[drichter321]

Hello Ninjas,

After a very eventful summer/fall where life happened to much and I failed FAR again, I am back on track. I made my study such that I will be ready for my exam on 1/24/17. Compared to my plan I am 9 hours behind already, and this is because I am not grasping the material enough through the lecture or I am getting confused by the way they ask the questions. If this trend continues I am scared I will not make my test date. I am using WILEY btw.

Does anybody have any advice for me?

BEC: 75 lost credit, could not pass far 🙁
AUD: 76 lost credit could not pass far 🙁
FAR: 74, FML. Next exam 06/14/23
REG: 75 lost credit could not pass far 🙁

[Anonymous]

I'm studying now for FAR and am going all-in. I studied for about 11 hours yesterday and still have so much more to cover. It's monster but you just gotta keep pounding away. Also, when I'm studying a particular topic I like to master it before I move on to another. However, sometimes it helps to study another topic if the current one isn't clicking.

Also, I would hang out in the study group thread – reading through the discussion and doing as many MCQs as humanly possible. FAR is like a grueling marathon.

[aspencookie]

if it helps im only on Chapter 2 of FAR and i just opened this big thick book and started studying it

[Anonymous]

FAR is the worst of the four and it's because it tests at a very granular and borderline anal level. I decided to be one of those folks who “did FAR as their first one”, so I could get the hardest one finished first. I'm taking it next Saturday. I studied **HARD** for it for two months, July 15th thru Sept 15th (approximately) at which point I got a new job and my study time was pretty much gone. I finished Roger's FAR course in late October. In the last two months, I have just kinda gone back over various difficult MCQs and TBSs and reviewed notes and so forth. I started studying for BEC a bit too, with the intention of knocking it out in March (in 10-day extended Q1 window) but I definitely won't be able to do it by then.

The biggest problem I've had with FAR is remembering the very small details, which often get tested on. If bonds and leases are something you study at the beginning of the review course, and then you cover another 25 chapters, just how much are you gonna remember about the fine details of those topics 2 months later? My other significant hurdle has been time. I can't seem to go very fast when working the calculation questions. I tend to make careless errors that require going back and re-doing the calculation again. I'm going to have to become quicker and more accurate or else I am pretty well screwed.

Anyhow, looks like you got through the other three once before and if you do lose credit for them, you'll pass them again. I wish they'd extend 18 months into 24 months….a lot more people would be a lot less screwed if they did. 2 years is a fair length of time for those who might have other stuff come up and not be able to do all four in 18 months.

[Mike J]

Granted, I got a 77 on FAR and am no expert; I felt I did great on MCQ but lost points on two SIMs.

So take this advice for whatever you wish.

Try to solve the calculation questions by sketching the journal entries. Start with just the account names involved if stumped. Then setup the figures to solve for x. So if you're paying cash credit cash. Or if it is an expense Debit an expense account. Most questions should fall out that way.

For govt accounting, be VERY comfortable distinguishing among the funds. And, familiarize yourself with the typical journal entries for the General Fund.

For non govt NFP, know how to categorize revenue and the primary focus of such entities.

I'd say that if you know these cold, you will be in a good place. Tho this isn't all-inclusive to be clear.

…

I would go over the four sets of AICPA recently reviewed MCQ Jeff has in the NINJA products login front page. Don't worry if you miss too much. But it's good to understand them (Google for explanations & you could find some help) to increase your exposure.

Good luck, guys!

[Anonymous]

Categorizing revenue for NFP? I don't think I understand that….does that mean like operating vs. non-operating revenue in a non-profit hospital??

[Mike J]

@Crazyleon

That means, is the revenue unrestricted, temporarily restricted, or permanently restricted?

That also means knowing when a revenue and an expense wash each other out. To put it another way, since profit is not the primary focus for financial reporting here you just need to tell outside users what happened. So sometimes you recognize a revenue and an expense simultaneously to record an event. Two examples are (1) college scholarship not based on compensation; a refund for a class cancellation would be a revenue REDUCTION, for instance and (2) when the NFP receives professional services it would normally have to pay for.

I hope that clarifies my previous suggestion re non govt NFP.

[Anonymous]

Ah ok, yes. I didn't think about temp/perm/unrestricted funds under the heading of revenue categorization. Thanks for the clarification. I swear, there are just way too many factoids and small details to remember for FAR. I wish I was blessed with a brain that never forgot anything!

[Jdn9201]

OP, good luck preparing for your exam! I took FAR in Feb 2016 and thought I'd chime in with some advice too. I would say regarding MCQ's – don't worry about the time it takes you to complete them so much. I'm a very fast test taker (wound up finishing every exam with at least an hour to spare – including FAR) but I didn't care how long it took me to complete each MCQ until I started doing my practice exams a few days prior to my test date. I found that when I slowed down and really thought through the process to complete the question, that is when the concepts really started to make sense. I can't remember how many MCQ's I did, but I know I didn't exhaust Roger's test bank. In my opinion, people focus way too much on the quantity of MCQ's and may neglect the quality of their learning just so they can hit a certain number of them. Think about how not only how to find the right answer, but WHY it is right and the other 3 are wrong.
I remember being initially overwhelmed by the volume of material in FAR, but by the time I had finished studying, I realized the volume of material is actually a blessing in a way – you don't have to remember absolutely everything because they don't have enough time to test you over all of it. I'm not going to say what chapters to study more vs ones to skim over, but use the content specific outline from the AICPA's website to guide how you spend your time. It's not worth spending the time to get 100% of a small section that may only be 2-3% of the exam. There were some chapters that I moved on from when I knew I could eliminate 2 out of 4 answers from the MCQ, and that was it. My goal was to know high level about everything so I could at least give myself a 50% chance to get any question about any topic correct.
My last advice is to make sure you don't forget about the authoritative literature. There are so many points buried in the AL for SIMS but you have to know where to find it.

BEC - 88 8/29/15
REG - 82 11/14/15
AUD - 83 1/8/16
FAR - 80 2/29/16

[mtaylo24]

Advice to the OP, don't sit for FAR unless you are ready and confident. You can wing BEC, REG, and AUD, but FAR is a beast. I personally bombed twice after putting in just as much, if not more effort than other sections. I dont know your NTS situation, but if you aren't ready then push it back further in the window.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Mike J]

“people focus way too much on the quantity of MCQ’s and may neglect the quality of their learning just so they can hit a certain number of them”

I could not agree more!!!

…

Also, I wouldn't discount time as a factor too much.

In order to give myself more than an hour for SIMs or essays I gave myself only 30-35 minutes for each MCQ testlet.

While I certainly didn't rush either, budgeting my time gave me a certain discipline toward each question. Because I gave myself an artificial limit, it forced me to decide whether I should temporarily give up on an individual MCQ and come back to it.

Essentially you have to rack up points. So if your brain isn't processing what you're given or being asked just walk away (and come back). You may waste more time agonizing over something that is at most two points or at worse experimental. I swear that the first time I took REG that was the final aspect that caused me to fail.

[Mike J]

@crazyleon

I hear ya. FAR is like dying from 1000 papercuts.

BUT if you (at times literally, I did as the SIMs loaded) take a deep breath when you feel overwhelmed it can refocus you. Then just put into words (without accounting jargon) what they're asking for AND what they give you.

Thus, I give people the same somewhat solicited advice. Use journal entries as your weapon. Nunchucks or katana as it were. Set up the calculation or accounting treatment and then attack it. I mean at this point you should know cold what the normal debit and credit balances are. So start with what is easy and finish on what is hard in the journal entry. Seeing it that way can also help you catch mistakes.

So if you were gonna spend time memorizing something, memorize (1) gain or loss recognition rules, (2) GAAP vs IFRS, (3) components of Pension Expense, (4) differences among the govt fund accounts.

Practice enough times will help memorizing this too. In your notes, put an example of a problem that gave you more trouble than most.

Closely related also review the MCQ you've done. See if you understand the solution and if you can explain it to a layperson.

Go from there.

[shawn in VA]

MTAYLOR24-

Sorry to get off topic ….how did you raise your AUD score by 17 points ? I am in a similar situation where I got a 64 on my first try and rematch is later in January. How long did you study and what did you do for the retake ? Thanks

[Anonymous]

Thanks Mike for the nice advice! I actually did exhaust Roger's test bank – I did every single question. At this point I am so sick of looking at that FAR textbook and if for some reason I don't pass, I am gonna move on to BEC just because I can not stand the thought of spending another 2 months reviewing it until the next test window. Then again, if I do pass it, I will still move on to BEC. The journal entry “solutions method” is indeed a great way to solve many problems, I agree. Most people don't even think about that, I'd venture to say. Anyhow, hopefully it'll go my way this Saturday.

[mtaylo24]

@shawninVA, passed that well over a year ago, but I do remember going through Gleim more than 2x for that retake. I think that I restudied from August to November, off of a two year hiatus from the exam, but at that point, I've been through Gleim over 6 times in between attempts so it finally started to click. I made sure to study every simulation, detail the format of reports, and know the difference between the types of engagements. Also, I also made sure to know the significance of all of the number related questions (this is a little dated but see below)

By Numbers:

2 CPA 3Non-CPA
PCAOB is comprised of 5-FT members; 2 CPAs 3-Non-CPAs; CPA can only act as Chair of the Board if he has not practiced CPA for the past 5 yrs.
3-5 “outside” directors
An audit committee consists of members of the BODs, usually 3-5 “outside” directors, who are neither employees nor part of mgt. and who do not have a material financial interest in the company.
5 audit clients (issuers) & less than 10 audit partners
Small accounting firms may be exempted from the partner rotation requirement
10 hours of service
Independence is impaired if the audit engagement team includes the lead partner, the concurring partner, & other individuals who provided more than 10 hours of service during the annual audit period.
10% & 10 days
Any officer, director, or owner of more than 10% of any equity security must file a report indicating how many shares they own within 10 days after becoming an officer, director, or more than 10% owner.
30 days
Financial interest is received through an unsolicited gift or inheritance and is disposed of as soon as practicable, no later than 30 days after the person has knowledge of and the right to dispose of the financial interest
35 days
Form 10-Q is due 35 days after each of the first 3 fiscal quarters
45 days
The PCAOB defines the documentation completion date as 45 days following the report release date for issuers.
60 days
Auditing standards require the final audit documentation file to be assembled within 60 days following the report release date for nonissuers.
60 days
Form 10-K must be filed within 60 days after the end of the fiscal year
60 days
While it is recommended that the written communication of control deficiencies be made by the report release date, a window extending 60 days beyond date is acceptable.
60 days
The auditor must communicate control deficiencies to mgt. in writing within 60 days of the report release date.
90 days or less
WebTrust assurance services performed by CPA to conduct examinations every 90 days or less to ensure that the site continues to adhere to stated business practices & disclosures, provide safe, secure transactions, and protect private information.
1 year
Minimum requirement for the auditor to meet with the audit committee without management present at least once each year
1 Year , not to exceed or Not to exceed 1 Year
If there is substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, not to exceed 1 yr. beyond the date of the FS being audited. (US.GAAS)
1 year or At least, but not limited to 12 months from the BS date
Auditor's consideration of the entity's ability to continue as a going concern. (ISAs)
1 year + or Over 1 year – Overdue in fees
Independence is impaired with respect to a client who is more than 1 year overdue in the payment of professional fees.
1 year or Annual
Only PCAOB-registered firms can audit SEC issuers and must update its application for registration annually.
1 year or At least annually
All firm personnel subject to independence requirements should confirm their independence in writing (paper or electronic form).
1 year or Annually
Test of Controls/Prior evidence regarding operating effectiveness is acceptable. –> Controls related to significant risks should be tested annually
1-Year cooling off period
Audit firms may not audit public companies whose CEO, CFO, etc. is also a previous employee of the accounting firm who worked on the audit during the preceding year.
2 years
(ISAs) Issuers and all assurance team members, who have been periodically rotated off the engagement after a period of no more than 7 years, should be subject to a time-out period of normally 2 years.
2-year time out period
(Issuers) All other audit partners are subject to a 2-year time out period before returning to the engagement.
3 years of Every 3 years
Each audit organization performing audits in accordance with GAGAS must have an external peer review at least once every 3 years.
3 years or Every 3 years
Evidence obtained in prior audits: If controls have not changed, OE must be tested at least every third year. The CPA, however may also choose, based on the circumstances, to retest OE more often than once every third year.
3 years, or Once every 3rd year
Test of Controls/Prior evidence regarding operating effectiveness is acceptable. –> New tests must be performed once every third year
3 years or Every 3 years
CPA firm that is an AICPA member, must have a peer review in order to maintain membership in the AICPA
5 years
Audit documentation must be maintained/retained by CPA firms for nonissuers for at least 5 years. (document retention period for nonissuers)
5 years or Every 5 years
(Issuers) Lead partner or coordinating partner & reviewing partner must rotate off the audit.
5-year time out period (Issuers)
Lead partner & reviewing partner are subject to a 5-year time out period before returning to the engagement.
7 years
Audit documentation must be maintained/retained by the public-registered firms for at least 7 years.(document retention period for issuers)
7 years
SOX requires CPA firms to maintain the documentation of their risk assessment & response.
7 years
(ISAs) Issuers and all assurance team members should be periodically rotated off the engagement after a period of no more than 7 years.
100 issuers or lesser
Registered public accounting firms that provide audit reports for 100 or fewer issuers must be inspected at least once every 3 years
100 + or Over 100 issuers
PCAOB must conduct annual inspections of registered public accounting firms that regularly provide audit reports for more than 100 issuers
$10,000
Independence is not impaired in a financial institution client issues to the audit team members cash advance or credit card balances not exceeding $10,000.
$10,000
The auditor responds either “yes” or “no” to the identification of findings that must be disclosed pursuant to section 510(a) of OMB Cir. A-133 including reportable conditions in IC over major programs, material noncompliance with LR&C, & questioned costs greater than $10,000
$100,000
Penalties of no more than $100,000 can be imposed by PCAOB if associated inviduals would be found to have violated (OTHER PROVISIONS) the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports.
$300,000
Programs classified as major are those that expend $300,000 or more in federal financial assistance.
$500,000
The Single Audit Act (OMB Circular A-133) requires entities that expend total federal assistance equal to or in excess of $500,000 in a fiscal year to have an audit performed in accordance with the Act.
$750,000
Civil monetary penalties of no more than $750,000 can be imposed by PCAOB if associated inviduals would be found to have violated the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports, specifically for intentional or knowing conduct, including reckless conduct, that results in violations or repeated instances of negligent conduct.
$2,000,000
Penalties of no more than $2,000,000 can be imposed by PCAOB if a registered firm would be found to have violated (OTHER PROVISIONS) the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports.
$15,000,000
Civil monetary penalties of no more than $15,000,000 can be imposed by PCAOB if a registered firm would be found to have violated the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports, specifically for intentional or knowing conduct, including reckless conduct, that results in violations or repeated instances of negligent conduct.
$75M > $700M
An accelerated filer [AF] is defined as an issuer with a worldwide market value of outstanding common equity held by non-affiliates of $75M > $700M
$700M or more
A large accelerated filer [LAF] is defined as an issuer with a worldwide market value of outstanding common equity held by non-affiliates of $700M or more.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Anonymous]

Oh btw, I've heard that flagging MCQs is deadly and should not be done unless you are 100% sure that your memory will recover in a few minutes after working on other questions. Otherwise, just click an answer and don't flag. So that's what I plan to do (or not do, rather!)

[Author]

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