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Easy CPA Exam Answers

Sometimes, the answers come easy:

Hello. I am taking the REG and AUD sections of the CPA exam during the latter part of the Oct/Nov testing window. In your opinion, how much “rote memorization” is required to successfully pass the two sections referenced above.

Thank you for your assistance.

DMF

Simple. Zero.


For every hour of CPA review lecture video you watch, you should do 2 – 3 hours of homework for that section. If you rewatch a lecture, I would still do an additional 2 – 3 hours homework (MCQ or practice simulations) for each subsequent viewing. There is no such thing as practicing too much but don’t tell that to people who have scored in the mid to upper 90s.

Rote memorization? I wouldn’t call the effort you put into studying for these sections “rote memorization,” though you will be engaging in repetition (to the point of nausea) to really indoctrinate the concepts into your head.

In order to actually learn the concepts you need to pass, you will need to know why the answers are right and wrong, not just what the answers are. That’s why you don’t hear about people smuggling answers out of Prometric (they could if they really wanted to), it wouldn’t do anyone any good.

You will need to memorize certain concepts (don’t bother remembering every single tax form and SAS) but generally speaking, your most effective strategy is going to be to get in as much practice as you can. That means plowing through questions but thinking about the answers as you do so. Use the guide above to figure out just how many hours you need to put into each section but the “magic number” varies wildly for each candidate, you may need more or you may need less.

All About the Audit Section of the CPA Exam

Editor’s note: Since I’m guest editing this week, we decided to do a 5-part feature on – what else – the CPA exam. I’ll be covering tips and tricks for each section and ethics on Friday so check in with us this week for the full breakdown. – JDA

So you’re taking Audit? Great.

Good news: traditionally, Audit tends to have a higher national pass rate than the other sections (only by a half a percentage point or so on average so don’t go getting excited that you can pass this one if you don’t study at all) and doesn’t require nearly as much effort as, say, FAR.

Bad news: chances are you didn’t take Auditing in college unless you’re planning on being an auditor so you have no idea what any of this stuff is about but like the rest of the exam, you don’t need to be an expert, you just need to know enough to get a 75. Yay!


Audit is the most expensive section as it is the longest at 4.5 hours and Prometric charges by the minute. Despite its length, you will still probably run out of time so time management is especially important with AUD. Do not spend more than 2 minutes on each MCQ, you’ve got 90 of them to get through and will need at least 45 minutes for each simulation.

The AICPA BoE has set the following target weights for skills testing:

Communication (10% – 20%)
Research (6% – 16%)
Analysis (12% – 22%)
Judgment (12% – 22%)
Understanding (35% – 45%)

Based on the Content Specification Outlines, Audit covers the following areas:

Planning the engagement (22% – 28%) Determine scope and nature of engagement, Generally Accepted Audit Standards, assessing engagement risk, communications, formulating audit objectives, etc.

Internal controls (12% – 18%) Understanding of business processes and information flows, limitations of internal control, tests of controls and control risk.

Obtain and document information (32% – 38%) Performing planned procedures, audit sampling, substantive tests, contingencies, identifying control deficiencies, attestation engagements.

Review engagement and evaluate information (8% – 12%) Performing analytical procedures, evaluation of audit evidences, work reviews and reasonable assurance.

Prepare communications (12% – 18%) Reports, reports, reports! This section covers all kinds of reports, footnotes, disclosures, as well as required communications based on discovery of illegal acts, errors and fraud, and communications with audit committees.

Studying for AUD should take between 60 and 90 hours depending on what review course you are using and whether or not you have experience in this area. Obviously if you took Auditing in school you will need less time to review some of these areas.

Good luck and see you tomorrow with Regulation!