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Making Time to Study for the CPA Exam

The number one complaint I would hear back in my CPA review days (besides moans and groans about me being a hard ass) was, without a doubt, “I don’t have time.” Not “I’m too busy,” but “I don’t have time.” Think about the difference between those two statements for a moment. One implies that you have too much going on to make time, while the other more clearly states that you simply cannot jam 25 hours into a 24 hour day.

What many people don’t realize is that you can make time, it’s just a matter of figuring out where it’s hiding in your life.


Cruising Facebook can easily turn into a three-hour stalk-fest if you’re not careful but what about the several, quick check-ins you might make in a single day? That time adds up. Do yourself a favor and shut down TweetDeck, close out your Facebook tab and keep your phone charging in the other room so you aren’t tempted with texts and social media. Don’t worry, you aren’t going to miss anything.

Are you making the most of every break you get during the work day? You might look at me like I just licked a frog and am tripping my non-existent balls off for saying that but you do get breaks, even if you’re getting worked like a dog. They allow you to go to the bathroom, right? Bring your phone in there and do a few MCQ on your favorite app while you’re sitting there. Trust me, no one is going to bring it up if you start spending 10 extra minutes in the restroom a day, no one wants to have that conversation.

What about mornings? I know, it’s horrible to even consider but you could potentially have hours to study that you are wasting with sleep. Start setting your alarm an hour early to get some studying in and do it every day; after 3 weeks, your internal clock will be used to it and it’ll hurt less.

Are there things you’re doing around your house that your wife/husband/girlfriend/boyfriend/kids/cat could just as easily do? Try asking them. Maybe you don’t need to make dinner every night or do as much laundry as you do. Hand off a few chores to other people (unless you don’t have any other people to hand them off to, in which case you might consider paying for a little help around the house if you can afford it) and you’ll free up enough hours over the course of a week to get through at least two modules.

To figure out where you can make time in your life for studying, sit down and account for every single hour of every single day for a week, from the time you get up until the time you get to sleep. I bet if you actually add up those 35 minute showers, time spent folding other peoples’ laundry and the 75 different 3 minute Facebook peeks you make, you’ll realize you have more time to study than you thought.

Accounting News Roundup: Obama Takes GOP to Task on Taxes; The Post-Labor Day Blues; Microsoft Accountant Taught a Lesson | 09.06.11

Obama Mulls Tax Cuts Beyond Republican Plans [Bloomberg]
President Barack Obama may press Congress for tax cuts that would exceed his past proposals as well as some of the offerings from House Republicans to strengthen his hand in talks on measures to boost the U.S. economy, according to a person familiar with the discussions. With Obama set to lay out his plans in a Sept. 8 address to Congress, the administration is focusing on cuts targeted at middle-income Americans to spur consumer spending, which accounts for 70 percent of the economy, said the person, who spoke on condition of anonymity to discuss in.

News Corp. Alters Board; CEO’s Son Skips Bonus [WSJ]
News Corp. nominated venture capitalist James Breyer to its board and said two current directors will leave, in a shakeup that adds a new outside voice to the company’s board as it faces criticism of its corporate governance in the wake of the phone-hacking scandal at its U.K. newspaper unit. Mr. Breyer will replace Thomas Perkins, another venture capitalist who has served on News Corp.’s board since 1996. Separately, Kenneth Cowley, a former News Corp. executive who became a director in 1979, will leave the board, the company said. Both Mr. Perkins, 79, and Mr. Cowley, 76, were expected to retire. The company will decide later whether to add another director to fill the open spot.

US banks offered deal over lawsuits [FT]
Big US banks in talks with state prosecutors to settle claims of improper mortgage practices have been offered a deal that is proposed to limit part of their legal liability in return for a multibillion dollar payment. The talks aim to settle allegations that banks including Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial seized the homes of delinquent borrowers and broke state laws by employing so-called “robosigners”, workers who signed off on foreclosure documents en masse without reviewing the paperwork.

The Post-Labor Day Letdown [WSJ]
Labor Day stirs up a unique range of emotions. While some people love the prospect of crisp, cool air, football and fall fashions, others experience a stab of dread this time of year as vacations end, school starts up and pressures mount at the office. “I really get into the joy of life on vacation and it always takes me awhile to get back into the joy of contract law,” says Helen Bender, a law professor in New York. There are few studies or statistics on the end-of-summer malaise, but therapists, career coaches—even marriage counselors—report an increase in people seeking help in early fall. “Change is always hard and this is a time when both nature and our lives are changing,” says Betsy Stone, a psychologist in Stamford, Conn.

Mandatory Audit Firm Rotation and Greek Bond Accounting: What Might Have Happened? [Accounting Onion]
Tom Selling: “[In] Hans Hoogervorst’s recent letter to the European Securities and Markets Authority (ESMA), […] he expressed concern for the pie-in-the-sky numbers produced by some EU banks on their Greek bonds classified as ‘available for sale’ (AFS). Now, I would like to pose a hypothetical: what if mandatory auditor rotation had been in effect? Would Mr. Hoogervorst’s letter have been unnecessary?”


The Case Against Summer [WSJ]
Supposedly, summer vacation happens because that’s when the kids are home from school, although having the kids home from school is no vacation. And supposedly the kids are home from school because of some vestigial throwback to our agricultural past. This is nonsense.

Microsoft accountant facing prison for $1 million theft [SPI]
An accountant who admitted to stealing from Microsoft Corp. to teach his bosses a “lesson” will likely be sentenced to prison Tuesday. Pleading guilty to money laundering in December, Randal Ray Seal stole $1.1 million while working as an accountant at the Redmond corporation. Seal had become disenchanted in his work following a series of layoffs and a management change in his department. In a letter to the court, the 54-year-old faulted himself for worrying more about his ego than his conscience.

Silvercorp Metals Asks That You Not Believe Anonymous Letters Alleging Accounting Fraud Just Because They Have Assets in China

As we’ve discussed, companies listed on North American stock exchanges that happen to have ties to China haven’t faired too well. The problem? Some dodgy accounting and disclosures. It’s caused a lot of angst amongst investors and there was enough concern that someone actually decided to wake up the PCAOB and SEC to let them know that something might not quite right over there.

Today’s news that Silvercorp Metals, a Canadian mining company who happens to do some work in China, is the subject of a letter that is making the rounds alleging accounting fraud probably doesn’t come as a surprise to anyone but it sure has irked the hell out of the company.

The allegations against Silvercorp are “entirely bogus,” Lorne Waldman, a Silvercorp spokesman, said today in a telephone interview. “If we didn’t have assets in China this wouldn’t be happening.”

And while they’re at it, the company will have you know that they were not created in a one those so-called reverse mergers that have everyone sketched out.

Waldman denied the mining company was created in a so- called reverse takeover, as was Sino-Forest. He said that Silvercorp’s auditor is Ernst & Young LLP, the same firm that audited Sino-Forest’s financial statements.

Oh, right. Ernst & Young. There’s no cause for concern since they’ve seen this before so they’ll probably just sit tight to see what happens. The silver lining for Silvercorp is that Roddy Boyd has written anything about them. Yet.

Silvercorp Says Accounting-Fraud Allegation in Anonymous Letter Is False [Bloomberg]

Here Are Two Examples of Things Not to Say When You’re at Your Local IRS Office

Let’s open with, “If I don’t see [so and so], I will blow this place up.” That’s a definite no-no. Also to be avoided would be statements such as, “You’re gone. You’re all [redacted but I’m guessing it was “fucking”] gone. You’re gonners.” And yet that’s what 48 year-old Paul Weber did in La Crosse, Wisconsin. What’s especially odd is that Weber didn’t make these statements in immediate succession. He first asked for “Kevin” then made the threat, bolted the office only to return and make the second threat. I guess Weber felt like returning in order to take a stand. Which is more than we can say for the Democrats in Madison.

[via La Crosse Tribune]

Delaware CPA Exam Candidate Isn’t Sure About Audit Hours

Are you a CPA exam candidate desperate for answers with no clue how to find them? Let me do the Googling for you, shoot me a note and I promise I won’t get snippy (my doctor adjusted my dose).

Hello Adrienne,

I do have 99.99% of the education requirements needed to sit for the CPA exam. All but one, I don’t have any auditing credit hours. Am I going to be able to sit for the CPA or should I go back to school and complete this requirement?

Here’s the good news: in some states, you can sit for the exam before you meet all licensure requirements, and in most, that means experience can wait until you have sat for and passed all exam sections. The lengtave to complete these experience requirements varies by state and due to the ever-changing nature of exam requirements, you will want to verify any information I’m about to give you with the state board directly just to be safe. No one’s perfect, especially me. Delaware candidates may contact NASBA’s Delaware coordinator Misun Shin at mshin@nasba.org or (615) 880-4263.

So, once you sit for and pass all four parts of the CPA exam, you’ll need to take the AICPA ethics exam, which you can order directly from them. Don’t trip too hard, it’s self-study meaning open book. AICPA members get it cheaper than non-members so be sure to join first before you buy it.

Assuming you’ve aced those two steps, you can then worry about your experience.

Delaware work experience is based on the degree you hold. If you have a Master’s, you will need 1 year of experience as an employee of a CPA firm or equivalent experience as an accountant in other fields (e.g., government, commerce, industry). Bachelor’s holders must have 2 years of experience and Associates (yes, Delaware allows you to sit for the exam with a 2 year degree) must have 4 years of experience to be licensed to practice as a CPA in that state. You can no longer receive a certificate (non-practicing CPA title) from Delaware as of 2006.

Your other option is to complete your work experience requirement as an owner, principal or employee of a public accounting firm (full-time). Double the numbers above; 2 years for Master’s holders, 4 for Bachelor’s and 8 for an Associate.

Nowhere on the Delaware Board of Accountancy’s site do I see a mention of audit hours.

The Delaware State Society of CPA’s BeaCPA website states:

2 years experience obtained in engagement, resulting in the preparation and issuance of financial statements prepared in accordance with generally accepted accounting principles or other comprehensive bases of accounting as defined in the standards established by the American Institute of Certified Public Accountants

as a requirement for Associate and Bachelor’s holders. Master’s candidates must obtain 1 year experience including any type of service or advice involving the use of accounting, attest, compilation, internal audit, management advisory, financial advisory, tax or consulting skills.

What this says to me is that you don’t actually need audit hours at all unless you plan on doing audits. Delaware would like auditing to be a part of your 21 required accounting units that make up your education requirement but does not require it.

Again, check with the state board just to be 100% sure but it looks like you’re all clear to sit for the exam at this point, no reason to wait until you have the experience.

Good luck and please check in with us to let us know how your exams turn out!

ANR: Investors Begging SEC Not to Switch to IFRS; Undocumented Workers and Tax Credits; KPMG Marking 9/11 with Community Service | 09.02.11

~ Morning, gang. We’ll be doing a half day today, so we suggest you do the same. Have a great three-day weekend and we’ll see you back here on Tuesday.

U.S. Is Set to Sue a Dozen Big Banks Over Mortgages [NYT]
The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.

SABMiller Queries Foster’s Financial Statement [Bloomberg]
SABMiller Plc (SAB), which has made a hostile $10 billion bid for Foster’s Group Ltd. (FGL), questioned the Australian brewer’s statements on its financial performance and net debt in a submission to the country’s Takeover Panel. The Australian government agency received the application from SABMiller, according to a statement on the panel’s website. A panel hasn’t been appointed and no decision has been made to conduct proceedings, the government agency said. SABMiller argues there is “no reasonable basis for several forward-looking statements” in Foster’s fiscal 2011 results presentation, according to the statement. The world’s second- largest brewer by volume sought an order that Foster’s clarify “misleading and deceptive” remarks.

Investors to SEC: Please Don’t Switch to IFRS [CFOJ]
When SEC Chairman Mary Schapiro said in June that investors aren’t clamoring for International Financial Reporting Standards, she may have been understating things… a bit. Now, some of the biggest U.S. investor groups are letting the SEC know in no uncertain terms that it should postpone its decision on IFRS and even stop the convergence process between U.S. GAAP and IFRS.

Boeing’s Tax Assets Could Trump Liabilities for Years [CFOJ]
In total, the company has tax liabilities of roughly $10.7 billion. That’s compared to $14.4 billion in deferred tax benefits, which means it ultimately won’t pay anything to the IRS unless the value of those assets erode.

U.S. Showed No Job Growth in August; Rate Stays at 9.1% [NYT]
The net addition of no jobs in the month was down sharply from a revised 85,000 gain of jobs in July, the Labor Department said Friday, and was far below a consensus forecast by economists of 60,000. The unemployment rate stayed constant at 9.1 percent in August.

Undocumented workers got billions from IRS in tax credits, audit finds [WaPo]
The Internal Revenue Service allowed undocumented workers to collect $4.2 billion in refundable tax credits last year, a new audit says, almost quadruple the sum five years ago. Although undocumented workers are not eligible for federal benefits, the report released Thursday by the Treasury Inspector General for Tax Administration concludes that federal law is ambiguous on whether these workers qualify for a tax break based on earned income called the additional child tax credit.

D.C. Circuit: ‘The IRS is Not Special’ [TaxProf]
I won’t have it!


Salesforce Chief Calls Accounting Criticisms “Ludicrious” [SFC]
In fact, [Mark Benioff] says, Salesforce set the standard for other software-as-a-service companies that came after it.

KPMG Announces Nationwide Community Service Campaign at More Than 200 Non-Profits to Mark 9/11 Anniversary [KPMG]
As part of the “Service in Remembrance” campaign, taking place from September 6-11, thousands of KPMG partners and employees will volunteer at more than 200 non-profits across the country. “We look forward to being a part of something extraordinary, as the KPMG family proudly joins millions of Americans in support of the National Day of Service,” said KPMG LLP Chairman and CEO John Veihmeyer.

How Should an Academic Zero to Hero Approach Recruiting Season?

Ed. note: Have a question for the career advice brain trust? Email us at advice@goingconcern.com.

Going Concern,

I’ve been worrying about this for so long, I’m hoping some people in the profession can shed some light on my fears. When I was 18, I was an idiot. I attended a school far away and I literally never attended class. I also never dropped any classes. Needless to say, I flunked out with many Fs on my transcript (almost a full year’s worth). Later on, I went to a community college and remained an idiot. I did the same thing. My GPA was ~0.9.

Fast forward a few years in a new location, and things are a different story. I went to a community college down here and after screwing up yet again in the first term, I had a 4.0 GPA for the remaining 18 classes. I matriculated to a 4 year school (automatic admission in Florida for AA graduates) and continued. My last 64 credits have been straight As, and I have taken some of the hardest accounting classes – including Cost and two Theories.

I am absolutely dreading recruiting. My institution tells me that my “real” GPA consists of the grades I’ve earned at the school – which would make my GPA a 4.0. However, my transcript is going to have my overall GPA of 2.6 on it. To make matters worse, my actual coursework from the newer community college won’t be on the transcript so they won’t even notice much of an admirable grade trend.

I am also not a member of Beta Alpha Psi. To be an accounting major at my school, you need a 3.0 GPA – I was ineligible my first semester. Since I did not have an accounting GPA before last week, I have to submit my application in the next few weeks. I hope their admissions process isn’t so slow that I miss out on any of their opportunities. OCR is next month.

I know this is a scattered story that very few people can relate to. I don’t know what happened in those years and can’t understand it either. If anyone has some direction for me I would be extremely grateful.

Thank you and I love the site. It’s easily my favorite place for shameless mental masturbation when I’m feeling anxious.

– Zero to Hero

Dear Z to H:

Whatever you did to break out of the unfortunate streak of bottom feeding failures in the classroom and get yourself up to a 4.0-GPA-earning level, please tell me. I would like to make it, bottle it, and sell it to the masses.

The way that your college calculates “real” GPAs is standard for the industry; realize that this is absolutely to your advantage. The 4.0 you are currently carrying should be reflected on your résumé. Also on your résumé should be the time you spent at the community college. The time there launched you to where you are now.

Do not be afraid to approach recruiters. That said, I recommend talking to every firm regardless of size. Some might be turned off by your unconventional path to Dean’s List. Be prepared to be honest with the recruiters about your first attempt at college and the years you took off and when you began to right the ship. Honesty is absolutely the best approach here, because come offer time you will need to provide a transcript of your academic history. You want the transcript to be confirmation of your story, not the bombshell. Good luck.

Grover Norquist Has a Suggestion for President Obama Since He Insists on Giving His Jobs Speech (aka “Campaign Event”) at the U.S. Capitol

“People who use public facilities for private purposes pay an appropriate rental fee so that taxpayers are not subsidizing a private event. The Library of Congress and the Smithsonian museums regularly rent out space for private functions. Perhaps they could suggest to the President and his campaign a reasonable price for use of the U.S. Capitol and the House chamber as a backdrop for his upcoming political rally.” [ATR]

Ernst & Young Aware of This Sino-Forest Situation, Seems Content to Watch It Play Out

Jonathan Weil has a column today on the train wreck that is Sino-Forest, the Chinese-Canadian timber company. In case you need caught up, there have been some questions about the company’s ability to report accurate disclosures and accounting. This led the research firm Muddy Waters to issue a not-so-flattering analysis of the company. Things like “Ponzi scheme” and “investing for the 23rd Century” don’t exactly get people jumping up and down for your company. Ask John Paulson.

Of course Sino-Forest didn’t do this all by themselves. They had credit rating agencies and auditors telling them everything was hunky dory for years and that’s Weil’s point. He reports that Fitch pulled its rating on S-F back in July and S&P finally pulled their rating this week. That just leaves Moody’s but guess who else is still hanging in there? Ernst & Young, baby! They’re still standing behind their audit opinions and showing no sign of budging. And JW is really curious to know who’s going to jump out of this tree first.

One question lingers: Which of the company’s paid opinion merchants will be the last to step aside? Will it be a credit rater? Or will it be the company’s auditor, Ernst & Young LLP in Toronto, which has yet to rescind any of its reports on Sino-Forest’s finances?

So far Ernst looks like the favorite, with only one rating company left in the hunt. Think of it as a contest between giant tortoises to see which one is slower. This time-honored ritual — of market gatekeepers waiting to blow the whistle until long after a scam has been exposed — has become so familiar, we might as well revel in the spectacle.

So these “gatekeepers” Weil speaks of – obviously this includes the Big 4. And it’s true that we’re all used to them waving their arms, screaming “DANGER!” in front of the burning heap that everyone has been aware of for ages (I didn’t say Lehman Brothers. Did you say Lehman Brothers? Who said Lehman Brothers?).

ANYWAY, E&Y should know that they have choices:

Ernst does have options, aside from bracing for the inevitable years of litigation and investigations. It could resign, explain why it is doing so and face criticism for acting too late. It could withdraw its previous audit opinions. It could insist to Sino-Forest’s directors that it be permitted to answer questions from the public about the work it has performed, as a condition of remaining onboard. Or it could hang on in silence, as it’s doing now, and watch its reputation endure more damage.

Could be that this is just another part of E&Y’s strategy. Sit tight while things play out, wait until things get really serious (i.e. bankruptcy, severe economic turmoil, civil charges, etc. etc.) and then come out swinging.

Tree Falls on Sino-Forest, Auditor Can’t Hear It [Bloomberg]