ComputerBased CPA Examination . . . A Webcast for Educators

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

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Todays 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, CPA
• Moderator
• Hudson Consulting Group, LLC
• --------

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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

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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)

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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

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Dates to Test

• Open Closed
• April May June
• July August September
• October November December
• January February March

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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

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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

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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

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Auditing Attestation

• Auditing Procedures
• Generally Accepted Auditing Standards
• Other Standards Related to Attest Engagements
• Skills Needed to Apply That Knowledge

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Financial Accounting Reporting

• Generally Accepted Accounting Principles for
• business enterprises
• not-for-profit organizations
• government entities
• Skills Needed to Apply That Knowledge

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Regulation

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

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Business Environment Concepts

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

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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

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Exam Content Differences

• 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

• 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

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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

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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

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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)

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Simulation Tools

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

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Multiple Choice Questions
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Simulations
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Simulations
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Simulations
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Simulations
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Simulations
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Simulations
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Simulations
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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

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Simulations
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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

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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

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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

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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

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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

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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

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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

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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

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Preparing Your Students Through Pedagogy

• Using case studies in your courses
• Requiring the researching the professional
  guidance
• Using articles from the business andfinancial
  press
• Integrating business and technical knowledge

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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

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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

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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

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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

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Researching the Professional Guidance

• Intermediate Accounting and Masters course
• 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

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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

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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

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Integration Business Knowledge and Technical
Knowledge

• Discussion of Articles
• Intermediate Accounting and Masters course
• 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

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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

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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

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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

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www.cpa-exam.org
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Computer-Based CPA Examination. . . A Webcast
For Educators

• Summary Questions

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• Thank You For Participating!

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Upcoming CPA Examination Webcasts For a complete
listing, check our website at http//www.cpa-exam.
org
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Upcoming Webcasts
FREE Webcast Arresting Financial Fraud The
Inside Story From The FBI

• November 6, 2003 1pm Eastern Time
• The AICPA and FBI will join forces to bring you
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•  
• The program will also look forward and discuss
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• Check it out at http//www.cpa2biz.com/webcasts