What the 2011 Exam Changes Mean for You

The 2011 CPA Exam: What’s so different?

The CPA Exam is changing, and Roger CPA Review wants to make sure that all GGU students are prepared! Below are the five most FAQs about the exam and their answers.

How will the CPA Exam be different in 2011?

In 2011 the CPA Exam will be changing in two ways--the entire exam will be formatted differently and new content on International Standards will be introduced to different sections of the Exam. We've outlined all the details here.

How will IFRS be tested on the CPA Exam?

IFRS is going to be incorporated into FAR, AUD, and BEC. Below is a list of the possible questions types that will be in each section:

FAR
1. The differences between financial statements that are prepared using GAAP standards vs. those that are prepared using IFRS.
2. How the first-time integration of IFRS standards will affect financial reporting, presentation, and disclosures.

BEC
1. The effects of globalization on the business environment.
2. Candidates may be asked to explain the underlying economic substance of transactions.

AUD
1. The role of the International Auditing and Assurance Board (IAASB) in establishing International Standards on Auditing (ISAs).
2. The differences between ISAs and U.S. Auditing Standards.
3. The role of International Ethics Standards Board for Accountants (IESBA) in establishing requirements for the Code of Ethics for Professional Accountants of the International Federation of Accountants (IFAC).
4. An understanding of AICPA Codification of Statements on Auditing Standards, AU Appendix B, Analysis of International Standards on Auditing.

Will the changes make the Exam more difficult?

The Exam will not be "more difficult" per se, but will require an understanding of International Standards and the differences between IFRS and GAAP. For more information on the details of the changes, go here.

Why is the CPA Exam changing?

The AICPA is responsible for ensuring that the content on the CPA Exam is consistent with the knowledge and skills required of entry level CPAs. The AICPA conducted a survey of CPAs with varying levels of experience and determined that entry level CPAs must have some knowledge of IFRS in addition to GAAP. IFRS is already being used by major companies in the U.S.

Which exams should I take in 2010 vs 2011?

If you are not able to sit for and pass all 4 sections of the Exam before Jan 2011, there are a few tips and tricks to consider when you are scheduling your exams:

1. BEC currently does not have a written component, but in 2011 BEC will contain three Written Communication tasks. If you struggle with written communication, take BEC before 2011.
2. REG is the only section that will not have IFRS introduced in 2011. If you're trying to avoid some IFRS, take REG in 2011.
3. AUD will be 1/2 hour shorter in 2011. If time is a serious factor for you, take AUD in 2011.

If I need to sit for sections of the Exam in 2011, will my 2010 scores count?

Any sections you passed in 2010 will still count as long as you are still within your 18 month window from passing the first section.

If I pass three sections in 2010 and have one section left to take in 2011, can I take that part using the old exam format?

No. Even if you only need to pass one more section, or sat for a section in 2010 and did not pass, you will need to retake the section in the new format.

Roger CPA Review is one of the only providers ensuring that their students receive free options for updates for the 2011 changes. We will be providing students with all the appropriate materials for studying and passing the exam in 2011, this includes students who are already enrolled in our course and have not passed all four sections in 2010. No gimmicks, tricks, or fine print.

www.rogerCPAreview.com 877.ROG.4CPA

Which is right for me, tax or accounting?

Many prospective students come to us with the same question, "Which is right for me, tax or accounting?"  While there is no simple answer, it is important to note that both career paths are highly regarded professions among employers.  Each path has nearly identical starting salaries and career progression opportunities.

An accounting education can lead to a future career in a variety of professional activities including the following:

• Auditing - Certified public accountants (CPA) play the very important role of expressing an opinion on financial statements for both for-profit businesses as well as not-for-profit organizations.  To be able to express such an opinion, audits must be preformed.
• Financial Statement Preparation and Accounting Information Management - For-profit businesses and not-for-profit organizations need accountants to create and operate accounting information systems which will accumulate information used to prepare financial statements.  Financial accounting experts participate in the process at all levels.  Entry level accountants will likely focus on details of the information gathering and input while more experienced accountants will be responsible for the preparation of financial statements through the review of ledgers.
• Management Accounting - Accountants participate in financial decision making including development and application of budgets, capital budgeting and special project business analysis.  Strong quantitative and personal skills are a must for this type of accountant.  Accountants commonly develop specialized expertise such as mergers and acquisitions and financial forecasts.
• Forensic Accounting - Accounting expertise can lead to an area of specialized consulting related to legal disputes that require financial analysis and/or accounting expertise.  This expertise is required in subjects can range from divorce cases to complex business litigation.

 A graduate education in tax likely will create career opportunities requiring tax expert level knowledge and skills.

•  Tax Law Compliance - Tax accountants either prepare or help in the process of preparing corporate and personal income tax returns.  Tax accountants commonly manage the process of tax payer/government communication and tax audits.
• Tax Law Enforcement - Tax accountants are employed by all levels of government responsible for enforcing the tax law.  As employees of the Internal Revenue Service (IRS), tax accountants are responsible for the process of reviewing taxpayer compliance with the tax law.  IRS audits are a key part of the design of the federal income tax system.
• Tax Planning - How the complete tax law applies to personal and business financial activities is a very important area of consulting activities for tax accountants.  A well educated tax accountant has the skill and knowledge to help businesses and individuals to minimize their tax cost.  Employment opportunities exist with CPA firms and corporate tax departments.

Starting in one field, doesn't mean that you cannot transition to the other.  MAc students commonly complete their degree and then begin working on the tax side continuing their education by taking MS Tax courses while working.  On the other-hand, tax graduates will begin working in tax and as a natural career evolution, grow into broader management responsibilities beyond taxation.  Both degrees offer a solid knowledge and skill foundation that individuals can use to create diverse career paths.