[Vern]

I just submitted my application this week, and I’m now waiting for my “Notice to Schedule”. I was just wondering if anybody has any advice on what to really focus on for Auditing. My ultimate goal is to have all parts done by 2011, but these forums are quite intimating. I’m using Gleim Online for my test prep. Does anybody have any experience with Gleim?

Thanks in Advance!!

Audit Passed
FAR Passed
REG Passed
BEC ??

[75 CPA]

Take FAR before AUD. The background for AUD is FAR.

Gleim doesn't quite go back to the basics; you have to already be familiar with the material to some extent. Gleim's strength is also their weakness, especially in FAR. If I had a Gleim question that I had not covered in college, I was in trouble! Gleim’s lectures and books are worthless. Gleim's audio and books are only good for answering their true and false questions; they are worthless as a resource for FAR problem solving.

I need a teacher! I had to enroll in Yaeger. Yaeger is very strong in their lectures and they review hundreds of multiple choice questions.

I still like Gleim. I think that they are the best at organizing multiple choice questions.

However, I would recommend that the CPA candidate find another review course, like Yaeger, that offers college type lectures to supplement Gleim. I now only use Gleim in their Test Mode AFTER I have reviewed the material with Yaeger. I will continue to buy Gleim Test Prep, but I will no longer buy their full online course.

[Anonymous]

Know the composition of the different audit reports forwards and backwards. Know how they change for different circumstances. Know when to add/delete certain sections. I don't think it's bad to take Audit first since I did myself, I thought it was an “easy” section to start with and also the one where you have the most time to finish the given material in the exam. So it does make a nice confidence boost.

[Anonymous]

I would focus on audit reports (know the language, know how it changes), SSARS and SSAE, internal controls, substantive testing, evidence & procedures, and the general flow of the audit process. These seem to be the major topics that are hit again and again. Other topics are important as well (statistical theory and sampling, how IT affects audits, non-GAAS) but aren't as heavily tested.

[Vern]

Thanks for everybody's advice. I just finished up Undergrad Auditing to bring me to 150 credit hours. I do a lot of Financial Accounting (Staff Accountant) at my current job so I'm trying to save FAR as the last. I'm a little concerned about the MC questions. I looked at some Becker Examples and they are different from the Gleim Material I've been studying. My professor would only let me use Gleim for an Independent Study. I have already sunk 600 into Gleim so I don't know if I should invest in another test prep. It seems like a lot of MC questions relate to the Reports, so I'm going to try and memorize them. Does anybody know if the 2011 exams are going to be more difficult. I think I'm going to have a hard time passing all parts in 8 months

Audit Passed
FAR Passed
REG Passed
BEC ??

[Anonymous]

You can pass all parts in 8 months if you put a ton of time and focus into it. I started studying for the exam back in October and have 2 sections passed, another taken (fairly certain I passed), and working on FAR as my last section. I haven't seen any of the materials in a classroom setting in 10 years or so. I've used the Becker courses so far.

[75 CPA]

I have an idea that the 2011 exams will be more difficult. I think that too many people are passing these exams.

“The main purpose of CSOs/SSOs – for any licensure examination –

is to ensure that the testing of entry-level knowledge and skills that

are important to the protection of the public interest is consistent

across examination administrations. This means that the Uniform

CPA Examination CSOs/SSOs are used to determine what kinds of

questions should be included on the CPA Examination so that every

version of the examination reflects the required distribution and balance

of knowledge and skill components.”

The AICPA says, “A score of 75 indicates examination performance reflecting a level of knowledge and skills that is sufficient for the protection of the public.” “The protection of the public” statement is for public consumption. Most people are naïve enough to buy this cover story. The CPA exams are about the self-interest of the AICPA. Economists call this type of behavior “rent-seeking.”

“Rent seeking is the term used by economists when referring to actions taken by individuals and groups seeking to use the political process to plunder the wealth of others (Rowley, Tollison, & Tullock).” Rent-seeking behavior is the idea that government licensure of professions is necessary to protect the public. Milton Friedman, 1976 Nobel prize winner in economics, wrote his PhD dissertation at Columbia in the 1940’s on rent-seeking behavior. He refuted the constantly repeated mantra of rent-seeking behavior. Milton Friedman’s works provide empirical evidence that licensure is nothing more than a mechanism used by members of a profession to raise the entry costs, and thus keep wages and profits artificially high. Rent-seeking behavior improves the welfare of someone at the expense of the welfare of someone else (Baker, Morris, Barnett).

Now I understand why the CPA license requirements went up from 120 hours to 150 semester hours! Accounting majors who graduate with 120 hours are not “qualified” to sit for the CPA exam. Voila! Fewer CPAs translate into higher fees.

The sole purpose of the CPA exams is to keep us from being CPAs. We are all weeds that the AICPA would like to pull (rent seeking behavior). We are not being tested on how smart we are. We are being tested on our perseverance. Additionally, the very tight time constraints on the exams have nothing to do with one’s knowledge of the subject. It is just another device to eliminate CPA candidates.

References

Baker, R., Morris, D. & Barnett, J. (2001). How a free market creates wealth. Verasage Institute.

Rowley, C. K., Tollison, R. D., & Tullock, G. (1988). The Political Economy of Rent-Seeking. Boston: Kluwer Publishers.

[kewinnett]

75 GPA – so i am guessing you did not pass?

[action0602]

@Capital gains: those are some impressive scores (assuming they're legit, which i believe they are)…just curious how much you studied?

the only other person i know with those scores was my bro in law, he averaged a 94 on them all. looks like you averaged just over 96…nice! he actually studied about 2-3 hours after work, and about 5-10 hours on the weekend for 2-3 months each exam. the range of hours are: 130 hours to 325 hours. i doubt he ever went up to 300+ hours on any one test though.

i am waiting back for my last and final score (AUD). i didnt do nearly as well as you both, but passed nonetheless. just curious how much studying it took to get those scores. i thought i studied a decent amount but nothing in the 100+ range for any test though.

[Author]

Replies