The Gleim Blog: Helping You Pass Your Exam on the First Try!

Here you will find helpful tips for the CPA, CIA, CMA, EA, and RTRP exams. We'll post exam updates, helpful hints, CPE information, and the study habits of fellow exam candidates. If you'd like to write about your studies for the Gleim blog, please email us at gleimblog@gleim.com.

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Hot Topics Quiz (May 2013) – Answer Explanations

May 22, 2013, by 1 comment

If you haven’t signed up to receive our Hot Topics quizzes, you can sign-up for free here!

 

 

 

 

1)  Answer (B) is correct.

Answer explanations:

Bylaws govern the internal structure and operation of a corporation. Initial bylaws are adopted by the incorporators or the board. They may contain any provision for managing the business and regulating the affairs of the corporate entity not in conflict with the law or the articles of incorporation.

Answer (A) is incorrect. The articles contain only basic information that must be filed with a designated state official as part of forming the corporation.

Answer (C) is incorrect. A certificate of authority is required to do business in a state where the corporation is not incorporated. It is obtained from the
secretary of state after paying fees and designating a resident agent.

Answer (D) is incorrect. A shareholder agreement governs the exercise of the corporate powers; the management of the business and affairs of the corporation; or the relationship among the shareholders, the directors, and the corporation. For example, it may eliminate the board or restrict its powers. In contrast, bylaws usually address such details as methods of electing directors or the details of scheduling meetings. Also, a shareholder’s agreement may be included in the bylaws.

 

2)  Answer (A) is correct.

Answer explanations:

The board of directors guides management. It does not directly manage day-to-day operations of the entity. That is management’s responsibility, with the board playing an oversight role. All major corporate decisions are made or approved by the board.

Answer (B) is incorrect. The board has the duty of selection and removal of officers.

Answer (C) is incorrect. Adding, amending, or repealing bylaws is a duty of the board.

Answer (D) is incorrect. Initiation of fundamental changes, such as mergers or acquisitions, is a duty of the board.

 

3)  Answer (C) is correct.

Answer explanations:

Control is any action taken by management, the board, and other parties to manage risk and increase the likelihood that established objectives and goals will be achieved. Management plans, organizes, and directs the performance of sufficient actions to provide reasonable assurance that objectives
and goals will be achieved.

Answer (A) is incorrect. Supervision is just one means of achieving control.

Answer (B) is incorrect. Quality assurance relates to just one set of objectives and goals. It does not pertain to achievement of all established organizational objectives and goals.

Answer (D) is incorrect. Compliance is adherence to policies, plans, procedures, laws, regulations, contracts, or other requirements.

 

How To Become a U.S. CPA as an International Candidate

May 21, 2013, by 1 comment

 

The U.S. Certified Public Accountant (CPA) designation is one of the most globally recognized qualifications for accounting and finance professionals. In 2012, 8,503 non-U.S. candidates successfully applied for and took the CPA exam, representing 9.2% of the total.

Whether you are an international student pursuing an accounting degree in the U.S., a recent graduate who aspires to work in multi-national corporations in your home country, or an established chartered accountant who want to obtain a prestigious U.S. designation, the U.S. CPA qualification could be the fastest and most flexible way to achieve your goal.

How To Become a U.S. CPA as an International Candidate

The process is the same for domestic and international candidates, but for those from outside the U.S., there are additional steps in the qualification process.

The CPA license is granted by the 55 states and jurisdictions in the U.S. instead of by a centralized governmental agency. While each state has slightly different rules on the exam and licensing requirements, most states follow the “3E” rule:

  • Education: A 4-year bachelor’s degree or above is required, and in most cases, 150 credit hours.
  • Exam: You must pass the 4-part Uniform CPA Examination. The exam itself is the same across jurisdictions.
  • Experience: One to two years of relevant experience in accounting is required, verified and/or supervised by a U.S. CPA or equivalent.

This requirement is the same for all candidates, but if the candidate does not live and work in the U.S., (s)he will need to go through these additional steps:

1. Select the Most Suitable State

For most international candidates, the CPA qualification is meant for credential purposes only. Since you may not be practicing in a particular state in the U.S., you are free to register in any state that accepts non-U.S. citizens and residents. You can select the one with the requirements that work to your advantage.

For example, the standard education requirement is 150 credit hours, which is equivalent to 5 years of higher education. If you graduate from a standard 4-year program and do not plan to make up for the remaining 30 credit hours, then you can choose among the few states that allow you to do so.

Another important point is how you plan to fulfill the experience requirement. You do not need to work in the U.S. to gain the required experience, but your work must be verified by someone trusted by the state board. In most cases, this means an active U.S. CPA licensee from any state or jurisdiction. Some states allow a U.S. CPA equivalent, which usually means chartered accountants from Canada and Australia, and possibly a few other countries depending on the specific state rules.

If you live in a country with few active U.S. CPA licensees, you might want to select a state that allows a U.S. CPA to verify your experience without being your supervisor. In other words, as long as you can find a U.S. CPA who personally knows you, he or she can verify your experience obtained from your home country. This adds a lot more flexibility to the process.

2. Get Your Transcript Evaluated

If you obtain your degree outside of the U.S., then you must get your transcripts or mark sheets “translated” into the U.S. equivalent. This can be done by sending the documents to one of the foreign credential evaluation agencies recognized by your chosen state. This process may take up a lot of time, but is straightforward as long as you fulfill all the educational requirements.

Since the evaluation depends on the state in which you apply, you should select the state first before contacting the evaluation agencies.

3. Send in the Application

The evaluation report will be sent directly to the state board, and you will need to submit the rest of the application separately. It generally takes 4 weeks to process the application, but depending on the state, it can be as quick as 1 week or as slow as 8 weeks.

Once your application is approved, you will receive a Notice To Schedule, or more commonly known as the NTS, by email. This is the admission ticket, and you can schedule your exam online and start studying for your exam.

[Gleim has an in-house team dedicated in helping international CPA candidates in the qualification and preparation process, and you can seek advice through your Personal Counselor. You can also check out Stephanie’s website at IPassTheCPAExam.com for more information for international candidates.]

 

 

360: The Perfect Score

May 20, 2013, by No comments yet

 

Written By CMA exam Guest Blogger Ashley G.

Although I took my exam on 2/28/2012 (the last testing date of the testing window), I received my score on 4/12/2012 (talk about the waiting game). For all of the readers out there, I thought I would share my score and provide some advice. Some people might feel a perfect score is scoring the highest possible score; however, for me, 360 is the perfect score.

I once read an article a few years ago when I first began studying for the CMA (when it was a 4-part exam) where the author claimed that the goal is to achieve optimal efficiency and effectiveness when it comes to exam performance. Think of this as break-even analysis. This individual said that if you consume your life with studies and score an absolute perfect score, you have over-studied. Therefore, you have achieved effectiveness (by passing) but have missed the mark on efficiency. If you study and procrastinate, however, and fail the exam, you have achieved neither effectiveness nor efficiency.

When I studied for both the CPA and CMA, I used the 1-month approach (warning: this isn’t meant for everyone). I study for about 1 month for each section. This means being diligent 100% of the time and focusing on the finish line. The only time this did not work was when I sat for CMA Part II the first time (it took two tries). I scored a 330, which was as a result of not being diligent and letting work get the best of me. To study and work at the same time is the hardest and most admirable task I can think of (besides adding children and other obligations to the equation).

You have to stop to think what is best for YOU. Much like weight-loss, everyone is different! For myself, and I did learn this the hard way, studying for several months results in procrastination and putting off study plans. It would turn into “I can miss one day. What’s one day?” After this approach resulted in me failing the CMA and CPA several times, I changed my study routine (slow and steady did not win the race for me). For my lifestyle, 1 month has been the perfect plan, although I have no significant other and no children. I do, however, have an intense work environment, which requires traveling, minimal obligations, distractions, etc.).

What was my score you ask? A perfect 360. As a final note, I would like to give a huge thanks to my Support System. I would also like to thank Gleim for granting me the opportunity to document my experience (the ups and downs). This will definitely be a piece of history in my life that I share with future generations. It’s incredible having the ability to sit back and reflect on what I went through. I would encourage anyone out there to journal their progress – it helps. I hope my entries have helped the readers out there in their exam preparations.

Cheers!

 

Seeing Improvements in EA Review Scores

May 20, 2013, by No comments yet

 

Written By Gleim EA Guest Blogger Katherine K.

Wow! I was able to improve my Section 1 test scores from 60% to 100% over the last 2 weeks! The questions in the true/false section and the multiple-choice sections helped me to find areas I needed to focus on and review. Just when I thought I knew all about it, the quizzes opened my eyes to the need to review particular subjects. I plan to do a quick review of Section 1 before moving on to Section 2.

I am still recovering from tax season. I still have many questions about tax code that I encountered while preparing this year. I did my best to look up what I needed to look up at the time I was preparing the returns, but I want to review the information to ensure that I know it and can apply it when it comes up next time. I am so happy to have the Gleim materials to do this!

The questions in the Gleim EA Review are well written and make me think. I am very fortunate to have been preparing taxes while studying, as I feel I have been able to learn much more by using and applying the information. That is what is so helpful about the Gleim Review System, you get many opportunities to take tests on the information in many different ways. I have been able to read the book in bed at night and test myself immediately on each section. I have been able to take true/false and multiple-choice quizzes during breaks and during lunch at work.

I also have been using my EA Review book as a reference guide while preparing. I was able to refer a client to the information in the manual regarding meals and entertainment substantiation.

Now that tax season is over, I plan to spend much more time studying, especially over the next 2 weeks. I plan to finish Section 2 within the next week and be well into Section 3 by the end of the month.

 

 

CIA Transition to a 3-Part Exam

May 20, 2013, by No comments yet

The new Part 3 will now contain more information than before, and will take longer to prepare for. Candidates who are exempt from taking Part 4 should register to sit for the current Part 3 exam as soon as possible to avoid the new, longer format of Part 3″

 

Starting July 1st, the CIA will transition from a 4-Part exam to a 3-Part exam. CIA applicants will be able to register for the 4-Part exam through June 30, 2013, and will have through December 31, 2013, to complete the exam.

For both new and current candidates, we have found that it is more beneficial to get started studying and passing the exam(s) in the current 4-Part exam format. Taking the 4-Part CIA exam allows you to benefit from the experience of your peers who have already passed the CIA. The current exam is tried and tested, so candidates should sit for as many parts of the 4-Part program as they can. Candidates who pass Part(s) 1 or 2 of the current 4-Part exam will be exempt from the respective part of the 3-Part format if they transition to the new exam. As part of the transition, current Parts 3 and 4 will merge into one part. The new Part 3 will now contain more information than before, and will take longer to prepare for. Candidates who are exempt from taking Part 4 should register to sit for the current Part 3 exam as soon as possible to avoid the new, longer format of Part 3.

Also, if you start now, you will be on your way to being a CIA sooner, which means you will be able to reap the benefits of being certified quicker.

The 16th edition is perfect for candidates who want to fast track becoming a CIA. The multi-platform system is not only convenient, but also has all the tools candidates need to pass quickly. Every Gleim CIA Review system includes books, thousands of exam-emulating questions, online courses that include presentations, audio downloads, and access to exam experts who are able to guide you toward passing the CIA exam.

Gleim is excited to offer a special promotion on the 16th edition CIA Review materials to help you become a CIA faster. As the experts in CIA review with over 30 years of experience, Gleim has refined the art of preparing candidates to pass the CIA exam. With materials expertly authored by actual professors and questions from past CIA exams, Gleim is the right choice to assist you with your goal of becoming a CIA.

Don’t delay your CIA preparation; Gleim makes it easy to remain in your budget when you start preparing to become a CIA. Contact us today to discuss how you can save up to 33% on the CIA Review System and save time and money when studying for the 4-Part CIA Exam.

If you’re confused as to which CIA exam format you should take, contact Gleim today. Gleim has Personal Counselors available that can provide personalized, expert advice on which exam would most benefit your specific situation.

-Team Gleim | accountingteam@gleim.com

 

Final Review Process – CPA Exam

May 9, 2013, by No comments yet

 

Written By CPA Exam Blogger Erica T.

Before I sat for BEC, I blocked off a week of time to get a cumulative review of all the material. I hit all the multiple-choice questions in the book again, making flashcards of the ones that I struggled with a second time through. I also listened to the audio review on my iPhone in my car. That is one of my favorite tools. It helps you utilize your time efficiently. Even when you’re driving down the road, you can be listening to the concepts that will be on the test and not losing study time.

The weekend before I tested (on a Monday), I crammed like a madwoman. I spent every second that I could with my nose stuck in the book. I woke up early and stayed up late to study. On Sunday night about midnight, I couldn’t take anymore. I just closed the book, put my things by the door for the next day, and got a good night of sleep. To me, the final review was a lot less stressful than a first time review. You are familiar with the content and it’s just that, a review. I found this method to be effective for me. I tend to do well in a crunch. If I have any advice for a final review, it is to find what works for you. Each person is different in their study habits and this was the most effective way for me. I think another valuable piece of advice for someone studying for the CPA exam (and also working in the accounting field) is to have a little bit more common sense than I did and don’t schedule your exam one week before the tax deadline.

 

CIA Exam Day Approaching

May 9, 2013, by No comments yet

 

Written By Guest Blogger Tracy C.

Exam day is quickly approaching. I have 2 weeks until the big day. I have made a good dent in my studying this week. I wanted to complete all of the study units by the end of this week and have almost made it. I will spend extra time studying this weekend. Next week will be a challenge for me to fit in studying because I am going on vacation. I planned my vacation long before I started studying for the CIA exam, so when I scheduled my exam, I tried to give myself plenty of time in between. I get back from vacation with a week and a few days left before I take the exam, so that will give me plenty of time to review. I scheduled my exam for a Monday afternoon. This should give me the whole weekend before my exam as well as the morning of to finish reviewing and prepare myself in the final stages.

My study plan while I’m on vacation is to spend time in the mornings or evenings fitting in some review. This way I can relax in between our daily activities and dinner and use that time to go over my notes. Hopefully, I can stick to this plan and get some reviewing accomplished. I’m looking forward to having a week off work and getting to relax. For me, having a plan and sticking to it is an important factor in studying for the exam. I may try to go back and answer some more multiple-choice questions this week while I am on vacation. This is a good review for me this week because it won’t take a lot of time, but I will still accomplish an important part of my review plan. Check back next week to see how my study plans for vacation went; we will see how much I can accomplish.

 

 

Keeping Up the Pace – EA Review

May 9, 2013, by No comments yet

Written By EA Blogger Katherine K.

Today I completed Study Unit 2, Gross Income. I feel like I have made it through one of the toughest study units. I know that properly identifying taxable income is basic to all tax preparation and that the Gleim materials are very thorough. I also have a tip for anyone studying this section: Clear up the meaning of terms and concepts as thoroughly as possible. I took extra time to do this and it was worthwhile. I am now maintaining an average test score of 80%, even when I include the score for my first exam in each study unit. The score for the first test is usually much lower because it is taken prior to studying.

The questions in the true/false and multiple-choice exams helped direct my attention to areas of study I had not fully understood, and they also helped to clarify the information. I learn a lot from the exams and the review! I am actually enjoying my studies now, which I attribute to the system wherein one approaches the subject and has the opportunity to interact and then review.

Another useful aspect I have found is that the true/false and multiple-choice exams are timed. I didn’t think much of this at first and was even a little annoyed. Now, I realize that the timing aspect forces me to keep a certain pace through each exam. This pace is what I will experience during the real EA Exam!

I am currently working in sales during the off season (tax) and will be traveling from New York to Florida over the next month. I plan to bring my laptop with me and get through the remaining 11 study units by mid June. I am so excited about finally getting my EA certificate this year! My employer in my tax prep work wants me to obtain my EA certificate by September, so I know I need to keep up the pace.

I also discovered that I will be able to do a final review the week prior to sitting for the EA exam with an “Exam Rehearsal” and “Online Test Prep.” It’s so relieving to be taken through these studies by Gleim and not have to worry about what and how to study.

 

Back to EA Review After Tax Season

May 8, 2013, by No comments yet

Written by EA Exam Blogger Katherine S.

 

I find that it is now easier for me to do my tax research since I have been studying my Gleim EA materials. The intricacies of tax code seemed formidable in the past, but now I find myself digging in and studying whatever is needed to get information for the tax return. This may also have to do with the fact that I have gotten a lot of experience this tax season by preparing over 300 tax returns. I am definitely feeling more knowledgeable and confident. I work with a great bunch of tax preparers who have helped me get through some difficult times this tax season. I am very excited about becoming an Enrolled Agent this year! Every other tax preparer in my office is an Enrolled Agent or CPA. They are expecting me to obtain my certificate this year. I feel very fortunate to have found a program like Gleim to help me achieve that.

 
I spent some time last night reading the Gleim book at home and taking the quizzes at the end of each section. I like the fact that you only read a short section and then immediately take a quiz on what you studied. The questions are very involved at times, developed to really make a person think about the details that they just read. I find that I am unable to read through the material without using the information thoroughly, and by using the information thoroughly, it is retained!

 
I haven’t had a whole lot of time to study lately because it is the peak of tax season. I am busy preparing returns from 8:30 am to 7:30 pm and just want to relax when I get home. I have put my Gleim EA book by my bed, however, and plan to spend time each night this week reading and taking the quizzes for each section. This will definitely help, and I will be making some progress while I am so busy during tax season.

 
Katherine Spurger

 

Skipping the Written Communications

May 8, 2013, by No comments yet

Written By CPA Exam Blogger Jennifer K.

I think I have finally settled into studying with the Gleim program. I am working on Study Unit 12 and hope to get through Study Unit 16 this weekend. Earlier on, I did not completely follow the study elements of the Gleim program the way they are prepared. I thought this would save me time. Over the last week though, I decided to follow all parts of the study plan (except the written simulations) in the order that they have been presented on the website. Following the plan in the order in which it is prepared has actually reduced the amount of time it has taken me to complete the study material.

I am still not working through the written simulations because they cause a bit more angst and interfere with me concentrating on the subject matter at hand. I am planning to complete the 20 study units in the program and then work on the simulations as part of my final test preparation. The final week before I take the CPA exam, I will run several complete test simulations, including the written portion.

As I progress, I will make sure to stop and take a few practice tests, which will include questions from all the study units I have completed up to that point. I am hoping that this will give me enough reinforcement of the subject material. I am definitely finding that the Gleim study material is increasing my comfort with the subject matter. I’ve also noticed that following the exact sequence of studying provides me with sufficient repetition of the subject matter and improves my recall. I really like the convenience of the online program. I have found it extremely convenient to log in to the Gleim website and take a quick 20-question quiz any time and any place. I am really starting to feel good about the exam again and I am ready to complete my studies in BEC.