Slide 1 Computer-Based CPA Examination... A Webcast for Educators The views expressed by the...

Computer-Based CPA Examination

. . . A Webcast for Educators

The views expressed by the presenters do not necessarily represent

the views, positions, or opinions of the AICPA

or the presenters’ respective organizations

Program Objectives

This program is designed to:• Help you understand the new content and

structure of the revised CPA Exam• Help you assess how you might want to

revise your curriculum• Provide information on research related

activities to implement in the classroom• Make you aware of resources related to the

revised CPA exam

Today’s Speakers

Michael Bolas, CPA President

Miken Companies, Inc.--------

Debra Hopkins, CPA Director

Northern Illinois University CPA Review

--------

D. Gerald Searfoss, CPA Professor of Accounting

University of Utah--------

John F. Hudson, CPAModerator

Hudson Consulting Group, LLC

--------

6 Months to Launch

• Historic change • Last paper and pencil exam/November 5-6• CBT will launch on April 5, 2004• Major milestones have been met/cooperative

effort among AICPA, NASBA and Prometric

Project Status

• Prometric, NASBA and AICPA working closely to ensure necessary integration to new exam

• CBT will be administered in select Prometric centers

• Eligible candidates will receive a Notice to schedule (NTS) allowing them to register to sit for exam section(s)

National Candidate Database

• New system created by NASBA• Designed to track each candidate with unique

national ID• All candidate data maintained within the NCD• Ensures only eligible candidates test at

appropriate times • Secures candidate data, including grades

Dates to Test

Open Closed

April – May June

July – August September

October – November December

January – February March

Taking the Exam

Upon completion of check-in, the candidate:

• is seated at a designated workstation

• begins the exam after proctor launches the session

• is monitored by a Test Center Administrator

• is video taped

At Completion

Upon completion of the examination, the candidate:

• signs-out

• collects his/her belongings

• turns in scratch paper

• is given a Post Exam Information sheet

The Examination

• Four Sections– Auditing and Attestation (4.5 hours)– Financial Accounting & Reporting (4 hours)– Regulation (3 hours)– Business Environment & Concepts (2.5 hours)

• 14 hours total length

Auditing & Attestation

• Auditing Procedures• Generally Accepted Auditing

Standards• Other Standards Related to Attest

Engagements• Skills Needed to Apply That

Knowledge

Financial Accounting & Reporting

• Generally Accepted Accounting Principles for:– business enterprises– not-for-profit organizations– government entities

• Skills Needed to Apply That Knowledge

Regulation

• Federal Taxation• Ethics• Professional and Legal Responsibilities• Business Law• Skills Needed to Apply That Knowledge

Business Environment & Concepts

• Business Structures • Economic Concepts• Financial Management• Information Technology• Planning and Measurement

Business Environment & Concepts

BEC White Paper

• Recently distributed to educators• Provides additional detailed information on

content areas within this section• Includes additional references and sample

questions• 70% of content new in this section• Downloadable from www.cpa-exam.org

Exam Content Differences

Paper-Pencil Based• Auditing 100%

• Financial Accounting & Reporting

– Business Enterprises 100%

• Accounting & Reporting– Taxation 60%– Gov/NPO 30%– Managerial Acct 10%

• LPR– Business Structures

20%– Other 80%

Paper-Pencil Based• Auditing 100%

• Financial Accounting & Reporting

– Business Enterprises 100%

• Accounting & Reporting– Taxation 60%– Gov/NPO 30%– Managerial Acct 10%

• LPR– Business Structures

20%– Other 80%

Computer Based• Audit & Attest 100%

• Financial Accounting & Reporting– Business Enterprises 80%– Governmental 10% – Not-For-Profits 10%

• Regulation– Taxation 60%– Law & Professional

Responsibilities 40%

• Business Environment– Business Structures 20%– Managerial Accounting

10%– New Areas 70%

Computer Based• Audit & Attest 100%

• Financial Accounting & Reporting– Business Enterprises 80%– Governmental 10% – Not-For-Profits 10%

• Regulation– Taxation 60%– Law & Professional

Responsibilities 40%

• Business Environment– Business Structures 20%– Managerial Accounting

10%– New Areas 70%

Exam Content

• Examination Content Specification Outlines (CSOs) form framework for testing knowledge and skills

• Effective with first computer-delivered administration

• Available for download on www.cpa-exam.org

• Examination Content Specification Outlines (CSOs) form framework for testing knowledge and skills

• Effective with first computer-delivered administration

• Available for download on www.cpa-exam.org

Examination Format

• Multiple Choice • Case-based simulations (25-45

minutes each)– test integrated knowledge– more closely replicate real world– assess research, written communication

and other skills

• Multiple Choice • Case-based simulations (25-45

minutes each)– test integrated knowledge– more closely replicate real world– assess research, written communication

and other skills

Simulation Question Types

• Drop-down selection lists• Check boxes• Spread sheets (enter, drag & drop, formula)• Written communication• Research (access to professional literature

and other information)

Simulation Tools

• Spreadsheet tool• Word processing tool• Cut, copy and paste• Spellchecker• Four-function calculator• Access to professional literature and other

resources

Multiple Choice Questions

Simulations

Authoritative Literature

• All simulations will include a research component

• Candidates will be required to access authoritative literature:– FASB – Current Text and Original

Pronouncements– AICPA Professional Standards– Tax Database

• Code, Regulations and Publication 17

Simulations

Written Communication

• Most simulations will require a written communication question

• Will be scored for writing skills• Must demonstrate knowledge of the content

or answer will not be scored

Score Reporting

• State Boards of Accountancy distribute grades

• Initially, advisory grades reported at the end of each window

• Frequency of release to State Boards of Accountancy should increase within a year

• State Boards of Accountancy distribute grades

• Initially, advisory grades reported at the end of each window

• Frequency of release to State Boards of Accountancy should increase within a year

Granting of Credit

• Each section can be taken individually and in any order

• Credit for a passed section(s) retained for 18 months

• No minimum score requirement for failed sections

Granting of CreditImpact on Candidates

• Candidates have more flexibility in terms of scheduling to test

• Candidates can focus study on a section(s) as they feel comfortable

• Can take one or more sections within a month, window or longer period

Candidate Resources

• CBT Tutorial available on www.cpa-exam.org– Provides guided tour of revised exam– Demonstrates look and feel and available

tools– Allows users to try functionality themselves

• Practice samples available in early 2004– Condensed set of multiple choice and

simulations– Will be downloadable from website– Replicate look and feel of CBT

Granting of CreditCandidate Preparation

• Candidates have more flexibility in terms of scheduling to test

• Candidates can focus study on a section(s) as they feel comfortable

• Can take one or more sections within a month, window or longer period

Case Approach – Required Knowledge and Skills

• Technical knowledge• Ability to integrate technical knowledge• Ability to deal with ambiguity• Ability to think analytically• Ability to research the professional guidance

and identify relevant sources

Preparing Your Students Through Pedagogy

• Using case studies in your courses• Requiring the researching the professional

guidance• Using articles from the business and

financial press• Integrating business and technical knowledge

Using Case Studies

• Challenge creative and critical thinking• Apply and learn concepts, not only

mechanics and rules• Develop reasoning skills• Develop written communication skills• Sources of Cases:

- AICPA Case Studies - Deloitte & Touche Trueblood Cases

www.deloitte.com/more/dtf/cases_date.htm

Using Cases as a Discussion Tool

• Intermediate Accounting courses

• Use of cases is integrated with learning teams of four or five students

• Teams discuss cases to identify critical issues

• Instructor uses teams to create consensus list of critical issues

• Class and instructor discuss issues

Using Written Cases

• Intermediate Accounting and Masters course

• Case is briefly discussed in class to identify major issues

• Individuals and teams conduct research

• Individuals prepare minimum five page case write-up including research results

Using Written Cases

• One copy of the case is collected • Teams members discuss their papers

and attempt to reach a consensus• Instructor and class discuss pros and

cons of proposed alternatives

Researching the Professional Guidance


• Research is integral part of preparing case analysis

• Each case contains issues requiring searching the FASB, AICPA, and SEC guidance

• FASB guidance is accessed by acquiring a CD or in computer labs

Researching the Professional Guidance

• AICPA guidance is accessed in the computer labs

• SEC is accessed through SEC.GOV• Develops the ability/skill to use a

search platform, which is generalizable to other platforms

Other Reference Sources

• Letter sent to accounting educators from Kevin Stocks

• Students and educators can get access to AICPA literature at low or no cost

• FASB literature available on www.fasb.org

• Other textbooks available

• Information included on educator resource page of www.cpa-exam.org

Integration: Business Knowledge and Technical Knowledge

Discussion of Articles


• Students in each team must choose among Wall Street Journal, Business Week and Fortune

• The team is assigned a company• Students track the company, the industry

and the profession for the semester

Integration: Business Knowledge and Technical Knowledge

Discussion of Articles

• Focus is on all issues or events that may effect the company, industry or profession

• Articles need not mention accounting

Developing Business Knowledge and Integrating IT With Technical Knowledge

• Capstone Masters course

• Four teams

• Each team constitutes an industry and becomes “expert” on the economic, accounting and auditing issues unique to the industry, while teaching the other teams

• Teams obtain the annual report and 10K of a major company in their industry

Developing Business Knowledge and Integrating IT With Technical Knowledge

• Teams must prepare a comparative business and financial analysis of their assigned company, highlighting the unique industry issues

• Includes case studies and over 100 articles grouped and focused on major issues, e.g. derivatives, intellectual assets, managing earnings, governance

www.cpa-exam.org

Computer-Based CPA Examination. . . A Webcast For Educators

Summary & Questions

Thank You For Participating!

Upcoming CPA Examination Webcasts

For a complete listing, check our website at http://www.cpa-exam.org

Upcoming Webcasts

November 6, 2003 [1pm Eastern Time]

The AICPA and FBI will join forces to bring you this unique program. In the program, we will look back and discuss “lessons learned” from real-life war stories out of the cases pursued by the FBI. Find out how the fraud happened, why it should have been caught early on and how to keep it from happening to your employer or client. The program will also look forward and discuss the FBI’s “Fraud Radar,” where it’s currently focused and areas of future concern. Use this information going forward to help prevent and detect financial fraud by knowing areas of higher risk.

Check it out at http://www.cpa2biz.com/webcasts

FREE Webcast: “Arresting Financial Fraud: The Inside Story From The FBI”

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