write essays over BEC topics. Don’t study hard for tax and law only to come up short on Regulation because you didn’t study ethics like you should. BEC however. Iʼve heard that the CPA Exam is going to change. the section of BEC that tests internal control for Information and Technology will now be testing on the AUD Exam. I also found that they are an excellent study tool at work. Auditing and Attestation will absorb the ethics portion of what is currently tested on Regulation. FAR and AUD will change the most. 12. I also listened to them for about thirty minutes at night before going to sleep. . Regulation will not change in a material sense. You can do mundane tasks like work on a spreadsheet for your boss and listen to CPA review lectures at the same time. ! Copyright © 2010 – Jeff Elliott. It may surprise you how many ethics questions you will see. Does this affect me? It only effects you if you will still be taking exams in 2011. who is now a CPA. had a two hour commute round trip each day and loved the Yaeger MP3 lectures.REG – You shouldn’t underestimate how important the ethics topics are for Regulation. In addition. The purpose of audio CPA review lectures is to allow you to study while you do other things such as drive or exercise. What is the best way to study for the CPA Exam with audio lectures? Audio lectures are an interesting product and some people can use them effectively and some people cannot. I found that I could exercise while listening to them. Aside from losing the ethics portion to Auditing and Attestation. My friend on the other hand. Financial Accounting and Reporting will begin testing IFRS. If you have three legal pads of FAR notes. This is for certain: all of those hours spent furiously writing FAR notes on those three legal pads will be wasted if you don’t review your notes. So – how should you review them? Option 1 – Read each page a few times. When should I watch it? I would allow two weeks for your final exam review. If you miss an MCQ – write it down. this could seem like a daunting task and you might not even have time to do it. This is fine – but if your notes are voluminous. so plan your time accordingly. If you follow this plan. CPA All rights reserved worldwide.14. Taking notes isn’t for the learning part of your CPA Exam studying. you will still have close to one full week to wrap up your review. This should take about a week to complete. If you have a full CPA review course like the Yaeger HomeStudy or whatever course you use. Some of the CRAM videos are longer (FAR is around 20 hours) than others (BEC and AUD). While studying for the exam. I recommend that you do something that you won’t want to do and is something that people who haven’t taken the exam for a very long time might even tell you not to do. If you think you might forget something in 3 weeks – write it down. Any advice? This is where taking “insane” notes comes into play. I bought a cram course. make sure you get all of the way through it and do all of the questions you’re assigned first. Maybe you even could use THREE weeks to review. You might as well not even take notes if you’re not going to intensely go over them before your exam. ! Copyright © 2010 – Jeff Elliott. In the final week before your exam. Then. but it’s MY recommendation: re-write your notes. It’s for your review. Iʼm going through my review process and scoring low on multiple choice questions that I was scoring in the 80s and 90s on just a few weeks ago. If your instructor points something out – write it down. I highly (and I can’t recommend this highly enough) recommend taking notes over everything you learn while reading and watching lecture videos and answering questions. Take lazy notes and you’ll pay for it when you do your final exam review. You have to make that decision. Take great notes and they will be your best friend in the days leading up to the exam. 15. I highly recommend using a cram course like the Yaeger CRAM DVD and watching it once all the way through and then working all of the questions that Yaeger includes with their “minimum questions to do” handout. you’re ready to review. No part of this e-book may be copied or sold. . However. I scored a 92 on REG doing this. Exam Day 16. Once you have your fresh set of notes. Of course you risk the testing centers being full if you’re trying to sit for your exam at the end of the window. What is the best strategy for scheduling an exam? My recommendation is to schedule your exam for a time in the not-so-distant future. . but only schedule your exam until you’re actually three weeks from being ready. By taking a sentence or paragraph that you scribbled in January and re-sculpting it into a bite-size review nugget in late February. so take that into consideration as well. but the temperature will still be bearable and you’ll still be able to focus. Plus. If it’s the FAR exam you’re studying for. you’re on track and not behind. Graph paper is a great way to make a slick set of review notes. the added pressure of taking the exam in three weeks when you’ve prepared like you should will actually help you. but it is WORTH IT. you’re up a creek with no paddle on the horizon. You be the judge. like me). I chose graph paper because I could easily split the page down the middle and make two columns and section off each little area according to topic. This is time consuming and tedious. Okay. then schedule it for six weeks from now and be done with it. CPA All rights reserved worldwide. You’ll feel the heat. so I know it works.how much information are you really absorbing? Are you studying your notes or just scanning them? Option 2 – Re-write your notes. but not be anxious. That way. ! Copyright © 2010 – Jeff Elliott. you are forcing yourself to digest the information again. By re-writing your notes. It somewhat depends on what type of person you are. If you are disciplined and schedule your exam six weeks from now and know for a fact that you will consistently study every day like you should and stay on target. Three weeks roll by and you’re still on chapter one. I took my volumes of legal pads and re-wrote my notes on graph paper. Let’s say that you’re a procrastinator (again. if you’re like me and prone to procrastination. review them several times – including twice the day of your exam. I didn’t re-write my notes for FAR due to time constraints and scored a 76. When I re-wrote my notes for REG. No part of this e-book may be copied or sold. then don’t schedule your exam until you’re about three weeks out. you’re relearning the material and you stand a much greater chance of it sticking with you on exam day. You set a goal of taking the exam in six weeks. Set your goal for six weeks. now it’s time to get serious – EXCEPT you only have three weeks left. ! Copyright © 2010 – Jeff Elliott.Procrastinator #1: 1. Schedules exam three weeks from now – feels a little “healthy” pressure 6. Not me. Unless you can’t stay awake in the afternoon. It also allows you to eat lunch around 11am. Repeat Procrastinator #2: 1. Plus. or your work schedule won’t allow it. you also missed out on one last review. Wants to take exam in six weeks. Gets serious and starts to study like he should 4. Finishes review materials and goes over everything for three weeks 7. No part of this e-book may be copied or sold. Freaks out and reschedules exam and gets hit with reschedule fee 4. you run the risk of oversleeping and being hungry during the exam. CPA All rights reserved worldwide. What should I expect? Let’s first discuss the night before your exam. but doesn’t schedule 2. Adjust accordingly to your unique schedule or background. Iʼm getting ready to take my first exam. Spends the first three weeks doing nothing 3. set your exam for 1pm. I recommend studying until around 11pm and then going to bed. If you take your exam at 8am. How long should I study for each section? My recommendation. Passes I am also a big fan of the 1pm time slot for taking the exam. it gives you the option of going over everything again in the morning (like your notes) before the exam. Schedules exam in six weeks 2. giving your short term memory one last boost. 17. which is based on a 20-hour study week: FAR in 6-8 weeks REG in 4-6 weeks AUD in 3-4 weeks BEC in 3-4 weeks This is just a general suggestion. I’ve heard people say that they don’t study the night before their exam…that they go see a movie or whatever. Nears completion of CPA review materials 5. I’m all over my weak areas and trying to glean as much info from my review materials as I can. For one. Spends three weeks doing nothing 3. . 18. The day of your exam (assuming you have scheduled your exam for 1pm like I recommend). Review and do MCQs for 2 hours (9-11am). This goes without saying. Once you’re at the testing center. which is a bad state to be in. Too little and you’ll die in the middle of testlet two. be it one cup like my co-worker or a whole pot like myself – whatever amount of caffeine you normally consume. You just need to click around until you find it. They handle many different types of exams. then you need to be absorbing as much quick information as you can. but having your short term memory full of material that you’re weak on could very well come in handy during your exam. but an “all nighter”? Bad idea. I can deal with a ticked off Prometric lady if it means that I got to review partnership basis calculations one last time while sitting in my car. I would sleep in until 8am or so…get up and eat a decent breakfast and drink your normal allotment of coffee/caffeine. and worse – you’ll have to use the restroom ten questions into testlet one. You’ll be sitting there half awake staring at the screen reading. If you consume caffeine like it’s an IV stuck in your arm. Go over your notes again and then dive into working multiple choice questions over your weakest topic. and rereading the question and wishing this nightmare were over so that you could go home and sleep. Too much and you’ll be shaking. Knowing the concepts is key. CRAM those little nuggets of information inside your head that you didn’t know before and you won’t know one week from the day of your exam – but you need to know them NOW. The Prometric people want you at the testing facility thirty minutes in advance so that they don’t get behind. If you’re super weak on an important area. and re-reading. and re-scheduling is not an option. When you walk into the Prometric facility. By all means – never pull an “all nighter” on the CPA Exam. If you don’t know the material by the day of your exam. they’ll call you back and you’ll give ! Copyright © 2010 – Jeff Elliott. then I wouldn’t even spend the time trying to pick the right answer. No part of this e-book may be copied or sold. You should study from 9am until 11am. I’ve been tempted to do this myself. . when enough is enough. CPA All rights reserved worldwide. it’s time for a quick bite of lunch and you’re out the door. they’ll put you in a waiting room and you’ll likely sit across from someone taking their nursing boards or something like that. Let’s face it – if you’re thirty minutes early or five minutes early. but exam day is not the day to switch to decaf. it’s time to study your notes one last time. then you must be smart about your caffeine consumption on exam day. This isn’t college and this isn’t a final – this is the CPA Exam and not getting enough sleep the night before is the perfect recipe for getting OWNED on exam day.There comes a point though. so I’ve always erred on the side of walking in late. Eventually. Then. and move on. read it. it doesn’t make one bit of difference to you. CPA All rights reserved worldwide. It was a painful learning experience for him. I’m going to write you up. but I didn’t suffer any actual consequences from it. He was not happy. and AUD each have three multiple choice testlets with 30 questions each. In this instance. The exception to this is if you feel yourself falling asleep and can’t concentrate. as not only did he not get to take BEC that day. I made the mistake of using a credit card for my 2nd form of ID only to realize that I had signed it “see photo ID” as I stood there getting checked in. but the lady administering the exam made me feel like it was. but just remember that you need two of them and both must be SIGNED). My adrenaline was enough to get me through without crashing. hit accept. . It’s something that’s being considered. he had to wait until the next window AND had to pay for it again. There were times however. but it’s better than nothing. sleepiness was usually not an issue for me. Currently. Of course. When taking the exam. She documented that my second form of ID was not signed. It wasn’t a disaster.” I spent the first 15 minutes of Financial Accounting and Reporting fuming about the ID mess and was unable to focus. which was unfortunate. I had one candidate e-mail me because he had been locked out of BEC because he took too long to begin the exam once he had entered his launch code. Regulation’s multiple choice testlets only have 24 questions each. After I finished whatever testlet I ! Copyright © 2010 – Jeff Elliott. I’ve always been a slow exam taker. you have 10 minutes to begin the exam. “If you go out there and sign that card. so every second counted for me. In a panic. Granted. FAR. I told her that my other ID was in my car (which wasn’t entirely true) and I would be right back. the time spent away from your computer is worth it if getting up will give you a “second wind” and help you to keep attacking the exam. REG. My exam session was still valid. Don’t make the mistake of thinking that you can proceed to write a dissertation consisting of all of your Auditing mnemonics before you begin. BEC does not have simulations. I recommend not taking breaks if you can avoid it. and dive in. Once you’re done with the multiple choice questions. when I got tired and simply could not focus and needed to take a break. Read the screens. but that could very well change in the future. Once you enter your launch code into the computer (which comes from your NTS so don’t forget it!). I personally have always used the noise-blocking headphones that they provide you. FAR.them your IDs (read your NTS about what types of IDs you can use. No part of this e-book may be copied or sold. BEC. they don’t block out everything (like the phlegm-hacking guy sitting next to you). She said. You have ten minutes to get through the introduction screens. Uh oh. and AUD have two simulations. but both simulations count. To recap: both simulations count but certain elements could be pre-test. Finally. and went into the restroom. Either way. try to fill in as many blanks as you can. Second. No part of this e-book may be copied or sold. the least important part of a simulation is the research tab. don’t leave anything blank. The only exception is that one of the written communications is strictly pre-test. take a wild shot in the dark and put something in the blanks that require you to type your answer. Then. Then. The written communication tab is the single-most important tab in the entire simulation. and it’s important to try to insert an answer if you have the time. What is the best approach for attacking simulations on the CPA Exam? First and foremost. Simulations 19. The other one is pre-test and they are considering using it on a future exam. you won’t get the points so you might as well put something in the blank. Out of the two written communications that you complete. ! Copyright © 2010 – Jeff Elliott. The research tab is still worth something though. I slammed my drink and literally did 20 jumping jacks. read the introduction to the simulation carefully. If you’re on your second simulation and there is one minute left. but it worked and saved my life on exam day. If you leave it blank. if there are still a few seconds left. you also will not get points for it. you have a fighting chance because one of them is correct. At least with these types of questions. This sounds ludicrous. always do the written communication section first. go through and fill in all of the answer blanks that contain a drop-down menu. you’ll have to put it in your locker). only one of them will count toward your exam score. you simply won’t get points for it. Some of the tabs within each simulation could be pre-test. Be sure you understand what they are asking you to do. Whatever you do. They only count correct answers and will not penalize you for inputting a wrong answer.was on. From there. you just don’t know which one. Remember: only one written communication counts. grabbed a caffeinated drink from my coat pocket hanging in the hallway (in the summer. I got up. One of your two written communication tabs is worth 10% of your grade. CPA All rights reserved worldwide. but it’s the last priority when the clock becomes a factor. . If you answer incorrectly. 20. I almost had a meltdown in the exam room. It all depends on how well you do on the multiple choice questions. After my experience with the research tab on the first simulation. There were simply too many answer blanks and not enough clock. Did my answers get saved? Yes. I still passed (76).org. This happened to me on my final exam (FAR) and I left several tabs blank because I couldn’t get them answered due to time constraints. 21. respectively). No part of this e-book may be copied or sold. I didnʼt finish my second simulation and left several tabs blank. you can still pass. While my research tab on my FAR exam wouldn’t work for me. I had no trouble with it on Regulation. 22. If you do well on the MCQs. I could see my 75 slipping to a 74 right before my eyes. People ask this question quite often. I went into survival mode and did the written communication first and filled out whatever tabs I could. I barely had 20 minutes to complete the whole thing. then you’ll have a little cushion on the simulations and not finishing your second simulation may not be such a huge disaster after all. ! Copyright © 2010 – Jeff Elliott. I was seriously crunched for time. . In my final two exams (REG and FAR). I didn’t get to click “DONE” on my final simulation and I passed them both (92 and 76. Will this hurt me? Did you miss the few points that the research tab is worth? Yes. but the computer wouldnʼt accept any of it.cpa-exam. I couldn’t find a single answer that the computer would accept. I strongly recommend that everyone get a feel for the research tab functionality at www. Is it a disaster? No. I didn’t even have enough time to randomly put in answers. On the first simulation. I left both of the research tabs blank and I still passed. I didn’t even bother trying to answer the research question on the second simulation. When I moved on to the second simulation. CPA All rights reserved worldwide. they were saved and there is nothing to worry about. I passed FAR and left both research tabs blank on my simulations. I wouldn’t worry too much about it. I couldnʼt get my research tab to work! I thought I found the right text to insert. My exam ended before I could click “DONE” on my last simulation. Can I still pass? Yes. Did your computer problems potentially keep you from passing? If so. if you take BEC lightly or take the material for granted – it will own you on exam day. Ironically. If you choose to re-take your exam (and they allow you to do so for free). This is a rigorous exam that will force you to answer questions under pressure unlike any exam that you took in college. Should I be worried? Not at all.5 hours and is basically a rehash of everything we learned in college. CPA All rights reserved worldwide. The time to complain to NASBA about testing center mishaps is before you get your score. Do not assume that BEC is the weak link or “gimme” on the CPA Exam. BEC is no joke. then you will have to live with whatever score you get. What should I do? You have a decision to make. No part of this e-book may be copied or sold. you covered most of the material in college. Even still. e-mail cpaexam@nasba. let me preface this with saying that people take BEC everyday and pass BEC like it’s no big deal. if you finish AUD with time to spare – you’re normal. Sure. so prepare accordingly. Now. she had only seen two candidates take the full allotted time. ! Copyright © 2010 – Jeff Elliott. but this isn’t a college final. I took my sweet time during the multiple choice questions and then with the simulations and I still finished the exam with 30 minutes to kill. I asked the lady at Prometric if this was normal and she said that in all of the Auditing exams that she’s administered. So.org and they will check your exam log to verify that you did indeed have computer issues. I had thirty minutes to spare. . let’s recap: I am a very slow test taker. Shouldnʼt BEC be the easiest section of the CPA Exam? Itʼs only 2. 24. However. you will never know what you actually scored on your exam. I finished Auditing with 30 minutes to spare. right? Wrong. If it was just a 5-15 minute interruption and was more annoying than anything and didn’t materially affect the outcome of your exam. 25. I had computer problems during my exam. Now. That type of mentality will net you a low score on exam day. My second time to take auditing was also the time that I passed auditing.23. you are given the most amount of time from the AICPA for the exam that takes candidates the least amount of time to finish among the three exams that contain simulations. I tend to go back and make sure that the answers on my testlet haven’t changed because I was so scared of failing. Does your performance on the multiple choice questions have any effect on the simulations that you get? No – they are completely independent of each other. If you find the questions in testlet two and three so easy that they are almost “too good to be true”: be worried. Otherwise. You can also go from medium to hard and back down to medium if you perform well on your first testlet but not as well on your second testlet. and AUD all start out on medium difficulty. Is BEC adaptive? I swear the questions were getting harder each testlet. REG. 29. The questions are more “wordy” and more involved. and AUD are pretest and up to 14 MCQs on Regulation are pretest questions as well. sweet. How many questions on the CPA Exam are pre-test? Up to 20% of the multiple choice questions on the CPA Exam are pretest. From there you can progress to “hard” if you do well on your first testlet. out of nowhere in testlet two – it’s like all of a sudden they started throwing “real” questions at you.26. Then. This means that up to 18 questions on FAR. The questions may have seemed harder as you went along. you stay on medium. but it was an illusion. This is a good indication that you did well in testlet one and have earned a hard testlet in testlet two. so your performance on the MCQs has no effect on what simulations you draw during the exam. 28. The medium-difficulty testlets tend to be short. Currently BEC questions are not adaptive. I get this question a lot. Pretest questions simply do not count toward your score. . CPA All rights reserved worldwide. How do I know if Iʼm getting the “hard” testlets? FAR. The clue to whether or not you’re getting the hard questions in testlet two and three is “wordiness”. but they may use them as “live” questions in the future. Say that you start out on testlet one and the questions aren’t that difficult and could even be described as “easy" and you’re progressing at a pretty good clip. 27. and to the point. BEC. ! Copyright © 2010 – Jeff Elliott. No part of this e-book may be copied or sold. actually. The simulations are not adaptive. those who are successful on the exam rarely leave the testing center describing their exam as easy. Based on my experience in talking to CPA Exam candidates. With that said. everyone is different and it’s entirely possible that you found the exam to be easy and scored very highly. according to the Yaeger CPA Review instructors. Simpson’s statement was correct. CPA All rights reserved worldwide. People who study hard and know their stuff usually comment that the exam was tough in some parts. you have to be cognizant of the clock. I went back and tallied up the percentages of the correct answer letters. Five minutes too long spent on a frustrating MCQ is five minutes that you’re cheating yourself on a simulation. No part of this e-book may be copied or sold. According to Yaeger CPA Review instructor Cindy Simpson. I’m sure that there are people out there who studied hard and the exam felt easy to them. This is not a common occurrence. particularly on a question involving a calculation. Ms. Simpson recommends working from the bottom answer (“D”) up. When it comes down to it and you have no choice but to guess.30. If I have to guess on my exam. If you found the exam to be easy it’s likely due to you encountering three “medium” testlets which indicate that you weren’t scoring well enough for the “hard” testlets. which is why Ms. you should probably be worried. They end up scoring in the 80s and 90s. The reason for this is because the exam administration team know that “A” is the first answer that you will look at. you can’t come up with an answer that matches the choices no matter how much time you spend on it. however. the least correct answer is “A”. With each exam (with the exception possibly being Auditing). If you must guess – choose “B” or “C”. 31. . Should I be worried? Yes. so they’ll throw a seductive looking wrong answer in that space. in the heat of the CPA Exam. what strategy should I use? Sometimes. you need to choose “B” or “C”. but overall it was not that bad. “B” and “C” were correct approximately 30% each. “A” and “D” were only correct around 20% each. I just took my exam and found it to be pretty easy. but it’s usually the most attractive incorrect answer. Keep in mind that I’m only speaking in general terms. I personally tested this theory after working 100 or so multiple choice questions one night. ! Copyright © 2010 – Jeff Elliott. There’s Sarbanes-Oxley. No. Couple this with the fact that up to 20% of the questions on the exam are pre-test and don’t count and toss in two case-based simulations complete with research tabs. What is the difference between the “AICPA release” and “NASBA release” of exam scores? This is one of the most confusing aspects of the score release process for candidates. . the harder your questions get. They think it’s “easy” now because it’s tested on a computer and offered more than twice a year and candidates only need to study for one part at a time. The better you do. Is the exam easier than it used to be? This is a recurring question that I get. IT. My boss keeps telling me how easy I have it now that I can take the CPA Exam on a computer. For some reason. who passed the exam under the paper and pencil method. Score Reporting 33. The majority of states use NASBA to represent them in the score release process. older CPAs. No part of this e-book may be copied or sold.32. the breadth of information that candidates must study for the computerized exam is greater than under the old method. CPA All rights reserved worldwide. and more complex standards that are a result of a much more tightly-regulated business world. and a strong case can be made that today’s exam is harder than the paper and pencil method. like California and Illinois. ! Copyright © 2010 – Jeff Elliott. I think we should all just call it a draw and settle on the fact that the CPA Exam is one of the hardest professional examinations in any industry. The actual exam day experience itself was more stressful under the paper and pencil method because you had to sit for all four parts over two days and were in a crowded room taking the exam. I think it’s partly due to jealousy (as they reflect back on the 2 days of misery that they experienced) and also partly due to ignorance. CPA Exam scores are first released by the AICPA to the states. Most candidates can check their scores online regardless of who represents them in the score release process with the exception of a few independent states who still utilize snail mail to inform candidates of their scores. However. Let’s also not forget that the computerized exam is adaptive. see the need to belittle the exam experience of those who have taken it more recently. it’s just different. the computerized exam isn’t easier than the paper and pencil method. Some states. report the scores for candidates in their respective jurisdictions on their own websites. Everything in the score release process is completely dependent on the AICPA to get things rolling. 34. whatever the case may be for the particular state. Ex: July/August testing window: -If you take your exam July 5. simply go to NASBA. they release them within 24 hours – especially California.org ! Exams ! CPA Exam ! State ! Scores. If there is no place for you to enter your information. I sat for my exam on _______. NASBA. who represents the majority of the states. To find out if your state is a NASBA state. 4. The AICPA releases scores to the states. I see the term “NASBA state” on your website. No part of this e-book may be copied or sold. When can I expect my score? CPA Exam scores come out in two waves from the AICPA: Wave 1 and Wave 2.org to handle the score release process for the candidates in their jurisdiction. . you will be in Wave 1. What does that mean? How do I know if I live in a “NASBA state”? A NASBA state is simply a state that uses NASBA. releases scores online usually within 24-48 of the AICPA releasing scores. then you are in a “NASBA state”. then your state releases independently of NASBA and you need to go to your state board of accountancy website to look at how they handle score releases. CPA All rights reserved worldwide. 35. NASBA only releases scores in the evening between 8pm and midnight Central time. As of this writing. Usually. Independent states who release their scores after NASBA will do so either via the internet or snail mail. 2.This is how the score release process works: 1. Wave 2 occurs in the 3rd month (the non-testing month of the quarter) and scores come out starting around the 12th-14th and conclude approximately ten days later. States that report scores independently and do so online (such as California and Illinois) generally get scores out very quickly after the AICPA release. 3. If there is an area for you to enter your date of birth and section ID number. assuming you don’t get a new simulation on your exam ! Copyright © 2010 – Jeff Elliott. Wave 1 begins around the 15th day of the second month in the window and concludes around the 22nd or 23rd. No part of this e-book may be copied or sold. but I took my exam early in the testing window. you are still considered Wave 1. You very well could be borderline or failed. Bottom line: if you want your score in Wave 1. it doesn’t mean that your score is borderline or that you failed. The wave in which you receive your score is not indicative of your performance on the exam. Ex: January/February window – in general. it varies and is completely up to their discretion. Wave 1 is from the first day of the first month in the testing window through the 7th of the second month in the window. It doesn’t mean that they will get their scores in the first wave – it just means that they are eligible. What time of day do scores come out? For the independent states. You can check your score all day if you want (it’s ok – I used to hit “submit” all day too). If you sit for the exam on February 7. This is not an exact science. I didnʼt get my score in Wave 1. CPA All rights reserved worldwide. which will automatically push you into Wave 2. NASBA now releases scores in the evening around 9pm Eastern. you will be in Wave 1. If you sit February 8. There have been some instances when (using the example of the January/February window) February 8 candidates will still get their scores in Wave 1. but they’re not coming out until 9pm Eastern or later. Wave 1-eligible exams will be from January 1 through February 7. but rather a general guideline. but getting your score in Wave 1 or Wave 2 has nothing to do with it. you will be Wave 2 regardless of whether or not you get a new simulation Wave 1 candidates are all candidates who are eligible to receive their scores in the first wave of CPA Exam score releases. assuming you don’t get a new simulation on your exam -If you take your exam on August 8 or later.-If you take your exam August 7. 37. your best chance is to sit before the 7th day of the second month in the window. you are likely Wave 2. ! Copyright © 2010 – Jeff Elliott. The likely reason you missed out on Wave 1 is due to you getting a brand new simulation. Does this mean Iʼm borderline or failed? Iʼm freaking out! Please help! If you didn’t get your score in Wave 1. . 36. My friend and I sat for the same section of the exam on the same day. Secondly. I had to re-take a section and my old score was there online yesterday. . CPA All rights reserved worldwide. but I don’t recommend it. yet she received her score in Wave 1 and I didnʼt. No part of this e-book may be copied or sold. The process takes them that long. I seriously considered it. As someone who scored back-to-back 74s and lost my FAR credit as a result. never tested) simulation on your exam. but the most likely reason is due to you getting a brand new (and thus. 41. but itʼs gone today. Buy one and get back in there and take it soon. 40. If I am comparable or stronger in 90% of the exam compared to the average passing candidate. at the same time. I scored a 74. you can do whatever you want. which according to my interview with the AICPA (see appendix). For one. As rough as a 74 is. I recommend just sucking it up and taking the exam again. What does this mean? Good news! It means that they are likely updating the score database and that scores will be coming out relatively soon. They stated that in 2008 zero scores were changed as a result of an appeal. A cram course would serve you well in this case. automatically causes a candidate’s score to be pushed to Wave 2. in the same testing center. you could apply to sit for the exam again AND get your score back before they even begin to look at your exam. I knew the chances of getting my grade changed were between slim and none. but in the end. 39. My diagnostic report says that I am comparable or stronger than the average passing candidate in all areas except written communication where I am weaker. and I can certainly sympathize with it. apparently.38. how could I have scored a 73? I received this question after the April/May 2009 testing window and it just goes to show ! Copyright © 2010 – Jeff Elliott. How can this be? It could be for a number of reasons. I decided that it wasn’t worth it. Should I appeal? In short. The AICPA would later confirm my suspicions in my interview with them (included in the appendix). remember) sections puts you behind the 8 ball. My decision to stick with the exam came down to this: 1. with regard to the rest of the exam.you how critical the writing portions of the simulations are. In short. You should be used to this already. you can still pass. I received an advisory score and I PASSED! Itʼs not going to change. so to speak. Iʼve been at this for too long. I would miss out on opportunities and be bypassed ! Copyright © 2010 – Jeff Elliott. I passed my final section of the CPA Exam. They do this to release the scores quickly with the caveat that they are subject to review. it would haunt me for the remainder of my career being an accountant who wasn’t a CPA. actually. I was there several times. Instead of directly sending you a diagnostic report like they do when you fail a section. in addition to whatever literature they want to send you. they send all of the information to your state board of accountancy. . While this does not mean that they have never changed. I’ve been there. is it? Some of the independent states use an advisory score when scores are first released. I would always regret quitting the CPA Exam and it would bother me for the rest of my life. as evidenced in this instance where the candidate scored a 73 despite doing well on the rest of the exam. CONGRATS! 43. 42. Once you pass your final section and get your score online. I hate this exam. I failed again and Iʼm thinking about throwing in the towel. In addition. 44. Over the course of three years. No part of this e-book may be copied or sold. after passing your final section. which in turn will pass it on to you. but losing up to 10% of your grade makes passing even more difficult. You have to really do well on the MCQs and other areas of the simulations to overcome a poor performance on the written communication that they happen to grade. CPA All rights reserved worldwide. however. expect to wait a good 4-6 weeks before you receive something official in the mail. Bombing the written communications (they only actually grade one. Yes. I have yet to hear of one changing. When will NASBA send me a confirmation letter? Welcome to the waiting game. As a father of young kids. I would have trouble telling my kids to not give up when they struggled with something when I myself threw in the towel because I couldn’t handle the adversity. 2. you’re not studying. it’s no wonder why you’re struggling. the frustration I was experiencing now would all be a distant memory. How do I know if my state requires an ethics exam prior to getting my certificate? Some states don’t have an ethics exam requirement. Do your review materials match your learning style? Every course is different and different people learn different ways. . for lack of a better word. Honest evaluation of your schedule. 46. Did you give 110% or was it more like a 65% effort? 2. If you’re not studying 20 hours a week. Honest evaluation of yourself. I decided that while the temporary failure and humiliation from not passing sucked. Your best bet is to contact your state board of accountancy directly. Honest evaluation of your review materials. or simply pick up the phone and ask them what is required. three years from now when I had “CPA” next to my name. You need to do an: 1. No part of this e-book may be copied or sold. Some states have their own ethics course. If I pass. Be SURE to check with your state and find out what course they require. You need to figure out a way to work it in. if any. Quitting is not an option for you. while others just ! Copyright © 2010 – Jeff Elliott. you can go ahead and order the ethics materials that your state requires and get it out of the way. so it’s time to figure out what the problem is and fix it. Are your review materials up to date? If you’re trying to get by with old materials. Ethics Exam 45. They will point you in the right direction. CPA All rights reserved worldwide. The good news is that while you wait. Iʼm done. 3. I just sat for an exam. 3. How long do I have to wait before I can take my stateʼs required ethics exam? The bad news is that you have to now sit around and wait to see if you passed. Many states use the AICPA’s ethics course that they sell for around $130 or so. It’s time to come clean – at least to yourself.for promotions. either via their website. but many do. You have to stick with it and you cannot quit. Even if your score comes back as failing. Does your state have an ethics requirement that must be fulfilled prior to the issuance of a CPA certificate? 2. 47. The ethics exam is very tedious and very boring. then you ! Copyright © 2010 – Jeff Elliott. you can pass the ethics exam and it’s one less thing to worry about. If the person signing off on your experience must have supervised you. If the state has an experience requirement. You need to check with your state board of accountancy about their certificate and licensing requirements. Pay the full price for the ethics course and get an account in your own name. certification and licensing are handled by the states. CPA All rights reserved worldwide. In short – the discount is your friend’s – not yours. It will save you a bunch of hassle. Don’t cut corners to save a buck or two. you still have your ethics requirement out of the way. Should I order it through my friend? No. but if you order it and devote 2-4 hours to completing it. My friend is an AICPA member and can buy the course at a discount. Some things to consider: 1. . your ethics course may even count as CPE for you. I just passed my final section! Iʼm DONE! Can I call myself a CPA? Not yet. While the exam is uniform. You want your ethics exam purchase to be in your name. Certification and Licensing 48. does the person signing off on it have to be someone who was your supervisor or can any licensed CPA with knowledge of your background vouch for you? The experience requirement is a serious thing to consider because it affects what jobs people take prior to passing the exam. In the future. How ironic that you wanted to use your friend’s AICPA membership to save money on your ethics exam.use the AICPA’s course. Does your state have an experience requirement that must be met prior to the issuance of a license? If so. No part of this e-book may be copied or sold. how long is the requirement (1 year? 2 years?) and in what capacity must you have worked in order for it to count as relevant experience? Do they allow non-attest experience such as compilations and tax work? 3. you’ll walk away frustrated because you won’t be able to find the words to do it justice. I still haven’t decided if it’s worth fulfilling the CPE requirements in order to keep my permit to practice. You can get yourself into a lot of trouble if you don’t do your due diligence or skip a step. and your significant other. Once it comes to an end. ! Copyright © 2010 – Jeff Elliott. I have my certificate. Be sure to check first before doing this though. This is critical. I say all of this to remind candidates of the reason for going through the whole exam process. Siblings. Iʼm licensed. simply delete CPA from your name before you send it. call your state board of accountancy and ask them for guidance. It will give you instant credibility among your peers. Some states will allow you to put CPA after your name in your work’s internal e-mail for internal purposes without being licensed. I worked so hard to pass the exam that I suppose I will keep my permit active for a few years at least. Your parents will be proud. they all appear equally boring (and expensive). can fully understand what you just accomplished. . grandparents. No part of this e-book may be copied or sold. If you send an e-mail to an external party. will admire you. You must make sure that you fully understand what the rules are for holding yourself out as a CPA. I currently have 80 hours of continuing education that need to be completed a year from now staring me in the face. CPA All rights reserved worldwide. so don’t even try. and Iʼm done! (Right?) No. Once you’re licensed. Sure. Except. you’re so ecstatic to be done and are so proud of your accomplishment that you almost expect a parade in your honor with confetti everywhere. Should I expect to get a raise or be promoted after passing the CPA Exam? I have been asked this question several times. You now have CPE requirements to worry about ". but they won’t get it. I find myself skimming through the CPE catalogs trying to find the “least boring” topics. So far. it’s a feather in your cap and a golden key that will unlock many an interview. aunts. The CPA Exam is a tough road to travel. you don’t have to mess with deleting it anymore. and no one outside of your friends who have either passed the exam or are currently going through it. Are they CPAs? Are they licensed? These are things to consider. If you try to convey how draining the whole process was. 49. uncles. etc. 50.need to take a hard look at upper management before you take a job. It’s for you and you alone. there is no parade. the fun has only just begun. but they won’t understand either. When in doubt. Yeah you passed. Sure. The stupid exam fees aren’t even tax deductible on your Schedule A!!! I didn’t get a raise because I passed the CPA Exam. As I said before. If you do end up getting a raise because you passed the exam. You are now worth more to your employer because they can bill you out at a higher rate and you’re a more valuable asset to them overall. If you don’t work in public accounting. “You’ll get it – hang in there” they keep saying. but no one really cares that much (certainly not enough to warrant the sacrifice. then consider it gravy. Actually. they know you worked hard and that the exam is difficult. for your family. They know this because Accounting 101 and 102 in college were hard for them. nor did I get promoted. anyway) – and you didn’t get a raise. Did I get a parade? No. Oh well. then chances are very good that you will receive some sort of promotion and/or raise. you are setting yourself up for disappointment. Any more than that and you run the risk of your accomplishment becoming bittersweet. CPA All rights reserved worldwide. Cousin Jenny at cosmetology school passed her test the first time. for your self respect. does passing the CPA Exam make you better at your job all of a sudden? The answer is no. but they think you’re smart and did something that is tough. Did I get promoted? No. they were probably wondering why it took you so long to finally pass. If you work in public accounting. so that’s something.They don’t understand what it fully means that you’re a CPA. right? Again. I did get an “atta boy”. but they don’t have a clue about the exam or everything that goes into it. because chances are that your expectations will not be met. if you’re trying to pass the CPA Exam in order to impress family or friends. I was already paid very well. Did I get a raise? No. Most of my extended family didn’t fully understand what it took for me to pass. but don’t expect a promotion or a raise right away just because you are now a CPA. . but for some reason you can’t pass your accounting test. my point in saying all of this is that the LONG hours and countless personal and financial sacrifices must be for something other than monetary gains and increased respect. ! Copyright © 2010 – Jeff Elliott. which is why you shouldn’t expect a raise. either. They just don’t get it. I didn’t even get a lunch from my work colleagues. It will open the door for promotions and other opportunities over time that never would have existed if you didn’t have those three letters after your name. they love you anyway. They don’t understand – nor should they. You have to want to be a CPA for you – for your career. So was it worth it? Absolutely. No part of this e-book may be copied or sold. I was already a senior analyst – just below a manager. In 2008. issuing scores at test centers is impractical and the possibility is not being considered. Is a candidate’s score entirely independent of the performance of other candidates? Does the AICPA employ any curving mechanism to keep pass rates at their historical levels of 45 to 50 percent on average per section? AICPA: The CPA exam is not curved. .Why the wait? another71. the inevitable question that they ask is. And yes. “Should I apply to get it rescored?” In 2008. CPA All rights reserved worldwide. A Curve on the CPA Exam? another71. Since there are no subjective elements to BEC since it is 100 percent multiple choice (currently). and every score is an independent result. BEC . every candidate’s score is entirely independent of other candidates’ examination results.com: A common myth that circulates among CPA exam candidates is that CPA exam scores are curved according to the performance of other candidates taking the same section. score review requests did not result in any score changes. For these reasons.com: A widely held frustration among people who sit for BEC is that they don’t get their score right away.com: When candidates score a 74 on an exam.Additional Resource CPA Exam Myths Debunked: My Interview with the AICPA Examination Team 1. It involves making certain that the approved answer key was used in scoring and that it was correctly applied.” an automated score verification process. Every candidate’s performance is measured against established standards to determine whether the candidate has demonstrated the level of knowledge and skills that is represented by the passing score. why is a candidate not given at least a “preliminary” score with the caveat that it is subject to review? AICPA: Scores — even preliminary ones — cannot be released without state board review and the application of standard quality control procedures. The CPA exam is a criterion-referenced examination. Re-score: Worth the hassle (and time and money)? another71. Every candidate is judged against the same standards. which means that it rests upon predetermined standards. The service available is “score review. 3. 2. ! Copyright © 2010 – Jeff Elliott. approximately how many candidates submitted applications to have their exams re-graded? What percentage of those applications had a score that changed due to the re-grading process? How many candidates went from fail to pass due to submitting an application for a re-grade? AICPA: There is no such thing as a rescore or a re-grade. No part of this e-book may be copied or sold. of course.) ! Copyright © 2010 – Jeff Elliott. Candidates feel very much left in the dark. and it is impossible to predict who will receive new simulations as simulations are assigned at random. The technical aspects of scoring are. Are there plans in the future for the AICPA to move to real-time score reporting to better serve the candidates? AICPA: Faster and more frequent score release will be introduced after the implementation of CBT-e — a program of major CPA exam improvements. even if they test at the beginning of a testing window. The current score reporting in two waves seems to be well understood by candidates but much more needs to be done to erase candidate misconceptions about why some scores are released earlier than others. No part of this e-book may be copied or sold. However.com: A common complaint about both the grading process and score reporting process for the CPA exam is that they are not very transparent. Real-time scoring in the works? another71. a wealth of information is readily available on the Internet about Item Response Theory (IRT). candidates need to know that those who are presented with simulations that have not been tested previously will receive their scores in the second wave. However. 5. For example. CPA All rights reserved worldwide.com: Currently.4. Grading transparency another71. A sufficient number of responses to new simulations must be available for psychometric analysis before scoring can begin. “real-time” score reporting is not a realistic option and is not being considered. . What steps is the AICPA taking to improve the transparency of these processes and to keep candidates better informed? AICPA: When it comes to scoring. the psychometric model that is the basis of CPA exam scoring. scores are released in two waves per testing window — commonly referred to as Wave 1 and Wave 2. for those who wish to tackle the technical. much less accessible to the layman. It is a non-technical overview providing insight into scoring without the use of psychometric jargon. “How is the CPA exam scored?” is a very successful AICPA effort to bring transparency to the process. A candidate who sits for an exam early in the testing window and does not get their score in Wave 1 has to wait for yet another month to get their score and oftentimes their study progress and motivation wanes because of it. (Refer to the response in question 2. failing or on the brink — are held until the analysis is completed. and use the remaining four windows to retake any sections failed on the first attempt. however. . Is a raw score possible? another71. Would you say that in general.com: Another question that candidates have in regard to score reporting is the fact that they leave a testing center with little more than a ventured guess as to how they performed. CPA All rights reserved worldwide. if a candidate sits for FAR on Day 1 of the testing window and misses the cut for the Wave 1 score release in the second month. the most candidates who don’t receive their score by Wave 2 are “borderline?” AICPA: There are several possible reasons why some scores are released faster than others. is implemented. Borderline candidates? another71. Has the AICPA looked into a reporting format that gives a candidate their raw score on the exam prior to leaving the testing center or soon thereafter? AICPA: As indicated previously. plans are in place to introduce faster and more frequent score reporting after CBT-e. for example. 72-77. two in the next. by the time they get their score in Wave 2 of the third month. the new CPA exam. then they are “borderline” — i. to provide candidates with raw scores — or any other kinds of scores — at the test center.com: In regard to the “18-month rule. “Second reads” are additional reviews of essays for candidates whose scores are close to passing. they have even less time left. No part of this e-book may be copied or sold.com: Another widely held sentiment about score releases is that if a candidate doesn’t receive their score in Wave 2 of a testing window. 7. A better approach might be to take two sections in the first window. For instance.” candidates often feel they are at a disadvantage due to a relatively slow score reporting process.e. If psychometric analysis is required. If you count the fact that four of those 18 months are not testable months. 18 Month Rule another71.) 8.. the “second reads” of written communication responses may also be a factor. For those who took AUD. nearly three months of their 18-month window has expired. There are no plans. the scores of all candidates who took a particular examination version — whether passing. FAR or REG. ! ! Copyright © 2010 – Jeff Elliott. (See response to question 2.6. Has there been any discussion of expanding the arbitrary 18-month timeframe to 24 months? AICPA: Perhaps the real issue here is the test-taking strategy.