Category: CPA Exam

News and views about the CPA exam, CPA exam advice, and what’s happening with NASBA.

Let’s Try to Talk This Soon-to-Be CPA Exam Candidate Off the Ledge

I’m no longer surprised by the fact that otherwise (allegedly) rational human beings think it is appropriate to ask a bunch of assholes on the Internet what they should do with their lives. No offense to any of you but I’d hardly bet my life’s decisions on the input I get from a bunch of Internet trolls hiding in cubes around the country making dick jokes amongst themselves.

That said, I’m hoping you guys have some good input for this guy. And by good, I think you know what I actually mean.

Dear GC,

I’m a B4 intern graduating in May 2012. Unfortunately, I won’t have 150 credits by that time, but I’ll hopefully have a full time offer from the firm. While this doesn’t seem like an uncommon problem, I feel like I’m between a rock and aof hefty Master’s programs’ tuition rates and the intensity of CPA studying. Therefore, I have the following dilemma…

I could take the CPA right after graduation (to become NY certified) and take a one-semester Master’s program in the Fall. I’d have the whole summer to study and pass the CPA, but I’d be paying $15K for the Master’s and delaying my start time (and future promotions/bonuses) to January 2013. I want to start making money sooner rather than later to pay off my mounting college debts.

The other option is finishing off my last 12-15 credits at a local community college (far cheaper obviously) immediately following graduation. I could then study for the exam either during or after the extra courses. I would be able to start (I think) around October and avoid the massive MAcc tuition. However, I don’t think I’d have enough time to study and pass before beginning full time work, and I’ve heard the longer into your B4 career, the harder it is to find time to study and pass the first time.

I have a tough decision to make and enough time to become more well-informed. People have been telling me it’s all about preference, but I don’t think that’s a good enough answer. There are strong pros and cons in both, but I’m worried my mind will continue to stagnate as it gets closer to decision time. Do you have prior-experience-related advice that will lead me in the right direction? Thanks in advance.

Sincerely,
TooYoungForThis

Where do we start with this? First of all, you’ve a) already fallen into the debt trap and b) totally fallen for the myth that you’ve got to get a MAcc to get anywhere in this industry. You’re tripping. Nowhere in the NY exam requirements does it state that you have to take on more debt and another degree to be a CPA in the state:

A bachelor’s or higher degree from a program that is registered by the Department as meeting New York’s 150 semester hour education requirements; or a Masters degree in accounting from an AACSB accredited accounting program; or a bachelors or higher degree from a regionally accredited college or university and completion of 150 semester hours in the following content areas, including the following:

* 33 semester hours in accounting with at least one course in each of the following areas:
• financial accounting and reporting
• cost or managerial accounting
• taxation
• auditing and attestation services
* 36 semester hours in general business electives and
* The curriculum must also include, either as stand alone courses or integrated into other courses, the study of business or accounting communications, ethics and professional responsibility, and accounting research.

(Acceptable course work is detailed further in the 150 semester hour course content table.)

As for the rest of it, anyone who has taken any of the routes you mentioned will probably have some advice for you related to their experience but please keep in mind that it is just that: their experience. Your own will be based on a lot of factors, such as the actual level of debt you are willing to sustain, your motivation to get a CPA/MAcc/awesome Big 4 job, your skills and how committed you are to any of the decisions you make. So that’s probably why you’re getting really vague answers on this from others.

What’s this about your mind stagnating? Knock it off, take responsibility for whichever path you desire to take (not which path the Internet or your parents told you to take) and take that path like a motherfucker. It sounds to me like you’re not all that into any of these options, and that’s probably the biggest cause of your inability to make a decision right there.

Do you want a MAcc? Do you want to get through the exam in less than a year? Do you want to take Advanced Accounting from some musty community college teacher? No one can answer those questions for you. You’re a grown up now and obviously NOT too young for this if you managed to get this far, so grow up and decide already.

You are doing the right thing by reaching out but what I mean to say with all this yelling at you is that, ultimately, the decision is yours. I would always advise you to avoid as much debt as possible at this stage in your life; you are already assuming you are going to have to slave away to pay it off, why would you want more unless you either absolutely have to or truly desire a MAcc? It doesn’t sound to me like you do. So don’t.

CPA Exam Marketing, You’re Kind of Doing It Wrong

I don’t say this to be mean, I say this to be helpful I swear. I noticed something sketchy about this Becker marketing campaign.

Apparently they have a Posterous (news to me) and share CPA exam tips. That part sounds awesome but somehow it fails in the execution. Here’s what I mean:

Did you know that the sections of the CPA Exam have different time allotments?

You can use as much of the time allotted to complete each section as you like. The testing computer screen displays a countdown of the time you have left. As you practice, it’s important to learn how to budget your time wisely, so you don’t find yourself scrambling at the end to finish.

Sorry but that’s horribly vague. What is that supposed to tell someone about time allotments on the CPA exam? What on Earth is ‘You can use as much of the time allotted to complete each section as you like?’ supposed to mean? Sure you technically can use as much of the time allotted (I’m assuming they mean per section?) but I don’t think that’s a very helpful suggestion to give someone actually trying to pass the CPA exam.

In a different post, they also say “Getting your CPA is a little like getting to Carnegie Hall — it’s all about practice!”

Each post ends with an obvious link to one of their products that is tangentially related to whatever the vague “tip” says.

In fewer words, WTF purpose is this supposed to serve?

Like I said, meant to be useful, I swear.

Why Didn’t Anyone Tell Me You Can Earn Gold and Silver Medals on the CPA Exam?!

OK, this is new to me. I’ll admit I don’t know everything about the CPA exam but I try to keep up on as much as I can without actually subjecting myself to that level of masochism. With the deepest respect to those of you who do subject yourselves to that as always, I assure you.

Anyway, what’s this about getting medals for CPA exam scores?! Why didn’t anyone tell me this?

From the Oklahoma State Spears School of Business:

When she received a gold medal for her scores on the Certified Public Accountant exam, Lauren Gorman saw the result that made all of her hard work pay off. Gorman, who is working on her doctorate in accounting, said the award was important in a number of ways. “Receiving the gold medal was important to me because it recognized all of the hard work and months of studying I put into the exam,” Gorman said. “My brother, Ryan Gorman, earned the silver medal on the exam, so I also enjoyed beating him and receiving the gold.” Gorman’s brother took the exam a few years ago. Out of the thousands of students who take the CPA exam, only those who complete all four parts of the exam within one or two testing windows and earn a high score are awarded medals, according to a Spears School of Business press release. Three Oklahoma State University accounting students received the honors. Lauren Gorman and Anne-Marie Lelkes earned gold medals, and Dawn Kruckeberg earned silver.

Correct me if I’m wrong but I think they are referring to the Elijah Watt Sells medals, which isn’t at all clear in the article. A gold medal means A) you studied way too hard and B) you beat out every other candidate testing that year. It also means that you took the exam back when it was paper and pencil, as I’m pretty sure they eliminated the medals post-2004, am I totally wrong?

Prior to the computerized exam, the AICPA would award gold, silver and bronze medals to the top three performers on the CPA exam. When the exam went computerized, thereby allowing more flexibility in testing, they changed it to give the award to 10 of the highest scores in the country each year. To qualify, candidates must score in the very very high 90s on the first attempt (no retakes). Winners receive a plaque and the recognition that comes with being a bad ass high performer (even though no one asks what you got on the exam anyway).

So really… what medals are we talking about? Oh, duh, the Oklahoma State Society of CPAs issues them. It would help if the article mentioned that, I got all excited for a minute there.

Anyway, congratulations and all that.

Turns Out You Don’t Have to Go to a “Real” College to Do Well on the CPA Exam

The great thing about accounting is that unlike law, you don’t have to go to a top school to have a successful career. While it helps to be in front of Big 4 recruiters at the major accounting schools if that’s the route you want to take, here’s a little proof that you can easily get through the CPA exam even if your educational background is comprised solely of community college. At least in Texas.

The Texas State Board of Accountancy recently released its list of top CPA exam pass rates among Texas colleges and universities and it turns out a community college is among the University of Texas and Texas A&M.

The University of Texas at Austin had a 75 percent pass rate (it is unclear if that is a first-time pass rate or what) while the Austin Community College came in 10th with 53 percent. Other schools on the list were Texas A&M, Baylor University and Texas Tech.

ACC was the only community college to make the list. Their CPA program currently has about 400 students.

ACC Dean of Business Studies David Quinn told KUT News that ACC has made the list every year except one since the school became accredited in 2002.

“I’m very proud of our faculty and our students in our professional accounting program,” he said. “They’ve proven time and time again that they can do as good of a job as the best universities in the State of Texas.”

If you’re interested, you can dig through the results from the TX Board here.

UPDATE: Are Deeply Discounted CPA Review Programs Legit?

I Pass the CPA Exam was asked if a $799 “Becker” program being sold online could possibly be legit. After asking the owner of the site peddling the stuff, Stephanie asks Becker directly if they allow affiliates to sell their product wholesale to other retailers so they, in turn, can cut the price. Something about this just doesn’t seem right, why would Becker want to get ripped off on its own product, which it routinely sells for $3,000 (give or take)?

When in doubt, maybe you should ask the review course:

I continue my due diligence and ask Becker directly whether the serial number from CPApassmaster would indeed verifiable at their site. This is their answer:

“The only legal site for Becker material is www.becker.com.”

Well, I would appreciate if Becker can just be a little bit more helpful in terms of explaining this further, but knowing how Becker is (big and institutionalized with little “real” customer service), this is probably the best we can get.

Then, I heard from industry sources that in fact Becker is trying to stop this offering via an injunction, and supposedly Becker can render all their materials with serial number from this reseller unverifiable if / when they are allowed to do that.

Interesting. I agree with Stephanie’s assessment that whoever she spoke to at Becker is probably just some hack in a headset who barely knows what the CPA exam is, let alone is high up enough to actually comment on their policies.

It would be interesting to hear this directly from, say, a Becker high up. Hint, hint. Perhaps a qualified Becker manager would like to get in touch and clear the air.

UPDATE: Becker spokesperson Molly Tarantino wrote me last night to clarify Becker’s policy on unauthorized dealers. Please consider her comments before going for a cheap review course that is NOT offered directly from the company:

Becker Professional Education does not support materials purchased through unauthorized dealers. Only materials received directly from us are guaranteed to be authentic. Unauthorized dealers, such as CPAPassmaster, are either in violation of their license with Becker or selling counterfeit materials. Counterfeiting is illegal and purchasing counterfeit products supports this illegal activity. This type of activity is especially troubling since it is occurring within a profession whose foundation has always been and always will be based on ethics and integrity.

Starting Today, Prometric Will Pull Out the Metal Detector

Prometric is only one step away from TSA at this rate, next thing you’ll likely have to submit to backscatter body scanners. 95 year-old CPA exam candidates will have to remove their Depends, while younger candidates will have to accept getting groped by Prometric staff. Awesome, isn’t it? Aren’t you guys thrilled you chose the most trustworthy occupation on the planet besides Hollywood madam?

Thanks to the many (and I mean many) tipsters who sent us the following email which was sent out to all CPA exam candidates on Wednesday:

Prometric is committed to a strong, secure, testing environment for the CPA Examination and for all candidates visiting one of its test centers. Over the past few years, Prometric has made several significant investments to further strengthen security in its test centers, including a global roll-out of digital video recorders and enhancements to biometrics at the centers. This communication is to advise you that there is a new security enhancement being introduced into Prometric centers this week.

Starting July 1, Prometric Test Center Administrators (TCAs) will be using hand-held metal detector wands to scan all candidates in the Test Centers in the United States and Territories. All candidates will be scanned prior to each entry into the test room, including returns from breaks. Candidates will still be required to turn their pockets out, and the scan will be done immediately afterward. The purpose of the wand scan is to take an additional step in identifying any prohibited items that a candidate is attempting to take into the testing room.

Prometric’s Security Department conducted a pilot of this program in 2010 using the wands for a period of five months. Approximately 60,000 candidates were scanned during that time. Ultimately, the wand was found to be a strong deterrent and operationally effective. Based on the results of the pilot, Prometric has decided to move forward with this program and has deployed hand-held metal detectors to all U.S. Test Centers.

In addition to this message, information about wanding has been added to Prometric’s standard Test Center Regulations Form. This form is posted on Prometric’s website and is given to all candidates to read prior to check-in.

The scan will be done in full view of the TCA DVR camera so it will be recorded, and any candidate complaints or escalations can be properly investigated. All candidates will be required to submit to the scans. Any candidates refusing to be scanned will not be permitted to test. Please rest assured that the metal detectors do not affect pregnancies, pacemakers, or other medical equipment that’s connected to the body.

This small change will help to make our test even more secure, and further protect the integrity of our exams.

I wonder how much this has to do with the candidate in Illinois caught “cheating” (we still don’t know what exactly he or she was busted doing, be that using a crib sheet or actually trying to smuggle out exam content).

We checked the Test Center Regulations and still don’t see any mention of metal detectors (or bodyscanners).

Illinois Candidate Caught Cheating on the CPA Exam

We have better things to do than comb through the minutes of each accountancy board’s meetings, so thanks to the tipster who obviously doesn’t and sent in the following tip from the January 25, 2011 minutes of the Illinois Board of Accountancy:

b. Mr. [Richard] York led a discussion regarding a recent candidate caught cheating by Prometric. The Committee agreed with the Executive Director’s recommendation to void the candidate’s scores for that examination. It was agreed by the Board to implement a prohibition of testing privilege for 2-5 years as provided by Administrative Rule for future candidates caught cheating.

It’s common knowledge that if you are caught cheating on the CPA exam you should expect for your scores to be thrown out and will likely receive some sort of administrative penalty (such as being barred from taking the exam again for a certain number of years) but this is the first reference I have seen to an actual candidate getting busted.

How does one go about cheating on the CPA exam anyway? With countless questions completely locked down by the AICPA, how could a candidate cheat? Sharpie notes on the palm of his hand? Smuggled in snot rags?

The official line on cheating from the AICPA, NASBA and Prometric goes something like this:

The Boards of Accountancy, NASBA and the AICPA take candidate misconduct, including cheating on the Uniform CPA Examination, very seriously. If a Board of Accountancy determines that a candidate is culpable of misconduct or has cheated, the candidate will be subject to a variety of penalties including, but not limited to, invalidation of grades, disqualification from subsequent examination administrations, and civil and criminal penalties. In cases where candidate misconduct or cheating is discovered after a candidate has obtained a CPA license or certificate, a Board of Accountancy may rescind the license or certificate.

If the test center staff suspects misconduct, a warning will be given to the candidate for any of the following situations:
· Communicating, orally or otherwise, with another candidate or person
· Copying from or looking at another candidate’s materials or workstation
· Allowing another candidate to copy from or look at materials or workstation
· Giving or receiving assistance in answering examination questions or problems
· Reading examination questions or simulations aloud
· Engaging in conduct that interferes with the administration of the examination or unnecessarily
disturbing staff or other candidates

Grounds for confiscation of a prohibited item and warning the candidate include:
· Possession of any prohibited item (whether or not in use) inside, or while entering or exiting the testing room
· Use of any prohibited item during a break in a manner that could result in cheating or the removal of examination questions or simulations

Inquiring minds are dying to know what went down.

The scariest part is that in 2 – 5 years, this candidate can head back into Prometric and give it another shot. Looks like it’s payroll clerking it in the meantime.

Let’s Talk About CPA Review Again, Shall We?

Last week, Caleb respectfully requested you all participate in a TPTB-sponsored poll to tell us which review course you are using. As expected, a comment was made along the lines of “it doesn’t matter which review course you use,” which we hear just about every time we dare to bring up the subject of CPA review.


We’ve talked about picking a review course, getting the most out of yours and even got bold enough to name names but have thus far (mostly) avoided getting into the dirty details due to my perceived bias as a former CPA review hack. But for those of you who are new to this whole CPA review thing, I figured it might be useful to revisit the topic and offer some tips for finding a review course and making it work for you since I’m far enough away from the industry as this point not to have an interest either way.

As always, picking a review course comes down to a few simple questions you have to ask yourself.

First, is someone paying for it so you don’t have to? If so, take it but let me give you a small piece of advice based on what I saw working in CPA review for four years: treat it like you paid for it. Too often I would see people who took their good fortune for granted and blew off studying only to discover a year or year and a half later that their “free” course expired, leaving them with outdated books and a set of flashcards they never opened. Don’t be that guy, use what you’ve been given or trust me, you’ll regret it later when you really need it and don’t have it or, worse, end up having to pay for Round 2 yourself. Most firms will only pay once so make it count.

Second, as many many people have pointed out here and elsewhere, which review course you take doesn’t really matter as everyone teaches based on the same bank of information made available to them by the AICPA. What does differ is the way the material is presented, therefore it’s up to you to figure out what you need. Some courses teach straight from the book while others don’t necessarily “teach” at all; if you’re the type of person who needs to be guided (and/or hand held) through huge amounts of information, you will want to go with something that breaks down concepts.

For an idea of which courses do what, the CPAnet forums are still one of the best resources as responses are written (mostly) by actual candidates without being as spammy as some of the CPA exam marketing blogs put out to steer customers into certain products. It’s also worth checking out blogs written by actual CPA exam candidates for nearly real-time comments on what’s working (or what isn’t) for them. If you’re on Twitter, check #twudygroup for candid tweets about studying, which will inevitably include comments about the review courses the kids on Twitter are using (and love tweets to Peter Olinto, natch).

It’s true that any review course (or even a set of CPA exam textbooks) can get you through this, but it doesn’t happen just because you gave a company your credit card details. Hate to break this to those of you hoping a $3000 course plus flashcards will automatically make you pass but regardless of which course you choose, you’ve got to study and sit for the exam just like every other candidate.

Now stop playing around on the Internet and get back to those books, you’ve got an exam to pass.

Ten Most Expensive iPad Apps List Includes Becker’s Mobile Flashcards

The Most Expensive Journal recently came out with a top 10 list of most expensive iPad apps and – surprise, surprise – it looks like Becker’s mobile flashcards made the list.

The mobile flashcard set includes over 950 cards with questions on the front and brief answers on the back, which will look familiar to any of you who have used Becker’s regular flashcards.

The app works on iPhone or iPad but you don’t have the option to use it on both if you happen to own both devices; you’ll have to buy two copies of the app if that’s what you’re trying to do.

Curious to hear what your most expensive app is and whether or not you’d buy these.

What Your CPA Exam Scores Say About You

Since it’s score season, here’s an overly appropriate question from the mailbag:

Just a quick question. Does CPA exam score reflect one’s ability at work? Does 76 on AUD necessarily mean one would be a bad auditor?

90 on REG means one would good at tax? Not sure how should I choose career-path between tax & audit.

The short answer here is that a 76 on AUD means you studied just enough to pass (congratulations) and has absolutely nothing to do with how good (or bad) of an auditor you might be.

Remember that the CPA exam tests entry level knowledge required to be a CPA. An 88 or even a 99 doesn’t mean you’d be a better auditor than someone who failed that section, it just means that you have a better command of entry level skills. That’s great as far as passing the exam goes but has little to do with your career.

The CPA exam and the real world are two completely different places. The exam assumes scenarios that you will never see “in the wild,” as it were, an environment where companies always do the indirect method and auditors always do more testing than necessary.

A higher score on one section could mean that this is a better place for you to look when it comes to picking a career path if, say, you barely studied to get that 90 and actually enjoyed taking that section. Just like you shouldn’t rely on your score report as the gospel, you shouldn’t take that to be a sign that you’re destined for a life in tax but you can certainly take that as a strong hint if you didn’t mind sitting for that section, understood the concepts and kind of liked the process.

Hope that helps!