Strategies For Taking The Uniform CPA Exam

The views expressed by the presenters do not necessarily represent

the views, positions, or opinions of the AICPA

or the presenter’s respective organization

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Program Objectives

This program is designed to help you: Prepare for and take the CPA exam; Know what to expect on exam day; Better understand the exam simulations; and Take control of the examination process.

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Today’s Speakers

Gregory Johnson, CPA Director-Exams Strategy

AICPA

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Sahan TotagamuwaAssociate, Valuation and Forensic

Services Clifton Gunderson, LLP

Thomas C. Omer, Ph.D. Associate Professor

University of Illinois at Chicago

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John F. Hudson, CPAModerator

Hudson Consulting Group, LLC

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CPA Examination Overview

Gregory Johnson, CPAAmerican Institute of CPAs

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CBT a Success

April will mark the first full year of computer-based testing (CBT).

CBT a success – Launched on schedule Nearly 100% of tests launched and successfully completed instances of restarts or delays occurred rarely this is better than the rates of most other professional licensing

programs offering computerized exams

Post exam surveys show 97% of responding candidates are satisfied with CBT

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Volume and Pass Rates

Approx. 77,000 candidates tested in 2004 Approx. 110,00 examination sections

administered Estimate about 150,000 completed test sections

by March 31, 2005 Pass rates range between 41% - 45% per

section

The Examination

Four exam sectionsAuditing & Attestation (4.5 hours)Financial Accounting & Reporting (4 hours)Regulation (3 hours)Business Environment & Concepts (2.5 hours)

14 hour total length All sections, except BEC, include simulations

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Granting of Credit

Take sections individually and in any order

Credit for passed section(s) retained for 18 months

No minimum score requirement for failed sections

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Score Reporting

Candidates should receive their scores shortly after the close of the testing window.

AICPA, NASBA committed to reducing score reporting time.

October/November 2004 testing window, nearly all scores released by the AICPA by December 28

AICPA plans to report scores monthly beginning August 2005

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Exam Application and Registration

Apply early – may take 6-8 weeks for 1st time application to be approved. Call 1-800-CPA-EXAM

NASBA’s Candidate Care Department expanding so post-exam inquiry process is faster; email or call: candidatecare@nasba.org 1-866-MY-NASBA (1-866-696-2722)

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At the Test Center

Report equipment or computer issues to test center staff immediately.

Keep the Confirmation of Attendance after your exam; use to follow-up on any issues.

Test center staff cannot: answer content questions explain how to use CPA Exam software extend or adjust exam time

Be prepared before you take the exam Read The CPA Exam Alert for more test tips

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Exam Preparation

Be prepared before you take the exam Exam has unique software and functionality Read The CPA Exam Alert for more test tips Visit www.cpa-exam.org

View exam tutorial Take the sample test

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What Candidates Are Saying

They prefer the computer-based exam They like the administrative flexibility

Can take one section at a time Can schedule test sections on different days and times

They like the Prometric test centers They are concerned about how to manage time on

the exam in the testlet format; They would like to receive scores faster

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CBT Research AICPA-NASBA-Prometric committed to

continual improvement of the exam Candidate focus groups held across the U.S. Other research with employers, students and

professionals underway Take 2-minute Candidate Outreach Survey at

www.cpa-exam.org Research results shared with to state boards

and educators

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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; Contact your state board about requirements to sit for

the exam; Working professionals should closely look at

schedules; Make sure you become familiar with researching the

authoritative literature

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A Candidate’s Perspective

Sahan TotagamuwaClifton Gunderson, LLP

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Scheduling The Exam

Notice to Schedule (“NTS”) Scheduling flexibility Schedule according to your personality Proximity of exam dates Be goal oriented Know your strengths and weaknesses

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Preparing For The Exam

Balancing study time and other activities Goals Review textbooks Third party review courses Study one section at a time

Get into a rhythm Practice sitting at one place for long periods of time

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Preparing For The Exam [con’t]

Practice, practice, practice; Simulations; Don’t burn the candle at both ends; and Relax on the day prior to your exam.

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Exam Day

Get to the test center early Dress accordingly Pre-exam formalities

Two forms of ID NTS Photograph Scratch paper (make sure the exam # is stated on the

sheets) Sign-in Lockers

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Exam Day [Con’t]

At your assigned computer, you will have: Two forms of ID Two sheets of scratch paper (provided by the test center) Two pencils (provided by the test center) Ear plugs/muffs

Pre-exam questions on the computer Do the pre-exam questions quickly Don’t use this time to do stretching exercises, write down notes

etc.

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Exam Day [Con’t]

The exam FAR, Reg/Tax, Audit

Five individual testlets Three testlets consisting of multiple choice and true/false

questions Two simulations

BEC Currently, three individual testlets consisting of multiple

choice and true/false questions

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Exam Day [Con’t]

Testlets Your time starts as soon as you open the first testlet You have to “manage the clock”

Allocate time to each testlet 30 – 50 minutes per multi choice testlet About 1 ½ - 2 hours for the simulations

Leave enough time to do the simulations Don’t “spin your wheels” on one question

If needed, mark questions for review You can’t go back to a testlet that you have

completed and submitted.

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Exam Day [Con’t]

Equipment malfunctions Don’t try to fix it yourself

Many others passed this exam before you. If they can do it … so can YOU!

GOOD LUCK!

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Exam Simulations

Thomas C. Omer, Ph.D.University of Illinois at Chicago

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Simulations

Simulations Overview Who develops simulations Creating simulations Example (available at www.cpa-exam.org) How to prepare

Students Faculty

The Future

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Who Develops Simulations

Who develops simulations? AICPA Task Force Leader

Task Force Volunteers Practitioners Academics

Assistance by AICPA Staff

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Creating Simulations

Creating simulations How do we start (Regulation Task Force)

Members of task force propose topical area (e.g. individual, corporate, partnership)

Within topical area choose an issue that contains multiple aspects Basic simulation structure

Content testing Written communication Research task

Members submit proposed simulation for consideration by task force Concerns

Entry level candidate No double jeopardy (or work around related questions)

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Creating Simulations

Task Force Meets (3 times per year) Review submitted simulation proposals

Extensive review and revision of proposed simulation Concerns

Topic adequately represented Topic adequately tested Minutia avoided Solutions attainable Time

Approved simulations sent to AICPA content committee for appropriateness and correctness

Meetings continue to address new simulation proposals as well as suggestions (corrections) on previous submissions to the AICPA Content Committee

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Simulation Example

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Simulation Example

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Simulation Example

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Simulation Example

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Simulation Example

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Simulation Example

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Simulation Example

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Simulation Example

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Simulation Example

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How to Prepare

Students Use the practice material available from AICPA Focus on the overall picture rather than memorization of specific facts or details.

With faculty help make sure you see the topic broadly not just separate unrelated issues

Do research out side of class on topics you are interested in as well as those required for class

Be tolerant of the new approach Faculty

Incorporate research in the classroom Hint: use topics normally covered during class time

Attempt to present bigger perspectives in topical areas Push overall concepts first, details second Try to help students the connectedness within and across topical areas Be tolerant of student frustration when changing their perspective

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The Future

Current simulations are reasonable for initial steps but expect changes as study habits and classroom experience changes.

Future simulations will move beyond the first generation in use today.

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Summary & Questions

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Thank You For Participating!

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Upcoming CPA Examination Webcasts

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