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
Introductions&ContactInformation
o MargaretDuncombe:[email protected](774)283-1775
o NickStasium:[email protected](207)450-1967
o OliviaZdrojewski:[email protected](978)771-7471
TheCPALicenseo TheCPAcredentialisalicenseissuedbyoneofthe55statesorterritoriesof
theU.S.thatauthorizestheholdertopracticeasaCPAinthatjurisdiction.o Onecomponentofthelicensingrequirementdesignedtoensureonly
qualifiedindividualsbecomelicensedasCPAsistheUniformCPAExamination.
o TheCPAlicenseisissuedatthejurisdictionlevel.TobecomeaCPA,youmustbedeclaredeligiblefortheexamination,andsubsequentlylicensed,bytheBoardofAccountancyinoneofthe55U.S.jurisdictions.
o TheConstitutionoftheU.S.grantseachstateorterritorythepowertoregulatethepracticeoftheprofessionswithinthatjurisdiction’sborders.Eachjurisdictionsetsitsownrequirementsforeducation,examinationandexperience.
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.
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
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.
CPAExam:QuestionFormatso TheCPAexamemploysacombinationofquestionformats.Itincludesthetraditional
multiplechoicequestionsandwrittenresponses,aswellashighlyinnovativesimulations–questionsthatreplicateworkplacesituationsandrequiretheapplicationofknowledgeandskillstoarriveatsolutions.
o Candidateswillreceiveatleastoneresearchquestion(research-orientedTBS)intheAUD,FARandREGsectionsthatrequirethecandidatetosearchtheapplicableauthoritativeliteratureandfindanappropriatereference.
o Pretestitemsareusedtodevelopfutureexaminations.Theyarenotusedincomputingexaminationscores.Anysectionmayincludepretestitems.
CPAExam:Testlets
TutorialsandSampleTestscanbeaccessedattheAICPAwebsiteat:Tutorials&SampleTests
q Theexamsectionsareadministeredinfiveblockscalledtestlets,withMCQsandtaskbasedsimulations(TBSs)inallsectionsandthreewrittencommunicationtasksonlyinBEC.ThenumberofMCQsandTBSsvarydependinguponthesection.
CPAExam:Structure&Prometricsq Arriveon-time,bring2validformsofIDthatmatchyournameontheNTS(checkthelistofacceptableIDsonyourNTS).
q Requestacalculatorifnotprovided.q DuringeachExamsection,candidateswillbeofferedastandardized,15-minutebreakafterthefirstTBStestlet,whichisapproximatelythemidpoint –twohours.The ExamclockstopsforthestandardizedbreakafterthefirstTBStestletiscompleted.Acandidatemaychoosetodeclinethestandardizedbreakandcontinuetesting,butthebreakwillnotbeofferedagain.Optionalbreakswillcontinuetobeavailable,butitcountsagainsttotaltestingtime.
CPAExaminationProcess
atPrometrics.com
SittingfortheCPA:MArequirementsoBeatleast18yearsold.oBachelorsdegreewithcompletionofatleast120semestercredithours.Note:APcreditswillnotbeincludedonyourtranscriptuntilyougraduate.
oUnderupdatedregulations,MAcandidatesmayapplyforORtakeanexamsection90daysbeforetheirofficialgraduationdatebyprovidingaCertificateofEnrollmentandbyprovidingaCertifiedtranscriptwithin90daysoftakingtheexam.
o Takenatleast21AccountingcredithoursincludingcoverageinFinancialaccounting,Management(Cost)accounting,TaxationandAuditing.
o Takenatleast9businesscredithourswithcoverageinFinance,BusinessLaw&InformationSystems.
SittingfortheCPA:NYrequirements
oCompleteatleast120semestercredithours.Note:APcreditswillnotbeincludedonyourtranscriptuntilyougraduate.
oUnlikeinMA,candidatesmusthavecompleted120credithoursPRIORtoapplyingfortheexam.
oCompleteacourseineachofthefollowing:financialaccounting,costormanagementaccounting,taxation,auditandattestation.
CPAExam:ApplicationProcesso ObtainCandidateBulletin:Access2020Candidate'sBulletinHere
o Sendapplicationformstostateyouintendtopractice(applyon-lineforyourstateatwww.nasba.org ordirectlytoyourBoardofAccountancy).Note:NameonapplicationmustmatchthenameonyourID.
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.
CPAExam:ApplicationProcesso Allowatleast8weeksforNASBAtoprocessapplicationandsend
NoticetoSchedule(NTS).Shorterdelayduringoff-season?
o OnceNTSreceived,scheduleexam(s)withPrometrics.com–exam(s)canbetakenanywhereintheU.S.Schedule45daysinadvancerecommended,butnolaterthan5daysinadvance.YoumusttakebeforeyourNTSexpires(inmoststates6months).
NOTE:NTSmustbebroughttotheexam,italsocontainsyourlaunchcode.
ExaminationBlueprintso ExaminationBlueprintshavebeencreatedforeachoftheExam’s
foursections.TheBlueprintscontainapproximately600representativetasksacrossthefoursections.ThepurposeoftheBlueprintsisto:n Documenttheminimumlevelofknowledgeandskillsrequired
forlicensure.n AssistcandidatesinpreparingfortheExam.n Appriseeducatorsofknowledgeandskillscandidateswill
require.n GuidethedevelopmentofExamquestions.
o TheBlueprintscanbeaccessedontheAICPAsite:2019CPAExamBlueprints.
ExaminationBlueprints
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)
ExaminationBlueprints
FinancialAccounting&Reporting:q ACCT1021(FinancialAccounting)q ACCT3301(FAST1)q ACCT3302(FAST2)q ACCT6601(FAST3)– equivalenttoAdvanced
Accountingq ACCT3351orACCT8824(Financial
StatementAnalysis)
ExaminationBlueprints
BusinessEnvironment&Concepts:q ACCT1022(ManagerialAccounting)q ACCT3307(ManagerialCostAnalysis)or
ACCT8817(InternalCostManagement)- MSAq Alsotoucheson:CSOMcoreclasses(Finance,
OperationsManagementandEconomicsprimarily),AIS(ACCT6618),&BusinessWriting(ACCT5588or8810,orBCOM5588,6688or8810)
Regulation:q BSLW1021(BusinessLaw)q ACCT4405(FederalTaxation)q ACCT6615(AdvancedFederalTaxation)q BSLW1022(BusinessLawII)orBSLW8803
(BusinessLawforCPAs)q ACCT8826(Taxes&ManagementDecisions)
Whentotaketheexamo Taketheexamassoonaspossible--- whileyou’restillina
“studentortest-taking”frameofmind.Thelongeryouwait,themorelikelyitisfornewstandardstobeadoptedandforyourtest-takingskillstodiminish(seefirst-timetesttakerresults).n Youaresignificantlymorelikelytopasstheexamifyousitwithin
oneyearofgraduation.
o ConsidertakingasectionduringSeniorspring.BCstudentsdoverywellonBECandthissectionnormallyrequireslessstudyhoursthentheothersections.Wordofcaution!
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
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
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
2019#4RankingforLargeProgramPassRate
Whatordertotaketheexams?o Whatclasseswillyoubetakingjustbeforeorduringthe
review?n Takethatpartoftheexamthatismostconsistentwith
theclassesyou’retaking.o Avoidleavingthehardestsections(FARorREG)forlast.o Remember,youonlyhave18monthsfromthetimeyoupass
thefirstparttogettherestofthepartscompleted.o Ifyou’retakingtheexamcontinuously,yourmindand
concentrationstarttolagafterthefirsttwoparts.
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.
Appendix
CPAcertificationrequirementsinMA
o PasstheCPAexam.o Completeatleast150semestercredithours(Mostfirms
requirethisbemetbeforestartingwork).o Haveatleastoneyearofpublicaccountingexperience
(waivedforgraduatedegreeholdersinaccounting,businessorlaw).
o Completeatleast30Accountingcredithoursand24business(non-Accounting)credithours.
CPAcertificationrequirementsinMA
o Coursescanonlybetakeninregionallyornationallyaccreditedinstitutions.Communitycollegecoursesnowcount.
o Coursescanbetakeninmorethanoneinstitution(alltranscriptssubmitted).
o Onlinecoursesareokayifofferedbyanaccreditedinstitution.
CPAcertificationrequirementsinNY
o Atleast21yearsofage.o Beofgoodmoralcharacter.o PasstheCPAexam.o Atleastoneyearofqualifyingexperience.o Completeatleast150semestercredithours.o Completeatleast33Accountingcredithoursincluding
financialaccountingtheoryandreporting,costormanagerialaccounting,taxation,auditingandattestationservices andcomplete36business(non-accounting)credithours.
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).
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