CPA Review | CPA Exam Review | Another71.com

Eric Thomas was a high school dropout and was homeless for two years.

Today, he has a PhD and is an author and motivational speaker. In these two videos, he’s addressing students at Michigan State University.

His words of wisdom are impacting and directly apply to candidates studying for the CPA Exam. Enjoy.

If you haven’t yet purchased a 2011 CPA Review Course and were considering Yaeger – check out their HomeStudy.

2011 Four-Part HomeStudy

-Complete Set of Video Lectures
-4 sets of Wiley books
-4 sets of Wiley software
-Instructor Handouts
-Instructor Hotline
-Click: www.YaegerCPAReview.com

2011 Single Part HomeStudy

-Set of Video Lectures
-Wiley book
-Wiley software
-Instructor Handouts
-Instructor Hotline
-Click: www.YaegerCPAReview.com

Call your testing center to see if they are open at 3am for additional testing times. I called my local center and the lady said “uh, no.”

These people apparently found 3am spots.

Check out http://www.yaegercpareview.com/

Update 2010: I consider this one of the best posts I’ve ever written. Two years ago, it captured what I was feeling when I was neck-deep in the CPA Exam and wondering if I would pass. I was trying to balance family, work, the CPA Exam, and trying to maintain some semblance of a “life”.

“Failure is an event, not a person” as Zig Ziglar says. So true.

I spent the last week on vacation with my family in the Rocky Mountains of Colorado. We only had one DVD with us (“Cars”) and my boys were sick of watching it at night, so we bought “Meet the Robinsons”. It’s a great movie as far as animated flicks go, but as I tuned in here and there, I came across a scene about failure and the theme of “Keep Moving Forward” that was derived out of a quote by Walt Disney long ago.

I immediately thought of the CPA exam, as I often do since it’s plagued my memory for the past 3 years and I found it very applicable to the process of studying for and taking the Exam. Then, I read about a CPA Exam candidate who had scored in the low 60′s and they were wondering if they should throw in the towel or if maybe there was still some hope for them.

My initial motivation for creating this site was because I was extremely frustrated with myself that I had failed BEC yet again and felt like venting. At the time, I felt like the dumbest person in the world. I was 30 and still hadn’t passed the stupid CPA Exam and I was wondering if I in fact was cut out for accounting.

I considered quitting the CPA Exam altogether. I was sick of the time. I was sick of sending NASBA money. I was sick of exam day anxiety. I was sick of the ridiculous 4 week minimum to get your results back. I was ready to move on. Surely I could get a job in…marketing?

Then, I thought about the future. I have 3 boys ages 5 and under. When times got tough for them…when life didn’t quite go their way, how could I look them in the eye and tell them not to quit and to get up and try again if I myself packed it up and quit the biggest challenge of my life? I don’t work in public accounting anymore and passing the CPA Exam is more of an aside on my resume because I don’t plan on using it in an official setting ever, so continuing with this exam is for 1. my pride 2. my boys and 3. my wife won’t think that all of those weekends where she kept the boys out of my hair so that Dad could study would be all for naught.

The purpose of this site quickly found an identity in that it exists to tell other candidates that hey – if you’re struggling with this exam, you’re not alone. The only stories you really ever hear are about your smart classmate or co-worker who aced the exam on their first try. You don’t really hear too many people admit that they didn’t pass the Exam the first…or second…or third try. I’ve been open about my failures on this exam so that maybe other people would be spurred on to keep fighting and would hopefully realize that they are not alone.

Which brings me back to struggling CPA Exam candidate…

If you have the intellectual wherewithal to qualify and meet the prerequisites to take the CPA Exam, then you can pass the CPA Exam. I believe that the Thomas Edison quote “Success is 10 percent inspiration and 90 percent perspiration” is very relevant to the CPA Exam taking process. I have never found myself being too-dumb to pass the Exam. I’ve always left the testing center kicking myself for not working harder.

If you’re a bad test-taker…work on being a better test taker.

If you have 3 kids and work full time and don’t have the time or energy to study…change your schedule…stay up later and get up earlier…that’s no excuse (I’m preaching to myself here).

If you’re working your tail off, but are getting bad results on practice tests…either get new material or figure out where you’re going wrong.

The bottom line is: everyone who is studying for this exam can pass it.

There is no score that can’t be overcome and there are no character weaknesses that can’t be beaten. The point is – STICK WITH IT.

Forget your co-worker who looks down his nose at you for not passing (no one likes him and he never gets invited for beers after work anyway). Forget your uncle who passed the exam back when they had to walk uphill both ways through the snow to take the old paper and pencil edition (this version of the exam is much broader and you have to know more information…thank you SOX and BEC).

Finally, forget the fact that you didn’t pass REG or FAR or whatever the last time you took it. Your performance last time has zero bearing on your success this time around.

Whether you scored a 60, 71, or a 74 – KEEP MOVING FORWARD. Keep fighting. Keep making progress.

Sometime in the future, you will have 3 letters by your name and these temporary setbacks will all be a distant memory.

(If not…there’s always marketing).

June 2010 Special: FREE CPA Exam Survival Guide

Why Should You Read This Book?

This book was written for candidates by someone who understands the ups and downs of navigating the computerized CPA Examination. There is a lot of advice floating around out there about the CPA Exam, but it is mostly written by people who have never actually taken the computerized version of the Exam. They simply apply their experience with the paper and pencil version of the exam and rely on second-hand accounts of what the computerized examination is actually like. I know and understand the frustrations and struggles that candidates go through on today’s CPA Exam because I have been there myself.

Since I started another71.com, I have conversed with thousands of candidates both through my site and e-mail. What I have found is that candidates have many questions surrounding different aspects of the CPA Exam that have gone unanswered. I know this because month after month and testing window after testing window, I see the same questions being asked over and over.

This book answers those questions. It is a collection of the most-asked questions that I see on a regular basis. I have also included some additional pieces of information that I think will benefit the people who read it.

It was my goal to put together a quality resource that will help keep candidates sane through an exam process that could be described as anything but transparent. I hope that I have succeeded in this and that this book helps you in your journey to becoming a Certified Public Accountant.

Jeff Elliott, CPA

Editor, Another71.com

Table of Contents

Introduction

Study Strategy

1. What section should I take first?
2. How do you rank the exams from hardest to easiest?
3. I’m thinking about buying some used books from 2007. Any advice?
4. My 18 month window is coming to a close and I’m about to lose credit for one of my passed sections. What if I take my exam, but don’t get my score back for several weeks? Will I lose my credit?
5. I can’t pass BEC! What should I do?
6. Information Technology is heavily tested on BEC and I hate it! Any tips on how to study for IT?
7. What was the main difference between your back-to-back 74s on Regulation and your 92?
8. I can’t pass Auditing! You’re not an auditor how did you pass it?
9. Did you memorize the different audit reports in order to pass Auditing?
10. What are the areas of FAR that you think makes candidates stumble on exam day?
11. Do you have any nuggets of wisdom aside from the usual mainstream advice?
12. I’ve heard that they are changing the CPA Exam starting in 2010. Should I wait to buy my review materials?
13. What is the best way to study for the CPA Exam with audio lectures?
14. I bought a cram course. When is the best time to watch it?
15. I’m going through my review process and scoring low on multiple choice questions that I was scoring in the 80s and 90s on just a few weeks ago. Any advice?
16. What is the best strategy for scheduling an exam?
17. How long should I study for each section?
18. I’m getting ready to take my first exam. Can you walk me through what I should expect?
19. What is the best approach for attacking simulations on the CPA Exam?
20. I didn’t finish my second simulation and left several tabs blank. Can I still pass?
21. I couldn’t get my research tab to work! I thought I found the right text to insert, but the computer wouldn’t accept any of it. Will this hurt me?
22. My exam ended before I could click DONE on my last simulation. Did my answers get saved?
23. I had computer problems during my exam. What should I do?
24. I finished Auditing with 30 minutes to spare. Should I be worried?
25. Shouldn’t BEC be the easiest section of the CPA Exam? It’s only 2.5 hours and is basically a rehash of everything we learned in college, right?
26. How many questions on the CPA Exam are pre-test?
27. Is BEC adaptive? I swear the questions were getting harder each testlet.
28. How do I know if I’m getting the hard testlets?
29. Does your performance on the multiple choice questions have any effect on the simulations that you get?
30. I just took my exam and found it to be pretty easy. Should I be worried?
31. If I have to guess on my exam, what strategy should I use?
32. My boss keeps telling me how easy I have it now that I can take the CPA Exam on a computer. Is the exam easier than it used to be?

Score Reporting

33. What is the difference between the AICPA release and NASBA release of exam scores?
34. I see the term NASBA state on your website. What does that mean? How do I know if I live in a NASBA state?
35. I sat for my exam on _______. When can I expect my score?
36. What time of day do scores come out?
37. I didn’t get my score in Wave 1, but I took my exam early in the testing window. Does this mean I’m borderline or failed? I’m freaking out! Please help!
38. My friend and I sat for the same section of the exam on the same day, at the same time, in the same testing center, yet she received her score in Wave 1 and I didn’t. How can this be?
39. I scored a 74. Should I appeal?
40. I had to re-take a section and my old score was there online yesterday, but it’s gone today. What does this mean?
41. My diagnostic report says that I am comparable or stronger than the average passing candidate in all areas except written communication where I am weaker. If I am comparable or stronger in 90% of the exam compared to the average passing candidate how could I have scored a 73?
42. I received an advisory score and I PASSED! It’s not going to change, is it?
43. I passed my final section of the CPA Exam. When will NASBA send me a confirmation letter?
44. I failed again and I’m thinking about throwing in the towel. I’ve been at this for too long. I hate this exam.

Ethics Exam

45. How do I know if my state requires an ethics exam prior to getting my certificate?
46. I just sat for an exam. If I pass, I’m done. How long do I have to wait before I can take my state’s required ethics exam?
47. My friend is an AICPA member and can buy the course at a discount. Should I order it through my friend?

Certification and Licensing

48. I just passed my final section! I’m DONE! Can I call myself a CPA?
49. I have my certificate, I’m licensed, and I’m done! (Right?)
50. Should I expect to get a raise or be promoted after passing the CPA Exam?

As a former CPA Exam candidate, I understand how hard it is to balance work, family life, and the CPA Exam.

I studied for the Exam with three kids.

In addition, I think I have a good feel for the amount of time it takes for each exam and how many weeks it takes to fit it all in.

I have developed a CPA Exam study plan that is customizable according to your schedule.

If you’re not a morning person, you can adjust the sheet and make up for it elsewhere. If weekends are not an option, you can change that too and the sheet will adjust.

I have also allocated one “night off” each weeknight into the plan.

These plans are realistic and represent what it truly takes to pass the Exam – BUT STILL HAVE A LIFE.

Also – if you only have 3 weeks to do a full study program for your section, you can adjust the plan.

It includes a morning, lunch, evening, and weekend study option.

If studying at lunch isn’t feasible, allocate those hours to the evening – or the weekends, wherever they will fit.

Also, each section comes with a topical checklist that allows you to chart your progress for each topic using the Video/Notes/MCQ methodology that I recommend.

This is the study method that I had success with.

Each section is $2.95, or you can buy the complete set for $7.95.

These CPA Exam study plans are now a Club 75 member benefit and people really like them.

To Your Success,

-Jeff

Different people have their own opinions on which section of the CPA Exam they should take first. Some say to take the “easiest” section (i.e. whatever section best fits your background best) first so that you have a “quick win” under your belt.

I have a friend who is a Certified Management Accountant and a Certified Internal Auditor and he took Business Environment and Concepts first because it fit his background better than the other sections. He sat for BEC, then Auditing, Regulation, and finished with Financial Accounting and Reporting.

My personal advice is to take the “hardest” section first, which is generally regarded as Financial Accounting and Reporting. The reason behind this is the “18 month rule”. You want your 18 month clock to start after you have passed the hardest exam.

If you put FAR off until the end, and struggle with a few sections along the way, you could potentially be putting yourself in a position where the 18 month clock is going to expire and you have one shot at passing FAR before you lose Auditing or whatever section it may be.

It’s best to get FAR out of the way first, in my opinion.

Failing the CPA Exam is normal, but frustrating.

Your heart races with anxiety as the score page from NASBA loads.

Nothing.

Well, nothing except Error: Score not found. Please verify Section ID Number and Date of Birth format and re-submit, which is the same thing it has said the past five times you’ve checked in the last hour.

A few minutes of casual internet browsing pass and you come back to the score page to check “just one last time”.

Elliott, Jeffrey

71

Hours of preparation and sacrifice down the drain. Thoughts of vacation days wasted, and weekends absent from friends and family add insult to injury.

Here are some tips for dealing with failure on the CPA Exam:

1. Honest evaluation of yourself

It’s time to come clean – at least to yourself. Did you give 110% or was it more like a 65% effort? While you were “studying at the coffee shop” were you watching CPA review lectures or was it YouTube? The frantic typing on your laptop that could be heard from 2 tables away – were those CPA Exam notes or where you commenting on pictures of your friend’s weekend indiscretions that were posted on Facebook? While your spouse was watching the kids – did you turn up the heat and knock out a section of FAR or did you take a “much deserved mental break” and watch tv episodes on Hulu? Just asking.

If you started to feel a little guilty reading this…you already know what needs to be done.

2. Honest evaluation of your review materials

Are you trying to study Auditing with 2007 books that you purchased off of eBay? Are you crazy? – those were written in 2006 and you’re taking a 2009 exam. Did you go cheap when you bought your flatscreen tv? No – you just had to have a 52 inch 1080 instead of a 46 inch 720. Yet, for some reason you’re sitting there studying for this beast of an exam using 3 year old study material…ironically with your expensive flatscreen blaring in the background.

Throw that garbage away and get NEW CPA Exam review materials. You’re studying outdated information that could very well be the difference between passing and a 74. Go cheap on that engagement ring – NOT your CPA review materials. She’ll never know it’s a CZ anyway. Her friends won’t be able to get over how shiny and perfect it looks and you’ll be a hero…AND a genius because you passed the CPA Exam…which means you must be “really good at math”.

3. Honest evaluation of your schedule

So, you work 45 (or 65+ during busy season) hours a week and try to get in a little study time between going to the gym, the TV shows you recorded on your DVR, and seeing family and friends.

Great – at this pace you’ll be ready for FAR in 6 months. It’s time to get medieval on your study schedule.

If you’re not studying 20 hours a week…you’re not studying.

Wake up an hour and forty-five minutes earlier than normal…the first 30 minutes will be spent stumbling around, hating life, cursing the exam, and making coffee. The next 15 minutes will be spent checking e-mail and Twitter. You know you’re going to do it, so plan for it. This clears the way for a solid hour of studying.

1 extra hour a day Mon-Fri = 5 hours of studying a week

Bring your lunch to work…eat for 15 minutes…and study the next 45 minutes.

45 minutes at lunch Mon-Thurs (eat out with friends on Friday) = 3 hours of studying per week

Studying at Home:

If you’re single, your schedule is much more flexible and you could feasibly study 4 hours a night if you wanted to at home. If you have a significant other or a family – the following applies to you:

If you have kids – get them in bed by 8:30 (many times a laughable proposition with the repeated requests for drinks of water, needing one more hug, too hot/cold, and the sudden urge for them to declare their birthday wish list even though it’s still 10 months away – but still try for 8:30)…watch an hour of TV or whatever with your spouse…study from 9:30 to 11:00. This still puts you in a prime spot to get to sleep early enough that you can get up early as mentioned above.

1.5 hours studying Mon-Thurs (Friday is a night off of studying) = 6 hours of studying per week

Grand total for weekday studying: 14 hours

Saturday/Sunday:

You don’t have to kill your weekends in order to be a good CPA candidate. You also don’t have to be AWOL from your family and friends. Three hours a day each day on Saturday/Sunday is all you need to get 20 hours of CPA Exam study time per week.

If you have kids – spend time with them in the morning…study during nap time (if applicable) and you have the rest of the evening with them as well.

That’s 20 hours a week of studying for the CPA Exam and you barely had to alter your schedule or lose out on time with family and friends.

Following this study plan, you could conceivably be ready for:

FAR in 6-7 weeks

REG in 5-6 weeks

AUD in 3-4 weeks

BEC in 3-4 weeks

It sounds simple – and it is. It’s the schedule that I used to finally pass the CPA Exam and if you have failed a section and are looking for a new approach, I recommend that you give it a try.

Thanks for reading.

-Jeff

There are many people who read this site who have already sat for at least one section of the CPA Exam. However, there are many people who are getting ready to sit for the first time and don’t know what to expect. This is a list of things that I learned over the course of my (long) journey to being a Certified Public Accountant. Hopefully you can gleam at least one useful bit of information from my experience.

-Jeff

CPA Exam Tips for Success – What to Expect on Exam Day:

1. You will find that the exam questions for the most part are not as “wordy” as the questions you have practiced and seem a little more straightforward. Chances are, the practice MCQs in your materials are a collection of the more-difficult questions that you can encounter on the CPA Exam. I’ve always left the testing center feeling like the actual exam is easier than the practice questions.

2. It will be the fastest 2.5 to 4.5 hours of your life.

3. You cannot be a perfectionist on your exam. If you get stumped and sit there stubbornly for 10 minutes trying to figure something out, that’s 8 minutes that you just cheated yourself on your second simulation.

4. If you’re stumped and can’t get any number to work out, choose B or C – you have a 30% chance of getting it right. A and D are correct 20% of the time.

5. Don’t take breaks. Exception: If you are extremely sleepy – take a break. Go into the bathroom and literally do jumping jacks. Grab a Starbucks “Frappachino” thing (store it in your locker or better yet – your coat pocket and grab it as you walk down the hall) that you get at a convenience store (cold, glass bottle) and slam it and get back in there.

6. Don’t forget your NTS and two IDs that are SIGNED. One needs to be a picture ID like a driver’s license and the other can simply be a signed credit card. Don’t make the mistake of having all of your credit cards say “see photo ID” like I did. It might be a good idea to make a copy of your NTS and stick it in your glove box. The worst than that can happen is if you arrive for check-in at the testing center and don’t have your NTS or IDs.

7. Once the facilitator at Prometric gets your computer up and running and you sit down – don’t assume that you have all day to start writing mnemonics on your scratch paper. One candidate who reads this site sent me an e-mail saying that he sat for BEC and decided to write out all of his formulas before beginning the exam. He found himself locked out due to time expiration (you get something like 10 minutes – READ THE SCREEN) and not only did he not get to sit for his exam that day – he forfeited his exam fee and he had to wait until the next testing window to take the exam. Talk about a nightmare exam experience.

8. When you get to the simulations – do the memo first ~ this is especially important on the 2nd simulation when time is scarce. The simulations combined are worth 30 points and the memos are 10 of those points. To put it another way – the memos are worth ten percent of your grade. Make them your number one priority on the simulations. If you have to skip something on the 2nd simulation because time is running out – skip the research tab. LEAVE NOTHING BLANK. If one minute is left on the exam and you have a tab with a bunch of blanks, fill in something – anything. A wrong answer and a blank answer give you the same number of points – zero. You may get lucky if there’s a drop-down menu for the answers and you’re guessing.

9. If you haven’t practiced the research function online at cpa-exam.org…DO IT. You will spend 10 minutes trying to figure it out on the exam if you don’t.

10. Get at least 6 hours of sleep the night before and if you’re a coffee drinker, drink your normal amount of coffee – but don’t pound a gallon 15 minutes prior to the exam. You will have to pee and you may be on question 15 of the 30 question testlet and you can’t leave until the testlet is complete.

11. Relax. People take this exam every day (or at least they do eight months out of the year…you know what I mean). Give it your best shot and to use a sports analogy … “leave it all out there on the field”. You may be tempted to get lazy and rush through your 3rd testlet because you’re bored to death or because you think you’re doing miserably. Don’t. There will be plenty of time to go drink a beer (or whatever) after the exam. Focus focus focus while you’re in there. Stay alert and work your tail off. The extra focus and extra attention to detail on the final 5-10 questions of testlet three could be the difference between you passing and having to re-take (and re-study) your exam section.

12. If you fail – congrats…you’re a normal candidate. It take an abnormally strong effort to pass the CPA Exam. The average candidate fails their exam (historical pass rate of around 45-50%). Your study prep and exam performance needs to be above average. You need to adjust something – and only you know what that is. Don’t make excuses…just identify it…change it (i.e. – starting LOST Season 1 on Netflix is not the right thing to do while you’re preparing for FAR)…and execute.

13. Good luck.

Clock photo courtesy of Flickr user Matt Callow under this Creative Commons license.