Preparing for the Revised CPA Exam Gregory Johnson, CPA

Program Objectives This presentation is designed to help you: Understand the format and content of the revised computer-based CPA examination. Understand the candidate experience. Identify tools to support your preparation efforts.

The Examination Four exam sections –Auditing & Attestation (4.5 hours) –Financial Accounting & Reporting (4 hours) –Regulation (3 hours) –Business Environment & Concepts (2.5 hours) 14 hour total length

The Examination Each section includes three testlets of MCQs –Testlets are groups of 24 – 30 MCQS Each section (except BEC) includes two simulation –Simulations are condensed case study type problems –BEC includes only MCQs

Exam Content Differences Paper-Pencil Based Auditing 100% Financial Accounting & Reporting –Business Enterprises 100% Accounting & Reporting –Taxation 60% –Gov/NPO 30% –Managerial Acct 10% LPR –Business Structures 20% –Other 80% Computer Based Audit & Attest 100% Financial Accounting & Reporting –Business Enterprises 80% –Governmental 10% –Not-For-Profits 10% Regulation –Taxation 60% –Law & Professional Responsibilities 40% Business Environment –Business Structures 20% –Managerial Accounting 10% –New Areas 70%

Auditing & Attestation Generally Accepted Auditing Standards Standards for Attestation Engagements Accounting and Review Services Government Auditing Standards Skills Needed to Apply That Knowledge

Financial Accounting & Reporting Generally Accepted Accounting Principles for: –business enterprises –not-for-profit organizations –government entities Skills Needed to Apply That Knowledge

Regulation Federal Taxation Ethics Professional and Legal Responsibilities Business Law Skills Needed to Apply That Knowledge.

Business Environment & Concepts Business Structures Economic Concepts Financial Management Information Technology Planning and Measurement

Granting of Credit Sections can be taken individually and in any order Credit for passed section(s) retained for 18 months No minimum score requirement for failed sections

Transitioning Paper & PencilCBT AuditingAuditing & Attestation Financial Accounting & Reporting Accounting & Reporting Regulation Business Law & Professional Responsibilities (LPR) Business Environment & Concepts

The Candidate Experience

Application Process Apply to a Board of Accountancy Receive your Notice to Schedule (NTS) –Verify information for accuracy –Confirms eligibility to sit for your exam Scheduling Parameters –Testing Windows –Schedule Early –Testing Centers

Appointment Scheduling Schedule Your Examination Appointments –Visit –Call the Candidate Services Contact Center at –Call Your Local Test Center Changes to Your Appointments –Reschedule –Cancel

What to Expect on Test Day Taking Your Exam –Arrive Early –What to Bring NTS 2 forms of Personal Identification –What is Provided Small lockers for purses and wallets Scratch paper booklets & pencils Reference materials and calculator –What not to Bring Large purses or briefcases Laptop computers

What to Expect on Test Day Break Procedures –Between exam sections –On Break status End of Exam –Sign out –Return scratch paper booklet –Receive End-of-Exam Report –Retrieve personal belongings

Preparing for the Physical Environment What does a test center look like? –Consistent configuration with varying layout –Procters desk with viewing window –15-19 seats in the test room –Continuous audio and video recording What differences should you expect? –Noise Typing vs. pencil tapping Mouse clicks vs. shuffling paper –Lighting State-of-the-Art monitors vs. paper/pencil glare –Workstation/Testing Carrel Private, individual carrels vs. community desks

Welcome To The Uniform CPA Examination Photo Please confirm that the following information is correct. Name:_____________________________ Exam Section :______________________ If this information is correct select the Continue button below. If this information is incorrect select the Quit Exam button below and raise your hand so the Test Center Administrator can assist you. Taking a Look

You are about to begin the _______________________ section of the Uniform CPA Exam. You will receive _______ testlets. Each of three testlets contains ______ multiple choice questions. You should answer every question. Each of ___ testlets contains one case study, also known as a simulation. In the simulation testlets, a pencil icon on a tab indicates that a response is required within that tab. You should complete all tabs showing the pencil icon. Some of the questions or simulation tabs you will receive are pretest items. These items do not count toward your final grade. You will not know which items are scored and which are pretest items. You have ___ hours to complete the entire exam. You may work through each testlet at your own pace. However, once you exit a testlet and indicate you are done with that testlet, you cannot return. You will have the option to take a break at the completion of every testlet, except for the last testlet. Please note that if you decide to take a break, the clock will keep running. Use break time wisely. To begin the exam, select Continue below. The clock will start to run. Taking a Look

Are you sure you want to leave this testlet? You have not answered all questions in this testlet. Taking a Look

You have just indicated you are done with this testlet. You may review this testlet, or continue the exam, or quit the exam completely. If you choose to continue, - you will have the option of taking a break unless you have completed the last testlet in the exam. - you will not be able to return to this testlet. - you will receive no credit for any unanswered questions. Select the Continue button to leave this testlet and continue the exam. If you quit the exam, - you will not be able to return. - you will receive no credit for any unanswered questions or testlets not taken. Select the Quit Exam button to quit the exam completely and leave the test center. Select the Review button to return to the first question in this testlet. Taking a Look

Are you sure you want to continue? If you continue, you will not be able to return to or review this testlet. Taking a Look

Simulations

Authoritative Literature

Written Communication Response must be on topic Address the concept not just state the concept Clearly identifiable thesis statement Develop main ideas Develop support ideas Watch fragments and run-on sentences Watch missing final punctuation and commas Watch spelling errors

Preparation Tools Available

Review Course Providers Provide various information/advice to candidates –Applying to take the exam Assist with preparation of applications –Test center policies –Which sections to emphasize –Types of preparation –Time management –When and where to study –How to study –Test taking strategies

Types of Preparation On-line Classroom –Live instruction –Audio Instruction –Videotape instruction Self study –Books and CD-ROM lessons/support

Changes To Courses Redesigned materials to be in line with exam Content Specification Outlines; Integrated simulations and testlet approach into courses; Simulations approximate those in the CPA exam; and Incorporated database training.

Which Sections to Take Encouraged to sit as soon as eligible and prepared –Study commitment Some suggest the following order: –Audit & Attest –Financial Accounting & Reporting –Regulation –Business Environment & Concepts Schedule and study for two sections at a time; and Take two sections in each testing window –Pass all sections in six months

What Candidates Are Saying They like the ability to take one section at a time; They are concerned about how to manage time on the exam in the testlet format; They would like to receive scores faster; and They are not very concerned about computer delivery of test, but not as comfortable with content.

Advice for Candidates Determine how much time you can commit to study; Be prepared to drop other activities; Schedule study during times you are more productive; Choose study method in line with the way you learn best; Do not be intimidated by simulations; Become familiar with exam tutorial and sample test; Contact your state board about requirements to sit for the exam; Visit

Advice for Candidates Working professionals should closely look at schedules; Make sure you become familiar with researching the authoritative literature; and Apply early to schedule and begin study.

Preparing For The Revised CPA Exam Summary & Questions

Thank You For Participating!