Dear students, many of you have asked me specific questions about the new CPA exam and the reviews available to you. I have accumulated selected information for you from a number of different sources including the AICPA exam site, Gleim, and the Wisconsin Department of Regulation and Licensing. Please note that this page was prepared in February 2004. Please let me know of any changes you think should be made. Thanks in advance!
New Sections and Timing Differences:
|
New Computer-Based CPA Sections |
2004 Length (HRS) |
|
Old CPA Sections |
Current Length (HRS) |
|
1) Auditing & Attestation |
4.5 |
Auditing |
4.5 |
|
|
2) Financial Accounting & Reporting |
4.0 |
Financial Accounting & Reporting |
4.5 |
|
|
3) Regulation |
3.0 |
Accounting & Reporting (ARE) |
3.5 |
|
|
4) Business Environment & Concepts |
2.5 |
Business Law & Professional Responsibilities |
3.0 |
|
|
|
14.0 |
|
15.5 |
Changes Starting in April 2004:
Clearly, the most significant change to the CPA exam is the introduction of using the computer to take the exam. But equally significant for candidates is the introduction of simulations--which are mini "case studies" that incorporate the grading of writing skills and professional literature research skills. It is absolutely imperative that you take the AICPA Tutorial and Sample Exams discussed below (see Simulations/Tutorials/Sample Exams) to familiarize yourself with the new simulation format.
The official exam site is www.cpa-exam.org. You will want to download the CPA Candidate Bulletin (34 pages) for details about the exam.
The new exam has increased emphasis on information technology and general business knowledge (including economics and finance) with a broadened scope in the audit area.
All exam sections (except Business Environment/Concepts) will contain 5 "testlets". Two testlets are simulations and three are multiple choice which contain 30 questions each. Once you have completed a testlet, you CANNOT go back to that testlet to change an answer . You may take a break and leave the test room between testlets, but the clock keeps running. The Business Environment/Concepts has three testlets with 24 questions each.
ONLY CORRECT RESPONSES TO QUESTIONS ARE COUNTED AS THERE IS NO PENALTY FOR GUESSING. So even if you do not know the answer, guess. The software has marking capability built in to identify questions you want to go back to later. But I read an article by a student who pre-tested the exam, and he said it is best to mark the question numbers separately on scratch paper. It is smart to track the questions by placing them in two categories - questions you can make educated guesses on and questions that you have no clue about. This allows you to just guess a, b, c, or d on the "no clue" questions if you are short on time and focus on the ones you may be able to figure out.
Candidates will take different equivalent exams. Each exam will be drawn from a pool of test questions. NASBA will run metrics to ensure that the results are comparable among students.
Auditing & Attestation - See here for Detailed Information Regarding Exact Topics Covered
Financial Accounting & Reporting
Regulation
Business Environment & Concepts
| Months Exam Given | January & February | April & May | July & August | October & November | ||||
| Month Off | March | June | September | December |
Simulations/Tutorials/Sample Exams:
Simulations are "mini" case studies and are designed to test skills necessary for an entry-level accountant to possess. Typical skills tested include the ability to use a mouse, check boxes, basic spreadsheet skills (not specific to types of software), form completion, fill-in the blanks, completion of tables, use of professional research literature and preparation of written communications such as letters, memos and reports. Two simulations will be included all parts of the exam except for the Business Environment and Concepts section (which will be added later). Simulations last 35-45 minutes.
A major component of the simulations includes the written communication which will be graded for content AND WRITING SKILLS. The examiners now want paragraphs, not bulleted lists which were acceptable in the old days of essays. A spell checker will be provided. The Research component involves student use of auditing and accounting standards and the tax code. It is ABSOLUTELY IMPERATIVE that you gain familiarity with the simulation format in advance. There is a tutorial at www.cpa-exam.org (it takes about an hour) which will help familiarize you with the overall format of the new exam. There is also a sample exam with real simulations for practice. YOU MUST DO BOTH OF THESE!!!
Classes: Complete the 150 credit hours of education requirement. (Bachelors degree or a higher degree with a major in accounting or an equivalency of an accounting major.) Click here for detailed instructions about specific requirements if you do not have a Bachelors degree or higher with a major in accounting or an equivalency of an accounting major.
60 Day Grace Period: You are allowed to take the exam 60 days before graduating with your 150th
credit. See instructions under registration for how to go about asking for the 60 day grace allowance. Verification of education will need to be provided.Applications for the exam can be obtained at www.nasba.org. Go to the "Examinations" page and then click on "Uniform CPA Examination" at the top of the page. Next, scroll down and click on the state of Wisconsin depicted on the U.S. map. Information about the exam is included on the next page where you will also find the application materials. Be sure to print the application and the Certificate of Enrollment (found right below it). Both forms are .pdf files so you need Adobe Acrobat reader on your machine. To print the forms use the print icon in Adobe, not File/Print from the Explorer toolbar. the school code for UWM is 03896. Your eligibility will be determined by NASBA (using CPAES) and you will be given a Notice to Schedule that is valid for 6 months. If you don't take all four parts within the six months you need to reapply (and pay the $135 application fee over). The application form states that this process will take two to four weeks. Once you have the NTS in hand, you can go to the Prometric web site (www.prometric.com/cpa) or call 1-800-580-9648 to set up your exam time. A list of Wisconsin test centers are here -- the two closest sites are at Brown Deer Road in Fox Point and Moreland Road in New Berlin.
There are several things you should be aware of--
You will need a transcript that shows all university credit you are counting towards the 150 hours. The application makes it sound like you need to have a transcript from each school you have attended. Per CPAES, as long as the credits from the other university show up on your UWM transcript you will be fine. You can order your transcripts from UWM through Paws-->Go to Academics-->Academic Record-->Request Official Transcript or by going to Enrollment Services in Mellencamp 274. The phone number is 229-5775. Although the application says that the transcripts MUST BE sent directly by the university to CPAES, the Wisconsin Coordinator has told me that they will accept sealed transcripts received directly from the candidate with their application form. You must specifically request enrollment services to provide the transcript in a sealed envelope. When applying through PAWS, there is a comment area where you can make the request. You may prefer to send the application and transcripts together so there can be no question about their arrival.
If you are still working on your 150 hours, you will need a Certificate of Enrollment. You can take the exam up to 60 days BEFORE the completion date of the 150th credit. Take the Certificate of Enrollment Form to the Graduate Student Services in N251 and they will complete the form for you and mail it to the address you give them. Graduate Student Services will be using the end of semester date as the completion date sent to CPAES.
You will need a 2X2 recent photo and a check (remember this is an investment!) You only pay the $135 application fee the first time taking the exam. You pay the reduced fees the second time you get an NTS (notice to schedule), even if you did not sit for those particular sections the first time around. All of the other details are on the application form.
If you have individual questions that you need answered about the application process you can email the Wisconsin coordinator for NASBA who is Letitica Pinkney. She greatly prefers email lpinkney@nasba.org. If she doesn't get back with you in a couple of days, her direct number is 615-880-4267. You can also call 1-800-CPA-EXAM and ask to be transferred to her.
Other Requirements to Become a CPA:
Besides passing the exam, the only significant additional requirement to get your CPA license is to meet the one year experience requirement. Public accounting experience always counts, but there are other types of experience that will qualify also. Click here for a list from the Wisconsin State Board of what does and does not qualify as the requisite experience. Once you have met the experience requirements you should fill out an application obtained from the State Licensing Board.Bureau of Business and Design Professions - Accounting
Department of Regulation and Licensing
Website: www.drl.state.wi.us
Telephone: (608) 261-7096
THEY PREFER EMAIL web@drl.state.wi.us
Wisconsin CPA Board
I have two contact names for questions at the Wisconsin State Board:
Here are the requirements of different states if you are not planning to practice in Wisconsin. (Courtesy of www.nasba.com)
After they receive your application you need to take the ethics exam and then you pay your fees (of course!) and you become a CPA. Congratulations!
CPA Review Choices, Costs and My Opinion:
My Opinion: I have often been asked about which CPA Review is the best to take and if they are necessary. First, in my opinion everyone NEEDS TO TAKE a review. The amount of information tested is massive, and not all of it is covered in your classes. I also believe that it doesn't matter which CPA Review course you choose, as I have heard from students over the years that they all cover the same basic set of material needed for passing the CPA exam. I am completely convinced that the bottom line is whether you are willing and able to put in the amount of time studying that is needed to bring yourself to the required level of competence to pass the exam. If you are doing multiple choice questions and you are not over 80-85% on a regular basis, I think you should be concerned that you are not at that competence level. Some students believe that once they get to 75% they are ok, but I think that you must leave allowances for the fact that the simulations are less predictable than multiple choice and there is a reasonable chance that you will score lower on them. Of course, the number of hours required is obviously going to vary greatly depending upon how much you have studied and retained from your accounting courses.
Your choices for CPA reviews range from just buying review manuals and multiple choice software to more structured online reviews to "live" reviews. I have had many students use CPA Excel or Gleim's Online CPA review. I have negotiated a discount for all UWM students (please note that I never take any money from CPA review companies when my students purchase their materials!). If you just want to buy the review manuals and software to study on your own I highly recommend the Gleim materials. I would definitely think about these options before spending more on a "live" review. However, there are many students who like the "classroom" feeling". I have had a number of students take the Milwaukee CPA Review which has real accounting teachers and a reasonable cost. I would think long and hard about spending $2300 to take Becker (unless of course someone else was paying)!.