Strategies For Taking The Uniform CPA Exam

1. The views expressed by the presenters do not necessarily represent the views, positions, or opinions of the AICPA or the presenter’s respective organization Strategies For Taking The Uniform CPA Exam

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

3. Gregory Johnson, CPA Director-Exams Strategy AICPA -------- Sahan Totagamuwa Associate, Valuation and Forensic Services Clifton Gunderson, LLP Thomas C. Omer, Ph.D. Associate Professor University of Illinois at Chicago -------- John F. Hudson, CPA Moderator Hudson Consulting Group, LLC Today’s Speakers

4. CPA Examination OverviewGregory Johnson, CPAAmerican Institute of CPAs

5. CBT a Success • April will mark the first full year of computer-based testing (CBT). • CBT a success – • Launched on schedule • Nearly 100% of tests launched and successfully completed • instances of restarts or delays occurred rarely • this is better than the rates of most other professional licensing programs offering computerized exams • Post exam surveys show 97% of responding candidates are satisfied with CBT

6. Volume and Pass Rates • Approx. 77,000 candidates tested in 2004 • Approx. 110,00 examination sections administered • Estimate about 150,000 completed test sections by March 31, 2005 • Pass rates range between 41% - 45% per section

7. The Examination • Four exam sections • Auditing & Attestation (4.5 hours) • Financial Accounting & Reporting (4 hours) • Regulation (3 hours) • Business Environment & Concepts (2.5 hours) • 14 hour total length • All sections, except BEC, include simulations

8. Granting of Credit • Take sections individually and in any order • Credit for passed section(s) retained for 18 months • No minimum score requirement for failed sections

9. Score Reporting • Candidates should receive their scores shortly after the close of the testing window. • AICPA, NASBA committed to reducing score reporting time. • October/November 2004 testing window, nearly all scores released by the AICPA by December 28 • AICPA plans to report scores monthly beginning August 2005

10. Exam Application and Registration • Apply early – may take 6-8 weeks for 1st time application to be approved. • Call 1-800-CPA-EXAM • NASBA’s Candidate Care Department expanding so post-exam inquiry process is faster; email or call: • candidatecare@nasba.org • 1-866-MY-NASBA (1-866-696-2722)

11. At the Test Center • Report equipment or computer issues to test center staff immediately. • Keep the Confirmation of Attendance after your exam; use to follow-up on any issues. • Test center staff cannot: • answer content questions • explain how to use CPA Exam software • extend or adjust exam time • Be prepared before you take the exam • Read The CPA Exam Alert for more test tips

12. Exam Preparation • Be prepared before you take the exam • Exam has unique software and functionality • Read The CPA Exam Alert for more test tips • Visit www.cpa-exam.org • View exam tutorial • Take the sample test

13. What Candidates Are Saying • They prefer the computer-based exam • They like the administrative flexibility • Can take one section at a time • Can schedule test sections on different days and times • They like the Prometric test centers • They are concerned about how to manage time on the exam in the testlet format; • They would like to receive scores faster

14. CBT Research • AICPA-NASBA-Prometric committed to continual improvement of the exam • Candidate focus groups held across the U.S. • Other research with employers, students and professionals underway • Take 2-minute Candidate Outreach Survey at www.cpa-exam.org • Research results shared with to state boards and educators

15. Advice for Candidates • Determine how much time you can commit to study; • Be prepared to drop other activities; • Schedule study during times you are more productive; • Choose study method in line with the way you learn best; • Contact your state board about requirements to sit for the exam; • Working professionals should closely look at schedules; • Make sure you become familiar with researching the authoritative literature

16. A Candidate’s PerspectiveSahan TotagamuwaClifton Gunderson, LLP

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

18. Preparing For The Exam • Balancing study time and other activities • Goals • Review textbooks • Third party review courses • Study one section at a time • Get into a rhythm • Practice sitting at one place for long periods of time

19. Preparing For The Exam [con’t] • Practice, practice, practice; • Simulations; • Don’t burn the candle at both ends; and • Relax on the day prior to your exam.

20. Exam Day • Get to the test center early • Dress accordingly • Pre-exam formalities • Two forms of ID • NTS • Photograph • Scratch paper (make sure the exam # is stated on the sheets) • Sign-in • Lockers

21. Exam Day [Con’t] • At your assigned computer, you will have: • Two forms of ID • Two sheets of scratch paper (provided by the test center) • Two pencils (provided by the test center) • Ear plugs/muffs • Pre-exam questions on the computer • Do the pre-exam questions quickly • Don’t use this time to do stretching exercises, write down notes etc.

22. Exam Day [Con’t] • The exam • FAR, Reg/Tax, Audit • Five individual testlets • Three testlets consisting of multiple choice and true/false questions • Two simulations • BEC • Currently, three individual testlets consisting of multiple choice and true/false questions

23. Exam Day [Con’t] • Testlets • Your time starts as soon as you open the first testlet • You have to “manage the clock” • Allocate time to each testlet • 30 – 50 minutes per multi choice testlet • About 1 ½ - 2 hours for the simulations • Leave enough time to do the simulations • Don’t “spin your wheels” on one question • If needed, mark questions for review • You can’t go back to a testlet that you have completed and submitted.

24. Exam Day [Con’t] • Equipment malfunctions • Don’t try to fix it yourself • Many others passed this exam before you. If they can do it … so can YOU! • GOOD LUCK!

25. Exam SimulationsThomas C. Omer, Ph.D.University of Illinois at Chicago

26. Simulations • Simulations Overview • Who develops simulations • Creating simulations • Example (available at www.cpa-exam.org) • How to prepare • Students • Faculty • The Future

27. Who Develops Simulations • Who develops simulations? • AICPA Task Force Leader • Task Force Volunteers • Practitioners • Academics • Assistance by AICPA Staff

28. Creating Simulations • Creating simulations • How do we start (Regulation Task Force) • Members of task force propose topical area (e.g. individual, corporate, partnership) • Within topical area choose an issue that contains multiple aspects • Basic simulation structure • Content testing • Written communication • Research task • Members submit proposed simulation for consideration by task force • Concerns • Entry level candidate • No double jeopardy (or work around related questions)

29. Creating Simulations • Task Force Meets (3 times per year) • Review submitted simulation proposals • Extensive review and revision of proposed simulation • Concerns • Topic adequately represented • Topic adequately tested • Minutia avoided • Solutions attainable • Time • Approved simulations sent to AICPA content committee for appropriateness and correctness • Meetings continue to address new simulation proposals as well as suggestions (corrections) on previous submissions to the AICPA Content Committee

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39. How to Prepare • Students • Use the practice material available from AICPA • Focus on the overall picture rather than memorization of specific facts or details. With faculty help make sure you see the topic broadly not just separate unrelated issues • Do research out side of class on topics you are interested in as well as those required for class • Be tolerant of the new approach • Faculty • Incorporate research in the classroom • Hint: use topics normally covered during class time • Attempt to present bigger perspectives in topical areas • Push overall concepts first, details second • Try to help students the connectedness within and across topical areas • Be tolerant of student frustration when changing their perspective

40. The Future • Current simulations are reasonable for initial steps but expect changes as study habits and classroom experience changes. • Future simulations will move beyond the first generation in use today.

41. Summary & Questions

42. Thank You For Participating!

43. Upcoming CPA Examination Webcasts For a complete listing, check our website at http://www.cpa-exam.org