3/21/2012

1

The Value of the CPA Designation

Dudley J Garidel Jr CPA

What is a CPA?

• Most Certified Public Accountants [CPA] are accountants, but not all accountants are CPAs

• Licensed to practice according to state-specific requirements for education and experience and by passing the Uniform CPA Exam.

• Must adhere to high standards of continuing education ethics• Must adhere to high standards of continuing education, ethics, and professionalism to maintain licensure.

Famous Accountants

Arthur M. BlankCo-founder Home Depot and

Owner of Atlanta Falcons

Certified Public Accountant,Babson College Graduate

Famous Accountants

Chris MoneymakerPoker Player

Won the 2003 World Series ofWon the 2003 World Series of Poker Main Event

Master’s Degree in Accounting,University of Tennessee

Chuck Liddella.k.a The Iceman

Ultimate Fighter

Famous Accountants

Ultimate FighterFormer UFC Light Heavyweight

Champion

California Polytechnic State University

Why become a CPA?

• Diverse career opportunities

• Greater demand

• Earnings potential• Earnings potential

• Professional recognition & job satisfaction

3/21/2012

2

Diverse Career Opportunities

The roles and career paths of CPAs have expanded.

• Audit & Assurance

• Tax Accounting

• Environmental Accounting

• International Accounting

• Forensic Accounting

• Academics and Research

The CPA Exam2012

Becker Professional Education

A global leader in professional education serving accounting, finance, and project management professionals from career start to finish.

Obtaining your CPA Designation

Education | Exam | Experience

The Three E’s

Education | Exam | Experience

Every state is unique

Louisiana Education Requirements• Baccalaureate Degree• 150 Semester Hours

– Accounting concentration of

• 24 semester hours at the undergraduate level or

• 21 semester hours at the graduate level

24 t h f b i th th ti– 24 semester hours of business courses other than accounting including Commercial Law suitable for the CPA Exam

– Louisiana specifies the courses included in the 24 hours of accounting with only 6 hours of electives allowed

Greater Demand

• U.S. Bureau of Labor Statistics expects employment of accountants and auditors to grow faster through 2018 than for any other occupation– Best prospects are for those “who have a college degree and

professional certification, especially a CPA.” – According to the AICPA, 75 percent of today’s CPAs will retire over

the next 15 years• Ranked 6th on list of 10 hottest jobs by CNNMoney.com for “great pay

and superior growth prospects” and “work that's meaningful”

3/21/2012

3

Earnings Potential

• 2012 projected accounting salaries (US $)*

• CPAs can earn up to $1 Million more over a 40-year career– Licensed CPAs may earn 10% more than unlicensed accountants

• Potential for faster promotions

• Greater mobility and job security* Per 2012 Robert Half Salary Guide. For example only, individual salaries vary depending on geography,

experience, education, and employer.

Professional Recognition & Job Satisfaction

• The CPA credential is a symbol of trust and professionalism in the world of business

• Wall Street Journal survey ranked accounting majors 3rd highest in career satisfaction among 20 college majors surveyed

State Requirements

Becker.com/state

CPA Exam Process

Qualify• Review state

Apply• Submit your

Prepare• Enroll in

Schedule• Schedule

Succeed• Study and Sit

5 Key Steps

requirements application to sit for the CPA Exam

Becker• Receive your

Notice-to-Schedule (NTS)

exam with Prometrics

yfor the CPA Exam

JAN

OPENFEB

OPENMAR

CLOSED

APR MAY JUN2nd Qtr

1st Qtr Window

• Sit for exams as soon as eligible.

• Must pass all 4 parts ithi 18 th

Begin Application Process

The On Demand Exam

OPEN OPEN CLOSED

JUL

OPENAUG

OPENSEP

CLOSED

OCT

OPENNOV

OPENDEC

CLOSED

2nd Qtr Window

3rd Qtr Window

4th Qtr Window

within an 18-month window.

• Firms want new hires to pass early in their careers.

On-Demand Exam Challenges

• Enables Procrastination

• Weakens “Knowledge” Retention

• Lower Pass Rates

• Increased Fees

3/21/2012

4

You Must Understand

• Concepts– How to apply them

• Functionality– How to navigate questions

How to use unfamiliar tools– How to use unfamiliar tools

• Your strengths and weaknesses– How to manage your time

Prepare to Pass

• Commit to an exam schedule– Study and sit for one part at a time

– Sit for two exams per testing window

– Must pass all parts in 18 months

• Develop a study plan

Sample Exam Schedule

e e op a s udy p a– Set daily goals and stick to them

– Find a study partner

– Plan one to three hours of study outside class, per hour in class

– Don’t procrastinate

Time Management is Critical Prepare to Pass

Time Management Tips1. Pre-exam practice will improve your speed

2. Pace yourself through the exam– On MCQs allow a 1.5 to 2 minutes per question

– For task-based simulations , set aside 70-80 minutes on REG and 90-110 minutes on FAR and AUD

– Allow 30-40 minutes for the BEC written communication task

3. Cherry pick and then go back and glean

4. Reserve 15 minutes of “oops and breathe” time

Prepare to Pass

Tips for Multiple Choice Questions1. Control the amount of time you spend on each question

2. Become familiar with the format and functionality

3. Read all four choices before choosing one as your answer

4. Answer every multiple choice question

Prepare to Pass

Tactics for Simulations1. Work all homework simulations

2. Follow recommended progression through simulations1. Review each task’s instructions

2. Allocate your time among the tasks.

3. Be sure you have answered all requirements for each task.

3. Use the keyword search function when completing research requirements

3/21/2012

5

Prepare to Pass

Writing Skills on the CPA Exam

Responses will be scored based on organization, development and expression.

Organization: Response will be evaluated for its structure, ordering of ideas, and linking of one idea to another.

Development: Response will be evaluated for its presentation of supporting evidence and information that clarifies your thoughts.

Expression: Response will be evaluated for its use of conventional standards of business English which includes proper grammar, punctuation, word usage, capitalization and spelling.

Prepare to Pass

Before the Exam!1. Set aside approximately a week to review each section for which

you have a scheduled exam date.

2. Review only what you have studied.

3. Take a “test exam” in strict exam room conditions.3. Take a test exam in strict exam room conditions.

4. Do not work until you drop!

Prepare to Pass

Before the Exam!1. Set aside approximately a week to review each section for which

you have a scheduled exam date.

2. Review only what you have studied.

3. Take a “test exam” in strict exam room conditions.3. Take a test exam in strict exam room conditions.

4. Do not work until you drop!

About the CPA ExamStructure and Content

Exam Overview

4 Independent SectionsFinancial Accounting and Reporting (FAR)4 hours

Regulation (REG)

Auditing and Attestation (AUD)4 hours

g ( )3 hours

Business Environment and Concepts (BEC)3 hours

Exam can be taken in any state or jurisdictionExam is administered at Prometric Testing Centers

Financial

3/21/2012

6

Financial - Structure

60%

• Three multiple-choice question (MCQ) testlets containing 90 questions

• One testlet containing seven short, task based simulations (TBS)

40%

task-based simulations (TBS)

• 15 MCQs and 1 TBS are pretest questions

• Passing Grade 75

Financial - Content

Concepts & Standards

(including IFRS)17% - 23%

Government Accounting8% - 12%

Not-for-Profit Accounting8% - 12%

Financial Statement Accounts

27% - 33%

Specific Transactions27% - 33%

Financial - IFRS

• Candidates will be expected to identify and understand the differences between financial statements prepared under U.S. GAAP and under IFRS.

• First-time adoption of IFRS related to financial reporting,First time adoption of IFRS related to financial reporting, presentation and disclosures in general-purpose financial statements will also be tested.

Financial – Research Task• Research task format based on the FASB Codification™.• Codification consolidates thousands of U.S. GAAP pronouncements into a

single, authoritative, easy-to-access online research tool.

Audit

Audit - Structure

60%

• Three multiple-choice question (MCQ) testlets containing 90 questions

• One testlet containing seven short, task based simulations TBS

40%

task-based simulations TBS

• 15 MCQs and 1 TBS are pretest questions

• Passing Grade 75

3/21/2012

7

Audit - Content

Professional Responsibilities

16% - 20%

Engagement Evaluating Findings,

Accounting & Review

Engagements12% - 16%

Acceptance & Understanding the Assignment

12% - 16%

Understanding the Entity & Environment16% - 20%

Performing Audit Procedures &

Evaluating Evidence

16% - 20%

Communication & Reporting16% - 20%

New Statement on Auditing Standards

• Issued October 2011 and effective for audits of financial statements for periods ending on or after December 15, 2012

– SAS No. 122, Statements on Auditing Standards: Clarification and Recodification

– SAS No. 123, Omnibus Statement on Auditing Standards

– SAS No. 124, Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country

– SAS No. 125, Alert that Restricts the Use of the Auditor’s Written Communication

– Standards are testable on the CPA Exam beginning July 1, 2013

• A new pronouncement is testable six months after its effective date if early application is not permitted. If early application is permitted, then a new pronouncement is testable six months after the date of issuance.

– SAS 122 – 125 do not permit early application.

Audit – U.S. vs International Auditing StandardsDemonstrate knowledge and awareness of the following:

• International Auditing & Assurance Board (IAASB) - role in establishing International Standards on Auditing (ISAs)

• Differences between ISAs and US Auditing Standards

• International Ethics Standards Board for Accountants (IESBA) Role in establishing International Federation of Accountants (IFAC) Code of Ethics for Professional Accountants.

• Related independence requirements when auditing a U.S. company that supports an audit report based on auditing standards of another country, or ISAs

Regulationg

Regulation - Structure

60%

• Three multiple-choice question (MCQ) testlets containing 72 questions

• One testlet containing six short, task-based simulations (TBS)

40%

based simulations (TBS)

• 12 MCQs and 1 TBS are pretest questions

• Passing Grade 75

Regulation - Content

Federal Taxation of Entities18% - 24%

Federal Taxation

Federal Taxation of Individuals13% - 19%

Ethics, Professional &

Legal Responsibilities

15% - 19%

Business Law17% - 21%

Federal Tax Procedures & Accounting

Issues11% - 15%

of Property Transactions12% - 16%

3/21/2012

8

Business

Business - Structure

85%

• Three multiple-choice question (MCQ) testlets containing 72 questions

• Three written communication

15%

tasks

• 12 MCQs and 1 written communication task are pretest questions

• Passing Grade 75

Business - Content

Corporate Governance16% - 20%

E i

Strategic Planning

10% 14%

Operations Management12% - 16%

Economic Concepts &

Analysis16% – 20%

Financial Management19% - 23%

Information Systems &

Communication15% - 19%

10% - 14%

Business - IFRS and ISA

Candidates will be expected to demonstrate an understanding of globalization in the business environment as well as be able to explain the underlying economic substance of transactions and their accounting implications.

Exam Structure

Multiple Choice

3/21/2012

9

SimulationsWritten Communication (BEC Only)

Becker’s CPA Exam Review

Becker CPA Exam Review

• The leader in CPA review for more than 50 years

• Over 400,000 candidates have passed the CPA exam using Becker, more than any other review provider

• Double the pass rate of non Becker• Double the pass rate of non-Becker candidates*

• Partnerships with the Big 4 and 98 of the top 100 accounting firms

• 14 of the 15 top scorers on the 2009 CPA exam prepared with Becker

*Becker Professional Education students pass at twice the rate of all CPA exam candidates who did not take a review course from Becker, based on averages of AICPA-published pass rates. Data verified by an independent third-party firm.

Flexible Course Formats

Over 250worldwide locations

Dedicated online

instructors

Anytimeanywhere

A Complete CPA Review Focused on Your Success

• Expert Instruction and Unlimited Academic Support• Lecture’s by National Instructors• Textbooks for each exam part

• Interactive Study Planner and Exam and Writing Tutorials• Becker Software with resources that replicate the functionality ofBecker Software with resources that replicate the functionality of

the CPA Exam.

PassMasterTM

SimulationsFinal Exams

3/21/2012

10

Study Road Map

• Provides guidance on what to study and how much time to devote to each topic.

• Fully integrates all course elements.

Multiple Choice Questions

• Over 6,000 questions.

• Link to lecture and link to text features provide clarification on challenging topics.

• Complete answer explanations.

• Timer allows you to stay on pace.

Simulations

• Over 200 task-based simulations.

• Functionality mirrors the CPA Exam.

• Timer allows you to stay• Timer allows you to stay on pace.

Review Before Exam

• Provides direction on how to prepare in your final days leading up to the exam.

• Includes two full final exams per part that mirror the CPA Exam.

Study Planner

• Creates a customized preparation plan that fits your needs.

• Drag and drop functionality allows you to easily address schedule changes.

• Export capability to MS Outlook.

Accept No Substitutions – Buy Only Authentic Becker Material

• Don’t fall victim to fraud by purchasing pirated Becker course materials through – Unauthorized dealers posing as authorized resellers– Sellers on Craig’s List and auction sites such as eBay– Other students

• How piracy can affect you– Becker does not support pirated product with academic support, customer pp p p pp ,

service, technical support or extension of the Becker promise– Counterfeit software may contain malicious code or viruses putting you at

risk for identity theft and credit card fraud

• Protect yourself by ordering only authentic Becker course materials – Becker.com– 1-877-CPA-Exam– International partners listed on Becker.com

3/21/2012

11

Additional Products

Flashcards• Over 1,000 cards in a portable format for learning anywhere,

anytime.• Available in traditional or mobile Formats:

• iPhone®, iPod Touch®, iPad®• Blackberry• Android

Final Review• Complements your CPA Exam Review course.• Shows you which areas to focus on during your last critical

days of study.• Available in live or self-study formats

0% Financing

• 18 month interest-free loan

• Available on our complete, four-part CPA Exam Review, Final Review and Flashcards

• All applicants are pre-approvedAll applicants are pre approved

• For full details and to get started: becker.com/financing

The Becker Promise

If you utilize Becker but do not pass the CPA Exam, you may repeat our course at no additional tuition cost if you satisfy our requirements.

We are that committed to your success!

BECKER TUITION

• $1050/SECTION

• $95 Admin Fee each time you register

• $1145 SECTION X 4 = $4580

4 SECTIONS/$3150 ( One section free)• 4 SECTIONS/$3150 ( One section free)

• $95 Admin Fee

• Total $3245 for All four sections

AGA Member Government Discounts

• Federal government members GSA Schedule

• State and local government members $600 discount

Non government members $300 discount• Non government members $300 discount

• 18 month interest-free loan

• Available on our complete, four-part CPA Exam Review, Final Review and Flashcards

0% Financing

• All applicants are pre-approved

For full details and to get started:

becker.com/financing

3/21/2012

12

“”I credit a lot of my success on the exam to Becker. My best advice to other candidates:

Don't skimp on the exam review. The time & money you invest now

Christopher Michael LeonWatt Sells winner and Becker alum

The time & money you invest now will pay off for a lifetime and Becker is one

of the best investments you can make.

Becker Professional EducationAGABR CPE SUBCRIPTION

AGABR CPE SUBSCRIPTION REVENUE SHAREING

AGABR Members: $350 CPE subscription/12months

Access to complete CPE catalog for 12 months (over 160 courses)

AGABR retains 25% of revenueAGABR retains 25% of revenue

Webcast and On Demand

AICPA, NASBA, QAS Approved

Registration and Questions

To become a member or register contact :

Treasurer, Kathy Blankenship Kathy.Blankenship@LA.GOV

President-Elect, Alice Townsend Alice.Townsend@oig.hhs.gov

Questions: Karen Whitaker Kwhitaker@becker.com 504-875-8690

Contact Information

www.becker.com1-877-CPA EXAm

Look for us on FaceBook, YouTube, LinkedIn and Twitter

Local Representatvie: Karen WhitakerLocal Representatvie: Karen Whitaker

504-875-8690 kwhitaker@becker.com