Times, they are a-changin’! New Exam Durations and Scoring Weights Announced!

In another huge announcement, this morning the AICPA released their final changes to the amount of time given to each exam, as well as the scoring weights (the value given to each question type) given to the sections within the exams. These changes come on the heels of the announcement in September that the CPA Exam will be heavily changing on 01/01/2011 with the implementation of CBT-e. Make sure that you familiarize yourself with these changes, especially if you are planning to sit for any section of the exam past December 31^st of 2010. Our advice? Start the CPA Exam Review process now and be finished with the exam before any of these changes are implemented. But if that isn't a feasible option for you, make sure that you familiarize yourself with these changes and use a review course who can teach you what types of adjustments to make to studying and preparing in order to conquer the new structure and new question types.

We've compiled these bullet points as a quick overview to the most important changes. Take a look at the charts below for more detailed information on the exact changes to each part of the exam.

Time Changes:

• AUD will now be 4 hours instead of 4.5
  
• BEC will now be 3 hours instead of 2.5
  

Structure Changes:

• AUD and REG will have 7 task-based simulations while FAR will have 6 task-based simulations
  
• BEC will now include 3 written communication tasks
  

Changes to Scoring Weights:

• For AUD/FAR/REG, the MCQs will account for 60% and TBS will account for 40%
  
• For BEC, the MCQs will account for 85% and the new written communication tasks will account for 15%
  

Structure/Time Changes

AUDIT AND ATTESTATION

Current Structure	New CBTe Structure
3 MCQ testlets with 90 questions total	3 MCQ testlets with 90 questions total
2 Simulations in (long) current format	1 testlet with 7 shorter Task-Based Simulations and the research question in a new format
2 written communication tasks	No written communication
TOTAL TIME: 4.5 hours	TOTAL TIME: 4 hours

BUSINESS ENVIRONMENT AND CONCEPTS

Current Structure	New CBTe Structure
3 MCQ testlets with 90 questions total	3 MCQ testlets with 72 questions total
	3 written communication tasks on BEC topics
TOTAL TIME: 2.5 hours	TOTAL TIME: 3 hours

FINANCIAL ACCOUNTING AND REPORTING

Current Structure	New CBTe Structure
3 MCQ testlets with 90 questions total	3 MCQ testlets with 90 questions total
2 Simulations in (long) current format	1 testlet with 7 shorter Task-Based Simulations and the research question in a new format
2 written communication tasks	No written communication
TOTAL TIME: 4 hours	TOTAL TIME: 4 hours

REGULATION

Current Structure	New CBTe Structure
3 MCQ testlets with 72 questions total	3 MCQ testlets with 72 questions total
2 Simulations in (long) current format	1 testlet with 6 shorter Task-Based Simulations and the research question in a new format
2 written communication tasks	No written communication
TOTAL TIME: 3 hours	TOTAL TIME: 3 hours

Weight Changes

AUD/FAR/REG

Item	Current Weight	New CBTe Weight
Multiple Choice (MCQ)	70%	60%
Simulations	20%	40%
Written Communication	10%	n/a

BEC

Item	Current Weight	New CBTe Weight
Multiple Choice (MCQ)	100%	85%
Simulations	n/a	n/a
Written Communication	n/a	15%

Studying Over the Holidays? Read This!

If you are like many CPA exam candidates, you'll be spending this weekend cramming for one last section before the final window of 2009 closes on Monday.

Lucky for you, Going Concern has some suggestions for fighting off that the turkey hangover and getting through the holidays without blowing your study routine:

For CPA exam candidates, the final few weeks of the year can be a time of extreme pressure and/or procrastination. I won’t name names and bust any of our CPA Review students out (you know who you are) but I can tick off at least 25 people taking the exam today and next Monday, trying to squeeze in one last part before the New Year.

So how exactly is one supposed to show up for an exam the Monday after Turkey Day before the Tryptophan coma has worn off?

• Plan better next time: This is a terrible time of year to be sitting for the exam but unfortunately it’s also the busiest. More candidates cram into the final testing window of the year than any other window so if you’re testing in the 4th quarter next year, keep that in mind when you’re scheduling your exams. Schedule early and don’t get stuck testing the week after Thanksgiving.

• Prioritize: Do you really need to hit your parents house, your in-laws’ house and your best friend’s grandma’s house for Thanksgiving? If you’re really serious about preparing through the weekend (which you should have already been doing weeks before this), cut dinner short, stick to one holiday meal and spend your Black Friday studying instead of getting trampled in the Wal-mart parking lot. It’s better for your brain and better for your wallet.

Those are just a few, head over to GC for the rest.

Some other suggestions that GC may have missed would be to take care of yourself this winter; taking the exam can take a lot out of you, and with the added stress of the holidays, you can easily find yourself exhausted and spread far too thin. Take the time you need for yourself to refresh and recharge but don't allow yourself to be distracted by the time of year. Remember: the CPA exam is not an IQ test, it's a test of discipline and that means even during vacations and holiday time off.

Happy Turkey Day to everyone from your friends at Roger CPA Review! Now get back to studying!

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.

Did I Pass? Did I Pass? Playing the Score Release Waiting Game

While taking the CPA Exam is likely the most stressful part of becoming a CPA, waiting for your scores to come out can be equally as nerve-racking. We've put together some fast facts regarding the AICPA scoring process to help ease test-takers nerves and shed some light on how the exam experts grade your performance.

Point allocation. For FAR, AUD and REG, 70% of your score is based on the multiple choice questions. The other 30% is based on your simulation sections, 10% of which is based on the written communication portion of the simulations. For BEC, 100% of your score is based on your multiple choice performance.

Points Needed. All scores are determined by the AICPA and range from point values (not percents) of 0 to 99. A passing score is a 75 or higher, a failing score is 74 or below. Scoring is completely automated for every section of the exam, with the exception of the written communication portion of the simulations. Some written communication responses are graded by humans deemed fit to score by the AICPA, while other written communication responses are scored using an automated process. Regardless of whether a human or machine grades an exam, scores are verified throughout the scoring process.

Points standards. Contrary to popular belief, the CPA Exam is not graded on a curve. The exam is graded against pre-determined standards. According to cpa-exam.org, "every candidate is judged against the same standards, and every score is an independent result." The difficulty level of the question, as well as the pattern of correct and incorrect responses, is taken into account during the scoring process.

Releasing Your Score. Scores are released in two waves for each quarter or testing window, usually between 3 and 6 weeks after the date you take your exam. Scores for exams taken during the first month of a window are usually released in the second half of the second month of the window, while exams taken during the second month of the window are released the second half of the third month of the quarter (the blackout month).

The AICPA releases scores to all jurisdictions, and then it is up to each jurisdiction to notify their test takers. This notification happens either through posting online on the state board website, through the NASBA website or through traditional mail. Each state is different, so check with your state board or NASBA.org for exact details for your jurisdiction.

Waiting for your score can sometimes feel as though it is harder than the test itself - but knowing how the scoring process works and when you can begin to expect score releases can ease some of the tension… hopefully keeping you from checking your computer every few hours for two straight months.

Accountants on Twitter? You Better Believe It!

Pic credit: Our Geek Life

One of the greatest resources for today's CPA is social media, we've been telling you that from the beginning. A few years ago you had to dig hard and deep to find CPAs using social media but now they are everywhere from blogs to Twitter to Facebook.

Shameless self-promotion disclaimer: You can also find your Roger CPA exam experts at @Kristin_Lynes, @Willard_Monroe, @morganives, and @Adrigonzo. If you have a CPA exam question for any of us, feel free to write post@cpaexamexpert.posterous.com and we might address it on CPA Exam Expert!

In the interest of connecting future CPAs with the resources and connections they need to help them in their careers, we've decided to share a little list of who's who among tweeting accounting professionals. Keep in mind that this list is by no means comprehensive and if we missed anyone, please be sure to let us know in the comments! And don't forget to follow Roger on Twitter!

First of all, the state societies of CPAs (in alphabetical order):
Alabama Society of CPAs @alabamacpa
California Society of CPAs @Cal_CPA
Colorado Society of CPAs @CSCPA
Connecticut Society of CPAs @ConnecticutCPAs
Florida Institute of CPAs @FICPA
Illinois CPA Society @IllinoisCPA
Indiana CPA Society @incpas
Maryland Association of CPAs @MACPA
Michigan Association of CPAs @MichiganCPAs
New York State Society of CPAs @NYSSCPA
Ohio Society of CPAs @OSCPA
Oklahoma Society of CPAs @OklahomaCPAs
Oregon Society of CPAs @OregonCPAsNews
South Carolina Association of CPAs @scacpa
Tennessee Society of CPAs @TSCPA
Utah Association of CPAs@UACPA
Virginia Society of CPAs @VSCPANews (@FinancialFit)
Washington Society of CPAs @WSCPA
Wisconsin Institute of CPAs @WisCPAs


But that's not all, let's not forget about the accounting firms!
Deloitte
Ernst & Young
PwC
KPMG
RSM McGladrey
Grant Thornton
MGO
Perkins & Co.
D'Arcangelo & Co.
Skoda Minotti
Purk & Associates

And then there are some of our favorite accounting people (definitely not in order as we can't choose favorites):
@taxgirl
@taxtweet
@RonLedford_CPA
@exuberantacct
@retheauditors
@Rivescpa
@DeantheCPA
@tomhood (of the Maryland Association of CPAs and @AccountingWeb's CPA Association Leader of the Year!)
@BillSheridan
@accountingelf (who can also be found blogging over at Accounting Elf)
@JodyPadarCPA
@danielhoang
@GubinskyCPA
@JasonMBlumer
@CLT_CPA
@OmahaCPA
@sequenceinc
@bftcpa
@rockstarcpa
@jhamiltononcpa
@JeffJacksonCPA
@CharlotteCPA
@EdithO
@bonniemann
@ronaldbaker
@nikrama
@Bruce_taxguy
@mpolino
@numbersnerd
AICPA Chairman Robert Harris
Former AICPA chairman Ernie Almonte


Even some of your favorite accounting publications, blogs, and resources are getting in on the action:
AICPA's Journal of Accountancy
AICPA's Young CPA Network
Going Concern
CFO Magazine
CPA Trendlines
WebCPA
CPA Letter Daily
Stuff Accountants Like
FEI Financial Reporting Blog
Footnoted
Re: the Auditors
CPAnet

And a few bonuses in the interest of cooperation and globalization, some of our favorite non-US accounting enthusiasts on Twitter:
@PromisedMePie (who most of you know as Krupo)
@feicanada
@darlasycamore
@dahowlett
@paulney
@thunderror

Did we miss anyone? Who or what are some of your favorite accounting resources on Twitter?

Internal Control: Objectives and Components

(Excerpted from the 2009 Roger CPA Review AUDIT text book)

• Management is responsible for the establishment and maintenance of Internal controls. We want Reasonable assurance that Internal controls are achieving certain Objectives (ACE):
  
  • Accurate & Reliable financial reporting
    
  • Compliance with laws and regulations
    
  • Effectiveness and efficiency of operations
    

The mnemonic ACE will remind management that it should try to establish a strong internal control structure so as to have an ACE in the hole.

The primary interest of the outside auditor is in the first objective, accurate and reliable financial reporting which relate to the fair presentation of the financial statements being audited. The second goal, compliance with laws and regulations, is primarily relevant to compliance auditing, which may occur in connection with audits under government auditing standards. The third goal, promoting effectiveness and efficiency of operations, is of little interest to an outside auditor except in the case of rarely-performed operational audits.

The auditor should obtain an understanding of the 5 components of internal control in order to evaluate the design of relevant controls and determine whether they have been implemented, assess the risk of material misstatement and design the nature, timing and extent of further audit procedures.

Elements of internal control: (CRIME)

• Control activities
  
  • Policies and procedures that help ensure that management directives are carried out.
    
    • Performance reviews – actual vs. budget, P/Y, financial to non-financial
      
    • Information processing – (IT) General vs. Application controls
      
    • Physical controls – Access to assets
      
    • Segregation of duties includes assigning different people the responsibilities of authorizing transactions, recording transactions, maintaining custody of assets, and performing comparisons. It is intended to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or irregularities in the normal course of their duties.
      
      • Authorization of transactions
        
      • Recording (posting) of transactions
        
      • Custody of assets
        
      • Comparisons
        

      
      

• Risk assessment
  
  • An entity's risk assessment for financial reporting purposes is its identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly presented in conformity with GAAP. Risk assessment includes risks that may affect an entity's ability to properly record, process, summarize, and report financial data. Risk assessment, for example, may address how the entity considers the possibility of unrecorded transactions or identifies and analyzes significant estimates recorded in the financial statements.
    

    
    

    Risks relevant to financial reporting include external and internal factors such as the following:
    

    • Changes in operating environment
      
    • New personnel
      
    • New or revamped information systems
      
    • Rapid growth
      
    • New technology
      
    • New lines of business, products or activities
      
    • Corporate restructurings
      
    • Foreign operations
      
    • Accounting pronouncements
      
• Information and communication
  
  • Refers to the I.D, retention, and transfer of information in a timely manner allowing personnel to perform their responsibilities.
    
    • Info system consists of the methods and records used to record, process, summarize and report Co.'s transactions and to maintain accountability for the related accounts
      
    • Communication involves establishing individual duties and responsibilities relating to internal control and making them known to involved personnel.
      

    
    

• Monitoring
  
  • An important management responsibility is to establish and maintain internal control. Management monitors controls to consider whether they are operating as intended and that they are modified as appropriate for changes in conditions. Monitoring is a process that assesses the quality of internal control performance over time.
    

  
  

• Control Environment (CHOPPER)
  

  The control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure. Control environment factors include the following:
  

  • Commitment to competence - Effective control requires a sincere interest on the part of the employees in performing good work.
    
  • Human resource policies & practices - A company can minimize the control difficulties created by new employees by sound hiring and training policies for employees.
    
  • Organizational structure - A company that operates all over the world has different internal control problems than one operating entirely within a single building.
    
  • Participation of those charged with Governance - An audit committee of the board of directors that actively monitors the internal audit function produces a more attentive management on such matters.
    
  • Philosophy of management & operating style - The belief (or lack of it) in the importance of internal control by management will affect the seriousness with which is taken by the rest of the employees. This is especially the case when decision-making in the company is dominated by a single individual.
    
  • Ethical values & Integrity - Honest employees will be less likely to cause internal control difficulties related to fraud and improve the opportunity for those resulting from errors to be effectively detected.
    
  • Responsibility assignment - The manner in which authority, responsibility and accountability is assigned to different employees determines the controls that will be needed. Again, the domination of decision-making by a single individual holds significance, since such power makes it extremely difficult for internal control to be trusted.
    

The mnemonic CRIME reminds management that it would be a crime not to consider all of the internal control elements when designing the system.

For more great information on the CPA Exam, presented using Roger's RealResults® method, visit our website and request a FREE one hour long demo of our course today!

Then to Now: Use your college study skills to help you pass the exam

Besides being filled with Ramen noodle dinners and crazy roommates, college is a time of tough work, diligence, time management, and hard studying. CPA Candidates who have been out of school for a few years often find it hard to transition back into that "school mode" of cracking the books. The study techniques learned in college can be applied years after the fact to help you get the most of your study time and put your nose to the grind.

1. 
   Make it pop. Highlight the importance concepts on the page. Dragging a yellow or orange highlighter over key information, you make it easier to go back and review without having to re-read the entire book. Also, your mind will register the information as more important and recall it better later. Allan Mundsack, James Deese, Ellin K. Deese offer a step by step guide on how to highlight in their book How to Study. They suggest highlighting on your second time through and not highlighting complete sentences.
   


2. 
   Jot it down. Yes, that's right – take notes. By making an outline of the material, you can both condense the information for later review and reinforce the concepts by writing them down. Additionally, taking notes during Roger's Lectures will help you determine what the most important concepts are, remember mnemonics, and focus on areas where you may need work.
   


3. 
   Split it up. While some people are okay sitting down and plowing through lecture after lecture and homework problem after homework problem, most people benefit from small breaks. Try setting a goal for yourself – 2 straight hours or 100 multiple choice questions. Then give yourself a 30 minute break to eat, play with your kids, or catch up on the Office. But after the break, it's back to work!
   


4. 
   Just say no. It will be just as hard now as it was in college to say no to late night drinks, a friend's birthday bash, or joining the Ultimate Frisbee team. For the weeks leading up to the exam, most of your extra time will be consumed with lectures and practice questions. It is important to know the difference of having an hour to spare, and when you need to say no and crack down on yourself. Try making these fun events a reward for meeting your weekly study goals. Lastly, make sure you plan a celebration after you've taken the test to see all of the people you will be neglecting – I'm sure they will appreciate it.
   


5. 
   Ask questions. In college, when you struggled with a concept you could meet with (or email, for us in generation y) your professors to ask for help. But after college, people often forget that there are still resources to help them if they are struggling. Email your CPA review company, ask your twitter followers, or post a question to a forum like CPAnet. There are plenty of people that are willing to help you on your journey and want to see you succeed – so take advantage.