1. Slide 1 What You Need To Know About The Revised CPA Exam... A Webcast for Employers The views expressed by the presenters do not necessarily represent the views, positions, or opinions of the AICPA or the presenters’ respective organizations

2. Slide 2 Program Objectives This program is designed to: Inform employers about the changes in the computerized Uniform CPA Examination Communicate best practices from other professions Discover practical ways to motivate your employees to become CPAs

3. Slide 3 Today’s Speakers Diane Rubin, CPA Partner Novogradac & Company, LLP -------- John C. Riina Vice President Legg Mason -------- Arleen R. Thomas, CPA Vice President American Institute of CPAs -------- John F. Hudson, CPA Moderator Hudson Consulting Group, LLC --------

4. Slide 4 6 Months to Launch Historic change Last paper and pencil exam is over CBT launches on April 5, 2004 Major milestones have been met/cooperative effort among AICPA, NASBA and Prometric

5. Slide 5 Getting Started Contact State Board to determine eligibility CBT will be administered in secure Prometric centers Eligible candidates will receive a Notice to Schedule (NTS)

6. Slide 6 National Candidate Database New system created by NASBA Designed to track each candidate with unique national ID All candidate data maintained within the NCD Ensures only eligible candidates test at appropriate times Secures candidate data, including grades

7. Slide 7 Dates to Test OpenClosed April – MayJune July – AugustSeptember October – NovemberDecember January – FebruaryMarch

8. Slide 8 Taking the Exam Upon completion of check-in, the candidate: is seated at a designated workstation begins the exam after proctor launches is monitored is video taped

9. Slide 9 At Completion Upon completion of the examination, the candidate: signs-out collects his/her belongings turns in scratch paper is given a Post Exam Information sheet

10. Slide 10 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

11. Slide 11 Business Environment & Concepts Business Structures Economic Concepts Financial Management Information Technology Planning and Measurement

12. Slide 12 Transitioning Recommendations Paper & PencilCBT AuditingAuditing & Attestation Financial Accounting & Reporting Accounting & ReportingRegulation Business Law & Professional Responsibilities (LPR) Business Environment & Concepts

13. Slide 13 Granting of Credit Impact on Candidates Candidates have more flexibility in terms of scheduling to test Candidates can focus study on a section(s) as they feel comfortable Can take one or more sections within a month, window or longer period

14. Slide 14 Employer Resources CBT Tutorial available on www.cpa- exam.orgwww.cpa- exam.org –Provides guided tour of revised exam –Demonstrates look and feel and available tools –Allows users to try functionality themselves

15. Slide 15 Employer Resources Practice samples available in early 2004 –Condensed set of multiple choice and simulations –Will be downloadable from website –Replicate look and feel of CBT

16. Slide 16 Multiple Choice Questions

17. Slide 17 Simulations

18. Slide 18 Simulations

19. Slide 19 Simulations

20. Slide 20 Simulations

21. Slide 21 Simulations

22. Slide 22 Simulations

23. Slide 23 Simulations

24. Slide 24 Simulations

25. Slide 25 CBT from the CPA Firm Prospective The passage of the CPA exam is critically important to CPA Firms –Quality Control All managers must have passed the CPA Exam prior to promotion to manager Indicates that candidate has at least the knowledge required for licensure –Commitment to the Profession –Separates you from your peers and puts you on the Road to Success –Important in obtaining new clients

26. Slide 26 Building Awareness in the Firm Recognition and congratulations to those who have passed Allow time off to take the Exam Passage of Exam is a prerequisite to promotion to Manager Discussion of changes from paper and pencil exam to new computer based Exam Discussion of changes in State Board of Accountancy Rules

27. Slide 27 Best Practices on Discipline to Sit Plan ahead –Determine the dates to sit for the Exam –Decide whether to take all parts at once or one or two at a time –Select a review course or start a study group –Start studying months before you take the Exam –Schedule time off in advance so that you are available Set your targets for passage as soon as you join the firm

28. Slide 28 Promoting Studying for the Exam Take a review course and study with a colleague Use available time, if any, to study for the Exam When recruiting we determine candidate’s interest in and plans for taking and passing the Exam In house training helps in studying for the Exam

29. Slide 29 Current Recruiting Efforts Ascertain that recruit has enough hours to sit for the Exam Determine whether the recruit has sufficient accounting classes to sit for the Exam Determine whether the recruit is planning to take the Exam and when Determine through review of GPA, transcripts, and discussions with candidate whether the recruit will have a reasonable chance to pass the Exam

30. Slide 30 Communications to Recruits When speaking at Beta Alpha Psi or Accounting Association meetings discuss the importance of the Exam Discuss the State Board of Accountancy rules relating to requirements to sit for the Exam and requirements for licensure Discuss the changes in paper and pencil and CBT Refer recruits to www.cpa-exam.orgwww.cpa-exam.org

31. Slide 31 The Buzz on the Street More convenient scheduling options Candidate can take one part at a time which might make it easier to study for and pass Simulations are an unknown at this time and some candidates are unsure of their difficulty Most believe that taking the test on a computer will not be more difficult than paper and pencil The new section, Business Environment and Concepts, worries some There has been little change in the number of candidates sitting for the last paper and pencil test in 11/03 vs. 11/02

32. Slide 32 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 www.aicpa.org/nolimits Scholarship opportunity through AICPA/Accountemps Discounted subscription to The Tax Adviser

33. Slide 33 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)

34. Slide 34 A Case in Point... Experiences within the Securities Industry

35. Slide 35 Professional Alliance Group Legg Mason’s Alliance Program Create alliances with accounting firms to provide their clients with a broad array of financial services through a team-work approach or referral process. CPAs remain in a counseling role within our program and clients benefit through a coordinated financial strategy.

36. Slide 36 Legg Mason Legg Mason Background NYSE Broker Dealer SEC Registered Investment Advisory Firm Manage $215 billion Advising investors since 1899 130 offices, 1300 Financial Advisors Alliance programs since 1990

37. Slide 37 Securities Industry Broker Dealer Registration Tests – Series 6, 7, 8, 9, 24, 26, 63 Investment Advisor Registration Tests – Series 65, 66

38. Slide 38 Central Registration Depository NASD tracks each candidate with a unique national ID – CRD Number All candidate data is maintained within the CRD System Ensures only eligible candidates test at appropriate times Secures candidate data, including grades

39. Slide 39 The Examination 8 hours total length The test is created by the computer a.selects questions from each category b.creates a unique exam from a pool of thousands of questions Multiple choice questions True – False questions Pick all that apply Distinct topics are mixed throughout Exam

40. Slide 40 Securities Exam Preparation Establish a 120 day window by completing and filing a form U-4 Receive a CRD number –ID within the NASD Study for Exam – Schedule your study time for several weeks Call Prometric 3 weeks prior to preferred exam date You can change date within window – 3 days prior

41. Slide 41 Securities Exam Preparation Study Process Read selected chapter Take chapter test – CD Rom Continue process throughout book Take full practice exams until scoring 80% If you don’t take the exam during your window, you must pay for another window to take the exam in the future

42. Slide 42 Best Practices For Exam Day Sleep well Arrive early Review highlight sheets Bring ID Dress comfortable – Layers Leave materials in car Pack your lunch

43. Slide 43 Taking the Exam Upon completion of check-in, the candidate: is seated at a designated workstation begins the exam after proctor launches the session is monitored by a Test Center Administrator is video taped calculators and paper are provided

44. Slide 44 At Completion Upon completion of the Examination, the candidate: signs-out collects his/her belongings is given a Post Exam Information Sheet

45. Slide 45 Continuing Education Requirement CBT – Computer Based Training 2 nd Anniversary Every 3 rd anniversary thereafter 120 day window to complete

46. Slide 46 Best Practices for Personnel Policies Compensated for study time? Compensated to sit for the exam? Reimbursement of Prometric Seat Charges – “window” Reimbursement of NASD fees

47. Slide 47 General Reactions to Computerized Exams Securities exams have been computerized for several years Provides a flexible study and testing process Provides ability to become licensed in a relatively short period of time Revenue producing employee

48. Slide 48 General Reactions to Prometric Testing Centers Convenient Professionally Run Secure

49. Slide 49 Summary & Questions

50. Slide 50 Thank You For Participating!

51. Slide 51 Upcoming CPA Examination Webcasts For a complete listing, check our website at http://www.cpa-exam.org DateTimeTitle 1/14/041pm – 3pm EST Candidates: Registering for the computerized CPA Exam 2/17/041pm – 3pm EST Students and Candidates: Preparing for the revised CPA Exam