As graduation nears, there is one thing on almost every senior accounting major's mind: the Uniform CPA Exam. Prior to 2004 the pencil and paper version of the exam was only offered twice per year. Today the now computer-based exam is offered during the first two months of each calendar quarter. Each testing period is called a "testing window," and candidates can take as many parts as they wish in each window, but they cannot take any single part more than once per testing window. Furthermore, once a student receives a passing score, which is 75 or better, he/she has 18 months to pass the remaining parts. Also, the Notice to Schedule (State verification that you are eligible to sit for the exam) is only valid for six months in New Jersey. Unfortunately, even though the exam is being offered during eight months of the year, the nationwide pass rate is approximately 50 percent for all sections, according to the National Association of State Boards of Accountancy. It is common for most test takers to fail one or more sections of the exam on their first attempt, which can be quite discouraging.
As a recent CPA exam candidate, I strongly recommend sitting for the exam as soon as possible after graduation. Realistically, this is not possible for everyone. Some accounting firms start their new hire orientation programs in early fall to allow recent graduates to start preparing for the exam. Other firms require new hires to start working the month after graduation. How are firms encouraging new employees to sit for the CPA exam? Some - not all - accounting firms offer lucrative incentives.
Large accounting firms, including some of the Big Four, not only pay for review courses, but they also offer bonuses for passing within a certain amount of time, and they reimburse for exam and application fees. Therefore, it is in the employee's best interest to pass the CPA exam as soon as possible. Some medium-sized accounting firms only offer a bonus that covers most of the fees for review courses and for the exam. And finally, while some of the small accounting firms offer no monetary incentive, they may allow for time off to study as they are very supportive of their employees taking the exam whenever feasible. Each firm has its own way of encouraging accounting majors to take the CPA exam, but most employers believe you should take the exam earlier, rather than later.
The longer someone waits to take the exam, the harder it gets. It's much more difficult to study for the exam when you are trying to raise a family or are in a supervisory position at work. After a while, it also can become more challenging to teach yourself how to study again. Why not study for the exam while some of the information is already fresh in your mind?
Although accounting firms are different sizes, have different specialty areas and so on, most have some things in common. Many firms will allow you to take time off for the exam, and they let you study during business hours when assigned to a client. Unfortunately, in order to continue receiving promotions, you need to obtain a CPA designation. Often, you are not allowed to become a manager unless you are licensed. When many employers offer monetary incentives for taking the CPA exam, why are some recent college graduates delaying the process? You'll hear "I want to obtain my master's degree before taking the exam," "I want to get through one busy season to help make the exam easier," "I just spent the last four years studying and deserve a break" and "My employer doesn't reimburse me for the exam or review course fees."
More and more college graduates are being discouraged from becoming CPAs sooner rather than later, due to the state's 150-credit-hour requirement, even though you are allowed to sit for the CPA exam with just a bachelor's degree. Don't let any of those factors discourage you from obtaining your dream of becoming a CPA. The feeling of conquering the exam is extremely satisfying and rewarding. For more information about the CPA exam, go to
www.njscpa.org/students/exam.
Daniel Arcuri graduated from Ramapo College of New Jersey and is now working as a staff accountant with Ernst & Young. He is a NJSCPA scholarship recipient and serves on the Advisory Board for Tomorrow's CPA.