Author: Adrienne Gonzalez

Adrienne is a 15-year veteran of the accounting industry, if by "veteran" you mean "vulture prowling the periphery of the profession waiting for something exciting to happen." She has been spewing vitriol on Going Concern since the site was founded in 2009. A former CPA review employee, she has sat through more FAR classes than any CPA exam candidate ever could -- even one who has failed FAR seven times -- and can still recall most of the mnemonics all these years later.

Is the CPA Exam Giving You Nightmares?

A fellow candidate puts this out to you to see if anyone else is psychologically affected by the process of studying for the CPA exam:

Ever since I started studying for the CPA exam, I’ve been consistently having these weird dreams where I am trying to memorize random nonsensical rules. Then I generally wake up feeling pretty stressed, having not been able to get them all down. Last night’s was something about boy scouts selling popcorn door-to-door being illegal in certain situations. I’m studying for FAR right now, but I just took REG last week.

Jesus, it sounds like you’re studying FAR. Present value tables can drive anyone a bit nuts after too long, so might I start by suggesting you avoid studying before bed? I had that problem once reading “In Fed We Trust” right up until I went to sleep and trust me, it was a nightmare that followed.

As for you? Boy Scouts actually carry some significance, according to the Dream Moods dream dictionary (take it or leave it, depending on what you believe):

Your own experience as a boy scout will definitely affect this dream symbol. If you were never a boy scout and dream that you are, then it signifies your commitment and discipline toward some task. The dream may emphasize a sense of community, belonging, and helpfulness.

To see a boy scout in your dream, denotes that you or someone else has displayed exemplary behavior. You will gain the ranks necessary to achieve your goals and success.

I don’t think the interpretation could be much clearer.

There’s also an entry for popcorn:

To eat or make popcorn in your dream, suggests positive growth. You are full of ideas. Some important fact or truth is being made aware to you through the dream. If the popcorn is unpopped, then it symbolizes potential.

Sounds to me like the best thing you can do is somehow convince yourself that you know what you are doing, have studied and don’t need to write down every single nonsensical rule, dreaming or not. Politely decline the popcorn from the dreamy Boy Scouts anyway just in case it is illegal and snooze for another 10 minutes.

Michigan CPAs, Welcome the Newest Member of the Club

Since we are totally above making disparaging remarks about strangers on the Internet, we present the following without comment from mlive.com:

Jessica A. Rolfe, of Yeo & Yeo P.C., 3023 Davenport in Saginaw, has received a Certified Public Accountant license and was promoted to senior accountant, providing auditing services in the firm’s Saginaw office.

Rolfe holds a bachelor’s degree from Saginaw Valley State University, and is a member of the Michigan Association of Certified Public Accountants and the American Institute of Certified Public Accountants.

Now the last time we shared one of these cheesy, free publicity “news” items, it also happened to be a Michigan CPA except that guy allegedly passed all four parts in one sitting, which the newspaper told us only happens with a lucky 4% of individuals. We’re not sure where they got that number (we suspect somewhere between their legs, towards the back end of things) but are glad to see no such claims made in this particular announcement.

We’ve said it before and we’ll say it again: if you have an announcement like this to make for the star intern in your life, please feel free to send it to us. We require at least 100 words, fact-checked claims and, of course, a Photoshopped headshot. Might I suggest Glamor Shots?

UK Whitepaper Seeks to Reconcile Mother Nature’s Books

When do you recognize maple syrup, when it is earned (sucked from the tree) or realized (when it goes down your big fat gap)? How much goodwill does a forest have?

The UK Department for Environment, Food and Rural Affairs has published its first white paper on the natural environment in 20 years hoping to answer some of these questions. The natural choice: securing the value of nature suggests the UK should set up an independent Natural Capital Committee (sort of like FASB for forests) to advise the government on when, where and how natural assets are being used unsustainably.

This would create “green accounts” which give an idea how the country’s natural assets are being used.

The authors of the paper suggest that economic growth and the natural environment are mutually compatible, implying that “nature’s bank balance” should not be ignored when looking at the country’s overall economic growth.

“Past action has often taken place on too small a scale. We want to promote an ambitious, integrated approach, creating a resilient ecological network across England. We will move from net biodiversity loss to net gain, by supporting healthy, well-functioning ecosystems and coherent ecological networks. We will publish a new Biodiversity Strategy for England, responding to our international commitments and setting a new direction for policy over the next decade,” the paper says, proving that someone obviously read their accounting textbooks before they tried to write a framework for valuing nature’s assets.

[Insert bad money doesn’t grow on trees joke here]

Chase’s New Expense Tracking App Will Cater to the Most Anal-Retentive Bosses

If finicky expense-tracking is going to evolve with the times, there has to be a way to track every dime spent from anywhere and it appears Chase is making an effort toward that goal with its newest offering: Jot.

Hot off the wire:

Jot will provide Ink from Chase customers a variety of mobile benefits, including the ability to:

— Receive text alerts within seconds of making a purchase with their Ink card;

— Immediately tag these purchases to custom categories on a mobile device or online;

— Enable employees to tag their business expenses;

— Immediately view all transactions on their account, including those of their employees, through their mobile device or online;

— Adjust employees’ card spending limits in real-time via a mobile device; and

— Create and download reports into accounting software, including QuickBooks(R) and Excel(R).

“Small business owners are innovative, passionate and hardworking, and Chase’s dedication to partnering with these business owners comes from the belief that this group of entrepreneurs is an integral part of the American economy,” said Richard Quigley, president of Ink from Chase. “Jot was designed with small business owners’ immediate financial needs top of mind. Jot will enhance the finance-savvy business practices of small business owners, allowing for additional time and an improved focus on the passion and sense of accomplishment they have for their businesses.”

Financially-savvy Ink customers who have an iPhone or Android phone can download Jot by visiting the Ink website. Once you’ve got it downloaded you and your employees’ spending will be reined in and you’ll be back agonizing over more important things in no time.

Curious CPA Exam Candidate Wants the Scoop on Simulations

I’m digging deep in the mailbag for this one, only because you kids have been awfully quiet lately (a sure sign that we’re in a blackout month). If you have a CPA exam question, comment or complaint for us, please let it launch. Come on, you’re going to be sitting around for the next 2 – 3 weeks waiting for your scores, might as well.

Adrienne,

I was wondering if you could go over what the simulations entails in FAR. I understand that the multiple choice contains 30 questions, and that there are 3 testlets. However, does the break down for the 7 simulations include more than one part.

For example, I know you will have a problem say leases, maybe a research question…but is that 1 simulation or is that 2 of 7?

Thanks,

Recent Grad…miserable studying…

Let’s defer to the good ole AICPA on this one, you can never go wrong getting info straight from the source. From How the CPA Exam Is Scored:

In addition to multiple-choice questions, the AUD, FAR, and REG sections also contain task-based simulations. Task-based simulations are case studies that allow candidates to demonstrate their knowledge and skills by generating responses to questions rather than simply selecting the correct answer. Task-based simulations typically require candidates to use spreadsheets and/or research authoritative literature provided in the Exam.

Well that’s not very helpful, is it?

In FAR, you’ll encounter 7 task-based simulations, of which 6 will be graded. You don’t know which TBS is pre-test so you have to go into it as if they are all graded.

Assume that each of your simulations will be on a different topic and will only require you to complete one tab. You may see more than one research question so be sure to get in some practice in that area (and access your free 6-month subscription to the authoritative literature if you haven’t already – note that you must have a valid NTS to sign up for this).

In previous versions of the exam, one simulation consisted of several tabs. You’d have to get through two of them in 45 minutes a piece and hope you filled in enough tabs to pass. In the latest incarnation of the exam, however, you will receive more varied topics. This works in your benefit as you have a better chance of getting TBS problems on areas you feel comfortable in, whereas in the old exam you had to hope and pray you didn’t get a simulation on a topic you didn’t study well or suck hard in, as you were just about guaranteed to bomb it.

Then again, in the old exam you could blow the sims and still have a chance to pass. Nowadays, however, you don’t have that luxury as simulation problems carry a heavier weight point-wise.

That said, you’ll want to do the tutorial on the AICPA’s website. While review course materials can come close to simulating the actual exam environment, the CPA exam remains the intellectual property of the AICPA, therefore no review course can copy simulation problems exactly. But since the AICPA provides that tutorial, it has the exact look and feel of the questions you will see on the exam.

So You Think Your CPA Can Dance?

One thing I’ve always loved about the Maryland Association of CPAs is that they aren’t afraid to shake things up, do what everyone else isn’t doing and, uh, break out into a dance routine in the middle of a dinner reception.

Remember the “big surprise” they were planning for the 2011 CPA Summit? Here it is, enjoy:

Post-Nasal Drip Ruins One CPA Exam Candidate’s Experience

Perhaps Caleb can confirm for us whether or not the exotic Colorado climate is snot-inducing, inquiring minds are dying to know.

We love tales from the CPA exam (if you have one, please let us know), especially ones that make us wonder if Prometric staff are human beings or robots. Once again, we totally get the high security environment but have to question the logic that dictates a drippy nose should be left to annoy the rest of the room instead of providing a candidate with a damn tissue (or a barf bucket). Absent a pen (unless they’ve keistered one, obviously), what exactly could the candidate do with the tissue to compromise the security of the CPA exam? Copy MCQ by swirling around the snot?

Seriously.

I got kicked out of the CPA exam (but let back in) because of the sniffles. I had just moved to Colorado and was having a hard time adjusting to the climate so I had a constantly running nose. When I got to the exam I asked if I could take some Kleenex in with me and they told me no. It was my first part of the exam so I was still feeling out how it all works, etc. I was in my second testlet and occasionally had a sniffle here and there (not hocking a loogie or anything, just a small sniffle). I feel a tap on my shoulder which scares the pants off me since I’m in the zone. I turn around and pull off my headphones and the moderator tells me she’s going to have to ask me to leave the exam (which is all she says). I stare at her dumbfounded and my heart starts racing “but why?? what did I do wrong??!” trying to think if I had taken off my hoodie during the exam (which is a no-no) or something else to get me kicked out of my first exam. She says “I’m going to have to ask you to come blow your nose, we’ve had some complaints”. So I stare at her more. “But I’m in the middle of a testlet, should I wait and come out after the testlet is closed?”… she responds “No, please come with me.” So she escorts me out of the testing room, points at a box of kleenex and demands I blow my nose in front of her and throw it in the trash can. I had flooding memories back to kindergarten….. So I return to my testing room, relieved I was allowed back in, only to wonder to myself “Who the hell would have complained about my sniffles? Were they not wearing their headphones or something?”. So when I got to the typing portion of my test I made sure to bang my keys as loud as I possibly could.

Colorado CPA in Australia.

Fine, it’s a Pandora’s Box… first Prometric starts providing tissues and next thing you know candidates are demanding emergency tampons for unplanned monthly accidents, insulin, and porn to accommodate their masturbation disability. We get it, it’s a slippery slope of accommodation and Prometric shouldn’t be expected to have a solution for every possible scenario but let’s be reasonable here, it’s just a little snot.

Really, Prometric?

CPAs Aren’t As Optimistic As They Used to Be on the Economy

Straight from the horse’s mouth, or, in this case, the CPAs:

According to the latest AICPA Economic Outlook Survey, chief financial officers, controllers and CPAs in executive and senior management accounting roles are far less optimistic now about the direction of the U.S. economy than they were in the first quarter of 2011.

The CPA Outlook Index, a broad-based composite index that captures the expectations of CPA financial executives and management accountants, declined three points to 66 this quarter, from 69 in the prior period.

“The flush of optimism we experienced earlier this year has given way to more moderate expectations for the U.S. economy,” said Carol Scott, AICPA vice president for business, industry and government. “While the CPA Outlook Index is still positive relative to the dark days of the recession, our members are concerned about rising energy costs and inflation, health care costs and continuing weakness in demand.”

The pullback in optimism follows an upbeat assessment in the prior quarter and signals the two-year-old U.S. economic recovery has lost momentum, Scott said. The survey shows that expectations for corporate expansion and hiring have moderated and the outlook for revenues and profits declined. Concerns about inflation continued to rise, driven by higher energy costs. The outlook for capital spending remained largely flat with information technology the only sector enjoying improvement.

It’s worth noting that while optimism for the US economy declined sharply this quarter, it is still higher than it was for the 4th quarter of 2010. Slightly more than one quarter of respondents (27%) expressed a pessimistic outlook for the US economy, driven by concerns about unemployment, government debt and rising prices.

Check out the full survey here, Valium not included.

Note: Puke Is Not Among Prohibited Items at Prometric

As many of you know, we try to stay up on the haps in the land of MCQ and TBSs by playing Twitter detective, stalking the CPAnet forums and, of course, reading CPA exam candidate blogs. One of our favorites has always been Sleep on CPA due to her positive attitude and willingness to share her experience in its rawest form, disasters and all.

So we couldn’t pass up the chance to share her BEC experience with you all when we read it. Remember the candidate who got into it with Prometric over gum-chewing? That was nothing compared to this:

As it was not month end, I was the only one who was sitting for CPA Exam. I watched another exam guy who was debating rules with the staff over his exam code not working and there was no one who could help him with that. After answering all his questions a staff member came to me and collected my ID and NTS. I removed my items and locked them and went in. Then I was told to remove scarf. She checked my ID and asked me to sign in and then she asked me to go back and lock my NTS after I entered my launch code on the paper booklet. Then I told her about my nausea and asked her how should I proceed in case I want to throw up. She looked at me as if I was asking some thing illegal. She said, as you are not a candidate with special needs I cannot allow you to sit in a special needs room. I asked,” Can I leave the room If I have some emergency? She said “you can throw up beside you, we will clean later.“

I really had no reaction on my face when she said that. I asked, Do we have any waste basket inside? She said, No we don’t keep waste baskets inside. There is nothing we can do about it. She discussed with another lady and said, We cannot provide you the room with special needs, you should sit in the same room and there is nothing we can do. You can only take breaks in between your test-lets. After appearing in this exam more times than I passed.. Excuse me I know Prometric rules..

I prayed God and with all the prayers of my friends and family members, I felt better and the whole exam went well. I was little tired but that’s OK.

It goes without saying that we’re glad Rose didn’t actually hoark all over the floor and actually, we’re kind of surprised this is the first we’re hearing a story like this. Maybe most of you do the responsible thing and puke in the parking lot or in your locker, lest you compromise the security of the CPA exam by eating your homework books ahead of time and barfing out time value of money charts during your exam.

We are all for reasonable security measures but really?! Shouldn’t there at least be a designated puke bucket that Prometric staff can sign in and out?

Do you have a bizarre CPA exam story to share? Need advice on which part to take? Feeling like you need to vent? Get in touch, I’m here to hold back your hair.

Poli Sci Major Needs Help Picking a CPA Exam Starting Point

We swear we don’t mind answering the same question over and over and over, so if you have a question for us, please don’t hesitate to pound it out and get it to us.

Here’s our latest CPA exam quandary from the mailbag:

Hi Adrienne

I am just beginning to study for the CPA exams. I am in an MBA program and I will graduate in December. I was not an accounting major (poli sci) so I have also been taking the necessary required accounting classes in order to sit for the CPA exams, hopefully in January. I am taking an MBA-level auditing class in the Fall. I just finished a corporate income tax class this Spring, so I am a little confused as to which exam I should focus on now and take first, in January: REG as a lot of tax info is still fresh in my head or Auditing, as it will be most fresh by January?

Let’s all keep in mind that the CPA exam is not a test of your ability to be a good accountant, nor is it at all representative of the depth of your knowledge but the breadth. In other words, it’s a huge inch-tall puddle as opposed to a small, 9-ft deep pool. Your job is to jump across the puddle without getting your ankles wet, ya with me?

If it’s going to help your confidence, you can start with the section that will be easiest for you – in your case, that may be whatever you studied last. Keep in mind, however, that what you study in college and what you see on the CPA exam may not necessarily align. The CPA exam changes twice a year and with CBT-e changes, the AICPA Board of Examiners is now testing material that you are expected to know as a new CPA but may not have covered in school. Professors tend to favor the same material year after year, so unless your school is incredibly progressive and you’ve been learning IFRS (unlikely), it may not matter what you studied most recently.

That being said, I always tell candidates to start with the part that will be hardest for them simply because your 18 month timeframe starts from the time you sit for and pass your first part.

Here’s the deal: any review course will give you what you need to fill in the blanks in your education, even if you go the self-study route and pick up a set of CPA review textbooks from Amazon. In my professional experience, those who don’t have as rigorous an accounting background actually do better on the CPA exam as they come into it fresh instead of relying on what they were just taught in their accounting program that is no longer relevant for CPA exam purposes.

You’ll be fine either way, just pick one, study, and pass. It really is that simple. Or so I hear.

Turns Out I Wasn’t the Only One Under 40 at AICPA Governing Council After All

When I wrote Why Am I the Only Person Under 40 at AICPA Spring Council? last week, I knew that my tongue-in-cheek exaggeration would get people talking, which was mostly the point of saying something like that. As I think we all know, whenever someone implies that the profession is still represented mostly by middle-aged men in suits, everyone gets worked into a lather. My goal wasn’t to offend said middle-aged men in suits, most of whom I admire for their leadership, but to bring the issue of under-representation of the younger demographic to the table for discussion.

I didn’t actually believe I was the only one under 40 there (creative license people, dealtand that there is a hierarchy that young CPAs have to work their way up, starting on the state level. As a reporter, I had to do exactly the same, first covering MACPA’s CPA Day in Annapolis to get a feel for how visits with legislators work before being sent to cover Council. Cruising through the Maryland State House was a lot like attacking the Hill except on a smaller scale, and certainly prepared me for what to expect at Council.

As it turns out, I really wasn’t the only one under 40 there (as suspected). Evidenced by the following email I received from a young Washington State CPA shortly after Council wrapped:

Hi Adrienne,

I’m sorry I missed you! Thank you for your article. I am 2 years fresh out of college (work for an international firm), and was fortunate enough to be sponsored by the Washington (State) Society of CPAs to attend the AICPA governing council. I had a chance to meet with my representative, another representative’s office and my senator’s office today to discuss these issues with them and/or their staff. Tomorrow I’ll be meeting with the other senator from my state. The state society had the same view as you, in that it is important to start including accountants of my generation in the advocacy role, because these issues that are being introduced today will transform the profession for years, potentially decades, to come. The AICPA Governing Council has exposed me to numerous leaders in the accounting profession that serve as a great resource for the younger crowd to learn from. All it takes is the interest of young CPAs to become involved. It’s important now more than ever to have young CPAs step up to the challenge. Thank you for urging all young CPAs to contact their state society or nearest member on the governing council for more information.

“I found that for whatever reason, most state societies use their Council seats as ‘rewards’ for their (usually senior–both in experience and often age) members–so the ‘free’ attendance that Council members receive are not generally available to people our age. So I don’t blame most of the young CPAs, since without this free ticket, I wouldn’t be able to afford to attend this meeting either,” said Donny Shimamoto, CPA, CITP, founder and director of IntrapriseTechKnowlogies and the only young CPA we were able to track down at Council. Does that tell me that the system is rigged to keep middle-aged men in suits at the top of the food chain? No, it tells me that perks like comped trips to DC for Council are earned through demonstrated leadership, which is a commitment of both time and energy toward advancing the greater good of the profession.

As I said last week, if you are interested in legislative issues and want to get involved, you can start by contacting your state society of CPAs and checking out the AICPA Leadership Academy, which will be meeting in October in Durham, NC.

Here’s the bottom line: no one is going to approach you and ask if you want a free trip to our nation’s capital just because you have a pretty face (sorry, Joe Carey). You can position yourself as a leader by staying on top of important legislation that impacts the profession and even if you couldn’t make it to Council, there’s nothing keeping you from writing your Congressmen to share your feelings on this year’s key issues.

CPA Candidate, Who Hasn’t Taken a Single Exam, Is Already Freaking Out

Side note: I’ve never seen anyone use double periods in a sentence like this..So it goes without saying that the following has been edited and please, don’t do that on BEC. Here’s a tip: if you are looking for more written communication practice, try it on lazy, F-bomb-obsessed bloggers or even in emails to your mom. That’s all the AICPA is looking for; you don’t even have to be correct, just on topic. They make up 15% of your BEC score so get in the habit of pretending like random communications are being graded by a machine. It’s an undervalued commodity in your professional lubmission from the mailbag was close to correct (a beginning, a middle and an end, somewhat on topic) but needed a little work to be aesthetically pleasing to the CPA exam robots. Working on our emails would be a good supplement to whatever CPA review materials you bought, and I don’t say that to be mean.

Adrienne,

I am just about to begin the grueling process of the CPA exam..

I have been debating whether to take BEC or FAR first before starting work in July. Because I have more time to study now than I will for future tests I want to take the hardest one first. For me I feel like this will be BEC because this seems like it has the most new material and I did pretty well in Intermediate accounting. However it sounds like no matter how much studying some people do, they just can’t get prepared for BEC because it has recently changed. Should I just play it safe and use all this time I have to get prepared for FAR or should I take a shot at BEC?

Also, my firm only supplies me with Gleim self study books. Have people done alright on BEC with just these? How should I supplement these?

Sincerely,

Already freaking out

First, stop freaking out. You haven’t even started yet. Start and then let me know if you are still freaking out. You might like it. Get words like “grueling” out of your head now but you’re more than welcome to pull it out later if your experience proves to be exactly that. Until then, try to stay neutral on how much of pain the next 6 months – 2+ years of your life will be.

Second, we’ve discussed CPA review plenty, you can check the CPAnet forums for comments from actual review students who are taking whatever you bought or are looking at buying and any combination thereof. My experience has been that BEC is pretty hit or miss and that no review course covers it in as thorough detail as FAR, AUD or REG. That doesn’t mean they don’t do that section well, it just means I tend to hear the most complaints across the board regarding various review courses’ inability to truly cover BEC.

Don’t blame that on the new exam; that complaint goes back several years. It isn’t fair to compare the last version of computerized testing (CBT 2004 – 2010) to this one (CBT-e) as they are different exams, it’s too early to judge whether review courses and candidates promptly catch up to the new material, along with the AICPA. They have been clear about this being an improving work in progress for 2011, therefore it would be equally unfair to make a call at this time. Don’t say everything is “because of the change” as if you’re a Boy Scout with a flashlight under your face trying to scare everyone around the campfire. Was it this bad when the exam went from paper and pencil to blips on a screen and digital fingerprints?

Third, don’t get high on study drugs while studying for BEC or you might really be freaking out.

I always tell candidates to start with the section that will be hardest for you as that’s when your 18 month timeframe begins so your plan sounds good. If you bomb a section a few times, the clock isn’t ticking. Of course, this also leads to procrastination if you continuously bomb, which is an entirely different problem. Not to make you freak out.