Excerpt from Wiley Get Motivated!, by Debra R. Hopkins

Passing the Uniform Certified Public Accountant (CPA) examination is not easy. Ever since 1917, the CPA exam has been challenging candidates. With a first-time passing rate of 12 to 18% on the pencil-based exam and a less than 50% per exam section passing rate on the computer-based test (CBT), it is assumed that most people will fail one or more sections on their first attempt. That’s right, the odds are against you. Yet the only way to become a CPA is to keep on trying. Completing the exam is one of the greatest accomplishments an accountant can achieve. Completing a degreed accounting program is an accomplishment to be proud of, but passing all four sections of the CPA exam is the crowning glory. The old story goes, anyone can earn an accounting degree, but only the best accountants can pass the CPA exam. Without the three initials CPA, you are just another accountant. How could three initials mean so much?

Being a CPA sends certain signals. People know that you have achieved a very difficult goal—you have passed the Uniform Certified Public Accountant exam, one of the most difficult certification examinations in the nation. Meeting a state’s CPA requirements is necessary to be licensed to practice in that state. In the business world, the CPA designation instills confidence and trust. Compared to an accounting graduate who has not yet attained certification, CPAs command higher salaries, are in greater demand in the workforce, and are given greater respect by the general public. The recent economic and accounting problems have made the CPA certificate more valuable, rather than less valuable. With the Securities and Exchange Commission and various oversight boards watching the profession, the CPA designation sends the signal of professional achievement. You have attained a minimum level of competence required to perform your work.

Who wouldn’t want more money, more job choices, and more respect? The desire to become a CPA should be yours. You must believe that you have the skills and knowledge necessary to pass this exam. If you can look at yourself in the mirror and say, “I can pass the CPA exam,” you are ready to proceed. Believing that you can pass the exam is the first step. Now, what’s next?

Steps to CPA Exam Success 

In today’s highly technological and informational age, it is amazing how many people take the CPA exam without knowing much about the process. Perhaps this is the reason why over half of the people taking the exam fail on their first attempt. To complete the CPA exam successfully, you must understand much more than the technical material. The three to four hours that it will take you to read this book will save you countless hours of study time and hopefully help reduce the stress that goes along with a high-stakes exam. Get Motivated! is designed not only to keep you pumped throughout the study process, but also to help you

• Increase your memory power
• Design a personalized study plan that is customized to fit your busy lifestyle
• Eliminate the fear of failure by understanding the exam process
• Decrease test anxiety by increasing your overall knowledge of the exam process
• Improve your study habits for the CPA exam, other professional certifications, and other study programs, such as graduate school
• Maximize the efficiency and effectiveness with which you study

Wiley is a regular contributor to www.cpareviewmaterials.com/. If you are interested in purchasing Get Motivated! click here.

As you begin your CPA exam preparation, you obviously realize that there is a large amount of material to cover over the course of the next two to three months. Therefore, it is very important for you to organize your calendar, and maybe even your daily routine, so that you can allocate sufficient time to studying. An organized approach to your preparation is much more effective than a last week cram session. An organized approach also builds up the confidence necessary to succeed on the CPA exam.

An approach which we have already suggested is to develop weekly “to do” lists. This technique helps you to establish intermediate objectives and goals as you progress through your study plan. You can then focus your efforts on small tasks and not feel overwhelmed by the entire process. And as you accomplish these tasks you will see yourself moving one step closer to realizing the overall goal, succeeding on the CPA exam.

Note, however, that the underlying assumption of this approach is that you have found the time during the week to study and thus accomplish the different tasks. Although this is an obvious step, it is still a very important step. Your exam preparation should be of a continuous nature and not one that jumps around the calendar. Therefore, you should strive to find available study time within your daily schedule, which can be utilized on a consistent basis. For example, everyone has certain hours of the day which are already committed such as jobs, classes, and, of course, sleep. There is also going to be the time you spend relaxing because CPA candidates should try to maintain some balance in their lives. Sometimes too much studying can be counterproductive. But there will be some time available to you for studying and working through the questions. Block off this available time and use it only for exam prep. Use the time to accomplish your weekly tasks and to keep yourself committed to the process. After awhile your preparation will develop into a habit and the preparation will not seem as overwhelming as it once did. 

Wiley is a regular contributor to www.cpareviewmaterials.com/.  You can purchase Wiley’s products here.

Since the CPA Exam was first offered over a century ago, hundreds of accounting topics have had to be revised, updated, added or removed from the CPA Exam content.  Students have had to adjust their studying to adequately prepare for these changes.  Similarly, CPA Review Courses have to revise their content in order to help the CPA candidate study the correct materials.  It is a scenario that happens year after year in the accounting world.

Beginning in 1993 there have been two exam re-structures, the additions of Economics and Finance in the BEC section, and countless changes in the Tax, FAR and Auditing sections.  Lambers CPA Review professors have always been busy updating the course to reflect all these changes.  Updating is a key component to Lambers CPA Review Course and essential to the success of the CPA candidate!

You may enjoy reading an excerpt from the very first CPA Exam, offered in New York State in December 1896.  It is a Theory of Accounts question with a full explanation.  See if you can get the answer.

I. State the essential principles of double entry bookkeeping and show wherein it differs from single entry bookkeeping.

Answer: The essential principles of double entry bookkeeping are, (1) The record of every transaction involving the transfer of money or its equivalent must appear on both the debit and credit side of the ledger, thus maintaining it in balance. (2) Provision must be made for the constant differentiation under properly classified accounts of capital and revenue income and expenditure. (3) As resulting therefrom, the profit or loss determined from the collection of the preponderance of the balance of the revenue accounts must be proved by the excess of the assets over the liabilities as exhibited in the balance sheet.

The fundamental difference between single and double entry bookkeeping is this: In single entry the income and expenditure accounts are not kept, and the profit or loss for any given period is determinable solely from a comparison of the assets with the liabilities—the excess of the one over the other showing the profit or loss; the proof of the accuracy of same, though the same result being arrived at through the profit and loss account being entirely wanting.

Of minor importance also is the fact that the mathematical accuracy of the posting is in single entry bookkeeping undemonstrable in trial balance form, as in double entry.

Lambers is a regular contributor to www.cpareviewmaterials.com.  You can learn more about Lambers products here.

AICPA Spring Exam Alert: http://www.aicpa.org/BecomeACPA/CPAExam/ExamNewsletter/DownloadableDocuments/Spring_2010_CPA_Alert_FINAL.pdf

The calendar is filled with chapters, topics and tasks to complete before sitting for the next CPA exam. Realistic daily study goals are set. Now it’s time to slay the dragon. It will take dedication, focus and a bit of selfishness to absorb the reading and lectures, practice MCQ and simulations, and achieve success on your next exam. Preparing for the CPA exams is a temporary situation. You can do anything for a few months. You can achieve your study goals, especially if you’re prepared! 

1. Develop the proper mindset. Set daily study goals and prioritize daily tasks, making study a top priority. Distractions will attempt to undermine you; conquer them with willpower and dedication to goals. CPA prep months are not the time to buy or sell a home, start a family, coach a little league team or take on any extra-curricular projects – these things will wait until after you pass the exams. Become comfortable with saying “No.”

2. Take care of yourself during prep months. Exercise to reduce effects of stress and anxiety. Eat a well-balanced diet, keeping snacks handy for study. Get adequate sleep nightly. Brains do amazing things during sleep; during my CPA prep, I often dreamt of the day’s problems and worked them out by morning! Meditation, positive affirmations, and visualization techniques help with confidence, stress management, and focus; use every tool at your disposal.

3. Block distractions. CPA exam prep programs make excellent use of computer and online capabilities. Yet, this is a doorway for distractions. Close email, instant messaging, and social media to avoid distractions during study time; these things can wait until break time.

4. Track daily progress. Evaluate yourself weekly to see if goals for time spent and volume of material covered are achieved. If goals are not met, adjust behavior accordingly. Be sure to reward yourself for meeting goals!

5. Use checklists. At the beginning of each chapter, list everything required and check off tasks as completed.  I use spreadsheets for setting goals and tracking progress, but a handwritten list works, too. For me, each checkmark at completion represented another step toward passing my exams and was often my favorite reward! I’ve included my FAR final review goal sheet as an example.

6. Make study and review convenient. Carry flashcards, textbook, handwritten notes, or a laptop (to access lectures and MCQ) at all times. Use every unoccupied moment to review flashcards, practice MCQ, view or review lectures and study. Have a good supply of blank 3 x 5 cards, highlighters, pens, note paper and other supplies ready to make the most of study time.

7. Focus on the positive. CPA preparation has a learning curve. Lectures, MCQ and simulations require more time in the beginning; over time, candidates gain familiarity with format and routine, study progresses and endurance improves. Try not to become discouraged in the early weeks of prep; it will become easier.

8. Focus on small pieces. The CPA exam is often referred to as “a mile wide, but an inch deep” and the volume of material to study can be overwhelming. Remember how to eat an elephant? One bite at a time! Set a timer for 20 minutes and study until it goes off, take a 5 minute break. Repeat until goals for the day are met.

9. Ask family and friends for support and space. Family and friends can be a source of inspiration and support; they might help with children and necessities, or provide reassurance; accept their offers to help. Politely decline requests and invitations, knowing life returns to normal after passing exams.

10.  Use your CPA exam support network. As supportive as family can be, unless they’ve taken the CPA, they don’t grasp what you are going through. Social media and CPA exam review websites are offer support from other candidates and those who have passed. My “Tweeps” were of great help to me during study breaks!

11.  Use long-term goals to stay focused and committed. Tape a photo of your dream car, a travel brochure, etc. on your fridge as a reminder of long-term goals. I found that seeing my name, followed by “CPA” was very motivating. Picture your future the way you want it to be, taking steps to create that reality.

My friend, Julie, recently said, “Challenge is a dragon with a gift in its mouth. Befriend, tame, or slay the dragon and the gift is yours.” At times, my CPA preparation felt like dragon-slaying. However, dragons are what you imagine them to be. Are you fighting a giant, scary beast or taking a ride on a friendly winged creature?  Everyone’s CPA exam journey is different. Try suggestions that make sense in your life and implement the approach that works best for you.  If you have specific questions for me, feel free to ask them here, visit my personal blog, my question & answer page, or follow me on Twitter.

Best wishes for success on your next CPA exam!

-Donna Harding

An overriding concern should be an orderly, systematic approach toward both your preparation program and your examination strategy. A major objective should be to avoid any surprises or anything else that would rattle you during the CPA exam. In other words, you want to be in complete control as much as possible. Control is of paramount importance from both positive and negative viewpoints. The presence of control on your part will add to your confidence and your ability to prepare for and take the CPA exam. Moreover, the presence of control will make your preparation program more enjoyable (or at least less distasteful). On the other hand, a lack of organization will result in inefficiency in preparing and taking the examination, with a highly predictable outcome. Likewise, distractions during the examination (e.g., inadequate lodging, long drive) are generally disastrous.

In summary, establishing a systematic, orderly approach to taking the CPA exam is of paramount importance. Follow these six steps:

1. Develop an overall strategy at the beginning of your preparation program.

2. Supplement your textbooks and/or lectures with outlines, flashcards, and multiple choice questions.

3. Supplement your overall strategy with an explicitly stated set of problem-solving procedures—the solutions approach.

4. Supplement your overall strategy with an explicitly stated approach to each examination session

5. Evaluate your preparation progress on a regular basis and prepare lists of things “to do.

6. RELAX. You can pass the CPA exam. About 40 to 50% of the candidates taking a section of the CPA exam pass. But if you take out the individuals that did not adequately prepare, these percentages increase substantially. You will be one of those who pass if you complete an efficient preparation program and execute well while taking the exam.

______

The following outline is designed to provide you with a general framework of the tasks before you. You should tailor the outline to your needs by adding specific items and comments.

A. Preparation Program

1. Obtain and organize study materials.

2. Locate facilities conducive for studying and block out study time.

3. Develop you solutions approach (including solving simulation problems as well as multiple-choice questions.

4. Prepare an examination strategy.

5. Study the material tested recently and prepare answer to actual exam questions on these topics under exam conditions.

6. Periodically evaluate your progress.

B. Physical Arrangements

1. Apply to and obtain acceptance from your state board of accountancy

2. Schedule your testing location and time

C. Taking the Examination

1. Become familiar with of the CPA test center and procedures

2. Implement examination strategies and the solutions approach

Wiley is a regular contributor to www.cpareviewmaterials.com/.  You can purchase Wiley’s products here.

By Lambers CPA Review

1) Work individual questions in order. Make sure that you flag the ones you skip, so you can go back and answer them later. Remember, there is no penalty for guessing. Make sure you answer everything.

2) Watch for wrong-choice indicators; words like, “always,” “never,” “only,” “under no circumstances,” “identical,” etc. These words are usually there for a reason … and that’s to indicate the incorrect answer.

3) Watch for negatively stated questions. For example, “Which of the following is not a characteristic of effective internal control?”

Goal Setting: Your goal is to become a CPA, a professional. That will mean financial security, the opportunity for more fulfilling positions, possibly the opportunity to start your own firm. Keep your ultimate goals in mind as you begin. You must stay focused throughout your preparation period, and work every day to make that goal a reality.

Visualize your Goal: In the flux of daily life, it’s easy to lose sight of your goals. As the saying goes, “When you’re knee-high in alligators, it’s easy to forget your objective was to drain the swamp.” You need to visualize your goals on a daily basis. Picture yourself sitting in a plush office as the CFO of a major company, or imagine yourself owning your own firm. Expect to achieve your goal; keep a positive attitude.

Lambers is a regular contributor to www.cpareviewmaterials.com.  You can learn more about Lambers products here.

Contributed by Lambers CPA Review

I.
The majority of the computer-based CPA examination (70-80 percent) is made up of multiple-choice questions. Each section of the exam will consist of “testlets” which are the multiple-choice questions, and two “simulations.”

Part Four, Business Environment and Concepts (BEC), has no simulations, only multiple-choice questions. BEC simulations will be added later.

According to the AICPA web site:

“The multiple-choice portion of the examination will appear as sequential testlets. Testlets are groups of questions that are constructed to appear together. Each exam section will include approximately three multiple-choice testlets. Each testlet will contain approximately 25 operational items (questions).”

The testlets will be “tracked” in that the second and third testlet will be adjusted by the computer to an easier or harder version. This will be based on the candidate’s performance on the first testlet. The candidate won’t know what version is on his/her computer screen. The third testlet may or may not be adjusted up or down. The system is equitable because the grading is also adjusted according to the track of the questions; if the student has a hard track, fewer questions need to be answered correctly; likewise, an easy track requires that more answers be correct.
 
The CPA Exam consists of the following number of multiple-choice questions:

AUDITING & ATTESTATION (90)
REGULATION (72)
FINANCIAL ACCOUNTING & REPORTING (90)
BUSINESS ENVIRONMENT & CONCEPTS (90)

During the exam, within each testlet, you may review and change any of your answers. Once you have exited the testlet, you will not be able to access your answers to any of the questions. The same is true for the simulations portion of the exam. Note that the time clock on the screen is “cumulative” and indicates the time left for the entire exam, not just a portion.

II.
While the majority of the test is multiple-choice questions, a key part of the exam are the “simulation” questions. According to the AICPA web site, simulations “are condensed case studies that will test candidates’ knowledge and skills using real life work-related situations.” The CPA exam candidate can expect two simulations to appear in each section with the exception of Part Four—Business Environment and Concepts. The simulations will take an estimated 35-45 minutes to complete, and will require the following:

“CPA candidates are expected to know how to use common spreadsheet and word processing functions, including writing formulae for spreadsheets. They must also have the ability to use a four-function calculator or a spreadsheet to perform standard financial calculations. In addition, candidates will be asked to use online authoritative literature. Many of the question types used in the simulations are based on familiar computer interface controls (e.g., text entry, mouse clicks, highlighting, copy and pasting). In order to become familiar with the electronic tools provided for research questions, further practice may be required.”
 
Available resources during the test will depend on the simulation that the candidate receives.

Incorporated into the simulation portion of the revised exam will be an assessment of written communication skills. The exam will test typical communications an entry-level CPA would write on the job, such as memoranda, client letters, etc.

To become familiar with navigating the computerized exam screen, it is strongly advised that the candidate visit the AICPA web site tutorial.

Entry-level CPA skills to be measured:

1. Analysis: The ability to organize, process, and interpret data to develop options for decision making.
2. Judgment: The ability to evaluate options for decision-making and provide an appropriate conclusion.
3. Communication: The ability to effectively elicit and/or express information through written or oral means.
4. Research: The ability to locate and extract relevant information from available resource materials.
5. Understanding: The ability to recognize and comprehend the meaning and application of a particular matter.

Writing skills to be graded:
1. Coherent Organization. Candidates should organize responses so ideas are arranged logically and the flow of thought is easy to follow. Generally, short paragraphs composed of short sentences, with each paragraph limited to the development of one principal idea, can best emphasize the main points in the answer. Each principal idea should be placed in the first sentence of the paragraph, followed by supporting concepts and examples.

2. Conciseness. Candidates should present complete thoughts in the fewest possible words while ensuring important points are covered adequately. Short sentences and simple wording also contribute to concise writing.

3. Clarity. A clearly written response prevents uncertainty about the candidate’s meaning or reasoning. Clarity involves using words with specific meanings, including proper technical terminology. Well-constructed sentences also contribute to clarity.

4. Use of Standard English. Responses should be written using Standard English. Standard English is used to carry on the daily business of the nation. It is the language of business, industry, government, education, and the professions. Standard English is characterized by exacting standards of punctuation and capitalization, by accurate spelling, by exact diction, by an expressive vocabulary, and by knowledgeable choices.

5. Responsiveness to the Requirements of the Question. Answers should address the requirements of the question directly and demonstrate the candidate’s awareness of the purpose of the writing task. Responses should not be broad expositions on the general subject matter.

6. Appropriateness for the Reader. Writing appropriate for the reader takes into account the reader’s background, knowledge of the subject, interests and concerns. Some questions may ask candidates to prepare a document for a certain reader, such as an engagement memorandum for a CPA’s client.

Lambers is a regular contributor to www.cpareviewmaterials.com.  You can learn more about Lambers products here.