ABOUT THE COMPUTERIZED CPA EXAM
FAQs about the new CPA examination
from a California perspective
Associate Professor of Accounting at Cal State University, Bakerafield
(661)664-2339 voice mail; jpatten@csubak.edu
email;
www.csubak.edu/~jpatten Web
Page
Purpose of article:
This article answers common questions about the computerized CPA exam in
California. The article begins with author background to provide some
perspective to the answers.
Author Background
Although this author’s CPA exam adventures were over a generation ago,
they parallel those of today’s candidates.
This author failed all four parts of the
exam in one sitting in 1965. In 1970, I passed all four parts in one sitting.
In the 1965 attempt, at age 22, I, like
many candidates then and now, did minimal preparation for the exam. I had
little practical accounting experience but I had just spent the last four years
completing a bachelor’s degree in accounting at a top business school. It
seemed logical that passing the CPA exam should be a bi-product of that
education. NOT!
By 1970 I had more maturity, accounting
experience, education, and CPA exam preparation time. By then I was happily
married, had a MBA in accountancy, had held jobs titled accounting manager and
chief accountant, and had almost a year’s experience with a national CPA firm.
Note that I did pass the exam, but just barely! My scores included two
75s, a 78, and a sterling 82. Seventy-five has always been, and will continue to
be, the lowest passing score on the CPA exam! Thus, I have answered the
following questions with a good sense of understanding, authority, and humility.
1. Is the new exam
more difficult that the old exam?
No. Although purported as one of the most difficult professional
examinations, the CPA exam is very passable for candidates that prepare for it.
Regardless of its format, its purpose is to test entry level skills. That
is why California has experience requirements that must be met before it issues
a license to practice. In addition, practicing CPAs face regulatory oversight
and continuing education requirements.
There is no one-size-fits-all answer to this question even though the CPA
exam is a one-size-fits-all exam. All candidates have varying time and budget
constraints along with different learning styles. They need to select exam
preparation options accordingly.
The computerized CPA exam will be
available in the first two months of each calendar quarter. The third month, or
dark time, is used to refresh the exam database. This cycle is scheduled to
begin with the second quarter of 2004.
Proposed exam costs are as follows:
Fees paid to the California Board of Accountancy (the
Board)
First-time applicants
Initial Qualification and
Authorization to Test (ATT)
$100.00
Repeat applicants ATT
$ 50.00
Fees to be paid to NASBA (National State Board of
Accountancy) total $470:
Auditing and Attestation
$134.50
Financial Accounting and Reporting
$126.00
Regulation
$109.00
Business Environment and Concepts
$100.50
5. Where can I take
the exam?
Candidates will take the exam at a
Prometic site of their choice. Prometric is the firm that the AICPA has
contracted with to administer the exam. As I gathered the information for this
article, the Board had a listing of 19 Prometic California sites, mostly in
major metropolitan areas. Therefore, the CPA exam will still be an
overnight-travel experience for California candidates not living in major
metropolitan areas.
6. What are the
conditioning rules?
The computerized exam will have an 18-month credit status system that will
replace the conditional credit system of the paper-and-pencil exam.
Credit status is established by passing one section of the
examination. Once candidates pass a
section of the examination they will be allowed 18 months to pass all remaining
sections in order to retain credit for the passed section.
If candidates do not pass all four sections within that 18-month period,
they will lose credit for the first section of the exam passed. During the
initial two exam windows ONLY, candidates with no previous conditioning
will have a 24-month credit status system.
7. When should I
apply for the exam?
You should plan to apply to the Board at least 8 weeks before your
desired exam date(s).
Although there are no longer final
application filing dates, the Board expects Initial Qualifications and
Authorizations to Test (ATT) will take 6 to 8 weeks to process. Candidates
cannot contact Prometric to schedule an examination date(s) without the ATT.
Repeat applicants ATTs are expected to take 4 to 6 weeks.
8. I assume that one
applies initially to take all 4 parts, and would only reapply for parts failed.
Is this correct?
No. In California, applicants
are not required to apply for all four sections of the exam when computer-based
testing (CBT) begins. Candidates
will be able to apply for one or more sections when they initially apply.
Candidates will take each section individually and in any order. All four
parts could be taken during one test window.
Candidates may take each unpassed section of the CBT four times in a
calendar year, but only once per testing window.
9. Should I schedule
all four parts of the exam as soon as possible, or should I just take one part
each test window?
The
conventional wisdom with the pencil-pushing exam was to take all four parts in
one sitting. This was especially so in California where you had to pass at least
two parts in one sitting to get conditional credit. Now you can condition one
part at a time. There was also some overlap in the pencil-pushing exam parts, so
there was a synergistic value in studying for all four parts. The new exam parts
seem to be more compartmentalized, so perhaps the synergistic value argument is
no longer valid. In California the Authorizations to Test are only good for nine
months, so California candidates may opt for a three-window approach.
One of the major CPA review courses
suggests that candidates take one part of the CBT in each window and is
tailoring their course for this four-window approach. Another major CPA review
course recommends taking all four parts in one test window.
Candidates’ decisions on which approach
is best go back to different learning styles and time and budget
constraints. Although there is no pat answer to the exam timing question, at
least the CBT provides the flexibility for any approach.
10. When will I get
my exam results back?
For the first two test windows, candidates will not receive their CBT exam
results until the end of the dark-month of their test window. Therefore, at
least initially, the feedback time for the CBT could be essentially the same
three months of agony candidates faced under the pencil-pushing exam. I queried
the AICPA CPA exam officials about this sad fact, but I did not receive a reply
before this article’s deadline. Let us all hope that the results feedback time
will improve!
11. Are the
California “Pathway” requirements different under the new exam?
No! The decision factors in deciding
whether to meet the “150 hour” requirement are unchanged by the CBT. The
California “Pathways” simply allow California candidates to go either way.
12. Do I have to
have the California experience requirement before or after passing the exam?
You may obtain your California
experience either before passing the exam, after passing the exam, or a
combination of pre and post exam experience
13. What will the content areas be on the new CPA exam?
A complete answer to this question is beyond the scope of this article,
but here are some leads.
Click here to obtain a PDF file of the
AICPA's Exam Content Specifications.
For updated computer-based testing
information visit the AICPA’s Uniform CPA Examination Web site at http://www.cpa-exam.org.
As it becomes available, additional computer-based testing information may be
found on the Board's Web site at http://www.dca.ca.gov/cba/.
All of the major CPA review courses have re-tooled or are in the process
of re-tooling their materials. Web sites for many of the CPA review courses are
listed in this publication. Click here to obtain an Excel file of the names and URLs for many
CPA exam review courses.
14. Where do I go from here?
The bottom line for candidates is to plan ahead and customize their plans
to pass the CPA exam according to their individual circumstances.