Category: CPA Exam

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

Final Reminder of Five Ways the CPA Exam Could Change in 2011

We’ve been talking plenty about 2011 CPA exam changes but since this is my last Friday CPA exam column until the new exam hits in January of next year (December being a blackout month), I figured now would be a good time to go over what will or might be changing next year, much of which is entirely dependent on how things turn out early in the year when CBT-e launches.


First, international standards WILL be eligible to be tested beginning January 1, 2011 but that doesn’t mean the 2010 exam and 2011 will be completely different. I suspect that the AICPA Board of Examiners will be extremely conservative with new standards for at least the first two testing windows of 2011 if not longer. That means you will see new standards and questions but likely will not see too much new material if you’re testing in January/February or April/May.

Second, simulations and research problems WILL look different, unless you’ve taken the exam this year already, in which case you’ve probably already seen a preliminary version of 2011’s simlet problems. The format is changing slightly but pretty close to the current tabs in simulations so it may not look all that different to you come 2011. Research will be worth more than the single point it is now so check out the tutorial on the AICPA’s website and don’t forget to use your current NTS for a free 6 month subscription to the professional literature.

Third, the candidate performance report (score report) is changing. Check out the AICPA’s website for a somewhat complicated scoring FAQ that explains how they currently determine your performance and what all those “comparable” or “weaker” notations mean on your score report.

Fourth, possibly based on the third point, the AICPA has pledged to look into changing what qualifies as a passing score in 2011. They have been pretty quiet with details and have not really said whether new passing scores – if implemented – would be higher or lower than the current 75. The best bet until we hear otherwise is to relax and worry about it later if they decide an 80 works better. They have pledged to give scoring a look after the first window of 2011 so stay tuned and we’ll let you know if we hear anything at that point.

Lastly, remember that the AICPA is nothing if not conservative. That means even though things are changing next year, it is highly unlikely that the AICPA will feel comfortable completely changing things on candidates. So for those of you rushing to get in one last part in the next two weeks (remember: you’ve only got 8 testing days left in 2010!), I’m pretty sure you’ll find next year’s exam to be far more familiar to you than you might think.

Prioritizing the CPA Exam, Getting a Masters and a Big 4 Job Part MMXXXII

In today’s edition of “let me figure out your life for you and push the CPA exam down your throat”, our little would-be Big4er writes in wondering:

I’m trying to figure out some options to get to a Big 4 firm. I interned at a regional firm in Los Angeles this past summer and realized that I want to be at a Big4 firm instead. I have been through the on-campus recruiting process this quarter and unfortunately I did not receive any offers after going through PwC’s second round interviews. I did receive an offer from a regional firm in the San Francisco area. Though, my ultimate goal is to end up at a Big 4 firm.

I will be graduating in March 2011 and was planning on begin studying for my CPA exam. I hopby October or at least a majority of the exam. Do you guys recommend I study for my CPA and go through the recruiting process again next year or continue my education and get a Masters in Accounting and go through the recruiting process after that?

I love when you kids have a plan, or rather when you have a goal in mind and come banging on our door asking how to get there.

Anyway, as always, I am inclined to recommend getting the CPA exam out of the way before anything simply because it’s easier to do now before you’re bogged down with commitment (OK, mostly a really time-consuming Big 4 gig). However I’m a little sketchy on your actual timeline since you say you are graduating in March and plan to be done by October; does that mean you’re planning on taking two parts per testing window after you apply and are approved to sit for the exam?

Assuming you are applying in California (you mentioned LA), might I recommend you take the exam shortcut now while you still can? Here’s the deal: submit your application to the state board now while you don’t qualify, pay your $100, wait 8 – 10 weeks for a rejection letter and then apply again in March right after your degree posts to your transcripts so you can be approved to sit in just 1 – 2 short weeks. That way you cut down on the waiting time while you’d still be waiting anyway, can jump right into taking your exams and can get in April/May, July/August and October/November instead of trying to cram in four parts in two testing windows.

Keep in mind that tackling the CPA exam before going to the Big 4 – or any firm for that matter – can sometimes work against you. If you really stand out as a public accounting rockstar and have already passed the entire exam they might assume (usually correctly) that you’re simply trying to get your foot in the door for your two years of experience. So be careful with the overachieving there, it might be wise to get through two parts or perhaps just get started on the exam without actually blowing through all of it before you go knocking on PwC’s door again.

Unless you absolutely want a Masters in Accounting, keep in mind it isn’t necessary to have one in California and you can just as easily pick up 30 extra units in just about anything to meet the 150 requirement. I usually discourage California CPAs from taking that route unless they absolutely have to so if it isn’t something that you really want, don’t do it just to do it. You can always get a Masters later when you’re more settled in the profession, know what you want to be when you grow up, have finished the CPA exam and have made a dent in your undergrad student loans (always a good idea before you take on any more debt).

The only issue with blowing off a Masters now is that you will obviously have a harder time getting the Big 4’s attention after you graduate so I would say plan to get started on the CPA exam as quickly as possible and put on your best game face next time the Big 4 come sniffing around at your school while you can. Hopefully that lands you something for the fall, giving you a chance to complete the exam before your start date, at which time you can try out Big 4 life and then maybe get back to us on how that’s working out.

Hope that helps and good luck!

Can You Tattoo a CPA Exam Cheat Sheet On Your Arm?

Listen, this may seem like a ridiculous question and knowing our tax-obsessed friend Joe Kristan, chances are he was kidding when he asked it but I couldn’t help but indulge him since this is actually one I have thought about more than once.

Being pretty well-covered from head to toe in ink myself, if it were allowed (and were I completely bankrupt of ethical fortitude), tattoos #34 – 47 co be mnemonic cheat sheets. But is it allowed?

Joe asks not so subtly via Twitter:

@adrigonzo Can you tatoo [sic] cheat sheets on your arms? If so, what parts do you recommend?

Valid question (if ridiculous), no? Let’s look at the rules.


You cannot bring paper, pencil, notes, your cell phone, a calculator watch (who even USES one of those?!), or even a hat into Prometric and if you choose to bring a jacket (I hear those rooms get chilly), you’ve got to wear it all 3 – 4 hours of the exam or else risk running out of time to take a break and put it in your locker. But as far as I can tell, there is absolutely no requirement that would otherwise bar someone from writing down the “answers” in fancy script on the absorbent epidermis of their inner forearms. After all, it’s not like you can remove your skin, right?

Here’s the problem (or four):

The first is that the AICPA Board of Examiners guard their proprietary CPA exam questions with their lives. If it came down to someone being able to bypass the rules by slipping past Prometric with answers tattooed on them, chances are they’d not only skin the offender but sue the shit out of them to find out where they got those answers. Review courses may have practice questions that are similar to actual exam content and the AICPA may retire 50 questions from each section a year but NO ONE except for the AICPA Board of Examiners has an actual answer key.

That being said, if by some fluke someone were able to get their hands on real exam content (unlikely since you aren’t allowed to take scratch paper out of the room and trust me, every sheet is accounted for), the CPA exam that you get is actually pulled from a test bank of thousands if not tens or hundreds of thousands of questions. So even if you illegally smuggle out exam content and hand it to a tattoo artist, the odds that you would get the same questions on an exam are slim to none. Sure there are likely repeats (as anyone who has taken an exam section two or – God forbid – three or more times can tell you) but not so many that getting an entire random exam tattooed on you would do you any good.

So, let’s just say somehow someone gets their hands on an exact exam and somehow someone else just so happens to get that same exact exam (after tattooing the answers on their forearm). Exam content, as many of you should already know, changes twice a year. So even if the first two somehow work out, the tattoo will be obsolete in 6 months. Then what? Scrawl FAS 141(r) underneath the other rules like a cover-up? Tacky!

Lastly, let’s all keep in mind here that this is the CPA exam, a professional licensure examination that tests not only your knowledge but your personal ethics and ability to protect the public interest. Times may be changing and the public may be OK with being served by a CPA with a visible butterfly tattooed on their ankle (or, we can only hope one day, a full sleeve tattoo) but there is no way you are protecting the public if you’re starting off your career looking for ways to cheat the system.

So is it allowed? Technically yes from what I can gather. Morally that’s a big fat hell no and I shouldn’t have to explain why. We look forward to an announcement from the AICPA that all candidate tattoos must be biometrically logged before admission to the exam is granted.

How Do I Prioritize Taking the CPA Exam, Finishing a Masters in Accounting and Getting a Job?

If you have a career related question that also involves the CPA exam (like “should I take it before I try to get this awesome job at x firm?” or “Will I still get hired if I have a CPA and therefore scare the crap out of recruiters who want me to be as moldable to their whims as possible?”), please email me directly. Emailing advice@goingconcern.com will just mean you getting trapped in Caleb’s inbox for weeks.

Now then, today’s reader question comes from a finance world immigrant looking to elbow his way into public accounting:

I graduated in 2005 with a Finance degree, I spent one year as a Staff Accountant then moved onto to become a Corporate Financial Analyst for the past 4 years. I am interested in making the change to public accounting and began the MSA program last year to get the requisite hours, I’ll be eligible for the CPA at the end of the Spring Semester but won’t quite be finished with the MSA program. There is the background…

…now my question is would I be better off staying in my current position and finishing the master’s program before I take the CPA and find a new job? Or would it be more beneficial for me to attempt to find a lower level job at a firm during the spring semester to start getting some experience, then attempting to take the CPA next fall? I’m eager for a change, but I would like to know what the best course of action might be and if it’s realistic to think I could find a CPA firm job before I have finished the master’s program or taken the CPA exam. Thanks for your help.

Here’s the obvious disclaimer: I am heavily biased towards the CPA designation for many reasons.

Firstly, having one obviously makes you more employable because it shows a level of dedication that employers salivate over. Forget all that junk about a CPA showing that you know your stuff, getting one shows that you have the ability to grind through months or even years of studying your ass off, which employers are into because it means that you might just show the same sort of dedication to ticking and tying.

Secondly, having a CPA allows access to a professional network that cannot quite be accessed from the fringes (read: unlicensed fringes) and puts you in a different caliber. For someone trying to break into public accounting, having a CPA (or being darn close minus the work experience) right off the bat can put you on the fast track to career advancement that might otherwise be out of reach were you to both come from another industry and lack a CPA. Just my 2¢.

All that being said (possibly in more words than were necessary), yes you can find a job with a CPA firm before you have passed the exam but the best avenue to take is always to tackle the exam as early as you can before you get involved in life, work, family… you know, all that stuff that will turn into excuses for not having time to study later. Even your best-laid plans don’t always turn out as well as they appeared on paper, so that low level gig at a firm (if you can get one) might turn into a longer-term position that you can’t or won’t walk away from. Ask anyone who has studied for the CPA exam while grinding out their first year in public accounting if you need more clarification on just how large a pain in the ass that plan can be. You know, if you’re planning on having a life.

My suggestion: take the CPA exam as soon as possible and put your feelers out in the job market. Don’t bank on a CPA firm position landing in your lap but if you find one, it will be best to have as much of the exam done as you can get before you actually start. Good luck!

Will You Need New CPA Exam Materials In 2011?

As many of you know, some parts of the CPA exam are changing significantly in 2011 though don’t listen to the rumors that say everything is changing profoundly. If you sit for the exam before 2010 and sit again in early 2011, chances are you will recognize much of the content and format of the exam beyond the few changes. We’ve covered those here before, feel free to check out our previous CPA exam posts for more detail.

Anyway, a lot of you are wondering if you should purchase CPA exam review materials now and if you do how you will handle the new material in 2011.


If you’ve done your homework, you’ve found a CPA review course that offers updated material at no additional charge. This could be in the form of split shipments, updates to books or new books altogether depending on whose program you have sunk your hard-earned money into. If you are unsure whether your course offers these or if you are still shopping around for a review, be sure to ask before committing as some providers could end up charging you for new materials.

Keep in mind, however, that much of what is being tested currently will still be tested in 2011, even in areas like FAR and AUD that are getting a significant amount of new international material added to them. If you read too many misinformed forum posts, you might be under the impression that 2010 material is completely and totally irrelevant in 2011 and that studying from these materials will mean guaranteed failure on the exam. That is simply not true. Of course it is a good idea to also study from whatever updates you might receive to 2010 materials if you are sitting in 2011 but it is not worth panicking over nor delaying your studying because you are holding out for brand new 2011 information.

The AICPA Board of Examiners is not about to throw away their precious bank of tried and true CPA exam questions, even though they are anxious to add new international content to that mix. Much of what CPAs have been tested on for the last 6 years will still be relevant next year and there is no need to hold a giant 2010 CPA review book bonfire to eliminate old, outdated content.

You will definitely want to get access to any material updates if you are allowed them by your review course but please, don’t burn books or run out and get all new materials just because you are afraid of being left behind in 2011. Debits still go on the left, even under IFRS.

CPA Exam Dilemma: Do I Take Audit or FAR Before 2011?

Bypassing the pleasantries and getting straight into the reader question:

I passed BEC & REG on my first try, but I failed FAR & AUD. I need to take FAR or AUD before 2011. Which one do you suggest? FYI: I had 66 on FAR, 56 on AUD.


We’ve discussed what to do when you fail an exam section in the past and if you are familiar with the formula, you know that anything less than a 70 means you can pretty much go back to the drawing board. So the short answer here is that either FAR or AUD is fine but with a little over a month left before the end of 2010 testing, I am a little concerned that you may not have enough time to really prepare. Let’s be real here, you must not have put in much time or effort on either the first time around, am I right?

That being said, FAR looks like the more promising option though a 66 tells me that you’ve got a ways to go before you will be ready. It could be that you simply bombed one testlet and a simulation, in which case you don’t need to spend too much time going over all FAR topics in extensive detail but if you skimmed most of it the first time around, now might be the time to get serious and put in the work.

If you are asking which to take before 2011 because you are scared to death of the CBT-e changes, I would suggest taking AUD this year as the research will be harder next year while most of FAR will actually be easier (between removal of written communication, shorter “simlet” problems and fairly straight-forward IFRS vs GAAP content).

Regardless of which you choose, work on time management (perhaps that is your issue as it coincidentally tends to be a problem on both FAR and AUD) and use your score report to figure out where you need to focus for your second attempt.

Good luck!

Ed. note: Adrienne is currently trudging across this fine country, moving her life from not-so-fabulous-anymore San Francisco to an undisclosed location just outside of Washington DC. She’ll return to a full posting schedule next week after getting settled. As always, you are still welcome to get in touch with any CPA exam questions and/or post suggestions.

Where Can International CPA Candidates Get Certified Without Being Technically Licensed?

Getting back to the awesomeness that is the CPA exam for international candidates (piggybacking on the AICPA’s announcement earlier this week that they are moving forward with international testing in 2011), today’s reader question comes from a NY-based CPA exam candidate who originally hails from India.

I have passed all sections of the CPA exam in Delaware. I do not have experience to qualify for license yet. DE has stopped issuing certificate “alone” for CPA, they now issue combined cert + license. Is there a state who issues the certificate alone?


A few years ago, most international candidates went with either Colorado or Delaware simply because those state boards allowed for the easiest CPA exam experience without, well, the actual experience. International candidates could apply, show up to take the exams, pass and never actually become CPAs in the traditional sense but go home with those fantastic little letters on their résumés.

Unfortunately for international candidates, the state boards got together and decided that there might be some confusion between these certificate-holding CPAs and CPAs who fulfilled educational and experience requirements for licensure. As we all know, you could stay in school for 10 years reading about the stuff but there is just no substitute for good old work experience in the profession.

The old timers will recognize the term “two-tier state” as it was initially thought that passing the exam (the part where the certificate comes in) was the first step – or tier – and satisfying experience or additional education requirements the second.

So now that you have the backstory, where can you go? Right now Illinois is your only option and you will only have that available to you until 2012. They initially decided to eliminate the certificate in 2010 but the governor gave this CPA certificate plan a stay of execution until 2012, so get on it now if that’s your plan.

The other remaining one-tier states – Alabama, Kansas, Montana and Nebraska – all have a residency requirement or other restriction. That may mean they are out of the question for you. Montana requires a Social Security number for a certificate, something many international applicants obviously don’t have. Without knowing our reader’s specific details, this may or may not be an option. Anyone with experience with this little nuance in the the CPA certifying world is invited to share their experience.

Good luck and just be glad you aren’t getting licensed in New York!

AICPA Announces International CPA Exam Locations

Have you, like many foreigners, been tripping about getting into the US to take the CPA exam, battling with strict post 9/11 Visa rules and other assorted red tape? Trip no more, the CPA exam is about to go international. This is huge because the exam is also about to get an international makeover (like IFRS testing in FAR and international audit standards in AUD) but that couldn’t at all be coincidentally related to this announcement from the AICPA:

The Uniform CPA Examination will be offered outside the 55 U.S. jurisdictions for the first time in its history in 2011. The American Institute of Certified Public Accountants, National Association of State Boards of Accountancy and Prometric – the three organizations that jointly offer the CPA Examination in the United States – reached an agreement to administer the exam in international locations.

The CPA Examination next year will be offered in Japan, Bahrain, Kuwait, Lebanon and the United Arab Emirates.

The international exam will be the same as the one offered in the U.S., using the same computerized format and administered in English. As in the U.S., the purpose of taking the examination will be to qualify for licensure as a CPA through U.S. state boards of accountancy.

Security has been one issue for the AICPA in deciding where to offer the CPA exam even though it will continue to administer the exam through Prometric. International testing will be subject to the same state board or jurisdiction rules that determine eligibility for CPA exam candidates since there is no Dubai Board of Accountancy. Just as now, potential international candidates will have to meet the requirements of whichever jurisdiction they choose to apply. Which I guess makes all the residency-requirement states out of the running to be a part of this epic new spin on the computerized CPA exam?

Some have mentioned on earlier bitch sessions about the AICPA that their motivation is a monetary one. Expanding membership, for example, brings in revenue. Increasing the passing CPA exam score (thereby causing more failures and, one would imagine, more subsequent $$$ retakes after) is another example though that’s just a rumor last I heard. So if one were inclined to postulate as to the motive behind this move and approach it skeptically, you might come to the conclusion that this could equal a pretty significant payday for the AICPA as well as NASBA, Prometric, ChoicePoint and all the CPA review courses who make a living off of this exam. I’m not against it.

I guess we will find out what significance the U.S. CPA exam still holds for the rest of the world. Even if we end up looking pretty bad when international candidates do way better on the AICPA’s new international exam content in 2011.

How Much Harder Is REG Going to Be in 2011?

Well we’ve reached the end of our 2011 wrap up series so here are FAR, AUD and BEC if you missed them.

Let’s skip the pleasantries and get right into what you’re dying to know, how bad is Regulation going to be next year?


Things they are a-changin’…but not much – The good news is that REG is hardly changing at all. After all, you can’t test international standards of federal taxation as globalization hasn’t completely taken over so don’t expect to see much different content-wise come 2011. You will see the new simulation problems and notice there are no longer written communications. But beyond the cosmetic changes, the actual content that makes up Regulation will be quite similar to what’s already being tested. Of course, that is true across the board as a good 90 – 95% of what is being tested will still be tested next year if my gut feeling is still any good. You guys have to remember – next time you are freaking out about new exam material – that CPA exam questions are difficult to develop and the AICPA Board of Examiners isn’t about to trash all their useful questions just to start testing you on the international stuff.

Tax year overlap – One thing to keep in mind when taking REG – in the first two windows of the year you can be tested on both current and former tax year numbers. This means if you take it in January of 2011 you may see 2010 tax numbers or you may see 2009 or a mix of both. Chances are the newer numbers will not make their way to the exam (hey, the AICPA BoE is super busy getting those IFRS questions in working order!) but just something to be aware of. That doesn’t mean you have to memorize tons of different tax tables but it would be wise to stay up on tax changes in the year ahead as many tax rates are still in the air at the point many review courses are rushing to go to print.

Who said anything about ethics? – Ethics and professional responsibility are moved out of REG and put back into AUD except for those pertaining to tax practice and will still be tested about the same as 2010: 15-20% versus 15-19% in 2011. Business law will carry less weight, making up 17-21% of all questions. Federal tax procedures get a boost from 8-12% in 2010 to 11-15% in 2011. Great news for those of you who really do not like taxes, federal taxation of entities gets a downgrade from 22-28% to 18-24%. Individual tax stays about the same, going from 12-18% to 13-19%. Don’t expect much of a break, it is Regulation after all.

Other than that, REG won’t see much of a change. Business structure (partnerships, et al.) has been moved out of BEC (rightfully so) and will only be tested in REG but you already know most of that stuff if you have passed either section in 2010.

If you can, I advise holding off on Regulation until the last two windows of the year so you have a better chance of getting only one year of tax numbers (the AICPA will generally test the previous year’s tax numbers) but if you are looking for a good one to hold off on taking until next year ahead of the CBT-e changes, REG would definitely be it.

Good luck and we’ll see you on Friday!

Oh and in case you didn’t get the memo, if you have a CPA exam question for us (for example, which part can I procrastinate on until the very end of 2011?, Is farting allowed at Prometric?, How can I tell my girlfriend to leave me the hell alone and let me study? etc etc), do get in touch.

How Much Harder Is AUD Going to Be in 2011?

Continuing with our previous posts on the 2011 CPA exam for FAR and BEC, we proudly present one heck of an Audit wrap up for those of you planning to take it next year.

Audit, unfortunately, is the one section that I think will be just a tad harder than it is this year but only in one small area. We’ll get to that in a minute.


Simulations – As with FAR and REG, Audit will contain 7 smaller simulation problems next year (called “simlets” or “task-based simulations”) instead of two large simulations. Written communication is gone and placed into BEC. Since AUD was the largest exam time-wise up until now, a half hour will be moved out of Audit and put into BEC. Now 4 1/2 hours, it will be cut down to 4. Since AUD is often one in which candidates run out of time even in 2010, it is all that much more important to learn important time management strategies to assure you do not run out of time.

MCQ – Multiple choice questions will make up 60 – 70% of your score while TBS (task-based simulation) problems will make up the remainder.

Research This is where Audit gets tricky and why I feel it is the only section that will be slightly harder in 2011 than it is now. Currently, research is just a tab buried in simulations and frankly not worth your time unless you have tons left and really love looking through the Code of Professional Conduct (or need something to copy for your written communication, though we would never recommend such a thing).

In 2011, research will be its own TBS with the same weight as other simulation problems (if graded). For FAR and REG this isn’t much of an issue as you only have the ASCs to dig through in FAR and just two sets of code for REG. But for Audit, you have a grand total of TEN different sets of code to search; the Code of Professional Conduct, PCAOB ASs, SASs, SSARS… you get the point. It wouldn’t hurt to try out the new research problems on the AICPA’s website here so you can get an idea of what you are up against. It is very similar to 2010’s research except that it is on its own and actually worth a couple points.

Ethics and Independence – Content-wise, professional ethics and independence are moved out of REG and into AUD (except those that pertain to tax practice, which will continue to be tested in REG) and international audit standards will be peppered in throughout. Planning the engagement will now make up 12 – 16% of problems whereas before it accounted for up to 28% of this section. Internal control is upped to 16 – 20% (from 12 – 18%). Audit procedures will get far less testing than in 2010, going from 32 – 38% of questions to 16 – 20%.

Hope that helps and see you on Tuesday for our last 2011 wrap up, Regulation!

How Much Harder Is BEC Going To Be In 2011?

Following the awesomeness that was our “How Much Harder Is FAR Going To Be In 2011?” post, I figured it would be a good idea to go over each section to compare this year’s CPA exam with next year’s. Today you’re lucky to get a good BEC wrap up.


Written Communication – As stated last Friday, written communications are moving from FAR, AUD and REG to strictly BEC. This is good (and possibly easier) for most of you as writing can be a right-brained activity while the rest of the CPA exam mostly tests your left brain’s ability to process and digest information.

If I were taking the exam, I’d relish the opportunity to have three attempts at essays (since it might make up for my pathetic understanding of cash flows) but for many of you this is a weak area. That’s fine. In 2011 you’ll only have to try it once with three BEC-related WCs. You still do not have to get the answer correct but simply have to A) write like you have at least some sense of what a “business memo” contains B) not misspell any words (you get a spell-checker in 2011, no excuses) and C) stay on topic.

Easy. Currently you get two written communications in three different sections, while in 2011 you will get three written communications in one section.

No Simulations – Contrary to rumors I am still hearing for some unknown reason, BEC does not and will not contain simulations in 2011. It may not contain them for some time or the AICPA BoE could get creative and start testing them out in a few years, it’s hard to say but my understanding is that they are happy with written communication in BEC for now. Between you and me I imagine part of the motivation behind this is getting all of you off their backs about the fact that a multiple choice only exam section still takes the same amount of time to grade as more complicated sections like FAR, AUD and REG. But what do I know?

More Econ, Less IT – As for actual BEC content, IT will be more lightly tested while econ will carry more weight. Econ goes from 8-12% of questions to 16-20%. A new area, operations management, will make up 12 – 16% of questions you see. Business structure (partnerships etc) goes back to REG where it belongs and corporate governance takes its place with 16-20% of your questions coming from that area.

Narrowing Components – The new AICPA target weights have changed since last year. Before you were tested on five core components: communication, research, analysis, judgment and understanding. In 2011 (this is for all sections), you are tested on just three: knowledge and understanding, application of the body of knowledge and written communication. Knowledge and understanding make up the MCQ (80 – 90% of your score in 2011’s BEC exam) while written communication makes up the other 10 – 20%.

Will BEC be more focused than it has been since 2004? We wouldn’t put any money on that. It’s still the junk drawer of the CPA exam though it’s come quite a way since its debut with the computerized exam 6 years ago. As a person intimately acquainted with it, I feel it has a ways to go. But 2011 is an improvement and just like FAR probably easier for you guys in the long run.

How Much Harder Is FAR Going To Be In 2011?

Quick answer: easier actually, in my opinion. I didn’t take the exam this year and I am not taking it next year nor any year after that so perhaps I’m wrong.

A few nights ago, a CPA exam candidate was bitching about studying so I threw in my whining about digging into new CPA exam content for next year. Cry cry, we all have it rough.

Long story short, since I was stuck shuffling through new content anyway she asked an easy 2011 question.

Can you tell me if FAR will be that much harder in 2011? I don’t think I’ll get my NTS in time to schedule for 2010


How many of you are in that boat right now? I’ve seen quite a few of you making plans to knock out two exam parts this year that have just put in your applications; I’m truly sorry to be the one to break this to you but chances are you aren’t going to get in this year. It’s good to be realistic going into this, anyone could lie to you and say in 4 – 6 weeks you’ll have an exam date. Even if you do get approved to sit right now you still have to wait for payment coupons and NTSs, by the time all that is in your hand all the exam dates will be taken. Don’t trip, next year it will be easier and here is why:

Simulations: Big ass simulations are broken up into little parts so you can totally blow a few of them and have several different topics coming at you instead of just two. So if you’re not so hot on pensions, you still have 5 or 6 other chances to do well on simulation problems. In 2010, if you didn’t study the indirect method you better hope you don’t get it or else you’ve blown it. For candidates who have sat this year, you’ve likely already seen them testing out the new format.

Written Communication: You get a spell checker in written communication AND you only have to do essays once (unless you fail BEC). Come on, written communications are easy already, you don’t even have to be right you just have to rite good. In 2011, you won’t have to write 6 different essays in 3 sections but just 3 in 1. That’s a win. Throw in the spell checker and I really wonder why some of you are scrambling to take BEC this year so you don’t have to in 2011. Is writing that bad? Get used to it, you’re going to be writing a lot of unnecessary emails and it’s an important skill to have. You can’t protect the public interest if ur writin liek this. Point being, FAR won’t have written communication for those of you morally opposed to writing anything.

IFRS Just about everything you’ve learned in 2010 will still be relevant in 2011, especially in FAR. No one is throwing out GAAP (even our super excited friends at the AICPA who can’t wait for IFRS!) and some areas of FAR aren’t impacted by IFRS at all. It appears throughout FAR but you shouldn’t be too freaked out by it because you don’t have to be an IFRS expert to nail the material. Just read, learn and pass. It’s really simple. The questions will likely stay mild until the AICPA Board of Examiners figures out whether or not this was a good idea a few quarters down the road. Conservatism dictates they’ll take it slow with international content until we’re actually 100% on this convergence thing so don’t freak out, IFRS makes a lot more sense than cost accounting ever will.

Not bad right?

Here’s where the old timers chime in and tell us all about back in the day when you didn’t get a calculator and had to walk uphill both ways to get to an auditorium in the middle of nowhere for a 17-day marathon of CPA exam testing. In the dark. With no scratch paper. Commence telling us about the “Before Time” please.