The Sims: Not just a Popular Video Game

Many CPA Exam candidates feel that the simulation portions of the AUD, REG, and FAR exams are one of the hardest parts. According to cpa-exam.com, "Simulations are condensed case-studies designed to test the knowledge and skills that are required of entry-level CPAs." Unlike the multiple choice questions, where one can simply guess if they do not know the answer (which you should always do!), the simulations are more action-based and require a deeper level of logical thinking. Furthermore, as the 10 points from each simulation, plus the 10 points from one of the written communication sections, combine to equal 30 points. This is a hefty chunk of your score, so it is important to not just nail the MCQs, but ace these problems as well.

Simulations are designed to test candidates on their analysis, judgment, communication, and research. They are structured to be a series of tasks that the candidate must complete that may include spreadsheets or forms, research on a topic, written business communication, and problem solving.

Structure of Simulations
Information Tabs.

The information tabs consist of information that you will need throughout the case study. The directions tab will lay out the tabs and their purposes. The resources tab will provide you with formulas and information that will help you complete your tasks. Additionally, on your actual simulation there may be other tabs besides these two – such as a "company profile" page. Basically these tabs should be used as references to help you solve the overall simulation tasks.

Work Tabs.

The work tabs are where you will actually be completing your tasks. These differ across exams and simulations based on what you are asked to do. On these tabs, you must complete all the given tasks in order for you to receive credit – so make sure you triple check your work if time allows. In fact, this is when time management becomes essential as you near the end of the exam.

This is where the written communication portions of the exam lay. Candidates will need to read a description or document, and construct a response to the situation. Your answer must be relative to the topic and use correct business writing, grammar, and organization. Get some more tips on the written communication section. Keep in mind that only one of these is graded.

Authoritative Literature.

According to cpa-exam.org, "the reference materials consisting of AICPA Professional Standards, FASB Current Text and Original Pronouncements, and the Tax Code are referred to collectively as "authoritative literature." Here, you will need to use search and research skills to sift through documents and find the right answer to a prompted question. Points are given for correctly selecting the appropriate document that contains the right answer. This tab is worth the least amount of points, so if you are strapped for time, make sure you do it last.

For more information on simulations, see our walkthrough of the exam.