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Preparing for the CPA Exam November 18, 2020 Slides available on the Accounting Department Homepage Margaret Duncombe, 2020 PwC Core Assurance Boston Nick Stasium, 2020 PwC Tax Practice Boston Olivia Zdrojewski, 2020 Deloitte Audit Boston Professor Dianne Feldman - Accounting Department Professor Liz Quinn – Accounting Department

Preparing for the CPA Exam - BC

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Page 1: Preparing for the CPA Exam - BC

PreparingfortheCPAExamNovember18,2020

SlidesavailableontheAccountingDepartmentHomepage

Margaret Duncombe, 2020 PwC Core Assurance BostonNick Stasium, 2020 PwC Tax Practice BostonOlivia Zdrojewski, 2020 Deloitte Audit BostonProfessor Dianne Feldman - Accounting DepartmentProfessor Liz Quinn – Accounting Department

Page 2: Preparing for the CPA Exam - BC

Introductions&ContactInformation

o MargaretDuncombe:[email protected](774)283-1775

o NickStasium:[email protected](207)450-1967

o OliviaZdrojewski:[email protected](978)771-7471

Page 3: Preparing for the CPA Exam - BC

TheCPALicenseo TheCPAcredentialisalicenseissuedbyoneofthe55statesorterritoriesof

theU.S.thatauthorizestheholdertopracticeasaCPAinthatjurisdiction.o Onecomponentofthelicensingrequirementdesignedtoensureonly

qualifiedindividualsbecomelicensedasCPAsistheUniformCPAExamination.

o TheCPAlicenseisissuedatthejurisdictionlevel.TobecomeaCPA,youmustbedeclaredeligiblefortheexamination,andsubsequentlylicensed,bytheBoardofAccountancyinoneofthe55U.S.jurisdictions.

o TheConstitutionoftheU.S.grantseachstateorterritorythepowertoregulatethepracticeoftheprofessionswithinthatjurisdiction’sborders.Eachjurisdictionsetsitsownrequirementsforeducation,examinationandexperience.

Page 4: Preparing for the CPA Exam - BC

CPAExam:Playerso TheAmericanInstituteofCertifiedPublicAccountants(AICPA):TheAICPAis

thelargestnational,professionalorganizationforCPAs.TheAICPAprovidesmemberswithresources.FortheUniformCPAExamination,theAICPAdeterminesthecontentoftheexamination,preparestheexaminationquestions,determinesthemethodofscoring,preparesadvisoryscoresandconductsstatisticalanalysesofexaminationresults.

o TheNationalAssociationofStateBoardsofAccountancy(NASBA):The55U.S.andterritorialBoardsofAccountancyarethemembersofNASBA.NASBAexiststoserveitsmembers.NASBAtakesontheroleofacentralclearinghousewherealljurisdictionssubmitinformationoneligiblecandidatesandfromwhichalljurisdictionsreceiveadvisoryscoresandotherexaminationdata.Youmayaccessthesitehere:NASBA.

o CPACentral:Youmayrequest,completeandsubmitanapplicationonlineinmoststatesat:CPACentral.

o Prometric:Prometricisthegloballeaderintechnology-enabledtestingandassessmentservicesforinformationtechnologycertification,academicadmissionsandprofessionallicensureandcertifications suchastheUniformCPAexam.Prometricoperatestestcentersaroundtheworld.

Page 5: Preparing for the CPA Exam - BC

CPAExamo TheUniformCertifiedPublicAccountant(CPA) Examination isdeveloped

bytheAICPAwithsignificantinputandassistancebyNASBAandstateboardsofaccountancy.Itis designedtoassesstheknowledgeandskillsentry-levelCPAsneedtopracticepublicaccountancy.

o OnApril1,2017,theAICPAlaunchedthenewestversionoftheUniformCPAExamination,afour-section(AUD,BEC,FARandREG),16-hourassessment(fourhourspersection)thatplacesagreateremphasisontestingacandidate’shigher-ordercognitiveskillssuchascriticalthinking,analyticalability,problemsolvingandprofessionalskepticism.n Auditing&Attestation(AUD)– 4hoursn BusinessEnvironment&Concepts(BEC)– 4hoursn FinancialAccounting&Reporting(FAR)– 4hoursn Regulation(Tax&BusinessLaw)(REG)– 4hours

Page 6: Preparing for the CPA Exam - BC

CPAExam:GeneralInformationo TherequirementstotaketheCPAexamareasubsetoftherequirementstobelicensedasaCPA.

o Youcantakethe4differentpartsinanyorder.o 75isthepassinggrade.o ThecomputerizedCPAexamisadaptive,i.e.,thelevelofdifficultychangesaccordingtoyourperformance.

o YoumayscheduleyourexaminationatanyPrometricsiteinanyofthejurisdictions.Youdonothavetositinthesamestatewhereyouappliedtobelicensed.

o Testingwindowshavebeeneliminatedinmoststates,theexaminnowadministeredonacontinuousbasis(notcontinuousyet:CT,MI&SC*).

o Onceyoupassonepartoftheexam,youhave18monthstocompletetheremainingparts.Otherwise,youwillneedtoretakethepart(s)thatyoupassedthatis(are)over18monthsold.

o Ifyoudonotpassasection,younolongerhavetowaittoreschedule,youmaydosoassoonasyourofficialscoreisreleased.

Page 7: Preparing for the CPA Exam - BC

CPAExam:QuestionFormatso TheCPAexamemploysacombinationofquestionformats.Itincludesthetraditional

multiplechoicequestionsandwrittenresponses,aswellashighlyinnovativesimulations–questionsthatreplicateworkplacesituationsandrequiretheapplicationofknowledgeandskillstoarriveatsolutions.

o Candidateswillreceiveatleastoneresearchquestion(research-orientedTBS)intheAUD,FARandREGsectionsthatrequirethecandidatetosearchtheapplicableauthoritativeliteratureandfindanappropriatereference.

o Pretestitemsareusedtodevelopfutureexaminations.Theyarenotusedincomputingexaminationscores.Anysectionmayincludepretestitems.

Page 8: Preparing for the CPA Exam - BC

CPAExam:Testlets

TutorialsandSampleTestscanbeaccessedattheAICPAwebsiteat:Tutorials&SampleTests

q Theexamsectionsareadministeredinfiveblockscalledtestlets,withMCQsandtaskbasedsimulations(TBSs)inallsectionsandthreewrittencommunicationtasksonlyinBEC.ThenumberofMCQsandTBSsvarydependinguponthesection.

Page 9: Preparing for the CPA Exam - BC

CPAExam:Structure&Prometricsq Arriveon-time,bring2validformsofIDthatmatchyournameontheNTS(checkthelistofacceptableIDsonyourNTS).

q Requestacalculatorifnotprovided.q DuringeachExamsection,candidateswillbeofferedastandardized,15-minutebreakafterthefirstTBStestlet,whichisapproximatelythemidpoint –twohours.The ExamclockstopsforthestandardizedbreakafterthefirstTBStestletiscompleted.Acandidatemaychoosetodeclinethestandardizedbreakandcontinuetesting,butthebreakwillnotbeofferedagain.Optionalbreakswillcontinuetobeavailable,butitcountsagainsttotaltestingtime.

Page 10: Preparing for the CPA Exam - BC

CPAExaminationProcess

atPrometrics.com

Page 11: Preparing for the CPA Exam - BC

SittingfortheCPA:MArequirementsoBeatleast18yearsold.oBachelorsdegreewithcompletionofatleast120semestercredithours.Note:APcreditswillnotbeincludedonyourtranscriptuntilyougraduate.

oUnderupdatedregulations,MAcandidatesmayapplyforORtakeanexamsection90daysbeforetheirofficialgraduationdatebyprovidingaCertificateofEnrollmentandbyprovidingaCertifiedtranscriptwithin90daysoftakingtheexam.

o Takenatleast21AccountingcredithoursincludingcoverageinFinancialaccounting,Management(Cost)accounting,TaxationandAuditing.

o Takenatleast9businesscredithourswithcoverageinFinance,BusinessLaw&InformationSystems.

Page 12: Preparing for the CPA Exam - BC

SittingfortheCPA:NYrequirements

oCompleteatleast120semestercredithours.Note:APcreditswillnotbeincludedonyourtranscriptuntilyougraduate.

oUnlikeinMA,candidatesmusthavecompleted120credithoursPRIORtoapplyingfortheexam.

oCompleteacourseineachofthefollowing:financialaccounting,costormanagementaccounting,taxation,auditandattestation.

Page 13: Preparing for the CPA Exam - BC

CPAExam:ApplicationProcesso ObtainCandidateBulletin:Access2020Candidate'sBulletinHere

o Sendapplicationformstostateyouintendtopractice(applyon-lineforyourstateatwww.nasba.org ordirectlytoyourBoardofAccountancy).Note:NameonapplicationmustmatchthenameonyourID.

Page 14: Preparing for the CPA Exam - BC

CPAExam:ApplicationMaterialso Anofficialtranscriptfromeachschoollistedonyourapplication.Transcriptsmustbesentdirectlyfromyourschool(s)StudentServicestoCPAExaminationServices(sendviamailisrecommended).

o CertificateofEnrollment,ifapplicable (inMAonly)o Thisformisevidencethatyouarecurrentlyenrolledandthatallcoursesandgraduation

requirementswillbecompletedpriortothedatethatyousitforthefirstsectionoftheexam.Theformmustbesignedbyanauthorizedofficialofthecollege(notarized)andsignedbyyou.TheofficialformcanbedownloadedfromtheNASBAwebsite,donotusetheBCform.

o NASBAAdvisoryEvaluation– availableincertainstatesincludingMA&NYo ApplicationandExamFees:

n ApplicationFeeforFirstTimeCandidates:@$195n Examinationfeewillvarydependingonthenumberofsectionsyouareapplyingfor

(e.g.InMA$117foronesection,$137fortwosections,$157forthreesectionsand$177forfoursections).

n Thecostofeachexamis$200+(variesbystatee.g.$209inMaine,$225inMass.)Note:Youlosetheexamfeeifyoudonottaketheexamappliedfor,sobecarefulhowmanyexamsectionsyouregisterfor.

Page 15: Preparing for the CPA Exam - BC

CPAExam:ApplicationProcesso Allowatleast8weeksforNASBAtoprocessapplicationandsend

NoticetoSchedule(NTS).Shorterdelayduringoff-season?

o OnceNTSreceived,scheduleexam(s)withPrometrics.com–exam(s)canbetakenanywhereintheU.S.Schedule45daysinadvancerecommended,butnolaterthan5daysinadvance.YoumusttakebeforeyourNTSexpires(inmoststates6months).

NOTE:NTSmustbebroughttotheexam,italsocontainsyourlaunchcode.

Page 16: Preparing for the CPA Exam - BC

ExaminationBlueprintso ExaminationBlueprintshavebeencreatedforeachoftheExam’s

foursections.TheBlueprintscontainapproximately600representativetasksacrossthefoursections.ThepurposeoftheBlueprintsisto:n Documenttheminimumlevelofknowledgeandskillsrequired

forlicensure.n AssistcandidatesinpreparingfortheExam.n Appriseeducatorsofknowledgeandskillscandidateswill

require.n GuidethedevelopmentofExamquestions.

o TheBlueprintscanbeaccessedontheAICPAsite:2019CPAExamBlueprints.

Page 17: Preparing for the CPA Exam - BC

ExaminationBlueprints

Page 18: Preparing for the CPA Exam - BC

Auditing&Attestationcoveredin:q ACCT3309(Audit&Assurance)orACCT8815

(FinancialAuditing)q ACCT6618(AccountingInformationSystems)q ACCT4409(AdvancedAuditing)q ACCT6634(Ethics&Professionalism)q ACCT6635(ForensicAccounting)q ACCT6640(Dive,Dissect&DecidewithBig

BusinessData)q ACCT8825(Assurance&ConsultingServices)

Page 19: Preparing for the CPA Exam - BC

ExaminationBlueprints

Page 20: Preparing for the CPA Exam - BC

FinancialAccounting&Reporting:q ACCT1021(FinancialAccounting)q ACCT3301(FAST1)q ACCT3302(FAST2)q ACCT6601(FAST3)– equivalenttoAdvanced

Accountingq ACCT3351orACCT8824(Financial

StatementAnalysis)

Page 21: Preparing for the CPA Exam - BC

ExaminationBlueprints

Page 22: Preparing for the CPA Exam - BC

BusinessEnvironment&Concepts:q ACCT1022(ManagerialAccounting)q ACCT3307(ManagerialCostAnalysis)or

ACCT8817(InternalCostManagement)- MSAq Alsotoucheson:CSOMcoreclasses(Finance,

OperationsManagementandEconomicsprimarily),AIS(ACCT6618),&BusinessWriting(ACCT5588or8810,orBCOM5588,6688or8810)

Page 23: Preparing for the CPA Exam - BC

Regulation:q BSLW1021(BusinessLaw)q ACCT4405(FederalTaxation)q ACCT6615(AdvancedFederalTaxation)q BSLW1022(BusinessLawII)orBSLW8803

(BusinessLawforCPAs)q ACCT8826(Taxes&ManagementDecisions)

Page 24: Preparing for the CPA Exam - BC

Whentotaketheexamo Taketheexamassoonaspossible--- whileyou’restillina

“studentortest-taking”frameofmind.Thelongeryouwait,themorelikelyitisfornewstandardstobeadoptedandforyourtest-takingskillstodiminish(seefirst-timetesttakerresults).n Youaresignificantlymorelikelytopasstheexamifyousitwithin

oneyearofgraduation.

o ConsidertakingasectionduringSeniorspring.BCstudentsdoverywellonBECandthissectionnormallyrequireslessstudyhoursthentheothersections.Wordofcaution!

Page 25: Preparing for the CPA Exam - BC

BCPassRateallCandidates:2014-2019

52.80% 51.90% 48.30% 48.70% 49.80% 49.50%

56.70% 56.30% 54.10% 53.30% 54.30% 54.60%

81.00% 79.40%

75.00% 74.00% 74.10% 72.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

2019 2018 2017 2016 2015 2014

OverallCPAExamPassRate- AllTesting

National Massachusetts BostonCollege

Page 26: Preparing for the CPA Exam - BC

BCPassRateFirstTimeCandidates:2014-2019

58.60% 57.50%

52.90%54.40% 55.00% 55.00%

62.90% 62.20%59.30% 58.90% 59.90% 59.20%

88.30%

84.40%

79.70%81.80% 82.50%

72.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

2019 2018 2017 2016 2015 2014

CPA Exam Pass Rate - First Time Exam Candidates

National Massachusetts Boston College

Page 27: Preparing for the CPA Exam - BC

BCPassRateFirstTimeTakersbySection:2014-2019

84.60%

94.90%

88.30%

85.40%

65.00%

70.00%

75.00%

80.00%

85.00%

90.00%

95.00%

100.00%

2019 2018 2017 2016 2015 2014

BCPassRateFirstTimebySection

Audit BEC FAR REG

Page 28: Preparing for the CPA Exam - BC

2019#4RankingforLargeProgramPassRate

Page 29: Preparing for the CPA Exam - BC

Whatordertotaketheexams?o Whatclasseswillyoubetakingjustbeforeorduringthe

review?n Takethatpartoftheexamthatismostconsistentwith

theclassesyou’retaking.o Avoidleavingthehardestsections(FARorREG)forlast.o Remember,youonlyhave18monthsfromthetimeyoupass

thefirstparttogettherestofthepartscompleted.o Ifyou’retakingtheexamcontinuously,yourmindand

concentrationstarttolagafterthefirsttwoparts.

Page 30: Preparing for the CPA Exam - BC

Whentoregisterandexamorder?o Whentoregister(BCSeniors):

n MACandidates:ApplyinmidtolateMarch(6monthwindowforNTS)bycompletingCertificateofEnrollment.

n NYCandidates:ApplyinmidtolateMarchifyouhave120credits(notincludingAPs)asofthebeginningofSpringsemester.Otherwise,mustwaituntilgraduation.

o ExamOrderandTiming(Suggestion):n StudylateMayandJuneforFARorREG(mostmaterialandconsidered

mostchallenging).TakeexamstartofJuly.n StudyrestofJulyandearlyAugust.TakeREGorFARearly-midAugust.n StudyrestofAugust.TakeBECorAUDattheendofAugustorearly-

midSeptember(caution– testingfatiguemaysetin).n StudyinSeptemberforlastpart.TakeearlyOctober.Note:Auditbest

totakelastifworkinginassurance.

Page 31: Preparing for the CPA Exam - BC

Appendix

Page 32: Preparing for the CPA Exam - BC

CPAcertificationrequirementsinMA

o PasstheCPAexam.o Completeatleast150semestercredithours(Mostfirms

requirethisbemetbeforestartingwork).o Haveatleastoneyearofpublicaccountingexperience

(waivedforgraduatedegreeholdersinaccounting,businessorlaw).

o Completeatleast30Accountingcredithoursand24business(non-Accounting)credithours.

Page 33: Preparing for the CPA Exam - BC

CPAcertificationrequirementsinMA

o Coursescanonlybetakeninregionallyornationallyaccreditedinstitutions.Communitycollegecoursesnowcount.

o Coursescanbetakeninmorethanoneinstitution(alltranscriptssubmitted).

o Onlinecoursesareokayifofferedbyanaccreditedinstitution.

Page 34: Preparing for the CPA Exam - BC

CPAcertificationrequirementsinNY

o Atleast21yearsofage.o Beofgoodmoralcharacter.o PasstheCPAexam.o Atleastoneyearofqualifyingexperience.o Completeatleast150semestercredithours.o Completeatleast33Accountingcredithoursincluding

financialaccountingtheoryandreporting,costormanagerialaccounting,taxation,auditingandattestationservices andcomplete36business(non-accounting)credithours.

Page 35: Preparing for the CPA Exam - BC

CPAcertificationrequirementsinNY

o Complete36generalbusiness(non-Accounting)credithoursingeneralbusinesselectivesinanycombinationofthefollowingareas:businessstatistics;businesslaw;computerscience;economics;finance;management;marketing;operationsmanagement;organizationalbehavior;businessstrategy;quantitativemethods;andinformationtechnologyandsystems.

o Thecurriculummustalsoincludecoverageofbusiness/accountingcommunication(BCOM6688)andethics&professionalism(satisfiedbyACCT3309or6634).