Category: CPA Exam

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

Failing the CPA Exam the Easy Way…or: How to Use Your Scores to Determine Your Next Move

Nationally, only 43% of CPA exam candidates who sit for any exam part pass on their first try and that number shouldn’t be too surprising to anyone who has gone into an exam completely unprepared or totally intimidated. Failure may be inevitable but it doesn’t have to be the end, nor does it mean you should give up on trying to become a CPA.

So what do you do if you’ve failed?

There are two paths to take and your option from here depends a lot on how you did. Not all less-than-74s are created equal.


If you scored < 70: If you got anything less than a 70, give or take, you can put this exam off until later and move on to the next section if you are having difficulty grasping the information, especially if you scored in the bottom 60s or lower. UNLESS you are on a time crunch (like you have to get this one passed or you’ll lose credit on another section), blow this one off and move on to another. If you want to continue and try this one again you can but you should start from scratch, use your score report to gain insight into where you need more work, and review EVERYTHING as if you have not studied at all.

If you scored > 70: Pay your re-application fee and get a new NTS for this exam ASAP! A score above 70, while disappointing if less than 75, shows that you have an excellent command of the information and you’ll want to retake this one while the information is still fresh in your mind. DO NOT move on to another section. Use your score report to gain insight into your weaker areas but don’t obsess too much over what it tells you, keep in mind the report compares you to other candidates and you don’t care how other people did on the exam, you need to know where YOU need to do more work. DO NOT waste your time watching all of your CPA review lectures again, focus on doing MCQ/simulation practice questions and brush up on the areas you are weak in. Then, just before your exam, give everything a very quick overview one last time to make sure you have not forgotten the things you already know.

The point is that most CPA exam candidates experience failure at one point in the process, and some will experience failure repeatedly along the way. Be smart about your mistakes, learn from them and move on. You CAN pass, it’s just a matter of understanding how to overcome the many stumbling blocks you may encounter along the way.

Also see:
What Happens When You Get a 74?

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor. You can see more of her posts here and all posts on the CPA Exam here.

How Simulations are Changing for the 2011 CPA Exam

As most of you already know, the CPA exam is changing and our last two testing windows are quickly approaching. If you are concerned about the impact of IFRS on CPA exam content, get FAR done this year. If you absolutely hate written communication, knock out BEC in 2010 as it will contain them in 2011. A few topics will be moving around and for an overview of everything that’s changing starting January 1, 2011, check out the updated Content Specification Outlines for all the gruesome details.

The biggest and most obvious change will be a shift in the thinking of the CPA exam itself
Whereas we have always considered the CPA to be a world-renowned designation and GAAP the be-all-end-all of accounting rules, we now must recognize the global nature of capital markets and future CPAs will be expected to demonstrate a working knowledge of international standards in financial reporting and auditing.


For 2011 simulations, we’re expecting that the AICPA Board of Examiners will continue to use a similar format (you may see tabs that you recognize if you’ve already taken exam parts and done some simulation problems) but instead of getting 2 large sims, you’ll get 7 task-based simlets (6 in Regulation).

Contrary to popular rumor, BEC WILL NOT CONTAIN SIMULATIONS
Blame that on the folks who don’t read but BEC will only contain written communications (3, of which 2 will be graded) and will go from 90 multiple choice to 72. You’ll get an extra 30 minutes to complete this part, which will be taken away from Audit.

The Unknown
It’s difficult to say at this point what candidates should expect come January 2011. Will research still be worth 1 point and therefore easily blown off if you’re running out of time? Will simlets require extended journal entries that can take quite a bit of time to put together? The honest answer is that we don’t know.

The AICPA used to have a tutorial at cpa-exam.org but since they redid their website, these tutorials have moved to their main page and can be found here. The cpa-exam.org site is still down and, presumably, will not be brought back now that everything is stashed on the AICPA’s website.

So our guess is that the new format WILL be available in tutorial form from the AICPA before January though we haven’t seen anything to date. When the research function changed in mid 2008, they made it available for practice at least one window prior to the new function appearing on the exam and 2011’s simlets should be no different. We’ll let you know if we spot the new format available for practice so stay tuned and better knock out some exams while you can, there are only four testing months left before everything changes!

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor. You can see more of her posts here and all posts on the CPA Exam here.

Three Myths About Simulation Questions on the CPA Exam

6 years after the advent of the computerized CPA exam, candidates are fairly used to simulations by now (just in time for them to change) but they can still be a source of fear and apprehension for candidates just starting out.

Let’s start with debunking some popular myths. Remember, all of this information is current to the 2010 CPA exam and will be changing in 2011. Since it doesn’t make sense to repeat myself, I’m talking about what to expect for the next two windows of 2010.


Only one simulation is graded. Only one written communication is graded but both simulations are definitely graded and there is no progressive difficulty like there is with MCQ. If your second simulation feels harder than the first, it doesn’t mean you’re doing better, it probably means you got screwed on a simulation that covers the one subject you blew off when you were studying. This will get easier next year as more, smaller “simlets” make your knowledge of a broad range of topics more vital to the scoring process than your intimate knowledge of two topics is now.

Research is an important tab. It actually isn’t. It isn’t worth too many points so if you have to save anything for last, it’s research. If you have time left over, by all means, knock yourself out.

Written communications are sometimes hand-graded for correctness. Actually they don’t care at all if you are right, you just have to address the issue you are presented with using keywords and write good English use proper business grammar. It’s easy, you’re supposed to be doing this all the time via e-mail and if you aren’t, maybe you should start practicing. Caleb, this means you with your IDKs.

We will dig into the details onCP 2011’s new “simlets” on Friday.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor. You can see more of her posts here and all posts on the CPA Exam here.

If I Pass CPA Exam Parts in 2010, Will I Have to Pass Them Again in 2011?

Have a question on the CPA Exam? What section is easiest? How should I study for Regulation? Are pants mandatory at the testing site? Shoot us an email with your query.

It’s the big question on everyone’s minds so we better address it now before you cute little CPA exam candidates start freaking out:

Do you know what will happen if as of December 31, 2010 I have completed two sections of the exam? Will I only have to take the remaining two sections or will I be subject to the new exam parts coming in 2011?


Good question. First of all, keep in mind that a lot of the hype surrounding the 2011 changes is:

A) CPA Review course marketing (“buy new materials! Be sure you’re up to date!”)

B) AICPA marketing (“Hey! Check out how advanced we are and how easily we can integrate a whole new set of standards into our psychometric exams!”)

C) Misinformation spread by candidates who “heard from someone” that BEC will now contain 10 simulations and all of them will be graded.

Just stop. The two biggest changes for 2011 are the addition of IFRS (which will mostly affect FAR) and communications in BEC, that’s it! That means get FAR out of the way this year if you can and throw in BEC before December if you are allergic to written communication. The exam changes twice a year anyway, this is nothing new.

Now that that’s out of the way, the rolling 18 month period also stays the same so whatever you have passed in the last 18 months will still be good. Again, if you’re freaking out about all of this, get FAR done ASAP and you will have minimal IFRS and GAAP codification garbage to deal with. A few sections are moved around (for example, business structures will be moving out of BEC) but it’s mostly the same content. REG is hardly changed at all and AUD will be one half hour shorter with more on professional ethics while BEC will be one half hour longer with written communications.

Simulations are trimmed down to “simlets” and instead of getting one topic, you have a better chance of doing well as they will be smaller and consist of several different topics. In my opinion, the exam is just getting easier.

I’m willing to bet that testing will be a bit of a bumpy ride for the first two windows of the year as the AICPA BoE gets its bearings with the new information and somewhat adjusted formats. But debits are still on the left and credits on the right so it’s not worth getting bent out of shape over; the exam will still suck and you’ll still have to study but thankfully, just like thousands of CPAs before you, you’ll rarely use anything you learned for the exam in the real world.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor. You can see more of her posts here and all posts on the CPA Exam here.

So Your Firm Is Going to Pay For You to Take the CPA Exam: Four Things To Remember

Have a question on the CPA Exam? What section is easiest? How should I study for Regulation? Are pants mandatory at the testing site? Shoot us an email with your query.

Not only do you have a job (congrats!) but you have a job that is willing to pay for you to take the CPA exam. Awesome! But before you load up on review materials, be sure you know what your employer expects and understand that there are situations where you can be held liable for materials if you don’t live up to your employer’s expectations.


This is Business – First of all, though you can’t claim a deduction, reimbursement of your CPA exam expenses (education, exam fees, etc) is treated as a business expense, just like any other training. If you’re desperate to get someone to help out with review course or exam fees, try selling this point to your employer.

Make the Most of Time You Have Now – If you’re in the Big 4 or anywhere down to the middle, chances are your review course fees are covered and your performance on the exam might be rewarded with a bonus. Don’t blow this! It’s easier for you to study and pass exams before you are loaded down with responsibilities and managers are much more lenient with first years looking for time off than they are if you’re in your 4th consecutive year of failing FAR. Take this seriously and realize that your firm will probably only pay once; blow it and you’re going to have to come up with retake fees on your own.

This Isn’t 2006 – Several years ago, firms would happily pay $3,000 and up for overpriced review courses with all the bells and whistles but since belts have been tightened, some are reluctant to cough up a chunk of cash without a guaranteed return on their investment. Look at this subsidy not as a gift but as additional income. Would you blow $3,000 of your own income on something and then never use it?

Ask Your Firms Lots of Questions – If your firm does not already have an agreement with a review course but is willing to pay your fees, ask lots of questions upfront and find out if you can invoice for repeats or supplemental products if you need them. One of the larger firms has a “we’ll pay for anything once” rule meaning they will only cut one check, regardless of whether it’s for $2 or $2,000. Other firms have strict rules about what you can order and when you can start (think government agencies). Regardless of how your firm works, ask about what is covered and what is expected in return.

In this economy, you can’t afford to blow a free review course and discounted or all-expense-paid trips to Prometric.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

Will a CMA or CFM Get You Some Kind of CPA Exam “Credit”?

The short answer is no. The medium answer is hell no and the long answer is the rest of this post but first, let’s address the reader question, shall we?

Will any of the sections passed for the CMA and/or CFM count against the requirements for the CPA examination? In other words, can I avoid taking certain sections of the CPA examination because I have passed the CMA and CFM?


ALL candidates have to pass all four parts of the exam and for the lucky ones, there’s even a fifth part to worry about called ethics but that’s not all of you so we won’t get into that. There is no credit given for life experience, other letters after your name, certifications, and/or letters from your Mom attesting to your good moral character. You don’t get extra credit for making your written communications 15 paragraphs long, nor do you get a bonus for having the prettiest scribbles on your scratch paper. Nothing. Sorry kid but them’s the breaks.

CMAs are not automatically eligible to sit for the CPA exam simply because they are CMAs however required coursework for both credentials are similar so if you are eligible to pursue one, you may be eligible to pursue the other without additional education. This career track is best accomplished by getting an MBA or Masters in accounting, not completing your Bachelor’s and simply picking up a few extra units to fulfill the CPA’s 150 hour requirement.

If you are into it, check out some recent IMA numbers on salary potential for CMAs and CPAs. So while you won’t be able to get out of any of the usual CPA exam gruntwork, it still might be worth it to pursue anyway. And bonus, you might just be able to count your CPE units twice for both designations.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

Four Time Management Tips for the CPA Exam

The subject of time management can be a sore one for CPA exam candidates, mostly the ones who have taken and failed at least one part knowing this was largely due to blowing too much time on a particular section or dedicating too much time to one component, like MCQ, and not nearly enough on simulations.

In order to combat this problem, it’s critical to set yourself a little countdown clock on your scratch paper as soon as you sit down at the computer to make sure you are leaving yourself plenty of time when you need it most.


Always allow 45 minutes for each simulation – Be sure to do each written communication first as only one is graded but you don’t know which and it’s an easy 10 points if you at least manage to scribble something down, even if you don’t have time to get through all the simulation tabs you can still pass if you have done the communications. It’s a crapshoot but stranger things have happened.

No more than a minute and a half on each multiple choice question – Add up the number of MCQ in a testlet and count up, writing the time you should be finished on your scratch paper. Let’s say you’re taking FAR and started at 10 am; you will need 45 minutes for each testlet if you are going to have 45 minutes left over for each simulation. So by 10:45, you should be on testlet 2, by 11:30, you’re on to testlet 3. That leaves you plenty of time for the sims. For REG, you’ve only got about 1.25 minutes per MCQ as you’ve got 3 hours total to get through the entire thing. If you’re doing well on time, go back and check the MCQ you marked for review (if any) otherwise trudge on to the next part and never take a break! You don’t have time!

And remember: never leave any questions blank! GUESS! – If you get it wrong, it’s wrong. If you get it right, you’re smarter and/or luckier than you thought and are that much closer to your CPA. The exam is a plus-point basis exam meaning you don’t lose points for wrong answers, you can only add points as you go.

If you’re short on time, forget the research – If you are running out of time on the simulations, try to complete as much as you can in each tab and blow off the research, as yet it isn’t worth much. This may change when CBT-e hits in 2011 but for now, it’s not worth it if you don’t have the time. You’d be better off reviewing your written communication if you only have two or three minutes to spare.

You learned all about time management when studying for the exam so take that knowledge into the testing center and knock ’em dead!

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

How to Avoid ID Problems at the CPA Exam

Although the instructions are pretty clear, this question comes up fairly often so let’s make sure everyone is on the same page when it comes to ID that works at Prometric when taking the CPA exam.

Prometric is very clear about what you should have before you get to the testing center (at least half an hour early, of course, and smokers should make that an hour so they can get in as many as they can before they start – you don’t want to waste those breaks).


First and foremost, check in with them 24 hours before your exam to confirm your appointment. The night before your exam date, set out your NTS and make sure you have two forms of exactly matching ID ready so you aren’t scrambling to find it in the morning.

At least one of your forms of ID must have a recent photograph and both must be valid (i.e. not expired) and signed. Try a credit card and a driver’s license, forget about a Social Security card or a student ID as Prometric will not accept these. A passport is OK but must be accompanied by a secondary ID (like a credit or debit card).

The name on your primary photo ID must match your Notice to Schedule exactly. If you show up and both names are different (foreign candidates who use both an English name and their native name sometimes run into this problem), Prometric will not allow you to test and you will forfeit exam fees. If there are any issues with your ID, contact them in advance to see if an exception can be made or make sure you will be okay come test day. Make sure to do this within your NTS timeframe and no less than 15 days before your exam date so you can at least reschedule without losing your exam fee if need be.

Got it?

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

The CPA Exam Application Timeline

Since graduation season is once again upon us, we thought we’d revisit a time tested favorite question from CPA exam candidates: When should I apply for the CPA exam?

First, find out when your school posts degrees to transcripts and whether or not the state you are applying to requires a degree before you can apply. If you are unsure of your state’s requirements or which state you might qualify in, NASBA has a really handy search tool you can use ($10 for 24 hours of access). Or just check out the website to read up on your state’s requirements. If you need a degree before you can apply, you’re going to need to know how long you’ll be waiting for your school to post it. Don’t apply any earlier as your application will be rejected and you’re out the initial exam fee.


If you’re planning on jumping right in to studying, you can generally apply to sit for the exam right after your degree posts. Remember, at this point you want to have tied up all the loose ends in your life that will keep you from studying; crazy ex-girlfriend, slave-driving boss, roommate drama… you get it. Sweep all that aside and submit your application (and fees!) as soon as you can. Don’t forget, just because they cashed your check does not mean you have been approved to sit so don’t get excited if you see it clear a week after you sent it in. That’s usually the first thing they do since you’re out the fee whether or not you qualify and hey, who doesn’t want money?

Now, should you start studying right away? It depends on how long your state takes to process applications. If you are looking at a 6 – 8 week wait, you may want to hold off on cracking the books, especially if you plan to start with something small like BEC. If you start studying too soon, you run the risk of being denied to sit for the exam and losing precious CPA review time (many programs have expiration dates – always ask!) catching up on units you need to qualify. Don’t invest in a review course until you’re absolutely sure you will be able to start sitting for exams right away. If you come from a quick processing state (usually a search through the CPAnet forums can reveal more detailed information from other candidates in your shoes) and are absolutely certain you meet your state’s requirements, you can start studying as soon as you send in the application.

Congrats to the spring grads and feel free to get in touch if you’ve got any questions about the CPA exam!

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

Three Signs It Might Be Time to Quit Studying for the CPA Exam

Before you get upset at that headline, I don’t condone quitting the CPA exam process, especially if you’ve actually made some progress and passed some exams. But for some, quitting the exam is the only logical choice and it’s fair to present that argument for those of you truly struggling to get through.

Signs that you should keep going are obvious. If you are feeling unmotivated, bored, intimidated, anxious, panicky, upset, overwhelmed and/or a little depressed, you are just like every other CPA exam candidate out there. There isn’t a single person who gets through the entire experience without feeling some of those feelings, sometimes all at once. But in some very rare cases, struggling with the exam is a sign that perhaps you should be doing something else, and that’s what we’re talking about. So what are some other signs?


Severe depression Obviously if the entire exam process has you feeling dejected, depressed and hopeless, you may not be cut out for the stresses of public accounting and all that comes with the CPA designation. A little sadness or frustration is totally normal but if you find yourself staring at your CPA review flashcards wondering if the corners are sharp enough to slit your wrists, talk to a professional and consider a different line of work. Please. The exam is hard but it isn’t worth killing yourself over. No pun intended.

Complete lack of motivation Again, a little bit of procrastination or a motivation drought is normal if not totally expected. But if you absolutely cannot muster up the courage to crack open the first chapter of FAR for days on end, you’ll never make it. Either motivate yourself (we’ve given you plenty of tips on how to do this in previous CPA exam columns) or give up. I’m serious. If you don’t, you’re not getting through it.

Extreme agitation It’s OK if you’re high-strung, so is Caleb (that’s why he’s the perfect CPA). It’s OK if you are snapping at random passers-by with the nerve to bring their raunchy shrimp ramen lunch smell past your cube. But if you are yelling at everyone from the cat to the mailman for most of the day, the stress of the exam process has taken its toll on you. Remember, the exam is a sort of real world test run and it isn’t going to get any easier once you start your illustrious career in public accounting. Bail. Now. And relax, it’s really not that serious…

Let’s just say I know from professional experience most of these instances are few and far between. Very rarely in my career helping future CPAs pass the exam did I encounter someone who was doomed to 74s without any hope at all. Sure, there were people who failed. A lot. For some of them, they needed to fail in order to change their study habits, take the exam seriously, or really decide this was what they wanted to do.

Very often, I would encounter professionals in their late 40s or 50s who felt disappointed in themselves for abandoning the CPA exam 10, 15, or 20 years ago. So if you do happen to be really depressed, lazy, and/or pissed off and decide to quit, know that you’ll probably end up coming back at some point in your life wishing you’d just gotten it over with when you first had the chance.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

Three Things to Consider if You Move Out of State Midway Through Your CPA Exams

It’s actually not too uncommon these days; you get your accounting degree, start out with the CPA exam, and realize a few months into it that your job prospects aren’t that rosy. So what do you do? Can you move midway through your exams? And if so, how do you keep the passing scores you’ve already gotten?


It’s much easier to transfer a license than it is CPA exam scores – Lucky for you, the exam is uniform meaning every candidate in every state gets questions from the same testing bank. So as long as you meet the requirements in your new state, you can continue taking exams in the state you originally applied in without actually flying back to take them. Prometric lets you schedule for any other state’s exam as long as you are approved so you can start in California, finish in New York and hey, maybe even squeeze in a vacation exam from Puerto Rico! OK, maybe that’s pushing it.

Know both your old and new state’s requirements – If you are in one of the two states (California or Virginia) that allow you to sit for the exam with 120 semester units, you will definitely have to wait until you have passed all exam parts and gotten licensed in your home state before transferring your license to your new one. NASBA has a pretty useful tool to look through exam requirements if you’re not sure but keep in mind it’ll run you $10 for a full day of scoping through the information.

Be conscious of the fact that exam fees vary from state to state – If you do plan on transferring your exam scores by applying in your new state, make sure you get the more expensive parts (FAR and AUD) out of the way first. It shouldn’t be too large of a difference but $50 can be huge when you’re pinching pennies and out of work.

If you do decide to transfer scores, all you have to do is apply in the new state as if you are a new candidate and request that the board recognize your passing scores. Again, why bother?

So our humble advice is to: A) put off studying until you are set up in your new place if you can and B) keep taking the exams just as if you were at home and worry about transferring your license later.

Keep in mind that you will have to meet your home state’s requirements first and then those of whichever state you have moved to so check with each state board if you are unsure whether you will meet both.

When in doubt, contact your state board for clarification and advice. If they’re not much help, try your state society of CPAs. And if that doesn’t work, get in touch with us and we’ll see what we can do to push you in the right direction.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

Three Study Motivators for the CPA Exam During a Blackout Window

Blackout months are notorious for inviting procrastination, especially June. The weather is nice, the work is light, and if you’ve been studying for most of the year, the mid-point can be exactly where you lose what little motivation you had to study. Because you have an entire month “off”, it can be easy to fall into a rut of not studying.

So as we go into this month, let’s remember some ways to stay motivated, even when it’s tempting to run off and play in the sun:


Get a study buddy – Sometimes all you need is someone chewing you out encouraging you to keep going. If you’re doing this alone and know you’re slacking, maybe you need to recruit a friend to keep you in check.

Bribe yourself – Yes, bribing yourself is a pretty low tactic but whatever works, right? Promise yourself a splurge when you pass whatever section you are studying for or, if you’ve got a little extra cash to throw around, bribe yourself often with treats like $4 lattes and DVDs or whatever it is you’re into that won’t break the bank. This goes in reverse – if you aren’t studying and know it, punish yourself by taking away the movie tickets or nice dinners out.

Schedule your exam date close to the opening of the next window – This way you know you can’t blow off the entire month. Obviously this isn’t a good idea if you’re taking FAR and don’t plan on studying until June 1st but if you’re planning on taking a smaller section like BEC and have the time to put it, schedule your exam in the first or second week of the window so you know you can’t procrastinate. I guarantee you’ll only lose one exam fee because of not studying before you learn that particular lesson.

Good luck and if you’ve had luck breaking the procrastination habit, do share what worked for you!

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.