50 things you must know about the cpa exam - 2010 edition

Copyright 2010 Jeff Elliott, CPA All rights reserved worldwide.

No part of this e-book may be copied or sold. !

2010 Edition

Jeff Elliott, CPA Editor, Another71.com



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. Im thinking about buying some used books from 2007. Any advice? 4. My 18 month window is coming to a close and Im about to lose credit for one of my passed sections. What if I take my exam, but dont get my score back for several weeks? Will I lose my credit? 5. I cant 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 cant pass Auditing! Youre 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. Ive 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. Im 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?



16. What is the best strategy for scheduling an exam? 17. How long should I study for each section? 18. Im getting ready to take my first exam. What should I expect? 19. What is the best approach for attacking simulations on the CPA Exam? 20. I didnt finish my second simulation and left several tabs blank. Can I still pass? 21. I couldnt get my research tab to work! I thought I found the right text to insert, but the computer wouldnt accept any of it. Will this hurt me? 22. My exam ended before I could click DONE on my last simulation. Did my answers get saved? 23. I had computer problems during my exam. What should I do? 24. I finished Auditing with 30 minutes to spare. Should I be worried? 25. Shouldnt BEC be the easiest section of the CPA Exam? Its only 2.5 hours and is basically a rehash of everything we learned in college, right? 26. How many questions on the CPA Exam are pre-test? 27. Is BEC adaptive? I swear the questions were getting harder each testlet. 28. How do I know if Im getting the hard testlets? 29. Does your performance on the multiple choice questions have any effect on the simulations that you get? 30. I just took my exam and found it to be pretty easy. Should I be worried? 31. If I have to guess on my exam, what strategy should I use? 32. My boss keeps telling me how easy I have it now that I can take the CPA Exam on a computer. Is the exam easier than it used to be?



Score Reporting 33. What is the difference between the AICPA release and NASBA release of exam scores? 34. I see the term NASBA state on your website. What does that mean? How do I know if I live in a NASBA state? 35. I sat for my exam on _______. When can I expect my score? 36. What time of day do scores come out? 37. I didnt get my score in Wave 1, but I took my exam early in the testing window. Does this mean Im borderline or failed? Im freaking out! Please help! 38. My friend and I sat for the same section of the exam on the same day, at the same time, in the same testing center, yet she received her score in Wave 1 and I didnt. How can this be? 39. I scored a 74. Should I appeal? 40. I had to re-take a section and my old score was there online yesterday, but its gone today. What does this mean? 41. 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. 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. I received an advisory score and I PASSED! Its not going to change, is it? 43. I passed my final section of the CPA Exam. When will NASBA send me a confirmation letter? 44. I failed again and Im thinking about throwing in the towel. Ive been at this for too long. I hate this exam. Ethics Exam 45. How do I know if my state requires an ethics exam prior to getting my certificate? 46. I just sat for an exam. If I pass, Im done. How long do I have to wait before I can take my states required ethics exam?



47. My friend is an AICPA member and can buy the course at a discount. Should I order it through my friend? Certification and Licensing 48. I just passed my final section! Im DONE! Can I call myself a CPA? 49. I have my certificate, Im licensed, and Im done! (Right?) 50. Should I expect to get a raise or be promoted after passing the CPA Exam?



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. There is a lot of advice floating around out there about the CPA Exam, but it is mostly written by people who have never actually taken the computerized version of the Exam. 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. I know and understand the frustrations and struggles that candidates go through on todays CPA Exam because I have been there myself. Since I started another71.com, 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. I know this because month after month and testing window after testing window, I see the same questions being asked over and over. This book answers those questions. It is a collection of the most-asked questions that I see on a regular basis. 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. I hope that I have succeeded in this and that this book helps you in your journey to becoming a Certified Public Accountant. Jeff Elliott, CPA Editor, Another71.com



Study Strategy 1. What section should I take first? Different people have their own opinions on this subject. Some say to take the easiest section (i.e. whatever section best fits your background) first so that you have a quick win under your belt. 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. He sat for BEC, then AUD, REG, and finished with FAR. My personal advice is to take the hardest section first, which is generally regarded as Financial Accounting and Reporting. The reason behind this is the 18 month rule. You want your 18 month clock to start after you have passed the hardest exam. If you put FAR off until the end, and struggle with a few sections along the way, 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. Its best to get FAR out of the way first, in my opinion. 2. Whats the exam order from hardest to easiest? As stated above, FAR is generally regarded as the hardest section of the CPA Exam. Ive heard it described as a mile wide and an inch deep. There is just so much information to know and the breadth of the material can overwhelm candidates. If there is one section that CPA candidates fear the most, it is Financial Accounting and Reporting. You must know bonds, leases, consolidations, pensions, and inventory to name a few. Just when you think youve covered it all, you have governmental accounting and not- for-profit accounting to look forward to, which is 20% of your overall exam score. FAR is not a fun exam. The key to studying for this section is to focus on one subject at a time and chip away at it. Whatever FAR topic your review course begins with, start there and work your way to the end. Before you know it, you have covered everything and its time to review and then sit for the exam. If Financial Accounting and Reporting is the #1 most difficult exam, then I would call Regulation #1a. REG is a beast. For people who are weak in tax, it can be a nightmare. Tax people hate FAR, people who dont work in tax hate REG. With REG, you have to know individual, corporate, and partnership taxation really well. Gift/Estate tax isnt tested to the degree that the other types of taxation are, but you still have to have a working knowledge of it and be able to answer the basic questions on the exam. In addition to taxation, REG also covers business law and ethics, which often gets underestimated, as candidates forget that it makes up 40% of your overall exam score.



Next is Business Environment and Concepts. Its odd that I rank BEC as the third most- difficult because I truly hated BEC, and many people share the sentiment. It seems like such a benign and relatively short exam (2.5 hours) with no simulations that covers topics that you learned in college. Easy, right? People walk into their BEC exam and limp out. 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. Candidates also underestimate the coverage of information technology on the BEC exam and it ends up costing them. BEC is the #1 exam section that I get e-mailed about. Some people really struggle with it. I was one of them. Finally, we have Auditing. I know people who blew through Auditing with a 95 like it was no big deal. I didnt really struggle with it either or find it as difficult as the other sections. On the other hand, I have spoken to people who hate Auditing like I hated BEC. They just cant seem to pass it. Its different than the other exams. Auditing has a different feel to it. Every question seems subjective, leaving you feeling like youre giving the best answer instead of some cut and dry tax calculation or bond amortization. While Auditing is listed here as the easiest, it is far from easy and dont take it for granted. Remember, easy is a relative term. This is still the CPA Exam. 3. Im thinking about buying some used books from 2008. Do you have any advice? Thats a bad, bad idea. 2008 books were written in the fall of 2007 and youre taking a 2010 exam. The road to a 68 on the CPA Exam is paved with outdated CPA review materials. 4. My 18 month window is coming to a close and Im about to lose credit for one of my passed sections. What if I take my exam, but dont 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. The date that matters is when you take the exam, not when you get your results. This issue is confusing to candidates and I get asked this question a lot.



5. I cant pass BEC! What should I do? I get this question after every testing window. You would think that I would get e-mailed about FAR the most, but thats not the case. My answer to this is simply my answer for passing BEC myself: Buy a Yaeger CPA Review BEC course. In particular, I recommend getting the BEC HomeStudy. There are several aspects of BEC that are in my opinion a watered down version of the CMA exam. You want both a CPA and a CMA teaching you BEC, which is exactly what Yaeger has with their main BEC instructor Cindy Simpson and it is why so many people that Ive come into contact with finally pass BEC after using a Yaeger product. To save money on the Yaeger CPA Review HomeStudy, enter the discount code A71FULL to save $355 on their complete course, or A71PART to save $100 on a single section of their course. Another71.coms Club 75 members save an additional $100 and $50 on the complete and single HomeStudy courses, respectively. To expand further: 1. I did every IT question in the Wiley BEC book the day before the exam and it was fresh in my mind. Not only did I do the questions, but I also read the explanations to the all of the answers. 2. Going into the exam, I knew enough about monopolies, oligopolies, etc. to be dangerous. 3. With time value of money calculations, you have to know which factor to use depending on if the payments are at the beginning or end of the year. I had those straight in my head and could answer those questions accordingly. 4. 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. From there, you can algebraically solve for any variable. There's no need to memorize every derivative of the base formulas - just the base formulas themselves. I passed BEC with an 80 knowing a lot about IT, a decent amount of Economics and business structures, and enough about financial management and cost accounting to get it done.



6. 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, but the examiners go overboard with the depth of the IT questions. They test you on IT topics that you will probably never need to know and couldnt care less about as an accountant. Regardless, you have to be able to answer the questions, so its best to figure out a way to learn the material. Reading about IT topics is an extreme bore, even for the CPA Exam. When I passed BEC and had to tackle the IT topics head-on, I found that the best way to learn the material is actually very simple: do every single IT question in the Wiley book. 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. If possible, work these questions as close to your exam day as possible so that they will be fresh in your mind. Again, this sounds very simplistic but it was one of the keys to my success on BEC after failing it three previous times. 7. 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), it would be that I finally said Okay, enough is enough Im going to study AMT and 1231, 1245, and 1250 assets like I should. Let me tell you, up until getting the Yaeger HomeStudy and forcing myself to learn AMT and 1231, 1245 and 1250 assets, I absolutely hated these subjects and basically refused to study them and somehow thought that I could pass REG with this approach. I honestly cannot think of more boring subjects than AMT, 1231 assets, and like-kind exchanges. Yet, the Yaeger DVDs made it palatable. I think its because Im an active learner and the Yaeger DVDs cater to people who learn this way. Studying for the CPA Exam can be yawn-inducing, so I like to mix in some application (i.e. working MCQs) as I learn the concepts. It makes the time go faster. After watching the AMT lecture, I thought You knowthis really isnt that bad and also thought the same thing about 1231, 1245, and 1250 assets as well as like-kind exchanges.



8. I cant pass Auditing! Youre not an auditor how did you pass it? Auditing scared me to death. Ive never done an audit in my life, nor did I know the slightest thing about auditing prior to passing. I scored a 69 on my first try without really studying. 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). The fact that I scored a 69 the first time still baffles me to this day, because I didnt deserve a score that high. I passed Auditing on my second try with a 79 through memorization. I memorized everything that I could the steps to an audit, management assertions, etc. The questions on Auditing can be very subjective and you find yourself staring at two answers that both seem correct. You have to choose the most correct answer. I derived my answers by frantically writing down all of my mnemonics on my scratch paper prior to beginning my exam. With that said, keep in mind that if you take too long, your exam session will lock, so you must do this quickly i.e. within 3-4 minutes and then get started. During the exam, I referred back to my mnemonics constantly and answered the questions accordingly. There are also a number of topics such as internal control that you can only learn by doing countless multiple choice questions. If you work enough questions, eventually you will build a base of knowledge about auditing on subjects like internal control where mnemonics dont really work that well, and you will be able to successfully answer the questions on the exam. 9. Did you memorize the different audit reports in order to pass Auditing? No. I dont think its necessary to memorize the audit opinions even the unqualified opinion. With that said, you do need to know the different language that separates one audit opinion from another, as well as the language included in the various exceptions including how each one varies with regard to the paragraph order and structure. You dont need to memorize the audit opinions word for word, 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 its found.



10. 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. Bonds and leases are very similar and they are also a pain to study. Candidates tend to glance over these areas and maybe work a few questions in hopes that theyll be able to identity some familiar nugget on exam day and dont actually do their due diligence in preparing for FAR. People treat bonds and leases on FAR like candidates do AMT and 1231 assets on REG. 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. This is based on my own experience with studying for FAR and needing to pass it not just once, but twice, due to losing my FAR credit. 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. Another area would also have to be not-for-profit accounting. Most people are generally unfamiliar with NFP accounting and its usually the last topic covered in their review course. If a candidate runs out of study time and they arent able to re-schedule their exam, then preparation for this section usually falls short of what is recommended, which can be very detrimental to their exam score, as NFP accounting can make up 10% of your overall score. 11. Do you have any nuggets of wisdom aside from the usual mainstream advice? AUD Learn tick marks. If your review course doesnt cover tick marks, 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. Youll be glad that you did. BEC Know price elasticity of supply and demand inside and out. Be able to calculate it given several variables and know that when demand is elastic and you raise the price, total revenue goes down. When you lower the price, total revenue goes up. When demand is inelastic and you raise the price, the increase in price is greater than the decrease in demand, so total revenue goes up and vice versa. I didnt really understand price elasticity of supply and demand until I listened to Dr. McMillans (Yaeger CPA Review instructor) lecture on the topic. All of a sudden, it clicked. FAR Do you understand Dollar Value LIFO (or at least know how to quickly calculate it)?



REG You shouldnt underestimate how important the ethics topics are for Regulation. Dont study hard for tax and law only to come up short on Regulation because you didnt study ethics like you should. It may surprise you how many ethics questions you will see. 12. Ive heard that the CPA Exam is going to change. Does this affect me? It only effects you if you will still be taking exams in 2011. FAR and AUD will change the most. Financial Accounting and Reporting will begin testing IFRS. 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 candidates need to know both GAAP and IFRS. Auditing and Attestation will absorb the ethics portion of what is currently tested on Regulation. In addition, the section of BEC that tests internal control for Information and Technology will now be testing on the AUD Exam. Aside from losing the ethics portion to Auditing and Attestation, Regulation will not change in a material sense. BEC however, 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. 13. 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. The purpose of audio CPA review lectures is to allow you to study while you do other things such as drive or exercise. Personally, I cant drive and focus on audio lectures at the same time. My friend on the other hand, who is now a CPA, had a two hour commute round trip each day and loved the Yaeger MP3 lectures. While I cant drive and listen to CPA review audios, I found that I could exercise while listening to them. I also listened to them for about thirty minutes at night before going to sleep. I also found that they are an excellent study tool at work. You can do mundane tasks like work on a spreadsheet for your boss and listen to CPA review lectures at the same time.



14. I bought a cram course. When should I watch it? I would allow two weeks for your final exam review. If you have a full CPA review course like the Yaeger HomeStudy or whatever course you use, make sure you get all of the way through it and do all of the questions youre assigned first. Then, youre ready to review. 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. This should take about a week to complete. Some of the CRAM videos are longer (FAR is around 20 hours) than others (BEC and AUD), so plan your time accordingly. If you follow this plan, you will still have close to one full week to wrap up your review. 15. Im 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? This is where taking insane notes comes into play. While studying for the exam, I highly (and I cant recommend this highly enough) recommend taking notes over everything you learn while reading and watching lecture videos and answering questions. If your instructor points something out write it down. If you miss an MCQ write it down. If you think you might forget something in 3 weeks write it down. Taking notes isnt for the learning part of your CPA Exam studying. Its for your review. Take lazy notes and youll pay for it when you do your final exam review. Take great notes and they will be your best friend in the days leading up to the exam. In the final week before your exam, I recommend that you do something that you wont want to do and is something that people who havent taken the exam for a very long time might even tell you not to do, but its MY recommendation: re-write your notes. If you have three legal pads of FAR notes, this could seem like a daunting task and you might not even have time to do it. Maybe you even could use THREE weeks to review. You have to make that decision. This is for certain: all of those hours spent furiously writing FAR notes on those three legal pads will be wasted if you dont review your notes. You might as well not even take notes if youre not going to intensely go over them before your exam. So how should you review them? Option 1 Read each page a few times. This is fine but if your notes are voluminous,



how much information are you really absorbing? Are you studying your notes or just scanning them? Option 2 Re-write your notes. This is time consuming and tedious, but it is WORTH IT. By re-writing your notes, you are forcing yourself to digest the information again. By taking a sentence or paragraph that you scribbled in January and re-sculpting it into a bite-size review nugget in late February, youre relearning the material and you stand a much greater chance of it sticking with you on exam day. When I re-wrote my notes for REG, I took my volumes of legal pads and re-wrote my notes on graph paper. 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. Graph paper is a great way to make a slick set of review notes. I scored a 92 on REG doing this, so I know it works. I didnt re-write my notes for FAR due to time constraints and scored a 76. You be the judge. Once you have your fresh set of notes, review them several times including twice the day of your exam. Exam Day 16. 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. 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, then schedule it for six weeks from now and be done with it. However, if youre like me and prone to procrastination, then dont schedule your exam until youre about three weeks out. Of course you risk the testing centers being full if youre trying to sit for your exam at the end of the window, so take that into consideration as well. Lets say that youre a procrastinator (again, like me). You set a goal of taking the exam in six weeks. Three weeks roll by and youre still on chapter one. Okay, now its time to get serious EXCEPT you only have three weeks left. If its the FAR exam youre studying for, youre up a creek with no paddle on the horizon. Set your goal for six weeks, but only schedule your exam until youre actually three weeks from being ready. That way, youre on track and not behind. Plus, the added pressure of taking the exam in three weeks when youve prepared like you should will actually help you. Youll feel the heat, but the temperature will still be bearable and youll still be able to focus, but not be anxious.



Procrastinator #1: 1. Schedules exam in six weeks 2. Spends the first three weeks doing nothing 3. Freaks out and reschedules exam and gets hit with reschedule fee 4. Repeat Procrastinator #2: 1. Wants to take exam in six weeks, but doesnt schedule 2. Spends three weeks doing nothing 3. Gets serious and starts to study like he should 4. Nears completion of CPA review materials 5. Schedules exam three weeks from now feels a little healthy pressure 6. Finishes review materials and goes over everything for three weeks 7. Passes I am also a big fan of the 1pm time slot for taking the exam. For one, it gives you the option of going over everything again in the morning (like your notes) before the exam, giving your short term memory one last boost. It also allows you to eat lunch around 11am. If you take your exam at 8am, you run the risk of oversleeping and being hungry during the exam. Plus, you also missed out on one last review. Unless you cant stay awake in the afternoon, or your work schedule wont allow it, set your exam for 1pm. 17. How long should I study for each section? My recommendation, 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. Adjust accordingly to your unique schedule or background. 18. Im getting ready to take my first exam. What should I expect? Lets first discuss the night before your exam. I recommend studying until around 11pm and then going to bed. Ive heard people say that they dont study the night before their examthat they go see a movie or whatever. Not me. Im all over my weak areas and trying to glean as much info from my review materials as I can.



There comes a point though, when enough is enough. By all means never pull an all nighter on the CPA Exam. This isnt college and this isnt 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. Youll be sitting there half awake staring at the screen reading, and re-reading, and re- reading the question and wishing this nightmare were over so that you could go home and sleep. Ive been tempted to do this myself, but an all nighter? Bad idea. The day of your exam (assuming you have scheduled your exam for 1pm like I recommend), I would sleep in until 8am or soget up and eat a decent breakfast and drink your normal allotment of coffee/caffeine, be it one cup like my co-worker or a whole pot like myself whatever amount of caffeine you normally consume. This goes without saying, but exam day is not the day to switch to decaf. If you consume caffeine like its an IV stuck in your arm, then you must be smart about your caffeine consumption on exam day. Too little and youll die in the middle of testlet two. Too much and youll be shaking, and worse youll have to use the restroom ten questions into testlet one, which is a bad state to be in. You should study from 9am until 11am. Go over your notes again and then dive into working multiple choice questions over your weakest topic. If youre super weak on an important area, then I wouldnt even spend the time trying to pick the right answer. You just need to click around until you find it, read it, and move on. If you dont know the material by the day of your exam, and re-scheduling is not an option, then you need to be absorbing as much quick information as you can. Review and do MCQs for 2 hours (9-11am). Then, its time for a quick bite of lunch and youre out the door. Once youre at the testing center, its time to study your notes one last time. CRAM those little nuggets of information inside your head that you didnt know before and you wont know one week from the day of your exam but you need to know them NOW. Knowing the concepts is key, but having your short term memory full of material that youre weak on could very well come in handy during your exam. The Prometric people want you at the testing facility thirty minutes in advance so that they dont get behind. Lets face it if youre thirty minutes early or five minutes early, it doesnt make one bit of difference to you, so Ive always erred on the side of walking in late. 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. When you walk into the Prometric facility, theyll put you in a waiting room and youll likely sit across from someone taking their nursing boards or something like that. They handle many different types of exams. Eventually, theyll call you back and youll give



them your IDs (read your NTS about what types of IDs you can use, but just remember that you need two of them and both must be SIGNED). 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. Uh oh. In a panic, I told her that my other ID was in my car (which wasnt entirely true) and I would be right back. She said, If you go out there and sign that card, Im going to write you up. I spent the first 15 minutes of Financial Accounting and Reporting fuming about the ID mess and was unable to focus, which was unfortunate. It wasnt a disaster, but the lady administering the exam made me feel like it was. She documented that my second form of ID was not signed, but I didnt suffer any actual consequences from it. My exam session was still valid. I personally have always used the noise-blocking headphones that they provide you. Granted, they dont block out everything (like the phlegm-hacking guy sitting next to you), but its better than nothing. Once you enter your launch code into the computer (which comes from your NTS so dont forget it!), you have 10 minutes to begin the exam. Dont make the mistake of thinking that you can proceed to write a dissertation consisting of all of your Auditing mnemonics before you begin. 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. It was a painful learning experience for him, as not only did he not get to take BEC that day, he had to wait until the next window AND had to pay for it again. He was not happy. You have ten minutes to get through the introduction screens. Read the screens, hit accept, and dive in. FAR, BEC, and AUD each have three multiple choice testlets with 30 questions each. Regulations multiple choice testlets only have 24 questions each. Once youre done with the multiple choice questions, FAR, REG, and AUD have two simulations. Currently, BEC does not have simulations, but that could very well change in the future. Its something thats being considered. I recommend not taking breaks if you can avoid it. Of course, Ive always been a slow exam taker, so every second counted for me. The exception to this is if you feel yourself falling asleep and cant concentrate. In this instance, 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. When taking the exam, sleepiness was usually not an issue for me. My adrenaline was enough to get me through without crashing. There were times however, when I got tired and simply could not focus and needed to take a break. After I finished whatever testlet I



was on, I got up, grabbed a caffeinated drink from my coat pocket hanging in the hallway (in the summer, youll have to put it in your locker), and went into the restroom. From there, I slammed my drink and literally did 20 jumping jacks. This sounds ludicrous, but it worked and saved my life on exam day. Simulations 19. What is the best approach for attacking simulations on the CPA Exam? First and foremost, always do the written communication section first. The written communication tab is the single-most important tab in the entire simulation. One of your two written communication tabs is worth 10% of your grade; you just dont know which one. Remember: only one written communication counts. The other one is pre-test and they are considering using it on a future exam. Second, read the introduction to the simulation carefully. Be sure you understand what they are asking you to do. Then, try to fill in as many blanks as you can. Whatever you do, dont leave anything blank. They only count correct answers and will not penalize you for inputting a wrong answer. If you answer incorrectly, you simply wont get points for it. If you leave it blank, you also will not get points for it. Either way, you wont get the points so you might as well put something in the blank. If youre on your second simulation and there is one minute left, go through and fill in all of the answer blanks that contain a drop-down menu. At least with these types of questions, you have a fighting chance because one of them is correct. Then, if there are still a few seconds left, take a wild shot in the dark and put something in the blanks that require you to type your answer. Finally, the least important part of a simulation is the research tab. The research tab is still worth something though, and its important to try to insert an answer if you have the time, but its the last priority when the clock becomes a factor. Some of the tabs within each simulation could be pre-test, but both simulations count. The only exception is that one of the written communications is strictly pre-test. To recap: both simulations count but certain elements could be pre-test. Out of the two written communications that you complete, only one of them will count toward your exam score.



20. I didnt finish my second simulation and left several tabs blank. Can I still pass? Yes, you can still pass. This happened to me on my final exam (FAR) and I left several tabs blank because I couldnt get them answered due to time constraints. I didnt even have enough time to randomly put in answers. There were simply too many answer blanks and not enough clock. I still passed (76). It all depends on how well you do on the multiple choice questions. If you do well on the MCQs, then youll have a little cushion on the simulations and not finishing your second simulation may not be such a huge disaster after all. 21. I couldnt get my research tab to work! I thought I found the right text to insert, but the computer wouldnt accept any of it. Will this hurt me? Did you miss the few points that the research tab is worth? Yes. Is it a disaster? No. I passed FAR and left both research tabs blank on my simulations. On the first simulation, I couldnt find a single answer that the computer would accept. I almost had a meltdown in the exam room. I could see my 75 slipping to a 74 right before my eyes. When I moved on to the second simulation, I was seriously crunched for time. I barely had 20 minutes to complete the whole thing. I went into survival mode and did the written communication first and filled out whatever tabs I could. After my experience with the research tab on the first simulation, I didnt even bother trying to answer the research question on the second simulation. I left both of the research tabs blank and I still passed. I wouldnt worry too much about it. While my research tab on my FAR exam wouldnt work for me, I had no trouble with it on Regulation. I strongly recommend that everyone get a feel for the research tab functionality at www.cpa-exam.org. 22. My exam ended before I could click DONE on my last simulation. Did my answers get saved? Yes, they were saved and there is nothing to worry about. In my final two exams (REG and FAR), I didnt get to click DONE on my final simulation and I passed them both (92 and 76, respectively). People ask this question quite often.



23. I had computer problems during my exam. What should I do? You have a decision to make. Did your computer problems potentially keep you from passing? If so, e-mail [email protected] and they will check your exam log to verify that you did indeed have computer issues. If you choose to re-take your exam (and they allow you to do so for free), you will never know what you actually scored on your exam. If it was just a 5-15 minute interruption and was more annoying than anything and didnt materially affect the outcome of your exam, then you will have to live with whatever score you get. The time to complain to NASBA about testing center mishaps is before you get your score. 24. I finished Auditing with 30 minutes to spare. Should I be worried? Not at all. Ironically, 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. My second time to take auditing was also the time that I passed auditing. 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. Now, lets recap: I am a very slow test taker. I tend to go back and make sure that the answers on my testlet havent changed because I was so scared of failing. Even still, I had thirty minutes to spare. I asked the lady at Prometric if this was normal and she said that in all of the Auditing exams that shes administered, she had only seen two candidates take the full allotted time. So, if you finish AUD with time to spare youre normal. 25. Shouldnt BEC be the easiest section of the CPA Exam? Its only 2.5 hours and is basically a rehash of everything we learned in college, right? Wrong. Now, let me preface this with saying that people take BEC everyday and pass BEC like its no big deal. However, if you take BEC lightly or take the material for granted it will own you on exam day. Sure, you covered most of the material in college, but this isnt a college final. This is a rigorous exam that will force you to answer questions under pressure unlike any exam that you took in college. Do not assume that BEC is the weak link or gimme on the CPA Exam. That type of mentality will net you a low score on exam day. BEC is no joke, so prepare accordingly.



26. How many questions on the CPA Exam are pre-test? Up to 20% of the multiple choice questions on the CPA Exam are pretest. This means that up to 18 questions on FAR, BEC, and AUD are pretest and up to 14 MCQs on Regulation are pretest questions as well. Pretest questions simply do not count toward your score, but they may use them as live questions in the future. 27. Is BEC adaptive? I swear the questions were getting harder each testlet. The questions may have seemed harder as you went along, but it was an illusion. I get this question a lot, actually. Currently BEC questions are not adaptive. 28. How do I know if Im getting the hard testlets? FAR, REG, and AUD all start out on medium difficulty. From there you can progress to hard if you do well on your first testlet. Otherwise, you stay on medium. 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. The clue to whether or not youre getting the hard questions in testlet two and three is wordiness. Say that you start out on testlet one and the questions arent that difficult and could even be described as easy" and youre progressing at a pretty good clip. Then, out of nowhere in testlet two its like all of a sudden they started throwing real questions at you. The questions are more wordy and more involved. This is a good indication that you did well in testlet one and have earned a hard testlet in testlet two. The medium-difficulty testlets tend to be short, sweet, and to the point. If you find the questions in testlet two and three so easy that they are almost too good to be true: be worried. 29. 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. The simulations are not adaptive, so your performance on the MCQs has no effect on what simulations you draw during the exam.



30. I just took my exam and found it to be pretty easy. Should I be worried? Yes, you should probably be worried. People who study hard and know their stuff usually comment that the exam was tough in some parts, but overall it was not that bad. They end up scoring in the 80s and 90s. Based on my experience in talking to CPA Exam candidates, those who are successful on the exam rarely leave the testing center describing their exam as easy. If you found the exam to be easy its likely due to you encountering three medium testlets which indicate that you werent scoring well enough for the hard testlets. With that said, everyone is different and its entirely possible that you found the exam to be easy and scored very highly. Keep in mind that Im only speaking in general terms. Im sure that there are people out there who studied hard and the exam felt easy to them. This is not a common occurrence, however. 31. If I have to guess on my exam, what strategy should I use? Sometimes, in the heat of the CPA Exam, particularly on a question involving a calculation, you cant come up with an answer that matches the choices no matter how much time you spend on it. With each exam (with the exception possibly being Auditing), you have to be cognizant of the clock. Five minutes too long spent on a frustrating MCQ is five minutes that youre cheating yourself on a simulation. When it comes down to it and you have no choice but to guess, according to the Yaeger CPA Review instructors, you need to choose B or C. According to Yaeger CPA Review instructor Cindy Simpson, the least correct answer is A, but its usually the most attractive incorrect answer. The reason for this is because the exam administration team know that A is the first answer that you will look at, so theyll throw a seductive looking wrong answer in that space, which is why Ms. Simpson recommends working from the bottom answer (D) up. If you must guess choose B or C. I personally tested this theory after working 100 or so multiple choice questions one night. I went back and tallied up the percentages of the correct answer letters. Ms. Simpsons statement was correct. B and C were correct approximately 30% each. A and D were only correct around 20% each.



32. My boss keeps telling me how easy I have it now that I can take the CPA Exam on a computer. Is the exam easier than it used to be? This is a recurring question that I get. For some reason, older CPAs, who passed the exam under the paper and pencil method, see the need to belittle the exam experience of those who have taken it more recently. They think its easy now because its tested on a computer and offered more than twice a year and candidates only need to study for one part at a time. I think its partly due to jealousy (as they reflect back on the 2 days of misery that they experienced) and also partly due to ignorance. No, the computerized exam isnt easier than the paper and pencil method, its just different. 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. However, the breadth of information that candidates must study for the computerized exam is greater than under the old method. Theres Sarbanes-Oxley, IT, and more complex standards that are a result of a much more tightly-regulated business world. Lets also not forget that the computerized exam is adaptive. The better you do, the harder your questions get. Couple this with the fact that up to 20% of the questions on the exam are pre-test and dont count and toss in two case-based simulations complete with research tabs, and a strong case can be made that todays exam is harder than the paper and pencil method. 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. Score Reporting 33. 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. CPA Exam scores are first released by the AICPA to the states. Some states, like California and Illinois, report the scores for candidates in their respective jurisdictions on their own websites. The majority of states use NASBA to represent them in the score release process. 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.



This is how the score release process works: 1. The AICPA releases scores to the states. Everything in the score release process is completely dependent on the AICPA to get things rolling. 2. States that report scores independently and do so online (such as California and Illinois) generally get scores out very quickly after the AICPA release. Usually, they release them within 24 hours especially California. 3. NASBA, who represents the majority of the states, releases scores online usually within 24-48 of the AICPA releasing scores. As of this writing, NASBA only releases scores in the evening between 8pm and midnight Central time. 4. Independent states who release their scores after NASBA will do so either via the internet or snail mail, whatever the case may be for the particular state. 34. I see the term NASBA state on your website. 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.org to handle the score release process for the candidates in their jurisdiction. To find out if your state is a NASBA state, simply go to NASBA.org ! Exams ! CPA Exam ! State ! Scores. If there is an area for you to enter your date of birth and section ID number, then you are in a NASBA state. If there is no place for you to enter your information, 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. 35. I sat for my exam on _______. When can I expect my score? CPA Exam scores come out in two waves from the AICPA: Wave 1 and Wave 2. Wave 1 begins around the 15th day of the second month in the window and concludes around the 22nd or 23rd. 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. Ex: July/August testing window: -If you take your exam July 5, you will be in Wave 1, assuming you dont get a new simulation on your exam



-If you take your exam August 7, you will be in Wave 1, assuming you dont get a new simulation on your exam -If you take your exam on August 8 or later, 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. It doesnt mean that they will get their scores in the first wave it just means that they are eligible. 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. Ex: January/February window in general, Wave 1-eligible exams will be from January 1 through February 7. If you sit for the exam on February 7, you are still considered Wave 1. If you sit February 8, you are likely Wave 2. This is not an exact science, but rather a general guideline. 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. Bottom line: if you want your score in Wave 1, your best chance is to sit before the 7th day of the second month in the window. 36. What time of day do scores come out? For the independent states, it varies and is completely up to their discretion. NASBA now releases scores in the evening around 9pm Eastern. You can check your score all day if you want (its ok I used to hit submit all day too), but theyre not coming out until 9pm Eastern or later. 37. I didnt get my score in Wave 1, but I took my exam early in the testing window. Does this mean Im borderline or failed? Im freaking out! Please help! If you didnt get your score in Wave 1, it doesnt mean that your score is borderline or that you failed. You very well could be borderline or failed, but getting your score in Wave 1 or Wave 2 has nothing to do with it. The likely reason you missed out on Wave 1 is due to you getting a brand new simulation, which will automatically push you into Wave 2. The wave in which you receive your score is not indicative of your performance on the exam.



38. My friend and I sat for the same section of the exam on the same day, at the same time, in the same testing center, yet she received her score in Wave 1 and I didnt. How can this be? It could be for a number of reasons, but the most likely reason is due to you getting a brand new (and thus, never tested) simulation on your exam, which according to my interview with the AICPA (see appendix), automatically causes a candidates score to be pushed to Wave 2. 39. I scored a 74. Should I appeal? In short, you can do whatever you want, but I dont recommend it. As someone who scored back-to-back 74s and lost my FAR credit as a result, I seriously considered it, but in the end, I decided that it wasnt worth it. For one, I knew the chances of getting my grade changed were between slim and none. The AICPA would later confirm my suspicions in my interview with them (included in the appendix). They stated that in 2008 zero scores were changed as a result of an appeal. Secondly, you could apply to sit for the exam again AND get your score back before they even begin to look at your exam. The process takes them that long, apparently. As rough as a 74 is, and I can certainly sympathize with it, I recommend just sucking it up and taking the exam again. A cram course would serve you well in this case. Buy one and get back in there and take it soon. 40. I had to re-take a section and my old score was there online yesterday, but its gone today. 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. 41. 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. If I am comparable or stronger in 90% of the exam compared to the average passing candidate, how could I have scored a 73? I received this question after the April/May 2009 testing window and it just goes to show



you how critical the writing portions of the simulations are. Bombing the written communications (they only actually grade one, remember) sections puts you behind the 8 ball, so to speak, with regard to the rest of the exam. Yes, you can still pass, 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, as evidenced in this instance where the candidate scored a 73 despite doing well on the rest of the exam. 42. I received an advisory score and I PASSED! Its not going to change, is it? Some of the independent states use an advisory score when scores are first released. They do this to release the scores quickly with the caveat that they are subject to review. While this does not mean that they have never changed, I have yet to hear of one changing. In short, CONGRATS! 43. I passed my final section of the CPA Exam. When will NASBA send me a confirmation letter? Welcome to the waiting game. You should be used to this already, however. Once you pass your final section and get your score online, expect to wait a good 4-6 weeks before you receive something official in the mail. Instead of directly sending you a diagnostic report like they do when you fail a section, after passing your final section, they send all of the information to your state board of accountancy, which in turn will pass it on to you, in addition to whatever literature they want to send you. 44. I failed again and Im thinking about throwing in the towel. Ive been at this for too long. I hate this exam. Ive been there. Over the course of three years, I was there several times, actually. My decision to stick with the exam came down to this: 1. I would always regret quitting the CPA Exam and it would bother me for the rest of my life. In addition, it would haunt me for the remainder of my career being an accountant who wasnt a CPA. I would miss out on opportunities and be bypassed



for promotions. 2. 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 couldnt handle the adversity. 3. I decided that while the temporary failure and humiliation from not passing sucked, for lack of a better word, three years from now when I had CPA next to my name, the frustration I was experiencing now would all be a distant memory. You have to stick with it and you cannot quit. You need to do an: 1. Honest evaluation of yourself. Its time to come clean at least to yourself. Did you give 110% or was it more like a 65% effort? 2. Honest evaluation of your review materials. Do your review materials match your learning style? Every course is different and different people learn different ways. Are your review materials up to date? If youre trying to get by with old materials, its no wonder why youre struggling. 3. Honest evaluation of your schedule. If youre not studying 20 hours a week, youre not studying. You need to figure out a way to work it in. Quitting is not an option for you, so its time to figure out what the problem is and fix it. Ethics Exam 45. How do I know if my state requires an ethics exam prior to getting my certificate? Some states dont have an ethics exam requirement, but many do. Your best bet is to contact your state board of accountancy directly, either via their website, or simply pick up the phone and ask them what is required. They will point you in the right direction. 46. I just sat for an exam. If I pass, Im done. How long do I have to wait before I can take my states required ethics exam? The bad news is that you have to now sit around and wait to see if you passed. The good news is that while you wait, you can go ahead and order the ethics materials that your state requires and get it out of the way. Many states use the AICPAs ethics course that they sell for around $130 or so. Be SURE to check with your state and find out what course they require, if any. Some states have their own ethics course, while others just



use the AICPAs course. The ethics exam is very tedious and very boring, but if you order it and devote 2-4 hours to completing it, you can pass the ethics exam and its one less thing to worry about. Even if your score comes back as failing, you still have your ethics requirement out of the way. 47. My friend is an AICPA member and can buy the course at a discount. Should I order it through my friend? No. You want your ethics exam purchase to be in your name. In the future, your ethics course may even count as CPE for you. In short the discount is your friends not yours. Pay the full price for the ethics course and get an account in your own name. It will save you a bunch of hassle. How ironic that you wanted to use your friends AICPA membership to save money on your ethics exam. Dont cut corners to save a buck or two. Certification and Licensing 48. I just passed my final section! Im DONE! Can I call myself a CPA? Not yet. While the exam is uniform, certification and licensing are handled by the states. You need to check with your state board of accountancy about their certificate and licensing requirements. Some things to consider: 1. Does your state have an ethics requirement that must be fulfilled prior to the issuance of a CPA certificate? 2. Does your state have an experience requirement that must be met prior to the issuance of a license? If so, 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. If the state has an experience requirement, 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. If the person signing off on your experience must have supervised you, then you



need to take a hard look at upper management before you take a job. Are they CPAs? Are they licensed? These are things to consider. Some states will allow you to put CPA after your name in your works internal e-mail for internal purposes without being licensed. Be sure to check first before doing this though. If you send an e-mail to an external party, simply delete CPA from your name before you send it. Once youre licensed, you dont have to mess with deleting it anymore. You must make sure that you fully understand what the rules are for holding yourself out as a CPA. This is critical. You can get yourself into a lot of trouble if you dont do your due diligence or skip a step. When in doubt, call your state board of accountancy and ask them for guidance. 49. I have my certificate, Im licensed, and Im done! (Right?) No, the fun has only just begun. You now have CPE requirements to worry about ". I currently have 80 hours of continuing education that need to be completed a year from now staring me in the face. I find myself skimming through the CPE catalogs trying to find the least boring topics. So far, they all appear equally boring (and expensive). I still havent decided if its worth fulfilling the CPE requirements in order to keep my permit to practice. I worked so hard to pass the exam that I suppose I will keep my permit active for a few years at least. 50. Should I expect to get a raise or be promoted after passing the CPA Exam? I have been asked this question several times. The CPA Exam is a tough road to travel. Once it comes to an end, youre so ecstatic to be done and are so proud of your accomplishment that you almost expect a parade in your honor with confetti everywhere. Except, there is no parade, and no one outside of your friends who have either passed the exam or are currently going through it, and your significant other, can fully understand what you just accomplished. Your parents will be proud, but they wont get it. Siblings, aunts, uncles, grandparents, etc. will admire you, but they wont understand either. If you try to convey how draining the whole process was, youll walk away frustrated because you wont be able to find the words to do it justice, so dont even try. I say all of this to remind candidates of the reason for going through the whole exam process. Its for you and you alone. Sure, its a feather in your cap and a golden key that will unlock many an interview. It will give you instant credibility among your peers.



They dont understand what it fully means that youre a CPA, but they think youre smart and did something that is tough. They know this because Accounting 101 and 102 in college were hard for them. Did I get promoted? No. I was already a senior analyst just below a manager. Did I get a raise? No. I was already paid very well. Did I get a parade? No. I didnt even get a lunch from my work colleagues. I did get an atta boy, so thats something, right? Again, 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, because chances are that your expectations will not be met. If you work in public accounting, then chances are very good that you will receive some sort of promotion and/or raise. You are now worth more to your employer because they can bill you out at a higher rate and youre a more valuable asset to them overall. If you dont work in public accounting, does passing the CPA Exam make you better at your job all of a sudden? The answer is no, which is why you shouldnt expect a raise. If you do end up getting a raise because you passed the exam, then consider it gravy. It will open the door for promotions and other opportunities over time that never would have existed if you didnt have those three letters after your name, but dont expect a promotion or a raise right away just because you are now a CPA. As I said before, if youre trying to pass the CPA Exam in order to impress family or friends, you are setting yourself up for disappointment. They just dont get it. Sure, they know you worked hard and that the exam is difficult, but they dont have a clue about the exam or everything that goes into it. Actually, they were probably wondering why it took you so long to finally pass. Cousin Jenny at cosmetology school passed her test the first time, but for some reason you cant pass your accounting test. Oh well, they love you anyway. Youll get it hang in there they keep saying. They dont understand nor should they. You have to want to be a CPA for you for your career, for your family, for your self respect. Any more than that and you run the risk of your accomplishment becoming bittersweet. Yeah you passed, but no one really cares that much (certainly not enough to warrant the sacrifice, anyway) and you didnt get a raise. The stupid exam fees arent even tax deductible on your Schedule A!!! I didnt get a raise because I passed the CPA Exam, nor did I get promoted. Most of my extended family didnt fully understand what it took for me to pass, either. So was it worth it? Absolutely.



Additional Resource CPA Exam Myths Debunked: My Interview with the AICPA Examination Team 1. A Curve on the CPA Exam? another71.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. Is a candidates 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. And yes, every candidates score is entirely independent of other candidates examination results. The CPA exam is a criterion-referenced examination, which means that it rests upon predetermined standards. Every candidates 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. Every candidate is judged against the same standards, and every score is an independent result. 2. BEC - Why the wait? another71.com: A widely held frustration among people who sit for BEC is that they dont get their score right away. Since there are no subjective elements to BEC since it is 100 percent multiple choice (currently), 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. For these reasons, issuing scores at test centers is impractical and the possibility is not being considered. 3. Re-score: Worth the hassle (and time and money)? another71.com: When candidates score a 74 on an exam, the inevitable question that they ask is, Should I apply to get it rescored? In 2008, 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. The service available is score review, an automated score verification process. It involves making certain that the approved answer key was used in scoring and that it was correctly applied. In 2008, score review requests did not result in any score changes.



4. Grading transparency another71.com: A common complaint about both the grading process and score reporting process for the CPA exam is that they are not very transparent. Candidates feel very much left in the dark. 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, How is the CPA exam scored? is a very successful AICPA effort to bring transparency to the process. It is a non-technical overview providing insight into scoring without the use of psychometric jargon. The technical aspects of scoring are, of course, much less accessible to the layman. However, for those who wish to tackle the technical, a wealth of information is readily available on the Internet about Item Response Theory (IRT), the psychometric model that is the basis of CPA exam scoring. 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. For example, 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, even if they test at the beginning of a testing window. A sufficient number of responses to new simulations must be available for psychometric analysis before scoring can begin, and it is impossible to predict who will receive new simulations as simulations are assigned at random. 5. Real-time scoring in the works? another71.com: Currently, scores are released in two waves per testing window commonly referred to as Wave 1 and Wave 2. 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. 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. However, real-time score reporting is not a realistic option and is not being considered. (Refer to the response in question 2.)



6. Borderline candidates? another71.com: Another widely held sentiment about score releases is that if a candidate doesnt receive their score in Wave 2 of a testing window, then they are borderline i.e., 72-77. Would you say that in general, the most candidates who dont receive their score by Wave 2 are borderline? AICPA: There are several possible reasons why some scores are released faster than others. If psychometric analysis is required, for example, the scores of all candidates who took a particular examination version whether passing, failing or on the brink are held until the analysis is completed. For those who took AUD, FAR or REG, the second reads of written communication responses may also be a factor. Second reads are additional reviews of essays for candidates whose scores are close to passing. 7. Is a raw score possible? another71.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. 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, the new CPA exam, is implemented. There are no plans, however, to provide candidates with raw scores or any other kinds of scores at the test center. (See response to question 2.) 8. 18 Month Rule another71.com: In regard to the 18-month rule, candidates often feel they are at a disadvantage due to a relatively slow score reporting process. For instance, 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, by the time they get their score in Wave 2 of the third month, nearly three months of their 18-month window has expired. If you count the fact that four of those 18 months are not testable months, they have even less time left. 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. A better approach might be to take two sections in the first window, two in the next, and use the remaining four windows to retake any sections failed on the first attempt. !

50 things you must know about the cpa exam - 2010 edition

Documents