Audit results, and a Question from Haily

Last week, I received my results for Audit in the mail.

86

I haven’t been blogging much because I started a new job.  And they have this thing called Tax Season.  Apparetnly, this ‘Tax Season’ is this complicatioed system  that exsists purely to give me a job.

In this economy, I don’t mind.

Anyway…

I took Reg last Monday.

After putting in 139 hours into Audit, I only put 65 hours of study time into Reg.  If there is a portion I really might not pass, its this.

However…

I’m DOING taxes all day.  Partnerships, S-Corps, 1040s, trusts, C-Corps, yeah.  I mean, you still have to study.  Knowing the details of Prosystems will NOT help you on the CPA exam.

So I just might pass this thing.   Wish me luck!  With that, I have a quesition from a reader.

Hailey:  Hi,  I’m considering taking audit and Reg together?  do you think it’s a good combination?  Or should I just focus on one exam.

I think you are out of your mind.  If I were you, I wouldn’t mix Regulation with ANYTHING.  Words mean different things in different parts.

For example: What is a capital asset?
It’s a very different answer in federal tax law than GAAP.
Furthermore, I don’t really think you should mix your studying.

Watch this video from Becker. It’s the best explanation of exam scheduling, even though I don’t endorse their products.
You should study for 1 part at a time.

I’m taking 2 parts during the first testing window.  Audit on 1/5/09, and Regulation on 2/23/09.  I’m taking a break through tax time, then taking Business in the beginning of June, and Financial at the end of August

If you want to pass all 4 parts in one testing block (2 months), do the following.

1.)    File the Notice To Schedule
2.)    Quit your job / school / romantic relationships
3.)    Schedule the first part on the first day of the testing block. (Blocks are Jan-Feb, Apr-May, Jul-Aug, Oct-Nov.) Lets say July 1st.  Your last part will be on the last day, Aug 31st.  The other two parts will be in three week intervals in between (July 21 and Aug 10)
4.)    Remember, the Notice to Schedule takes 5-8 weeks to process, so get your transcripts together, and wade through the paperwork.  Also, testing fees will run you $1,000.
5.)    Good luck.  You’ll be studying through June for the first part, July 1st.  You’ll have three weeks per part.  You will have to put in about 6-8 hours every day.  With breaks, that will gobble up your whole day.

Good luck!

Time:
Reg: 65 hours
Audit: 139 hours
Cost: $3546

Questions From Readers.

From Judie: What review materials are the best for the CPA Exam?

Judie, I wish I knew the answer.  Here is a short list.

I use Becker Review, but its quite expensive, ($2500).  You’ll see me complaining about them.  Actually, the software is outstanding, but there are aspects of the program that annoy me.  If I were to do it again, I’d pick something else, unless they improve some aspects of the experience.

Roger CPA offered me a section, so I’m going to have a friend of mine test it out and write a review coinciding with her study plan ($1,600)

I don’t know anything about the rest, except cost.  There’s Yager ($1,500)

Exam Matrix ($700)

And Kaplin ($1120)

I’d love it if you tried one out, and let me know how you like it.  You could write a review and post it here.  But whatever you do, sign up for something.  I can’t imagine anyone passing without one of these products.  So… take Exam Matrix, and tell me how you like it!

From Jeremy: How does the Becker software work on your Mac?

Umm… it doesn’t.  add this to my complaints about Becker, which has market domination in my area and costs about $2500.  I don’t know what is involved in making the review software compatible with Mac, but theirs isn’t.

It is possible to run Windows on a newer Mac (as long as it has a Pentium chip in it).

Here’s what I did
1.) Install OS X
Newer Macs have this already.

2.) Partition the hard drive and install Windows XP. (everyone says bad things about Vista.)

I’m not much of a techie.  Messing with the operating system on my computer is pushing the upper limit of my abilities.  The software works just fine on the Windows side of my computer?

Jarret:  How did you do on the test ( Audit)?

I have no idea.  Actually, I’m going to be really pissed if I didn’t pass it.  Its been 4 weeks, I should find out any day.  Wish me luck.

Which part should I take first?  Why did you take Audit first?

This is the most common question I get.  Look, I don’t think it matters.  I took Audit first because I was working in an Internal Audit department and I felt it was more acceptable to have my head in a book marked ‘Audit’ than something else.  I got a new job in the Tax Department at a public accounting firm.

So, since I’m in a lot of tax training for work, I may as well take Reg.  All tax, all the time.

FAR has the most material, but it is also most similar to my college studies, so I’m not all that worried about it.

You should take the part that you think will be the hardest.  That way, if you fail the first part, your 18 month window isn’t started yet.  If you still have no idea, take BUS, because you probably have the least exposure to the material so far.  But… it doesn’t really matter.

Sandy: Why don’t you blog more?

Well, I have the same pile of excuses as always.  Busy busy.  I have a new job working 6 days a week, and I’m taking Reg February 23rd.  I’m WAAAY behind on studying too.  I also taught my son how to ski.

-Must be a board meeting…

Study time:
Reg : 40 hours
Aud : 139 Hours

Cost:
$3546

How did I do on the test?

I took the Audit Exam on Monday.

Taking the Audit Exam feels somewhat like having a spoonful of your brains scooped out and spattered all over the screen. Its four and a half hours.

First the facts:
I was under the impression that the multiple choice questions and simulations were somehow separated. They aren’t.

Becker suggests 40 min per each of two simulations. NO WAY. You need at lead an hour. Actually, 4.5 hours seems like plenty of time to finish. But that’s just me.

They say it takes many weeks to get results. I’ll let you know how I did.

Second, the feelings:

Friend: How did you do?
Me: Terrible.
Friend: I’m sure you did fine. Everyone feels terrible after taking that test
Me: Thanks.
-
Becker claims that 80% + of the students who take their course pass the exam. No way. Not possible. I do not feel confident how I did. If someone offered me a coin flip, heads I pass, tails I fail, I would gladly flip the coin right now. Ugggggg.

I started Reg Class Monday night. I asked some other students how they did in audit. With answers like, “62” or “I didn’t actually take it” left me somewhat concerned.

Oh well, on to the next!

Time:
Reg: 4 hours
Audit: 139 Hours

Money: $3546

Confessions the night before the test

It’s the night before I take the first part of the CPA Exam.

Audit.

I don’t feel prepared.  I feel a little burnt.

I just took one of those ‘full exams’ from Becker.  The results are sobering and depressing.  I want two more weeks to study.  I want to refocus and redouble my efforts.

I want to not be doing this at all.

Alas, tomorrow night, I start my Regulation class.  I can’t delay Audit.  I can’t put it off.

I don’t feel I used all the tools provided me.

I don’t know all the mnumonics.
I don’t know all the flow charts.
I didn’t touch the ‘final review’ software.
I didn’t memorize all the flash cards.

I DID listen to all the lectures three times.  I DID take all of the multiple choice three times.  I DID look at most of the simulations.

Ugg… I’m nervous.

I put in 8 hours of studying today.  Its 4PM .  I’m not studying any more today.

In a minute, I’m going sledding with my kids.  After that, I’m having dinner, drinking a glass of wine, and going to bed early.

Tomorrow, the morning of the test, I’ll have eggs and toast for breakfast.  I’ll get to the testing center so early, they probably won’t even be open yet.  I’ll have overpriced coffee at Starbucks, and then sit for the test and do my best.

I’ll let you know how it goes…

If it doesn’t work out, I can always go back to lion taming

-

Time – 135 hours
Money – $3546

Time is ticking away…

It seems I haven’t posted in a month and a half.

 

Shame on me.  Let me update you on my studying for the CPA exam.

 

1.)I am running out of time for studying for AUD.  I take the exam the Morning of January 5^th.  As of my writing, that’s a little more than 3 weeks!  Yikes.  Time is ticking away.

 

 

 

 

 

I’ve spent a lot of time studying.  I re-watched Becker Review’s lectures and worked through the multiple choice questions again.  

 

The next post includes all of the items I’m forcing myself to memorize.

 

This weekend is reserved for Simulations (yay!).  I

 

2.)    A regional manager at Becker Review, Mike Brown, responded to by Becker Review Reviewed post.  I’m going to respond to his response in the coming days.  I invite anyone else to share their thoughts.

 

3.)    Becker Review also asked me to review their ‘Final Review Product’.  This is an additional $575 product ($675 if purchased af.  I will see how it is.  Disclosure:  They provided me this free of charge, probably because I have a blog and I complained about their product.  Call it a scholarship.  Just like movie reviewers get free tickets.  If anyone else wants to give me free stuff, please e-mail me or leave a comment.

 

4.)    Just to reiterate, I gave Becker a bad review.  Their software expires after 1 year which is completely ridiculous. I will not recommend their program to others until they change that policy.   

 

 

 

Time – 105 Hours

Money Spent -$3546

 

AUDIT – Memorization notes

After going through Becker lectures twice, here are the notes I made for myself.

These are the items I am memorizing.  Feel free to use them for your own studying.  These still have my own personal typos and everything.  I hope it helps!

 

 

 

 

1.)General Standards – TIP General TIP

 

Training

Independence

Due Professional Care 

 

2.) Standards of Fieldwork – PIE Field of Pie.  Pie field

 

Planning and Supervision

Internal Control, Entity and Environment

Evidence

 

3.) Standards of Reporting – ACDO  The Report Acts like a Doe.  ACDO (holds very still in headlights)

 

A – Accounting GAAP

C – Consistency

D – Disclosure

O – Opinion

 

4.) Memorize This

 

Independent Auditor’s Report

 

We have audited the accompanying balance sheet of ABC as of December 31, 200x and the related statements of income, retained earnings, and cash flows for the year then ended.  These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance with auditing standards generally accepted in the United States of America.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ABC Company as of December 31, 200x and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

 

Signed

Date

 

5.) Independent Auditors Report

RRAAPPMMEEMM

 

Responsibility Responsibility

Audit Accordance

Plan Perform

Material Misstatement

Examining Evidence

Made Management

 

5.) GAAS – Scope SSSSSSSSSSSSSS GASS Scope

 

6.) Assumption of Responsibility (if there is no mention of other CPA) I’m going to RIPP a new CPA

 

R Reputation

I Independence

P Professional Competence

P program steps

 

7.) Going concern issue – He ADMITS there might be a problem

 

A Analytical procedures

D Debt compliance

M Minutes from board

I Inquiry of legal counsel

T Third parities

S subsequent events

 

Is the Client FINE?

 

F Financial difficulties

I Internal Maters

N Negative trends – recurrent losses, negative cash flow

E External Matters – loss of business, natural disaster

 

8.) Emphasis of a matter – Emphasize when the company is a rec

R Related Party transaction

E Event, subsequent

C component of a larger business or enterprise

C comparability of financial statements

 

8.) Changing Prior opinions – oops, what DORCS we are, we missed something

D Date4 of report

O Opinion

R Reasons

C Changes that have occurred

S Statement that the opinion is different

 

Updated / changed opinion when now in conformity with GAAP

 

9.) Auditor’s Responsibility for Subsequent events

 

P Post balance sheet transactions

R Representation letter from management

I Inquiry (contingent liabilities, change in debt or capitalization, unusual adjustments, legal consul

M Minutes of meetings

E Examine latest available interim financial statements

 

Subsequent to the year, I want some PRIME rib

 

 

 

Questions:

 

Generally accepted auditing standards

-         General Standards

-         Standards of Fieldwork

-         Standards of reporting

Becker Review, Reviewed!

So I started Becker classes last Monday.  I have some great things to say, and I have some bad things to say.  So here it is, Becker Review reviewed.  By the way…If you navigated here via the CSCPA website, I need to put in some fine print:

“The opinions of this blog represent the opinions of the author and are not subject to review prior to posting by the CSCPA or any of its affinity partners. The blog is one of several forums facilitated by the CSCPA to increase networking and sharing of information among young and new accounting professionals.”

 

I’ll put everything on a scale of 1-10.  1 being lousy, 10 being great. 

 

1.)    Cost  - 1

If you can convince someone else to pay for it, through a firm, company, or by committing credit-card fraud, GREAT!  Otherwise, its terrible.  Yes, I paid for it myself.  It was $2765.  I paid extra for the flash cards. 

Also, they constantly try to sell you extra stuff.  Flashcards, a ‘final review’ online classes.  On and on.

There should be 1 price.  Everything should come with it. 

But here is the big surprise.  The piece of information that I would have skipped Becker entirely.  All of their software expires after 1 year on your computer.  Since the testing window is 1.5 years, and it takes a while to get the NTS going, its possible to lose access to the software that you paid a **** load of money for right when you need it the most.

They should extend the life of their program to two years, or, quite frankly, indefinitely.  This is why I am down on Becker.

 

2.)    Live Classes – 5

So, you sit in a room and watch a video.  Actually, the video materials pretty good (described more below).  The instructor, who is pretty knowledgeable, stops the video from time to time, and talks for 5 min.  But somehow, with the classes being 4 hours long, I don’t feel that I can get much out of it for the last hour.  I like having a scheduled time and place to take classes

3.)    Software, and testing materials provided – 10

I have taken a lot of standardized training in my life.  I was in the Air Force, after all.  Becker sets the standard of how to teach a mountain of relatively dry material on your computer.  The video shows you what to highlight;  it shows you what to underline.  The video instructor brings a lot of energy to the lecture.  The tests are even sort of fun.  Most importantly, I’m understanding the material. 

Its easy to put in a lot of quality study time with this material.  Its not a typo to say I’ve put 26 hours of studying so far THIS WEEK.  I can see why Becker is so successful.

 

So there it is, a slightly bi-polar review.  I feel there s a lot of room for competition.  I’m suddenly very interested in what Becker’s competitors are doing.

If it was the only product out there, I would say you must get it.  However, its not. 

 

I hope people out there in cyber-land send in reviews of the other CPA Exam review software. 

 

Money Spent -$3,546 (I had to buy windows for my Mac to run the Becker software)

Time – 55 hours

 

The Notice to Schedule: What to expect

I always get nervous when I send large checks to people and I don’t expect a response for 8-12 weeks.

So, when I sent off the NTS, I didn’t know what to expect.

I put the forms in the mail (see my 9/3/08 entry) with a large check, transcripts, and waited.

After 1 week, they sent me an email to indicate that they received my application. On October 14, I got another e-mail with the NTS.
They say it takes 6 weeks to process, and they are right on the nose.

I can now take the Auditing and Regulation portion between October 14, and April 14.

Its official, I’m taking the first part, Auditing, January 4th.

Tonight, I’m taking the first Becker Class in Rocky Hill. I’ll tell you how it is, and I hope to see some of you there!

Money Spent: $3,327

Time Studying: 20 hours

The “Should I Wait” Debate

The most common question I get concerning the CPA Exam is “Should I take until later to take the CPA Exam?

 

The answer to this is simple and easy:  NO! 

TAKE IT AS SOON AS YOU CAN

 

 

As soon as you complete the educational requirements for the CPA Exam, you should begin taking it.  Why?  I’ll explain.

 

There are two major enemies to be defeated in taking the CPA Exam: TIME and MONEY.

 

We’ll tackle the smaller one first: MONEY

 

“Jim, if I wait until I get hired by a firm, they will pay for my CPA prep and the test itself.  Shouldn’t I wait until I get a good job?”

 

The formula is simple:

 

Earning potential Now < Earning Potential after the CPA Exam

 

Yes, many employers will pay for your certifications and education.  The reason they do this is because its WORTH IT for them.  You are more valuable having passed the CPA, and the sooner you pass it, the sooner you make more money.

 

“But Jim, I actually don’t have $3,000-$4,000 to spend on the CPA exam right now.”

 

Look, I don’t want to involve you in my personal finances,  but my situation is this.  I have some money saved up;  I am will ALL of it and a little more on grad-school and the CPA exam.  Why?  There is no better investment then investing in yourself.  I know, its cliché, but its true.  You should be able to manage your finances enough to save and borrow enough cash to do this; you are aspiring accountants, after all.  

 

There’s another psychological benefit for spending your own money on this:  you are more likely to succeed if you spent your on cash.  Additionally, if this puts you in debt, FAILURE IS NOT A OPTION.

 

I always run a little faster when there is a bulldog chasing me.  Just sayin’.

 

Now for the bigger beast :TIME

 

 

Yes, you are working full time.  And you are taking night classes.  Also, you have kids, and tax season is coming up in less than a year and you just don’t have the time to study.  

 

Right.

 

Look friends, you will NEVER have time.  Not now.  Not in a year.  The end of the quarter is always coming and your personal life will only get more complicated.  So do this:  Pull out your 2009 calendar.  Mark a date you will take the 1^st exam.  Send away for your transcripts today.  Get some review materials today  Set up a reminder in Outlook (CTRL+SHIFT+K) four months before that date to mail the Notice to Schedule.  And then force yourself to study.

 

 

 

I have a confession.  I haven’t been studying nearly enough.  And I just might push my Audit exam off from November till January.  Oh well…

 

If you want to take and pass the CPA Exam, do not wait.  Remember, this quest is not for everyone.  I’ve met extremely intelligent individuals who have worked for big 4 accounting firms who have never passed the CPA.  Their employer literally made them sit for it, and they didn’t pass.  Why?  Because the motivation to do this must come from within.  There has to be a fire inside you to get it done.  Some people have it.  Some people don’t.  

 

Have a nice day everyone!

Lower FEES!!!!

I got word today that we no longer have to pay $100 to the State Board of Accountancy.  I corrected by last blog entry to reflect this.

 

 

 

Hey, anything that saves me $100 bucks.

 

 

In other news…

September 11 is just around the corner.  Here is a fascinating article about a senior accountant at Deloitte, Dave Karnes.  

On September 11, 2001, Karnes, an ex-marine, heard about the attacks and headed straight to ground zero.  He personally saved two Port Authority police officers from the rubble.

 

As an ex-military man myself, I understand the sense of duty.  However, this guy is super-man (and even a little crazy).  Put him on top of the list of Connecticut CPAs I’d like to meet.

 

 

Time/Money on the CPA Exam:

 

Time: 12 hours

Money: $3,327

 

“The opinions of this blog represent the opinions of the author and are not subject to review prior to posting by the CSCPA or any of its affinity partners. The blog is one of several forums facilitated by the CSCPA to increase networking and sharing of information among young and new accounting professionals.”