CPA Exam

Success

3 steps to sitting the CPA exam:

Register
Study & Prepare
 Sit Exam
Background
The Uniform CPA Examination is a 14 hour exam with four sections:

Auditing & Attestation - 4.5 hours

3 Multiple choice question testlets (30 questions per testlet) – 70%; 2 simulation testlets – 30%

Covers knowledge of auditing procedures, auditing standards generally accepted in the United
States (GAAS) and other standards related to attest engagements and the skills needed to apply
that knowledge.

Financial Accounting & Reporting – 4 hours

3 Multiple choice question testlets (30 questions per testlet) – 70%; 2 simulation testlets – 30%

Covers knowledge of accounting principles generally accepted in the United States (GAAP) for
business enterprises, not-for-profit organizations and governmental entities, and the skills needed
to apply that knowledge.

Regulation – 3 hours
3 Multiple choice question testlets (24 questions per testlet) – 70%; 2 simulation testlets – 30%

Covers knowledge of federal taxation, ethics, professional and legal responsibilities, and business
law, and the skills needed to apply that knowledge.

Business Environment & Concepts – 2.5 hours

3 Multiple choice question testlets (30 questions per testlet) – 100%

Covers knowledge of general business environment and business concepts that candidates need
to know in order to understand the underlying business reasons for and accounting implications
of business transactions, and the skills needed to apply that knowledge in performing financial
statement audit and attestation engagements and other functions normally performed by CPAs
that affect the public interest.

Important Information
Ensure to obtain a copy of the Candidate Bulletin from the National Association of State
Boards of Accountancy (NASBA) website1. This and www.cpa-exam.org are key resources
for all detailed questions you may have.

Before registering and receiving support from the firm you must gain a thorough
understanding of the exam process and submit a detailed study plan to HR for review (See
Appendix A for example study plans). Your study plan should include a broad outline of
your study schedule and your intended exam dates. It is advised that you also
communicate your study plan to your counselor and managers and/or seniors who you
will be working closely with. Also see the Bermuda Code of Conduct Supplement section
5.6.3.3 for details of entitled study leave and support provided by the firm.

Any further questions, comments and suggestions can be sent to your CPA Co-ordinator
at xxx@bm.pwc.com. The CPA Co-ordinators are Wolete Lottimore, ext. 7238 and Wesley
Trott ext. 7265 (TO BE CONFIRMED).

2
 Register
There are currently 55 Boards of Accountancy and each board may have different requirements
in order to be applicable to register to sit the CPA examination. The majority of PwC students
register with the New Hampshire Board of Accountancy2. The main reason applicants register
with New Hampshire is because the requirement of 150 credit hours (equivalent to a Masters)
has not yet been implemented thus only 120 credit hours, equivalent to a Bachelors, is required.
Of this a minimum of 24 credits must be in business and 12 must be in accounting earned either
within the bachelor’s degree or outside the bachelor’s degree from a recognized university or
college. The following registration information is applicable to registering in New Hampshire.

1. You must complete an initial application, which can be found on NASBA’s website. Along
with a completed application form the following are required:
• Both an application and an examination fee
• 2 x 2 photograph
• Official transcript from each institution at which original credit towards the educational
requirement was earned. CPA Examination Services does not evaluate foreign
transcripts. If you have earned academic credit outside the U.S., you must have your
credentials evaluated by any member organization of the National Association of
Credential Evaluation Services (NACES)3. Candidates should obtain evaluation
request forms directly from the evaluating services. Evaluations may be submitted by
candidates to CPA Examination Services.

Important: The name on your application must appear exactly the same as it appears on
the 2 pieces of identification you plan to take to the testing center.

2. Allow 8 weeks for complete processing of the initial application. Processing of your
application will begin once all required information has been received.
3. Once application is approved NASBA will issue a Notice to Schedule (NTS) (See
Appendix B) by the method of notification indicated on the application.
4. Once a NTS has been issued, the candidate has 6 months from the date of the NTS to
schedule and take the examination sections applied for.
• Upon receipt of your NTS, you are required to log onto the Prometrics web site4
and/or call to schedule your exam. Candidates must have their Notices to Schedule
available when making test appointments. No appointments can be made fewer than
five days in advance of the desired test date and candidates requiring special testing
accommodations must schedule at least 10 days in advance.
• Prometrics delivers the examination to candidates through more than 300 testing
centers in the United States and U.S. territories. Prometric sites are located in most
metropolitan areas.

Important: Ensure your exam appointment confirmation is accurate.

The CPA exam is offered the first two months of each calendar quarter, up to six days a week.
The following months of testing are known as “testing windows”.

January and February

April and May
July and August
October and November

Candidates can sit for one or more parts of the exam during a test period but may not take a
specific part of the exam more than once during that same test period. Each State Board can
establish its own policy on the time frame in which a candidate must pass all four parts of the
exam. This period is 18 months for New Hampshire registered candidates.

3
Once registered you may book your air travel with Watlington Conyers Travel and let them know
you are with PwC; also request a copy of you invoice and intinery to be forwarded to HR.
Reserve your hotel room and arrange payment with HR. Ensure your hotel is near the test center
or you have reliable transportation.

For any subsequent exam attempts submit a new study plan and a CPA exam budget to HR.
(The CPA exam budget template can be found attached in the Bermuda Code of Conduct
Supplement section 5.6.3.3)

4
 Study and Prepare
The majority of PwC students have enrolled in the Becker CPA Review program5. This program
offers three course formats:

Live Classes - You get the most instructor and peer interaction in live classes and also receive
the benefit of class discussion. If you tend to procrastinate, live classes may be your best choice.

Online Classes - Online classes are ideal for people who appreciate the structure of a weekly
class, but want to participate anywhere there’s Internet access. Personal guidance from your
online instructor and class discussion threads are great ways to interact and get support.

CD-ROM Classes - Study whenever and wherever you want. Students who are self-disciplined
and prefer to work alone will appreciate the CD format. Becker CDs provide the same expert
instruction as their live and online classes, with the flexibility to study completely on your own
timetable.

Becker offers an intensive final review which is a last minute pre-exam workshop. You can attend
live sessions or order the self-study CDs.

Becker also sells flashcards which includes 950 ready-made cards with questions on the front
and brief answers on the back.

Arrange payment of your review course with HR.

Also see Jane Knight in Learning and Development for access to the firm’s library of BISK
material. This material includes comprehensive text books, lecture videos and quizzes.

Important: Becker CD-ROMs expire one year after activation.

Attributes of Exam Success6

• Positive Mental Attitude – Preparation for the CPA exam is a long, intense process
and a positive mental attitude is required to succeed.
• Development of a Plan – Prepare your required study plan amended to your situation
and schedule. Include in your schedule events, obligations, homework, and
simulation review. Ensure to incorporate enough time to complete a comprehensive
final review before the exam (see Appendix A for example study plans). Periodic
quizzes shall be administered by Jane Knight according to your submitted study plan.
This will aid in preparing you for the exams and ensuring you adhere to your study
plan.
• Adherence to the Plan – Stick to the plan in order to ensure you get through all the
material and complete your comprehensive final review.
• Time Management – Budget your daily study time and ensure to adhere to your
schedule. Schedule in work and recreational activities. Communicate your study
obligations to your counselor, managers and seniors you are working with. Make
sacrifices to ensure you spend adequate time studying i.e. activities with friends,
T.V., phone etc.
• Knowledge – Having a superficial understanding of accounting facts isn't good
enough to pass the CPA exam. You must know the material likely to be tested, how
to apply the knowledge and address the difference between merely knowing the
material and knowing how to use the material.
• Examination Strategies – Be familiar with the format of the exam and know exactly
what to expect when you enter the exam. Have a broad plan of how you will spend
your examination time.

5
 • Examination Grading – Knowing the grading procedures will help you maximize the
number of points you receive on the exam i.e. the communication portion of the
simulations is worth 10%. Be familiar with the Examination Content Specification7
included in exam preparation material and focus on more heavily weighted topics as
they are more likely to be included on simulations. This will also prevent you from
putting too much focus on topics which are not heavily tested.

Additional Tips on Tackling the Becker Review Material

• Begin studying consistently from day one of your prepared study plan and stick to
your prepared schedule. This will ensure you are getting through the material in a
timely manner. Remember you can never study too much.
• Approach the material piecemeal, completing each section before moving on to the
next. This will ensure you are effectively learning all the material while preventing
you from feeling overwhelmed.
• Review text and attempt all homework questions after each section.
• Review previous chapters and sections frequently throughout study. It is easier to
review previous sections as you go along rather then attempting a first time
comprehensive review of the whole text after completing all the material. Reviews
are also a good time to attempt homework questions you answered incorrectly.
• Ensure to become familiar with the format of the example simulations.

A Good Study Place

You need a good study place in order to study effectively and efficiently. Your study place
should:
• Be available to you whenever you need it.
• Be free from interruptions and distractions i.e. T.V., phone, video games, family and
work.
• Contain a large enough desk or table and a comfortable chair. (A couch or bed is
NOT a good study place)
• Have enough light and a comfortable temperature.

6
 Sit Exam

Important: You must take your NTS to the test center. You will not be permitted to take
the exam without your NTS. Ensure to read all the instructions included on your NTS.

Plan to arrive at the test site early and arrange transportation ahead of time.

Overcoming Test Anxiety8

You have to know the material to do well on the exam. You have to control test anxiety to show
what you know. Here are some things you can do before, during, and after your exams to reduce
your test anxiety.

1. Use good study techniques to gain cognitive mastery of the material that will be covered
on the exam. This mastery will help you to approach the exam with confidence rather than
have excessive anxiety.
2. Maintain a positive attitude as you study. Think about doing well, not failing. Think of the
test as an opportunity to show how much you have learned.
3. Go into the test well rested and well fed. Get enough sleep the night before the test. Eat
a light and nutritious meal before the test. Stay away from junk foods.
4. Stay relaxed during the exam. Taking slow, deep breaths can help. Focus on positive
self-statements such as “I can do this.”
5. Follow a plan for taking the exam. Don’t panic even if you find the test difficult. Stay with
your plan!
6. Don’t worry about other students and if they pass or fail. Take the time that you need to
do your best.
7. Once you finish the exam, forget about it temporarily. There is nothing more you can do
until you receive your results.

Guidelines to Correctly Answer Multiple-choice Questions

1. Focus on important words in the item. This will help you focus on the information most
needed to identify the correct answer choice.
2. Read all the answer choices before selecting one. It is just as likely for the last answer
choice to be correct as the first.
3. Eliminate answer choices you are certain are not correct. This will help you narrow down
the correct answer choice.
4. Look for two answer choices that are opposites. One of these two answer choices is
likely to be correct.
5. Look for hints about the correct answer choice in other items on the test. The correct
answer choice may be part of another item on the test.
6. Look for answer choices that contain language used in your study material and
homework questions. An answer choice that contains such language is usually correct.
7. Do not change your initial answer unless you are sure another answer choice is correct.
More often than not, your first choice is correct.
8. Choose “all of the above” if you are certain all other answer choices in the item are
correct. Do not choose “all of the above” if even just one of the other answer choices is not
correct.
9. Choose “none of the above” if you are certain all other answer choices in the item are
incorrect. Do not choose “none of the above” if even just one of the other answer choices is
correct.
10. Answer all questions regardless if you know the answer or not.
11. The communication portion of the simulations is worth 10%, ensure to attempt these.

7
Additional Information about the CPA Exam

• Accounting and auditing pronouncements are eligible to be tested on the Uniform

CPA Examination in the testing window beginning six months after a
pronouncement's effective date, unless early application is permitted. When early
application is permitted, the new pronouncement is eligible to be tested in the window
beginning six months after the issuance date. In this case, both the old and new
pronouncements may be tested until the old pronouncement is superseded.

For the federal taxation area, the Internal Revenue Code and federal tax regulations
in effect six months before the beginning of the current window may be tested.

For all other subjects covered in the Regulation (REG) and Business Environment
and Concepts (BEC) sections, materials eligible to be tested include federal laws in
the window beginning six months after their effective date, and uniform acts in the
window beginning one year after their adoption by a simple majority of the
jurisdictions.9

Important: If using the Becker Review course check their website regularly for updates to
the study material.

• A multistage adaptive test delivery model is used for Auditing and Attestation (AUD),
Financial Accounting and Reporting (FAR), and Regulation (REG) multiple-choice
testlets. This means that the first testlet presented to the candidate is at a level of
moderate difficulty. Subsequent testlets - at the same or slightly more difficult level -
are then chosen automatically based on the examinee's performance on the previous
testlet.

At the present time, Business Environment and Concepts (BEC) does not follow the
adaptive model, and is composed of testlets at the moderate level of difficulty only.

The simulations presented in FAR, AUD, and REG do not follow the adaptive model.
They are not selected on the basis of prior performance.

Take the exam tutorial and sample test at www.cpa-exam.org. Additional exam facts
can also be found on this site.

8
Appendix A – Example Study Plans

Important: The following are suggested guidelines and examples of study plans. Each
student is strongly urged to plan and implement a study plan that works best for them and
fits their learning style.

Example Study Plans While Working Full-time

The following study plans are based on these guidelines:

• Each Becker Review Course chapter is broken up into several sections and individual
lectures. Each lecture has assigned homework questions.
• Each chapter’s lectures, in total, range from 2.5 hours to 4 hours, thus each chapter
can be divided into 3 sessions.
• Each session shall consist of 1 to 2 hours of lecture, review of the material covered
and attempting all assigned homework applicable to that lecture.
• Each session review shall also consist of a review the material in the chapter,
revising incorrect homework questions and review of the chapter’s simulation
examples.
• In total each session’s lecture and review shall be 2 to 3 hours.

Financial Accounting and Reporting Example Study Plan

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Chapter 1 Chapter 1 Catch-up Chapter 1 Chapter 1 Catch-up Chapter 2
Week 1 or or
Session 1 Session 2 break Session 3 Review break Session 1

Chapter 2 Chapter 2 Catch-up Chapter 2 Chapter 3 Catch-up Chapter 3

Week 2 or or
Session 2 Session 3 break Review Session 1 break Session 2

Chapter 3 Chapter 3 Catch-up Chapter 4 Chapter 4 Catch-up Chapter 4

Week 3 or or
Session 3 Review break Session 1 Session 2 break Session 3

Chapter 4 Chapter 5 Catch-up Chapter 5 Chapter 5 Catch-up Chapter 5

Week 4 or or
Review Session 1 break Session 2 Session 3 break Review

Chapter 6 Chapter 6 Catch-up Chapter 6 Chapter 6 Catch-up Chapter 7

Week 5 or or
Session 1 Session 2 break Session 3 Review break Session 1

Chapter 7 Chapter 7 Catch-up Chapter 7 Chapter 8 Catch-up Chapter 8

Week 6 or or
Session 2 Session 3 break Review Session 1 break Session 2

Chapter 8 Chapter 8 Catch-up Chapter 9 Chapter 9 Catch-up Chapter 9

Week 7 or or
Session 3 Review break Session 1 Session 2 break Session 3

Chapter 9 Catch-up Catch-up Catch-up Catch-up Catch-up Catch-up

Week 8 or or or or or or
Review review review review review review review

9
 Auditing & Attestation and Business, Environment & Concepts

Example Study Plan

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Chapter 1 Chapter 1 Catch-up Chapter 1 Chapter 1 Catch-up Chapter 2
Week 1 or or
Session 1 Session 2 break Session 3 Review break Session 1

Chapter 2 Chapter 2 Catch-up Chapter 2 Chapter 3 Catch-up Chapter 3

Week 2 or or
Session 2 Session 3 break Review Session 1 break Session 2

Chapter 3 Chapter 3 Catch-up Chapter 4 Chapter 4 Catch-up Chapter 4

Week 3 or or
Session 3 Review break Session 1 Session 2 break Session 3

Chapter 4 Chapter 5 Catch-up Chapter 5 Chapter 5 Catch-up Chapter 5

Week 4 or or
Review Session 1 break Session 2 Session 3 break Review

Regulation Example Study Plan

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Chapter 1 Chapter 1 Catch-up Chapter 1 Chapter 1 Catch-up Chapter 2
Week 1 or or
Session 1 Session 2 break Session 3 Review break Session 1

Chapter 2 Chapter 2 Catch-up Chapter 2 Chapter 3 Catch-up Chapter 3

Week 2 or or
Session 2 Session 3 break Review Session 1 break Session 2

Chapter 3 Chapter 3 Catch-up Chapter 4 Chapter 4 Catch-up Chapter 4

Week 3 or or
Session 3 Review break Session 1 Session 2 break Session 3

Chapter 4 Chapter 5 Catch-up Chapter 5 Chapter 5 Catch-up Chapter 5

Week 4 or or
Review Session 1 break Session 2 Session 3 break Review

Chapter 6 Chapter 6 Catch-up Chapter 6 Chapter 6 Catch-up Chapter 7

Week 5 or or
Session 1 Session 2 break Session 3 Review break Session 1

Chapter 7 Chapter 7 Catch-up Catch-up Catch-up Catch-up Catch-up

Week 6 or or or or or
Session 2 Session 3 review review review review review

10
 Example comprehensive review during study leave:

F - Financial Accounting & Reporting (FAR)

B - Business Environments & Concepts (BEC)

JULY 2007
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6 7
Morning: F Ch 1 Morning: F Ch 2 Morning: F Ch3 Morning: Morning: F Ch 4 Morning: F Ch 5 Morning: F Ch 4
Lecture/ Review Lecture/ Review Lecture/ Review Review Ch 1,2 Lecture/ Review Lecture/ Review & 5 Review
Afternoon: F Ch Afternoon: F Ch Afternoon: F Ch &3 Afternoon: F Ch Afternoon: F Ch Afternoon: F Ch
1 Homework 2 Homework 3 Homework Afternoon: Ch 4 Homework 5 Homework 4 & 5 Review &
1,2 & 3 Simulations
Homework
8 9 10 11 12 13 14
Morning: F Ch 6 Morning: F Ch 7 Morning: F Ch 6 Morning: F Ch 8 Morning: F Ch 9 Morning: F Ch 8 Catch-up and
Lecture/ Review Lecture/ Review & 7 Lecture/ Lecture/ Review Lecture/ Review & 9 Lecture/ Simulations
Afternoon: F Ch Afternoon: F Ch Review Afternoon: F Ch Afternoon: F Ch Review
6 Homework 7 Homework Afternoon: F Ch 8 Homework 9 Homework Afternoon: F Ch
6 & 7 Homework 8 & 9 Homework
& Simulations & Simulations

15 16 17 18 19 20 21
Morning: B Ch 1 Morning: B Ch 2 Morning: B Ch Morning: B Ch 3 Morning: B Ch 4 Morning: B Ch Morning: B Ch 5
Lecture/ Review Lecture/ Review 1&2 Review Lecture/ Review Lecture/ Review 3&4 Review Lecture/ Review
Afternoon: B Ch Afternoon: B Ch Afternoon: B Ch Afternoon: B Ch Afternoon: B Ch Afternoon: B Ch Afternoon: B Ch
1 Homework 2 Homework 1&2 Homework 3 Homework 4 Homework 3&4 Homework 5 Homework

22 23 24 25 26 27 28
BEC & FAR BEC & FAR BEC Travel & BEC Sit BEC FAR FAR
Comprehensive Comprehensive Comprehensive Review Comprehensive Comprehensive
Exam
Review Review Review Review Review

29 30 31
FAR FAR FAR
Comprehensive Comprehensive Comprehensive
Review Review Review

AUGUST 2007
1 2 3 4
Travel
Sit FAR
Exam X X

11
Appendix B - Notice to Schedule

12
Appendix C - Resources

13
1
National Association of State Boards of Accountancy
www.nasba.org

The candidate bulletin

http://www.nasba.org/nasbaweb/NASBAWeb.nsf/FNAL/CandidateBulletin?opendocument
2
New Hampshire Board of Accountancy
www.nh.gov/accountancy
3
National Association of Credential Evaluation Services
www.naces.org
4
Prometrics
www.prometric.com/CPA
1-800-580-9648
5
Becker CPA Exam Review
www.beckercpa.com
6
Attributes of Exam Success obtained from the BISK text books.
7
CPA Examination Content Specification
http://www.cpa-exam.org/download/CPA_Exam_CSOs_revised_10_05.pdf
8
A Study Skills Resource Site
Overcoming Test Anxiety and Guidelines to Correctly Answer Multiple-choice Questions obtained from
www.how-to-study.com
9
www.cpa-exam.org