Jeff Herzog CPA, Assistant Lecturer, U of A
By Jeff Herzog CPA, Assistant Lecturer, University of Alberta
Do you struggle with including all of the required information in your case responses within the time limits? Jeff Herzog CPA wrote the CFE in 2017, and in this blog post, he explains how to include as much information as possible on your case response.
I’d like to start by reminding you that a perfect response is difficult to achieve! I can say with absolute certainty that few, if any, of my calculations were 100% correct on my Common Final Examination (CFE) cases. Candidates should know that the goal is not to achieve a perfect calculation. Instead, they should aim to reasonably attempt a calculation, clearly outline their process, and logically interpret their results. This framework goes for module assignments throughout the CPA Professional Education Program (CPA PEP), not just on the CFE.
First of all, it’s important to start practicing your weekly assignments under time constraints—even as early as Core 1! Starting now will ensure you develop good habits as you approach the CFE. (CPA Alberta has many resources to help you with time management.)
On your feedback guides, you will see that you can easily achieve “competent” on your calculations, despite missing certain items. With this in mind, focus on fitting as many elements as possible, including supporting work, into your calculations within your allotted time. Once that time is up, move on, regardless of how much you have included.
A solid plan will help make sure you include everything. This will lower your risk of missing something in your calculations or spending too much time on a certain topic. (CPA Alberta has a number of blog posts and webinars on planning your case.)
Here are a few more pointers to save time:
- Where possible, combine elements of your calculations. For example, rather than outlining every cash inflow and every cash outflow on a Net Present Value (NPV) calculation, you could start with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and adjust for cash/non-cash items.
- Try using pre-determined templates for common calculations. For example, management accounting commonly tests on contribution margin. Come up with a standard template that you can consistently use for this calculation.
- Use keyboard shortcuts (e.g. Ctrl-C, Ctrl-V) and formulas (e.g. =NPV) to speed up your calculations. The less time you spend setting up your calculations, the more time you have to include more elements in the calculations.
- Use cell references wherever possible. This is faster than duplicating previous work, and it saves time if you catch an error that carries throughout a calculation.
- Focus on the most important components of a calculation first (e.g. material items). This will increase the likelihood of your final answer being closer to the actual solution, if you run out of time.
- Keep your supporting notes simple and to the point.These are some tips that helped me to be successful in CPA PEP and on the CFE. Start practicing these techniques now to increase your chances of success. Good luck on the remainder of CPA PEP!
The views expressed in this post are those of the guest writer, Jeff Herzog CPA. Please refer to cpawsb.ca for the latest guidelines from the CPA Western School of Business.
