The New CPA Exam and Registration Process

1. The views expressed by the presenters do not necessarily represent the views, positions, or opinions of the AICPA or the presenter’s respective organization The New CPA Exam and Registration Process

2. Program Objectives This program is designed to help you: • Take a look at the computerized Uniform CPA Examination; • Answer some frequently asked questions about the new exam; • Understand the new CPA Examination application and registration processes; and • Learn about Prometric test centers and scheduling your exam.

3. Arleen Thomas, CPA American Institute of CPAs Vice President - Professional Standards & Services -------- Ken L. Bishop Missouri State Board of Accountancy Executive Director & Chair, NASBA CBT Administrative Task Force David Ginsburg Thomson Prometric Director - Client Services -------- John F. Hudson, CPA Hudson Consulting Group, LLC President [Moderator] Today’s Speakers

4. The Candidate Experience Arleen Thomas, CPA Vice President American Institute of CPAs

5. The Examination • Four Sections • Auditing and Attestation (4.5 hours) • Financial Accounting & Reporting (4 hours) • Regulation (3 hours) • Business Environment & Concepts (2.5 hours) • 14 hours total length

6. Helpful Hint #1 LPR ≠ BEC

7. The Examination • Welcome • Directions • Testlet 1 (mcq) • Testlet 2 (mcq) • Testlet 3 (mcq) • Testlet 4 (simulation) • Testlet 5 (simulation) • Brief survey (BEC has 3 testlets)

8. Welcome To The Uniform CPA Examination Taking a Look Please confirm that the following information is correct. Photo Name:_____________________________Exam Section :______________________ If this information is incorrect select the Quit Exam button below and raise your hand so the Test Center Administrator can assist you. If this information is correct select the Continue button below.

9. You are about to begin the _______________________ section of the Uniform CPA Exam. You will receive _______ testlets. Each of three testlets contains ______ multiple choice questions. You should answer every question. Each of ___ testlets contains one case study, also known as a simulation. In the simulation testlets, a pencil icon on a tab indicates that a response is required within that tab. You should complete all tabs showing the pencil icon.Some of the questions or simulation tabs you will receive are pretest items. These items do not count toward your final grade. You will not know which items are scored and which are pretest items.You have ___ hours to complete the entire exam. You may work through each testlet at your own pace. However, once you exit a testlet and indicate you are done with that testlet, you cannot return. You will have the option to take a break at the completion of every testlet, except for the last testlet. Please note that if you decide to take a break, the clock will keep running. Use break time wisely.To begin the exam, select “Continue” below. The clock will start to run. Taking a Look

11. Helpful Hint #2 • Once you exit a testlet, you can’t go back. • Change your approach. • Before you begin, set a per-testlet time allocation.

13. Taking a Look Are you sure you want to leave this testlet? You have not answered all questions in this testlet.

14. Taking a Look You have just indicated you are done with this testlet. You may review this testlet, or continue the exam, or quit the exam completely. If you choose to continue, - you will have the option of taking a break unless you have completed the last testlet in the exam. -you will not be able to return to this testlet. - you will receive no credit for any unanswered questions. Select the Continue button to leave this testlet and continue the exam. If you quit the exam, - you will not be able to return. - you will receive no credit for any unanswered questions or testlets not taken. Select the Quit Exam button to quit the exam completely and leave the test center. Select the Review button to return to the first question in this testlet.

15. Are you sure you want to continue? If you continue, you will not be able to return to or review this testlet. Taking a Look

16. You have just completed a testlet of the exam. You may take a break. You are not required to take a break. Your time continues to run if you choose to take a break.If you wish to take a break, please select “Yes” below and see the Test Center Administrator to sign out. If you do not wish to take a break, please select “No” below and you will receive the next testlet. Taking a Look Break Option

17. Taking a Look You are on a break. You must leave the Testing Room. The Test Center Administrator will require you to sign out. You must present ID when you sign in. Select Continue below to continue the exam.

18. Simulations

19. Helpful Hint #3 • Review the Tutorial before you take the exam. • You won’t have time to learn the functionality during the test.

20. Simulations

21. Simulations

22. Simulations

23. Simulations

24. Simulations

25. Helpful Hint #4 • The simulations use both a word processor and a spreadsheet application. It is NOT Exceltm or Wordtm. Understand how to use them (take the tutorial).

26. Simulations

27. Simulations

28. Taking a Look Are you sure you want to leave this testlet? You have not responded in one or more of the tabs. Note: The tab displayed requires a response. There may also be other tabs that you have skipped.

29. You have completed the Uniform CPA Examination. Please take a few moments to complete the following brief survey about your testing experience. Your valued responses will guide us in the continuing development of the exam. Taking a Look

30. Preparing for the Exam • Tutorial • Practice Test • Training to work on the computer

31. Practice Test • Available February 1st • Contains sample multiple choice questions and one simulation per section • Computer must meet minimum system requirements and • A good internet connection (DSL, cable, ISDN) • Start installation at www.cpa-exam.org

32. Grade Release Schedule-1st Year • Grades released by Boards • Each Board of Accountancy has its own schedule • Generally, Boards will release grades no later than one week after end of each testing window (i.e., June 30, September 30, December 31)

33. AICPA Student Affiliate Membership • Available to students and recent graduates • Subscription to the Journal of Accountancy and CPA Letter • $40 subscription to reSOURCE online • Access to AICPA web site and special student page located at www.aicpa.org/nolimits • Scholarship opportunity through AICPA/Accountemps • Discounted subscription to The Tax Adviser

34. AICPA Student Affiliate Membership • CPA2BIZ Web Site • Significant discounts on publications, software, professional development courses and conferences • AICPA Competency Assessment Tool • Access to AICPA Antifraud & Corporate Responsibility Center • AICPA Member Elite Values Program • Access to AICPA’s Technical Information Hotline (Recent Grads only)

35. The Application Process Ken Bishop Executive Director Missouri State Board of Accountancy

36. Application Process Before applying to take the examination, check the CPA Exam or NASBA websites (www.cpa-exam.org - www.nasba.org) for exam information: • download/print a copy of the candidate bulletin • contact your state board of accountancy with additional questions

37. Application Process When are you eligible to apply for the computer-based test (CBT)? • There are several rule variances for determining eligibility to apply for the CBT. • States require that you have graduated from an acceptable program with 150 hours minimum. • States require that you have graduated from an acceptable program with 120 hours minimum. • Note: Approximately 50% require graduation before eligibility to sit, the remaining 50% will allow a candidate to sit if they will graduate within 60 days. • Most states will start application process before eligibility. • Contact your state board for state specific rules/policies.

38. Application Process How is a conditioned paper and pencil (P&P) candidate affected? • Most states have adopted the Conditioning and Transitioning standards model. • Same amount of time, or number of opportunities, as candidate would have had with the paper and pencil examination. • Example: If a P&P candidate has 2 years and 4 opportunities remaining, both will transition to the CBT. • Note: Not 100% of states, contact your state board.

39. Application Process How and where do you apply for the exam? • For most states, the CBT application process will be very similar to the P&P process. • CBT process is year-round (instead of two biennial application periods) • Majority of States use CPA Exam Services (CPAES) 800-CPA-EXAM • Many states (including CPAES) offer online application process or paper process. • Contact your state board for state specifics.

40. Application Process How much will the CBT cost? • The actual examination cost will be determined and set by each state board of accountancy. • The cost for all four sections of the CBT will be approximately $600.00* * if all four sections are taken in one NTS period.

41. Application Process Is there a difference in price if a candidate sits for one or more parts at a time? • Unlike P&P, CBT candidates do not have to take more than one exam section at a time. The application/cost process facilitates this new model. • If a candidate applies for 1, 2, 3, or 4 parts at a time, the part(s) must be taken within a six month window* *for all states but one, which may have a 90 day window

42. Application Process • In most states (including all CPAES states), it is most economical to apply and sit for all four parts within one six-month* window. • It’s most expensive to sit for only one part in a six month testing window*. *Check with your state board to ascertain the exact cost for each method.

43. Application Process To whom & how does a candidate pay for the examination? • There are two primary payment methods: • Some states require that state-specific administration costs be paid directly to the state board, with the balance (NASBA, AICPA and Prometric fees) paid to NASBA. • For CPAES states, all costs are combined and paid as one examination fee. • Most states will accept checks, and credit cards (including online). Check with your state board.

44. Application Process How long will the application process take? • Most states are estimating 6 to 8 weeks to process initial applications at launch. • For re-examination candidates, the application process will be much quicker. Many states are working towards a 24 hour turn-a-round for re-exam applications. • The goal is to continue to shorten this time as the new year-round application process is implemented.

45. Helpful Hint #5 • Make sure applications are complete and contain accurate information. • Completeness and accuracy by the candidate dramatically affects the amount of time needed to process the application.

46. Application Process How will the candidate be notified of application approval or deficiencies? • States will notify candidates by mail or electronically (email) of application approval. • States will notify candidates by mail, electronically (email) or telephonically of deficiencies and/or remedy actions.

47. Authorization to Test/Notice to Schedule Process What is an Authorization to Test? • The Authorization to Test (ATT) is the notification from a state board of accountancy (or their agent, such as CPAES) to NASBA indicating that a candidate is eligible to sit for the CBT.

48. Authorization to Test/Notice to Schedule Process What is a Notice to Schedule? • The Notice to Schedule (NTS) is essentially the candidate’s “ticket” to take to Prometric for scheduling and sitting for the CBT. • The NTS will indicate the examination section(s) approved, the validity (start/stop) dates, and the candidate’s individual examination launch code. • The NTS also serves as a unique identifier that must be taken to the Prometric site when testing.

49. Authorization to Test/Notice to Schedule Process How long is a Notice to Schedule (NTS) valid? • For a majority of states (all but one state), the NTS is good for six (6) months

50. Authorization to Test/Notice to Schedule Process What should a candidate do after they receive the Notice to Schedule (NTS)? • The candidate should thoroughly check the NTS for accuracy. • Is the candidate’s name spelled exactly right? • Are the approved sections correct? • Are the correct number of sections indicated? • Contact Prometric for an appointment to test.