50 Things You Must Know About The CPA Exam - 2010 Edition PDF

2010 Edition
Jeff Elliott, CPA

Editor, Another71.com
Copyright 2010 Jeff Elliott, CPA

All rights reserved worldwide.
No part of this e-book may be copied or sold.
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. Im thinking about buying some used books from 2007. Any advice?
4. My 18 month window is coming to a close and Im about to lose credit for one of
my passed sections. What if I take my exam, but dont get my score back for
several weeks? Will I lose my credit?
5. I cant 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 cant pass Auditing! Youre 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. Ive 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. Im 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. Im getting ready to take my first exam. What should I expect?
19. What is the best approach for attacking simulations on the CPA Exam?
20. I didnt finish my second simulation and left several tabs blank. Can I still pass?
21. I couldnt get my research tab to work! I thought I found the right text to insert,
but the computer wouldnt 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. Shouldnt BEC be the easiest section of the CPA Exam? Its 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 Im 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 didnt get my score in Wave 1, but I took my exam early in the testing window.
Does this mean Im borderline or failed? Im 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 didnt.
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 its
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! Its 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 Im thinking about throwing in the towel. Ive 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, Im done. How long do I have to wait before I can
take my states 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! Im DONE! Can I call myself a CPA?
49. I have my certificate, Im licensed, and Im done! (Right?)
50. Should I expect to get a raise or be promoted after passing the CPA Exam?

Introduction
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 todays
CPA Exam because I have been there myself.
Since I started another71.com, I have conversed with hundreds of 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

Study Strategy
1. What section should I take first?
Different people have their own opinions on this subject. Some say to take the easiest
section (i.e. whatever section best fits your background) first so that you have a quick
win under your belt. I have a friend who is a CMA and a CIA and he took BEC first
because it fit his background better than the other sections. He sat for BEC, then AUD,
REG, and finished with FAR.
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. Its best to get FAR out of the way first, in my opinion.
2. Whats the exam order from hardest to easiest?

As stated above, FAR is generally regarded as the hardest section of the CPA Exam. Ive
heard it described as a mile wide and an inch deep. There is just so much information
to know and the breadth of the material can overwhelm candidates. If there is one section
that CPA candidates fear the most, it is Financial Accounting and Reporting.
You must know bonds, leases, consolidations, pensions, and inventory to name a few.
Just when you think youve covered it all, you have governmental accounting and notfor-profit accounting to look forward to, which is 20% of your overall exam score. FAR
is not a fun exam. The key to studying for this section is to focus on one subject at a time
and chip away at it. Whatever FAR topic your review course begins with, start there and
work your way to the end. Before you know it, you have covered everything and its time
to review and then sit for the exam.
If Financial Accounting and Reporting is the #1 most difficult exam, then I would call
Regulation #1a. REG is a beast. For people who are weak in tax, it can be a nightmare.
Tax people hate FAR, people who dont work in tax hate REG. With REG, you have to
know individual, corporate, and partnership taxation really well.
Gift/Estate tax isnt tested to the degree that the other types of taxation are, but you still
have to have a working knowledge of it and be able to answer the basic questions on the
exam. In addition to taxation, REG also covers business law and ethics, which often gets
underestimated, as candidates forget that it makes up 40% of your overall exam score.

Next is Business Environment and Concepts. Its odd that I rank BEC as the third mostdifficult because I truly hated BEC, and many people share the sentiment. It seems like
such a benign and relatively short exam (2.5 hours) with no simulations that covers topics
that you learned in college. Easy, right? People walk into their BEC exam and limp out.
I think that people tend to skimp on the financial management and cost accounting
sections because they can be somewhat hard or just plain boring to study. Candidates also
underestimate the coverage of information technology on the BEC exam and it ends up
costing them. BEC is the #1 exam section that I get e-mailed about. Some people really
struggle with it. I was one of them.
Finally, we have Auditing. I know people who blew through Auditing with a 95 like it
was no big deal. I didnt really struggle with it either or find it as difficult as the other
sections. On the other hand, I have spoken to people who hate Auditing like I hated BEC.
They just cant seem to pass it. Its different than the other exams. Auditing has a
different feel to it. Every question seems subjective, leaving you feeling like youre
giving the best answer instead of some cut and dry tax calculation or bond
amortization. While Auditing is listed here as the easiest, it is far from easy and dont
take it for granted. Remember, easy is a relative term. This is still the CPA Exam.
3. Im thinking about buying some used books from 2008. Do

you have any advice?
Thats a bad, bad idea. 2008 books were written in the fall of 2007 and youre taking a
2010 exam. The road to a 68 on the CPA Exam is paved with outdated CPA review
materials.
4. My 18 month window is coming to a close and Im about to

lose credit for one of my passed sections. What if I take my
exam, but dont get my score back for several weeks? Will I lose
my credit?
You have to take (and PASS) your exam(s) prior to the expiration date of your 18 month
window in order to not lose credit for previously passed exam sections. The date that
matters is when you take the exam, not when you get your results. This issue is confusing
to candidates and I get asked this question a lot.

5. I cant pass BEC! What should I do?

I get this question after every testing window. You would think that I would get e-mailed
about FAR the most, but thats not the case. My answer to this is simply my answer for
passing BEC myself: Buy a Yaeger CPA Review BEC course. In particular, I recommend
getting the BEC HomeStudy.
There are several aspects of BEC that are in my opinion a watered down version of the
CMA exam. You want both a CPA and a CMA teaching you BEC, which is exactly what
Yaeger has with their main BEC instructor Cindy Simpson and it is why so many people
that Ive come into contact with finally pass BEC after using a Yaeger product.
To save money on the Yaeger CPA Review HomeStudy, enter the discount code
A71FULL to save $355 on their complete course, or A71PART to save $100 on a
single section of their course.
Another71.coms Club 75 members save an additional $100 and $50 on the complete
and single HomeStudy courses, respectively.
To expand further:
1. I did every IT question in the Wiley BEC book the day before the exam and it
was fresh in my mind. Not only did I do the questions, but I also read the
explanations to the all of the answers.
2. Going into the exam, I knew enough about monopolies, oligopolies, etc. to be
dangerous.
3. With time value of money calculations, you have to know which factor to use
depending on if the payments are at the beginning or end of the year. I had those
straight in my head and could answer those questions accordingly.
4. Cost accounting: There are a couple of formulas to memorize and I would
recommend memorizing the base formulas and then writing them down on your
scratch paper. From there, you can algebraically solve for any variable. There's no
need to memorize every derivative of the base formulas - just the base formulas
themselves.
I passed BEC with an 80 knowing a lot about IT, a decent amount of Economics and
business structures, and enough about financial management and cost accounting to get it
done.

6. Information Technology is heavily tested on BEC and I hate it!

Any tips on how to study for IT?
IT topics are a pain for an accountant to learn. I understand why they test them on the
CPA Exam, but the examiners go overboard with the depth of the IT questions. They test
you on IT topics that you will probably never need to know and couldnt care less about
as an accountant. Regardless, you have to be able to answer the questions, so its best to
figure out a way to learn the material.
Reading about IT topics is an extreme bore, even for the CPA Exam. When I passed BEC
and had to tackle the IT topics head-on, I found that the best way to learn the material is
actually very simple: do every single IT question in the Wiley book.
Get a Wiley CPA Review BEC book (you can get one for around $30 with free shipping
through a link on my site under the Discounts page) and work every IT question at least
once (twice if you have time) and read every answer both the correct answer as well as
the three answers that are incorrect.
If possible, work these questions as close to your exam day as possible so that they will
be fresh in your mind. Again, this sounds very simplistic but it was one of the keys to my
success on BEC after failing it three previous times.
7. What was the main difference between your back-to-back 74s

and your 92 on Regulation?
If I could point to one thing (besides getting the Yaeger REG HomeStudy), it would be
that I finally said Okay, enough is enough Im going to study AMT and 1231, 1245,
and 1250 assets like I should. Let me tell you, up until getting the Yaeger HomeStudy
and forcing myself to learn AMT and 1231, 1245 and 1250 assets, I absolutely hated
these subjects and basically refused to study them and somehow thought that I could pass
REG with this approach.
I honestly cannot think of more boring subjects than AMT, 1231 assets, and like-kind
exchanges. Yet, the Yaeger DVDs made it palatable. I think its because Im an active
learner and the Yaeger DVDs cater to people who learn this way. Studying for the CPA
Exam can be yawn-inducing, so I like to mix in some application (i.e. working MCQs) as
I learn the concepts. It makes the time go faster.
After watching the AMT lecture, I thought You knowthis really isnt that bad and
also thought the same thing about 1231, 1245, and 1250 assets as well as like-kind
exchanges.

8. I cant pass Auditing! Youre not an auditor how did you

pass it?
Auditing scared me to death. Ive never done an audit in my life, nor did I know the
slightest thing about auditing prior to passing. I scored a 69 on my first try without really
studying. My NTS was running out and I had to take it or lose it, so I took Auditing the
same day as another exam I had studied for (I ended up failing that one too). The fact that
I scored a 69 the first time still baffles me to this day, because I didnt deserve a score
that high.
I passed Auditing on my second try with a 79 through memorization. I memorized
everything that I could the steps to an audit, management assertions, etc. The questions
on Auditing can be very subjective and you find yourself staring at two answers that both
seem correct. You have to choose the most correct answer.
I derived my answers by frantically writing down all of my mnemonics on my scratch
paper prior to beginning my exam. With that said, keep in mind that if you take too long,
your exam session will lock, so you must do this quickly i.e. within 3-4 minutes and
then get started. During the exam, I referred back to my mnemonics constantly and
answered the questions accordingly.
There are also a number of topics such as internal control that you can only learn by
doing countless multiple choice questions. If you work enough questions, eventually you
will build a base of knowledge about auditing on subjects like internal control where
mnemonics dont really work that well, and you will be able to successfully answer the
questions on the exam.
9. Did you memorize the different audit reports in order to pass

Auditing?
No. I dont think its necessary to memorize the audit opinions even the unqualified
opinion. With that said, you do need to know the different language that separates one
audit opinion from another, as well as the language included in the various exceptions
including how each one varies with regard to the paragraph order and structure.
You dont need to memorize the audit opinions word for word, but you do need to be
very familiar with them and be able to read a sentence in a multiple choice question on
exam day and be able to identify what audit opinion has that particular sentence and in
what paragraph its found.

10. What are the areas of FAR that you think makes candidates
stumble on exam day?
The area where candidates cut the most corners while studying for Financial Accounting
and Reporting is the area of bonds and leases. Bonds and leases are very similar and they
are also a pain to study. Candidates tend to glance over these areas and maybe work a few
questions in hopes that theyll be able to identity some familiar nugget on exam day and
dont actually do their due diligence in preparing for FAR.
People treat bonds and leases on FAR like candidates do AMT and 1231 assets on REG.
They require a decent amount of studying and many candidates just give it the old
college try on exam day and come up short because of it.
This is based on my own experience with studying for FAR and needing to pass it not
just once, but twice, due to losing my FAR credit. I have also talked to thousands of
candidates since I started my blog and I feel confident in saying that bonds and leases are
where candidates tend to get lazy while studying for this section of the exam.
Another area would also have to be not-for-profit accounting. Most people are generally
unfamiliar with NFP accounting and its usually the last topic covered in their review
course. If a candidate runs out of study time and they arent able to re-schedule their
exam, then preparation for this section usually falls short of what is recommended, which
can be very detrimental to their exam score, as NFP accounting can make up 10% of your
overall score.
11. Do you have any nuggets of wisdom aside from the usual
mainstream advice?
AUD Learn tick marks. If your review course doesnt cover tick marks, you should
Google it and read up on tick marks so that you have a basic understanding of what they
are and how they work. Youll be glad that you did.
BEC Know price elasticity of supply and demand inside and out. Be able to calculate it
given several variables and know that when demand is elastic and you raise the price,
total revenue goes down. When you lower the price, total revenue goes up. When demand
is inelastic and you raise the price, the increase in price is greater than the decrease in
demand, so total revenue goes up and vice versa. I didnt really understand price
elasticity of supply and demand until I listened to Dr. McMillans (Yaeger CPA Review
instructor) lecture on the topic. All of a sudden, it clicked.
FAR Do you understand Dollar Value LIFO (or at least know how to quickly calculate
it)?

REG You shouldnt underestimate how important the ethics topics are for Regulation.
Dont study hard for tax and law only to come up short on Regulation because you didnt
study ethics like you should. It may surprise you how many ethics questions you will see.
12. Ive heard that the CPA Exam is going to change. Does this
affect me?
It only effects you if you will still be taking exams in 2011. FAR and AUD will change
the most. Financial Accounting and Reporting will begin testing IFRS. I attended a
meeting in New York City with some members of the AICPA Examination Team and
they used the term bilingual to describe a candidates need to know both GAAP and
IFRS.
Auditing and Attestation will absorb the ethics portion of what is currently tested on
Regulation. In addition, the section of BEC that tests internal control for Information and
Technology will now be testing on the AUD Exam.
Aside from losing the ethics portion to Auditing and Attestation, Regulation will not
change in a material sense. BEC however, will go from having no simulations or written
communication sections to having several written communication problems where
candidates will be expected to write essays over BEC topics.
13. What is the best way to study for the CPA Exam with audio
lectures?
Audio lectures are an interesting product and some people can use them effectively and
some people cannot. The purpose of audio CPA review lectures is to allow you to study
while you do other things such as drive or exercise.
Personally, I cant drive and focus on audio lectures at the same time. My friend on the
other hand, who is now a CPA, had a two hour commute round trip each day and loved
the Yaeger MP3 lectures.
While I cant drive and listen to CPA review audios, I found that I could exercise while
listening to them. I also listened to them for about thirty minutes at night before going to
sleep.
I also found that they are an excellent study tool at work. You can do mundane tasks like
work on a spreadsheet for your boss and listen to CPA review lectures at the same time.

14. I bought a cram course. When should I watch it?

I would allow two weeks for your final exam review. If you have a full CPA review
course like the Yaeger HomeStudy or whatever course you use, make sure you get all of
the way through it and do all of the questions youre assigned first. Then, youre ready to
review.
I highly recommend using a cram course like the Yaeger CRAM DVD and watching it
once all the way through and then working all of the questions that Yaeger includes with
their minimum questions to do handout. This should take about a week to complete.
Some of the CRAM videos are longer (FAR is around 20 hours) than others (BEC and
AUD), so plan your time accordingly. If you follow this plan, you will still have close to
one full week to wrap up your review.
15. Im 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?
This is where taking insane notes comes into play. While studying for the exam, I
highly (and I cant recommend this highly enough) recommend taking notes over
everything you learn while reading and watching lecture videos and answering questions.
If your instructor points something out write it down. If you miss an MCQ write it
down. If you think you might forget something in 3 weeks write it down.
Taking notes isnt for the learning part of your CPA Exam studying. Its for your review.
Take lazy notes and youll pay for it when you do your final exam review. Take great
notes and they will be your best friend in the days leading up to the exam.
In the final week before your exam, I recommend that you do something that you wont
want to do and is something that people who havent taken the exam for a very long time
might even tell you not to do, but its MY recommendation: re-write your notes.
If you have three legal pads of FAR notes, this could seem like a daunting task and you
might not even have time to do it. Maybe you even could use THREE weeks to review.
You have to make that decision.
This is for certain: all of those hours spent furiously writing FAR notes on those three
legal pads will be wasted if you dont review your notes. You might as well not even take
notes if youre not going to intensely go over them before your exam. So how should
you review them?
Option 1 Read each page a few times. This is fine but if your notes are voluminous,

how much information are you really absorbing? Are you studying your notes or just
scanning them?
Option 2 Re-write your notes. This is time consuming and tedious, but it is WORTH
IT. By re-writing your notes, you are forcing yourself to digest the information again. By
taking a sentence or paragraph that you scribbled in January and re-sculpting it into a
bite-size review nugget in late February, youre relearning the material and you stand a
much greater chance of it sticking with you on exam day.
When I re-wrote my notes for REG, I took my volumes of legal pads and re-wrote my
notes on graph paper. I chose graph paper because I could easily split the page down the
middle and make two columns and section off each little area according to topic. Graph
paper is a great way to make a slick set of review notes.
I scored a 92 on REG doing this, so I know it works. I didnt re-write my notes for FAR
due to time constraints and scored a 76. You be the judge. Once you have your fresh set
of notes, review them several times including twice the day of your exam.
Exam Day
16. What is the best strategy for scheduling an exam?
My recommendation is to schedule your exam for a time in the not-so-distant future. It
somewhat depends on what type of person you are. If you are disciplined and schedule
your exam six weeks from now and know for a fact that you will consistently study every
day like you should and stay on target, then schedule it for six weeks from now and be
done with it.
However, if youre like me and prone to procrastination, then dont schedule your exam
until youre about three weeks out. Of course you risk the testing centers being full if
youre trying to sit for your exam at the end of the window, so take that into
consideration as well.
Lets say that youre a procrastinator (again, like me). You set a goal of taking the exam
in six weeks. Three weeks roll by and youre still on chapter one. Okay, now its time to
get serious EXCEPT you only have three weeks left. If its the FAR exam youre
studying for, youre up a creek with no paddle on the horizon.
Set your goal for six weeks, but only schedule your exam until youre actually three
weeks from being ready. That way, youre on track and not behind. Plus, the added
pressure of taking the exam in three weeks when youve prepared like you should will
actually help you. Youll feel the heat, but the temperature will still be bearable and
youll still be able to focus, but not be anxious.

Procrastinator #1:
1. Schedules exam in six weeks
2. Spends the first three weeks doing nothing
3. Freaks out and reschedules exam and gets hit with reschedule fee
4. Repeat
Procrastinator #2:
1. Wants to take exam in six weeks, but doesnt schedule
2. Spends three weeks doing nothing
3. Gets serious and starts to study like he should
4. Nears completion of CPA review materials
5. Schedules exam three weeks from now feels a little healthy pressure
6. Finishes review materials and goes over everything for three weeks
7. Passes
I am also a big fan of the 1pm time slot for taking the exam. For one, it gives you the
option of going over everything again in the morning (like your notes) before the exam,
giving your short term memory one last boost. It also allows you to eat lunch around
11am.
If you take your exam at 8am, you run the risk of oversleeping and being hungry during
the exam. Plus, you also missed out on one last review. Unless you cant stay awake in
the afternoon, or your work schedule wont allow it, set your exam for 1pm.
17. How long should I study for each section?

My recommendation, which is based on a 20-hour study week:
FAR in 6-8 weeks
REG in 4-6 weeks
AUD in 3-4 weeks
BEC in 3-4 weeks
This is just a general suggestion. Adjust accordingly to your unique schedule or
background.
18. Im getting ready to take my first exam. What should I

expect?
Lets first discuss the night before your exam. I recommend studying until around 11pm
and then going to bed. Ive heard people say that they dont study the night before their
examthat they go see a movie or whatever. Not me. Im all over my weak areas and
trying to glean as much info from my review materials as I can.

There comes a point though, when enough is enough. By all means never pull an all
nighter on the CPA Exam. This isnt college and this isnt a final this is the CPA
Exam and not getting enough sleep the night before is the perfect recipe for getting
OWNED on exam day.
Youll be sitting there half awake staring at the screen reading, and re-reading, and rereading the question and wishing this nightmare were over so that you could go home and
sleep. Ive been tempted to do this myself, but an all nighter? Bad idea.
The day of your exam (assuming you have scheduled your exam for 1pm like I
recommend), I would sleep in until 8am or soget up and eat a decent breakfast and
drink your normal allotment of coffee/caffeine, be it one cup like my co-worker or a
whole pot like myself whatever amount of caffeine you normally consume. This goes
without saying, but exam day is not the day to switch to decaf.
If you consume caffeine like its an IV stuck in your arm, then you must be smart about
your caffeine consumption on exam day. Too little and youll die in the middle of testlet
two. Too much and youll be shaking, and worse youll have to use the restroom ten
questions into testlet one, which is a bad state to be in.
You should study from 9am until 11am. Go over your notes again and then dive into
working multiple choice questions over your weakest topic. If youre super weak on an
important area, then I wouldnt even spend the time trying to pick the right answer. You
just need to click around until you find it, read it, and move on.
If you dont know the material by the day of your exam, and re-scheduling is not an
option, then you need to be absorbing as much quick information as you can. Review and
do MCQs for 2 hours (9-11am). Then, its time for a quick bite of lunch and youre out
the door.
Once youre at the testing center, its time to study your notes one last time. CRAM those
little nuggets of information inside your head that you didnt know before and you wont
know one week from the day of your exam but you need to know them NOW. Knowing
the concepts is key, but having your short term memory full of material that youre weak
on could very well come in handy during your exam.
The Prometric people want you at the testing facility thirty minutes in advance so that
they dont get behind. Lets face it if youre thirty minutes early or five minutes early, it
doesnt make one bit of difference to you, so Ive always erred on the side of walking in
late. I can deal with a ticked off Prometric lady if it means that I got to review partnership
basis calculations one last time while sitting in my car.
When you walk into the Prometric facility, theyll put you in a waiting room and youll
likely sit across from someone taking their nursing boards or something like that. They
handle many different types of exams. Eventually, theyll call you back and youll give

them your IDs (read your NTS about what types of IDs you can use, but just remember
that you need two of them and both must be SIGNED).
I made the mistake of using a credit card for my 2nd form of ID only to realize that I had
signed it see photo ID as I stood there getting checked in. Uh oh. In a panic, I told her
that my other ID was in my car (which wasnt entirely true) and I would be right back.
She said, If you go out there and sign that card, Im going to write you up. I spent the
first 15 minutes of Financial Accounting and Reporting fuming about the ID mess and
was unable to focus, which was unfortunate.
It wasnt a disaster, but the lady administering the exam made me feel like it was. She
documented that my second form of ID was not signed, but I didnt suffer any actual
consequences from it. My exam session was still valid.
I personally have always used the noise-blocking headphones that they provide you.
Granted, they dont block out everything (like the phlegm-hacking guy sitting next to
you), but its better than nothing.
Once you enter your launch code into the computer (which comes from your NTS so
dont forget it!), you have 10 minutes to begin the exam. Dont make the mistake of
thinking that you can proceed to write a dissertation consisting of all of your Auditing
mnemonics before you begin.
I had one candidate e-mail me because he had been locked out of BEC because he took
too long to begin the exam once he had entered his launch code. It was a painful learning
experience for him, as not only did he not get to take BEC that day, he had to wait until
the next window AND had to pay for it again. He was not happy.
You have ten minutes to get through the introduction screens. Read the screens, hit
accept, and dive in. FAR, BEC, and AUD each have three multiple choice testlets with 30
questions each. Regulations multiple choice testlets only have 24 questions each.
Once youre done with the multiple choice questions, FAR, REG, and AUD have two
simulations. Currently, BEC does not have simulations, but that could very well change
in the future. Its something thats being considered.
I recommend not taking breaks if you can avoid it. Of course, Ive always been a slow
exam taker, so every second counted for me. The exception to this is if you feel yourself
falling asleep and cant concentrate. In this instance, the time spent away from your
computer is worth it if getting up will give you a second wind and help you to keep
attacking the exam.
When taking the exam, sleepiness was usually not an issue for me. My adrenaline was
enough to get me through without crashing. There were times however, when I got tired
and simply could not focus and needed to take a break. After I finished whatever testlet I

was on, I got up, grabbed a caffeinated drink from my coat pocket hanging in the hallway
(in the summer, youll have to put it in your locker), and went into the restroom. From
there, I slammed my drink and literally did 20 jumping jacks. This sounds ludicrous, but
it worked and saved my life on exam day.
Simulations
19. What is the best approach for attacking simulations on the
CPA Exam?
First and foremost, always do the written communication section first. The written
communication tab is the single-most important tab in the entire simulation. One of your
two written communication tabs is worth 10% of your grade; you just dont know which
one. Remember: only one written communication counts. The other one is pre-test and
they are considering using it on a future exam.
Second, read the introduction to the simulation carefully. Be sure you understand what
they are asking you to do. Then, try to fill in as many blanks as you can.
Whatever you do, dont leave anything blank. They only count correct answers and will
not penalize you for inputting a wrong answer.
If you answer incorrectly, you simply wont get points for it. If you leave it blank, you
also will not get points for it. Either way, you wont get the points so you might as well
put something in the blank.
If youre on your second simulation and there is one minute left, go through and fill in all
of the answer blanks that contain a drop-down menu. At least with these types of
questions, you have a fighting chance because one of them is correct. Then, if there are
still a few seconds left, take a wild shot in the dark and put something in the blanks that
require you to type your answer.
Finally, the least important part of a simulation is the research tab. The research tab is
still worth something though, and its important to try to insert an answer if you have the
time, but its the last priority when the clock becomes a factor.
Some of the tabs within each simulation could be pre-test, but both simulations count.
The only exception is that one of the written communications is strictly pre-test. To
recap: both simulations count but certain elements could be pre-test. Out of the two
written communications that you complete, only one of them will count toward your
exam score.

20. I didnt finish my second simulation and left several tabs

blank. Can I still pass?
Yes, you can still pass. This happened to me on my final exam (FAR) and I left several
tabs blank because I couldnt get them answered due to time constraints. I didnt even
have enough time to randomly put in answers. There were simply too many answer
blanks and not enough clock. I still passed (76). It all depends on how well you do on the
multiple choice questions. If you do well on the MCQs, then youll have a little cushion
on the simulations and not finishing your second simulation may not be such a huge
disaster after all.
21. I couldnt get my research tab to work! I thought I found the

right text to insert, but the computer wouldnt accept any of it.
Will this hurt me?
Did you miss the few points that the research tab is worth? Yes. Is it a disaster? No.
I passed FAR and left both research tabs blank on my simulations. On the first
simulation, I couldnt find a single answer that the computer would accept. I almost had a
meltdown in the exam room. I could see my 75 slipping to a 74 right before my eyes.
When I moved on to the second simulation, I was seriously crunched for time. I barely
had 20 minutes to complete the whole thing. I went into survival mode and did the
written communication first and filled out whatever tabs I could.
After my experience with the research tab on the first simulation, I didnt even bother
trying to answer the research question on the second simulation. I left both of the research
tabs blank and I still passed. I wouldnt worry too much about it.
While my research tab on my FAR exam wouldnt work for me, I had no trouble with it
on Regulation. I strongly recommend that everyone get a feel for the research tab
functionality at www.cpa-exam.org.
22. My exam ended before I could click DONE on my last

simulation. Did my answers get saved?
Yes, they were saved and there is nothing to worry about. In my final two exams (REG
and FAR), I didnt get to click DONE on my final simulation and I passed them both
(92 and 76, respectively). People ask this question quite often.

23. I had computer problems during my exam. What should I

do?
You have a decision to make. Did your computer problems potentially keep you from
passing? If so, e-mail cpaexam@nasba.org and they will check your exam log to verify
that you did indeed have computer issues. If you choose to re-take your exam (and they
allow you to do so for free), you will never know what you actually scored on your exam.
If it was just a 5-15 minute interruption and was more annoying than anything and didnt
materially affect the outcome of your exam, then you will have to live with whatever
score you get. The time to complain to NASBA about testing center mishaps is before
you get your score.
24. I finished Auditing with 30 minutes to spare. Should I be

worried?
Not at all. Ironically, you are given the most amount of time from the AICPA for the
exam that takes candidates the least amount of time to finish among the three exams that
contain simulations. My second time to take auditing was also the time that I passed
auditing. I took my sweet time during the multiple choice questions and then with the
simulations and I still finished the exam with 30 minutes to kill.
Now, lets recap: I am a very slow test taker. I tend to go back and make sure that the
answers on my testlet havent changed because I was so scared of failing. Even still, I
had thirty minutes to spare. I asked the lady at Prometric if this was normal and she said
that in all of the Auditing exams that shes administered, she had only seen two
candidates take the full allotted time. So, if you finish AUD with time to spare youre
normal.
25. Shouldnt BEC be the easiest section of the CPA Exam? Its
only 2.5 hours and is basically a rehash of everything we
learned in college, right?
Wrong. Now, let me preface this with saying that people take BEC everyday and pass
BEC like its no big deal. However, if you take BEC lightly or take the material for
granted it will own you on exam day. Sure, you covered most of the material in college,
but this isnt a college final. This is a rigorous exam that will force you to answer
questions under pressure unlike any exam that you took in college.
Do not assume that BEC is the weak link or gimme on the CPA Exam. That type of
mentality will net you a low score on exam day. BEC is no joke, so prepare accordingly.

26. How many questions on the CPA Exam are pre-test?

Up to 20% of the multiple choice questions on the CPA Exam are pretest. This means
that up to 18 questions on FAR, BEC, and AUD are pretest and up to 14 MCQs on
Regulation are pretest questions as well. Pretest questions simply do not count toward
your score, but they may use them as live questions in the future.
27. Is BEC adaptive? I swear the questions were getting harder

each testlet.
The questions may have seemed harder as you went along, but it was an illusion. I get
this question a lot, actually. Currently BEC questions are not adaptive.
28. How do I know if Im getting the hard testlets?

FAR, REG, and AUD all start out on medium difficulty. From there you can progress to
hard if you do well on your first testlet. Otherwise, you stay on medium. You can also
go from medium to hard and back down to medium if you perform well on your first
testlet but not as well on your second testlet.
The clue to whether or not youre getting the hard questions in testlet two and three is
wordiness. Say that you start out on testlet one and the questions arent that difficult
and could even be described as easy" and youre progressing at a pretty good clip. Then,
out of nowhere in testlet two its like all of a sudden they started throwing real
questions at you.
The questions are more wordy and more involved. This is a good indication that you
did well in testlet one and have earned a hard testlet in testlet two. The medium-difficulty
testlets tend to be short, sweet, and to the point. If you find the questions in testlet two
and three so easy that they are almost too good to be true: be worried.
29. Does your performance on the multiple choice questions

have any effect on the simulations that you get?
No they are completely independent of each other. The simulations are not adaptive, so
your performance on the MCQs has no effect on what simulations you draw during the
exam.

30. I just took my exam and found it to be pretty easy. Should I

be worried?
Yes, you should probably be worried. People who study hard and know their stuff usually
comment that the exam was tough in some parts, but overall it was not that bad. They end
up scoring in the 80s and 90s.
Based on my experience in talking to CPA Exam candidates, those who are successful on
the exam rarely leave the testing center describing their exam as easy. If you found the
exam to be easy its likely due to you encountering three medium testlets which
indicate that you werent scoring well enough for the hard testlets.
With that said, everyone is different and its entirely possible that you found the exam to
be easy and scored very highly. Keep in mind that Im only speaking in general terms.
Im sure that there are people out there who studied hard and the exam felt easy to them.
This is not a common occurrence, however.
31. If I have to guess on my exam, what strategy should I use?

Sometimes, in the heat of the CPA Exam, particularly on a question involving a
calculation, you cant come up with an answer that matches the choices no matter how
much time you spend on it. With each exam (with the exception possibly being
Auditing), you have to be cognizant of the clock.
Five minutes too long spent on a frustrating MCQ is five minutes that youre cheating
yourself on a simulation. When it comes down to it and you have no choice but to guess,
according to the Yaeger CPA Review instructors, you need to choose B or C.
According to Yaeger CPA Review instructor Cindy Simpson, the least correct answer is
A, but its usually the most attractive incorrect answer.
The reason for this is because the exam administration team know that A is the first
answer that you will look at, so theyll throw a seductive looking wrong answer in that
space, which is why Ms. Simpson recommends working from the bottom answer (D)
up. If you must guess choose B or C.
I personally tested this theory after working 100 or so multiple choice questions one
night. I went back and tallied up the percentages of the correct answer letters. Ms.
Simpsons statement was correct. B and C were correct approximately 30% each.
A and D were only correct around 20% each.

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?
This is a recurring question that I get. For some reason, older CPAs, who passed the
exam under the paper and pencil method, see the need to belittle the exam experience of
those who have taken it more recently. They think its easy now because its tested on a
computer and offered more than twice a year and candidates only need to study for one
part at a time. I think its partly due to jealousy (as they reflect back on the 2 days of
misery that they experienced) and also partly due to ignorance.
No, the computerized exam isnt easier than the paper and pencil method, its just
different. The actual exam day experience itself was more stressful under the paper and
pencil method because you had to sit for all four parts over two days and were in a
crowded room taking the exam.
However, the breadth of information that candidates must study for the computerized
exam is greater than under the old method. Theres Sarbanes-Oxley, IT, and more
complex standards that are a result of a much more tightly-regulated business world.
Lets also not forget that the computerized exam is adaptive. The better you do, the
harder your questions get. Couple this with the fact that up to 20% of the questions on the
exam are pre-test and dont count and toss in two case-based simulations complete with
research tabs, and a strong case can be made that todays exam is harder than the paper
and pencil method.
I think we should all just call it a draw and settle on the fact that the CPA Exam is one of
the hardest professional examinations in any industry.
Score Reporting
33. What is the difference between the AICPA release and
NASBA release of exam scores?
This is one of the most confusing aspects of the score release process for candidates. CPA
Exam scores are first released by the AICPA to the states. Some states, like California
and Illinois, report the scores for candidates in their respective jurisdictions on their own
websites. The majority of states use NASBA to represent them in the score release
process. Most candidates can check their scores online regardless of who represents them
in the score release process with the exception of a few independent states who still
utilize snail mail to inform candidates of their scores.

This is how the score release process works:

1. The AICPA releases scores to the states. Everything in the score release process is
completely dependent on the AICPA to get things rolling.
2. States that report scores independently and do so online (such as California and
Illinois) generally get scores out very quickly after the AICPA release. Usually,
they release them within 24 hours especially California.
3. NASBA, who represents the majority of the states, releases scores online usually
within 24-48 of the AICPA releasing scores. As of this writing, NASBA only
releases scores in the evening between 8pm and midnight Central time.
4. Independent states who release their scores after NASBA will do so either via the
internet or snail mail, whatever the case may be for the particular state.
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?
A NASBA state is simply a state that uses NASBA.org to handle the score release
process for the candidates in their jurisdiction. To find out if your state is a NASBA state,
simply go to NASBA.org ! Exams ! CPA Exam ! State ! Scores.
If there is an area for you to enter your date of birth and section ID number, then you are
in a NASBA state. If there is no place for you to enter your information, then your state
releases independently of NASBA and you need to go to your state board of accountancy
website to look at how they handle score releases.
35. I sat for my exam on _______. When can I expect my score?

CPA Exam scores come out in two waves from the AICPA: Wave 1 and Wave 2. Wave 1
begins around the 15th day of the second month in the window and concludes around the
22nd or 23rd. Wave 2 occurs in the 3rd month (the non-testing month of the quarter) and
scores come out starting around the 12th-14th and conclude approximately ten days later.
Ex: July/August testing window:
-If you take your exam July 5, you will be in Wave 1, assuming you dont get a new
simulation on your exam

-If you take your exam August 7, you will be in Wave 1, assuming you dont get a new
simulation on your exam
-If you take your exam on August 8 or later, you will be Wave 2 regardless of whether or
not you get a new simulation
Wave 1 candidates are all candidates who are eligible to receive their scores in the first
wave of CPA Exam score releases. It doesnt mean that they will get their scores in the
first wave it just means that they are eligible. Wave 1 is from the first day of the first
month in the testing window through the 7th of the second month in the window.
Ex: January/February window in general, Wave 1-eligible exams will be from January
1 through February 7. If you sit for the exam on February 7, you are still considered
Wave 1. If you sit February 8, you are likely Wave 2. This is not an exact science, but
rather a general guideline. There have been some instances when (using the example of
the January/February window) February 8 candidates will still get their scores in Wave 1.
Bottom line: if you want your score in Wave 1, your best chance is to sit before the 7th
day of the second month in the window.
36. What time of day do scores come out?

For the independent states, it varies and is completely up to their discretion. NASBA now
releases scores in the evening around 9pm Eastern. You can check your score all day if
you want (its ok I used to hit submit all day too), but theyre not coming out until
9pm Eastern or later.
37. I didnt get my score in Wave 1, but I took my exam early in

the testing window. Does this mean Im borderline or failed? Im
freaking out! Please help!
If you didnt get your score in Wave 1, it doesnt mean that your score is borderline or
that you failed. You very well could be borderline or failed, but getting your score in
Wave 1 or Wave 2 has nothing to do with it.
The likely reason you missed out on Wave 1 is due to you getting a brand new
simulation, which will automatically push you into Wave 2. The wave in which you
receive your score is not indicative of your performance on the exam.

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 didnt. How can this be?
It could be for a number of reasons, but the most likely reason is due to you getting a
brand new (and thus, never tested) simulation on your exam, which according to my
interview with the AICPA (see appendix), automatically causes a candidates score to be
pushed to Wave 2.
39. I scored a 74. Should I appeal?

In short, you can do whatever you want, but I dont recommend it. As someone who
scored back-to-back 74s and lost my FAR credit as a result, I seriously considered it, but
in the end, I decided that it wasnt worth it. For one, I knew the chances of getting my
grade changed were between slim and none.
The AICPA would later confirm my suspicions in my interview with them (included in
the appendix). They stated that in 2008 zero scores were changed as a result of an appeal.
Secondly, you could apply to sit for the exam again AND get your score back before they
even begin to look at your exam. The process takes them that long, apparently.
As rough as a 74 is, and I can certainly sympathize with it, I recommend just sucking it
up and taking the exam again. A cram course would serve you well in this case. Buy one
and get back in there and take it soon.
40. I had to re-take a section and my old score was there online
yesterday, but its gone today. What does this mean?
Good news! It means that they are likely updating the score database and that scores will
be coming out relatively soon.
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?
I received this question after the April/May 2009 testing window and it just goes to show

you how critical the writing portions of the simulations are. Bombing the written
communications (they only actually grade one, remember) sections puts you behind the 8
ball, so to speak, with regard to the rest of the exam.
Yes, you can still pass, but losing up to 10% of your grade makes passing even more
difficult. You have to really do well on the MCQs and other areas of the simulations to
overcome a poor performance on the written communication that they happen to grade, as
evidenced in this instance where the candidate scored a 73 despite doing well on the rest
of the exam.
42. I received an advisory score and I PASSED! Its not going to

change, is it?
Some of the independent states use an advisory score when scores are first released. They
do this to release the scores quickly with the caveat that they are subject to review. While
this does not mean that they have never changed, I have yet to hear of one changing.
In short, CONGRATS!
43. I passed my final section of the CPA Exam. When will

NASBA
send me a confirmation letter?
Welcome to the waiting game. You should be used to this already, however. Once you
pass your final section and get your score online, expect to wait a good 4-6 weeks before
you receive something official in the mail.
Instead of directly sending you a diagnostic report like they do when you fail a section,
after passing your final section, they send all of the information to your state board of
accountancy, which in turn will pass it on to you, in addition to whatever literature they
want to send you.
44. I failed again and Im thinking about throwing in the towel.

Ive been at this for too long. I hate this exam.
Ive been there. Over the course of three years, I was there several times, actually. My
decision to stick with the exam came down to this:
1. I would always regret quitting the CPA Exam and it would bother me for the rest
of my life. In addition, it would haunt me for the remainder of my career being an
accountant who wasnt a CPA. I would miss out on opportunities and be bypassed

for promotions.
2. As a father of young kids, I would have trouble telling my kids to not give up
when they struggled with something when I myself threw in the towel because I
couldnt handle the adversity.
3. I decided that while the temporary failure and humiliation from not passing
sucked, for lack of a better word, three years from now when I had CPA next to
my name, the frustration I was experiencing now would all be a distant memory.
You have to stick with it and you cannot quit.
You need to do an:
1. Honest evaluation of yourself. Its time to come clean at least to yourself. Did
you give 110% or was it more like a 65% effort?
2. Honest evaluation of your review materials. Do your review materials match your
learning style? Every course is different and different people learn different ways.
Are your review materials up to date? If youre trying to get by with old materials,
its no wonder why youre struggling.
3. Honest evaluation of your schedule. If youre not studying 20 hours a week,
youre not studying. You need to figure out a way to work it in.
Quitting is not an option for you, so its time to figure out what the problem is and fix it.
Ethics Exam
45. How do I know if my state requires an ethics exam prior to
getting my certificate?
Some states dont have an ethics exam requirement, but many do. Your best bet is to
contact your state board of accountancy directly, either via their website, or simply pick
up the phone and ask them what is required. They will point you in the right direction.
46. I just sat for an exam. If I pass, Im done. How long do I have
to wait before I can take my states required ethics exam?
The bad news is that you have to now sit around and wait to see if you passed. The good
news is that while you wait, you can go ahead and order the ethics materials that your
state requires and get it out of the way. Many states use the AICPAs ethics course that
they sell for around $130 or so. Be SURE to check with your state and find out what
course they require, if any. Some states have their own ethics course, while others just

use the AICPAs course.

The ethics exam is very tedious and very boring, but if you order it and devote 2-4 hours
to completing it, you can pass the ethics exam and its one less thing to worry about.
Even if your score comes back as failing, you still have your ethics requirement out of the
way.
47. My friend is an AICPA member and can buy the course at a

discount. Should I order it through my friend?
No. You want your ethics exam purchase to be in your name. In the future, your ethics
course may even count as CPE for you. In short the discount is your friends not
yours. Pay the full price for the ethics course and get an account in your own name. It
will save you a bunch of hassle. How ironic that you wanted to use your friends AICPA
membership to save money on your ethics exam. Dont cut corners to save a buck or two.
Certification and Licensing

48. I just passed my final section! Im DONE! Can I call myself a
CPA?
Not yet. While the exam is uniform, certification and licensing are handled by the states.
You need to check with your state board of accountancy about their certificate and
licensing requirements.
Some things to consider:
1. Does your state have an ethics requirement that must be fulfilled prior to the
issuance of a CPA certificate?
2. Does your state have an experience requirement that must be met prior to the
issuance of a license? If so, how long is the requirement (1 year? 2 years?) and in
what capacity must you have worked in order for it to count as relevant
experience? Do they allow non-attest experience such as compilations and tax
work?
3. If the state has an experience requirement, does the person signing off on it have
to be someone who was your supervisor or can any licensed CPA with knowledge
of your background vouch for you? The experience requirement is a serious thing
to consider because it affects what jobs people take prior to passing the exam. If
the person signing off on your experience must have supervised you, then you

need to take a hard look at upper management before you take a job. Are they
CPAs? Are they licensed? These are things to consider.
Some states will allow you to put CPA after your name in your works internal e-mail for
internal purposes without being licensed. Be sure to check first before doing this though.
If you send an e-mail to an external party, simply delete CPA from your name before you
send it. Once youre licensed, you dont have to mess with deleting it anymore.
You must make sure that you fully understand what the rules are for holding yourself out
as a CPA. This is critical. You can get yourself into a lot of trouble if you dont do your
due diligence or skip a step. When in doubt, call your state board of accountancy and ask
them for guidance.
49. I have my certificate, Im licensed, and Im done! (Right?)

No, the fun has only just begun. You now have CPE requirements to worry about ". I
currently have 80 hours of continuing education that need to be completed a year from
now staring me in the face. I find myself skimming through the CPE catalogs trying to
find the least boring topics. So far, they all appear equally boring (and expensive).
I still havent decided if its worth fulfilling the CPE requirements in order to keep my
permit to practice. I worked so hard to pass the exam that I suppose I will keep my permit
active for a few years at least.
50. Should I expect to get a raise or be promoted after passing

the CPA Exam?
I have been asked this question several times. The CPA Exam is a tough road to travel.
Once it comes to an end, youre so ecstatic to be done and are so proud of your
accomplishment that you almost expect a parade in your honor with confetti everywhere.
Except, there is no parade, and no one outside of your friends who have either passed the
exam or are currently going through it, and your significant other, can fully understand
what you just accomplished.
Your parents will be proud, but they wont get it. Siblings, aunts, uncles, grandparents,
etc. will admire you, but they wont understand either. If you try to convey how draining
the whole process was, youll walk away frustrated because you wont be able to find the
words to do it justice, so dont even try.
I say all of this to remind candidates of the reason for going through the whole exam
process. Its for you and you alone. Sure, its a feather in your cap and a golden key that
will unlock many an interview. It will give you instant credibility among your peers.

They dont understand what it fully means that youre a CPA, but they think youre smart
and did something that is tough. They know this because Accounting 101 and 102 in
college were hard for them.
Did I get promoted? No. I was already a senior analyst just below a manager. Did I get
a raise? No. I was already paid very well. Did I get a parade? No. I didnt even get a
lunch from my work colleagues. I did get an atta boy, so thats something, right?
Again, my point in saying all of this is that the LONG hours and countless personal and
financial sacrifices must be for something other than monetary gains and increased
respect, because chances are that your expectations will not be met.
If you work in public accounting, then chances are very good that you will receive some
sort of promotion and/or raise. You are now worth more to your employer because they
can bill you out at a higher rate and youre a more valuable asset to them overall.
If you dont work in public accounting, does passing the CPA Exam make you better at
your job all of a sudden? The answer is no, which is why you shouldnt expect a raise. If
you do end up getting a raise because you passed the exam, then consider it gravy. It will
open the door for promotions and other opportunities over time that never would have
existed if you didnt have those three letters after your name, but dont expect a
promotion or a raise right away just because you are now a CPA.
As I said before, if youre trying to pass the CPA Exam in order to impress family or
friends, you are setting yourself up for disappointment. They just dont get it. Sure, they
know you worked hard and that the exam is difficult, but they dont have a clue about the
exam or everything that goes into it.
Actually, they were probably wondering why it took you so long to finally pass. Cousin
Jenny at cosmetology school passed her test the first time, but for some reason you cant
pass your accounting test. Oh well, they love you anyway. Youll get it hang in there
they keep saying. They dont understand nor should they.
You have to want to be a CPA for you for your career, for your family, for your self
respect. Any more than that and you run the risk of your accomplishment becoming
bittersweet. Yeah you passed, but no one really cares that much (certainly not enough to
warrant the sacrifice, anyway) and you didnt get a raise. The stupid exam fees arent
even tax deductible on your Schedule A!!!
I didnt get a raise because I passed the CPA Exam, nor did I get promoted. Most of my
extended family didnt fully understand what it took for me to pass, either. So was it
worth it? Absolutely.

Additional Resource
CPA Exam Myths Debunked: My Interview with the AICPA
Examination Team
1. A Curve on the CPA Exam?
another71.com: A common myth that circulates among CPA exam candidates is that
CPA exam scores are curved according to the performance of other candidates taking the
same section. Is a candidates score entirely independent of the performance of other
candidates? Does the AICPA employ any curving mechanism to keep pass rates at their
historical levels of 45 to 50 percent on average per section?
AICPA: The CPA exam is not curved. And yes, every candidates score is entirely
independent of other candidates examination results.
The CPA exam is a criterion-referenced examination, which means that it rests upon
predetermined standards. Every candidates performance is measured against established
standards to determine whether the candidate has demonstrated the level of knowledge
and skills that is represented by the passing score. Every candidate is judged against the
same standards, and every score is an independent result.
2. BEC - Why the wait?

another71.com: A widely held frustration among people who sit for BEC is that they
dont get their score right away. Since there are no subjective elements to BEC since it is
100 percent multiple choice (currently), why is a candidate not given at least a
preliminary score with the caveat that it is subject to review?
AICPA: Scores even preliminary ones cannot be released without state board
review and the application of standard quality control procedures. For these reasons,
issuing scores at test centers is impractical and the possibility is not being considered.
3. Re-score: Worth the hassle (and time and money)?

another71.com: When candidates score a 74 on an exam, the inevitable question that
they ask is, Should I apply to get it rescored? In 2008, approximately how many
candidates submitted applications to have their exams re-graded? What percentage of
those applications had a score that changed due to the re-grading process? How many
candidates went from fail to pass due to submitting an application for a re-grade?
AICPA: There is no such thing as a rescore or a re-grade. The service available is score
review, an automated score verification process. It involves making certain that the
approved answer key was used in scoring and that it was correctly applied. In 2008, score
review requests did not result in any score changes.

4. Grading transparency
another71.com: A common complaint about both the grading process and score
reporting process for the CPA exam is that they are not very transparent. Candidates feel
very much left in the dark. What steps is the AICPA taking to improve the transparency
of these processes and to keep candidates better informed?
AICPA: When it comes to scoring, How is the CPA exam scored? is a very successful
AICPA effort to bring transparency to the process. It is a non-technical overview
providing insight into scoring without the use of psychometric jargon. The technical
aspects of scoring are, of course, much less accessible to the layman. However, for those
who wish to tackle the technical, a wealth of information is readily available on the
Internet about Item Response Theory (IRT), the psychometric model that is the basis of
CPA exam scoring.
The current score reporting in two waves seems to be well understood by candidates but
much more needs to be done to erase candidate misconceptions about why some scores
are released earlier than others.
For example, candidates need to know that those who are presented with simulations that
have not been tested previously will receive their scores in the second wave, even if they
test at the beginning of a testing window. A sufficient number of responses to new
simulations must be available for psychometric analysis before scoring can begin, and it
is impossible to predict who will receive new simulations as simulations are assigned at
random.
5. Real-time scoring in the works?

another71.com: Currently, scores are released in two waves per testing window
commonly referred to as Wave 1 and Wave 2. A candidate who sits for an exam early in
the testing window and does not get their score in Wave 1 has to wait for yet another
month to get their score and oftentimes their study progress and motivation wanes
because of it. Are there plans in the future for the AICPA to move to real-time score
reporting to better serve the candidates?
AICPA: Faster and more frequent score release will be introduced after the
implementation of CBT-e a program of major CPA exam improvements. However,
real-time score reporting is not a realistic option and is not being considered. (Refer to
the response in question 2.)

6. Borderline candidates?
another71.com: Another widely held sentiment about score releases is that if a candidate
doesnt receive their score in Wave 2 of a testing window, then they are borderline
i.e., 72-77. Would you say that in general, the most candidates who dont receive their
score by Wave 2 are borderline?
AICPA: There are several possible reasons why some scores are released faster than
others. If psychometric analysis is required, for example, the scores of all candidates who
took a particular examination version whether passing, failing or on the brink are
held until the analysis is completed. For those who took AUD, FAR or REG, the second
reads of written communication responses may also be a factor. Second reads are
additional reviews of essays for candidates whose scores are close to passing.
7. Is a raw score possible?

another71.com: Another question that candidates have in regard to score reporting is the
fact that they leave a testing center with little more than a ventured guess as to how they
performed. Has the AICPA looked into a reporting format that gives a candidate their raw
score on the exam prior to leaving the testing center or soon thereafter?
AICPA: As indicated previously, plans are in place to introduce faster and more frequent
score reporting after CBT-e, the new CPA exam, is implemented. There are no plans,
however, to provide candidates with raw scores or any other kinds of scores at the
test center. (See response to question 2.)
8. 18 Month Rule
another71.com: In regard to the 18-month rule, candidates often feel they are at a
disadvantage due to a relatively slow score reporting process. For instance, if a candidate
sits for FAR on Day 1 of the testing window and misses the cut for the Wave 1 score
release in the second month, by the time they get their score in Wave 2 of the third
month, nearly three months of their 18-month window has expired. If you count the fact
that four of those 18 months are not testable months, they have even less time left. Has
there been any discussion of expanding the arbitrary 18-month timeframe to 24 months?
AICPA: Perhaps the real issue here is the test-taking strategy. A better approach might
be to take two sections in the first window, two in the next, and use the remaining four
windows to retake any sections failed on the first attempt.
!


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2010 Edition

Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

16. What is the best strategy for scheduling an exam?

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

Certification and Licensing

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

2. Whats the exam order from hardest to easiest?

Copyright 2010 Jeff Elliott, CPA

3. Im thinking about buying some used books from 2008. Do

4. My 18 month window is coming to a close and Im about to

Copyright 2010 Jeff Elliott, CPA

5. I cant pass BEC! What should I do?

Copyright 2010 Jeff Elliott, CPA

6. Information Technology is heavily tested on BEC and I hate it!

7. What was the main difference between your back-to-back 74s

Copyright 2010 Jeff Elliott, CPA

8. I cant pass Auditing! Youre not an auditor how did you

9. Did you memorize the different audit reports in order to pass

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

14. I bought a cram course. When should I watch it?

15. Im going through my review process and scoring low on

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

17. How long should I study for each section?

18. Im getting ready to take my first exam. What should I

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

20. I didnt finish my second simulation and left several tabs

21. I couldnt get my research tab to work! I thought I found the

22. My exam ended before I could click DONE on my last

Copyright 2010 Jeff Elliott, CPA

23. I had computer problems during my exam. What should I

24. I finished Auditing with 30 minutes to spare. Should I be

Copyright 2010 Jeff Elliott, CPA

26. How many questions on the CPA Exam are pre-test?

27. Is BEC adaptive? I swear the questions were getting harder

28. How do I know if Im getting the hard testlets?

29. Does your performance on the multiple choice questions

Copyright 2010 Jeff Elliott, CPA

30. I just took my exam and found it to be pretty easy. Should I

31. If I have to guess on my exam, what strategy should I use?

Copyright 2010 Jeff Elliott, CPA

Copyright 2010 Jeff Elliott, CPA

This is how the score release process works:

35. I sat for my exam on _______. When can I expect my score?

Copyright 2010 Jeff Elliott, CPA

36. What time of day do scores come out?

37. I didnt get my score in Wave 1, but I took my exam early in

Copyright 2010 Jeff Elliott, CPA

39. I scored a 74. Should I appeal?

41. My diagnostic report says that I am comparable or stronger

Copyright 2010 Jeff Elliott, CPA

42. I received an advisory score and I PASSED! Its not going to

43. I passed my final section of the CPA Exam. When will

44. I failed again and Im thinking about throwing in the towel.