Author: Gevorg CPA

If you’re a student re-writing the Day 1 exam, you have taken Capstone 2 long time ago,  or you’re an internationally trained accountant who opted not to take Capstone 2, then you will be missing the new feedback guides and the three Day 1 practice cases from Capstone 2.

However, you don’t need to enroll into the full Capstone 2 module to get those. Instead, you can purchase the Capstone 2 review materials separately.

1. How do I get Capstone 2 materials?

Follow the steps below.

Step 1: Contact your local CPA body

Send an email to your local CPA school and request the Capstone 2 review materials. For example, for CPA Ontario, the email is: PEPEnrolment@cpaontario.ca

For CPA Western, here’s the link to the Capstone 2 Review Materials Module (RMM) (bottom of this page):  https://www.cpawsb.ca/current-learners/cpa-pep/modules/

Step 2: Complete forms and pay the fee

Your CPA body will ask you to complete enrollment forms. You’ll receive a similar email to below:

Hello [Candidate],

The cost for the Capstone 2 review materials for $[see below]. This includes access to all of the materials in the module such as the cases, solutions, feedback guides, debriefing videos, flash cards and webinars. Not included is access to the National Marking Centre Hotline or discussion boards, workshop attendance and no feedback on the cases. This enrolment is non-refundable.

To enrol, please complete the attached enrollment form and return with signed copies of the Candidate Training Guide Contract and the Academic Code of Conduct as soon as possible. Access to the materials will be uploaded to D2L within 3-5 business days of the enrolment date. Once we received the requested documents, we will enroll you and our Finance Team will post the invoice for the enrolment fees.

As per CPA Ontario’s website, the fee is currently $250 + HST.

Step 3: Get the materials

They will provide you the new Capstone 2 materials, including the missing Day 1 practice cases (3 versions) and the new feedback guides.

Step 4: Study

Use the feedback guides to understand the CFE case marking scheme.

2. Are there more practice versions for Day 1?

In addition to the three from Capstone 2, you can get supplemental Day 1 exam practice versions. You can also get sample answers to prior year’s versions for extra practice (available if the Day 1 case was previously tested).

Financial Reporting (FR) can be a challenging subject to grasp, and many CPA candidates find it difficult to identify the relevant CPA Canada Handbook section and paragraphs in their exam cases. This blog will guide you through a more straightforward approach to understanding FR references, helping you make the most of your study time and improve your exam performance.

FR sections in the Handbook

To begin, it’s essential to know that the FR standards in the CPA Canada Handbook are divided into the following general sections:

• Definition
• Recognition
• Initial and subsequent measurement
• Disclosure/presentation
• Other sections (eg Appendix A, B)

In some Assessment Opportunities (AOs), we write just the definition, while in other AOs, we write just recognition, and in others, a combination some of the above (for example, definition + recognition + initial measurement).

While applying logic to determine which paragraph to refer to is helpful, it’s not always straightforward. For example, if we have an AO where users are unsure if an asset is Property, Plant, and Equipment (PPE) or inventory, it makes sense to discuss the definitions of both and conclude which one fits better. However, this is a simple example and things can get complicated in the Common Final Examination (CFE) cases.

Understanding triggers is key

For more complex FR AOs, you need to look for triggers. Examples of triggers include:

• Agent: Leads to agent vs. principal section of revenue.
• Lawsuit: Leads to contingency
• Decline in market value: Leads to impairment
• Patent: Leads to intangible assets
• 100% share purchase: Refers to business combination
• Notes receivable: Leads to financial instruments
• Segment: Leads to operating segments

Practice makes perfect

Understanding the connection between triggers and paragraphs is challenging and it’s nearly impossible to learn this by simply reading theory. The key is to write dozens of cases, which will help you learn these trigger-to-section connection over time.

In the beginning, you will get most of them wrong, but that’s okay. As time goes on, you will start to see patterns and identifying the relevant paragraphs will become easier.

Focus on writing cases, take guesses if you’re unsure, learn from the solutions provided and keeping very organized notes.

Conclusion

After practicing several cases (~20-30 cases), it becomes easier to see the connections between triggers and the relevant FR paragraphs. So practice is the key to learning FR and to success in CPA Canada exams.

My FR technical notes show each Handbook standard in point form, divided into sections discussed above. Free preview is available here. Consider adding this resource to your CPA exam studies.

 

Update October 2025: New information released

Please see this NEW October 2025 BLOG POST on the deadlines and updates about the 2027 program.

CPA Canada New Certification Program

CFEs to continue to 2027. Please see this new blog post on the update that the CPA Canada New Certification Program is expected to be released in 2027.

Per January 2024 updates, the CFEs may be offered until at least 2026. According to the CFE registration portal and stakeholder update meeting (see screenshots below), CFEs are planned to be offered in 2025, 2026 and 2027 (May and September).

More recent May 2024 update is available here. The program has been postponed to 2027.

I believe this extension was necessary because students enrolled in the current CPA education program need time to complete their certification under the existing program. 

Additionally, according to CPA Canada FAQs, you may be given a choice to transition to the new Certification Program once it’s live. For example, if the new program goes live in 2025, and you’re in your electives, capstones, or the 1st or 2nd attempt of CFE, you may be given a choice to finish under the current program, or transition to the new program. There are no further details at this point, it’s not clear if you’ll need to start the new program from scratch or you’ll be placed at a higher level. It’s also not clear whether students who have not passed CFE 3 times and were de-registered will be allowed to re-enroll into the new program. I will update this post as I get new information.

 

Changes to the CPA Canada education program

If you’re a CPA candidate or an accounting professional, you may have heard of the CPA Canada Competency Map, a document that outlines the technical and enabling competencies required to become a Chartered Professional Accountant (CPA) in Canada. The Competency Map has undergone a massive transformation with the introduction of Competency Map 2.0, a new roadmap for CPAs.

As a result of the implementation of Competency Map 2.0,  the current education program (PREP, PEP, CFE, PERT) will be fully replaced from 2025-2027.

In this post, I’ll take a closer look at Competency Map 2.0, its impact on the CPA education program, and what you can expect if you’re planning to become a CPA in the next few years.

What is Competency Map 2.0?

Competency Map 2.0 is the newest edition of the CPA Canada Competency Map. As a result of the update, the CPA certification program (PREP, PEP, CFE, PERT) will undergo changes from 2025 to 2027. The new program will be called the New Certification Program.

The New Certification Program will focus on specific and foundational competencies, such as diversity, equality, inclusiveness, and indigenous views. The program will be divided into specific, foundational, sub-foundational, and decision-making competencies.

The move towards Competency Map 2.0 and the New Certification Program is driven by CPA Canada’s belief that technical questions can be easily answered using AI, Google and Excel, and that the focus should be on critical thinking skills instead. As a result, the new program will feature complex cases instead of multiple-choice questions (MCQs) and potentially introduce other ways of testing, such as interviews, group projects, and presentations.

What are the New Certification Program changes?

Competency Map 2.0 will bring a number of significant changes to the CPA education program. Here are the most notable changes:

• No more CFEs: From 2025 to 2027, the entire CPA education program is planned to be replaced, and there may be no more Common Final Examinations (CFEs) as we know it. Instead, the new program will be designed from the ground up. CFEs may be continued to be offered beyond 2025 until all current students finish their certification, however new students will be placed into the new certification program.
• No more PREP, PEP, electives: The concept of studying PREP then PEP, and choosing electives, will disappear.
• New PERT: With the high volume of complaints against PERT, it will be removed and replaced by a new experience reporting system.
• Micro-credentials: The new program may introduce micro-credentials, allowing candidates to earn mini-certificates as they advance through different levels of the program.
• Focus on critical thinking: The new program will focus more on critical thinking skills and less on technical knowledge. Technical and enabling competencies will be replaced by new competencies.
• New ways of testing: There may be other methods of testing, such as interviews, group projects, and presentations.

What can you expect?

If you’re a CPA candidate, or planning to become one, you may have questions about what to expect from Competency Map 2.0. Here are some things to keep in mind:

• Legacy path: If you’re already in the CPA program or planning to write the CFE in 2025, there will be a legacy path to help you complete the program using the current CFE exam. More info on CPA Canada’s website here.
• Switching programs: If you’re already in the CPA PREP or PEP programs, you may be thinking of waiting and switching to the new program. This policy is still under development and I will update this post as I get information whether this will be allowed.
• Glitches and bugs: As with any major change, there may be glitches and bugs in the new program. It may be a good idea to wait for a few months or a year before starting the new program to allow other students to go through it first and identify any issues.
• Input: CPA Canada is seeking feedback from stakeholders, including educators and employers, on what the new program should look like. If you have suggestions, feel free to provide your input to me and I’ll send those to them on your behalf.

It’s important to note that the new program is being build from ground up and there will be several feedback sessions. No one knows what the new education program will look like. Though unlikely, we may still have a three-day final examination if stakeholders ask to keep it. The new program will undergo several iterations before it’s finalized.

Conclusion

The New Certification Program is a the biggest change to the CPA education program since the unification of CA, CGA and CMA legacy designations in 2014. The new program will focus on specific competencies, potentially introduce micro-credentials, and feature complex cases and other ways of testing. While there are many unknowns, CPA Canada is seeking input from stakeholders, and legacy paths will be available for current CPA candidates.

If you’re planning to become a CPA, it may be a good idea to subscribe to my YouTube channel to stay informed about the changes and how they will impact you. 

 

Prior to answering the strategic and operational issues on CFE Day 1, you are required to complete a Situational Analysis (SA). This will include assessing the company’s current mission / vision / values, key success factors (KSFs), goals / objectives, internal and external environment (SWOT),  constraints, and a financial analysis.

This will be key to recommending what the company should do, as you will be required to integrate these SA factors throughout each of the strategic and operational issues.

Rules with integrating Situational Analyses factors

Let’s first understand the concept of integration in CFE Day 1. Integration is about taking a factor you put in SA and using it in the strategic and operational analysis. For example, if you write in your SA that a company’s strength is its brand appeal to the millennial customers, then when a strategic issue comes up about launching a new product line, you should tie back, or “integrate” to SA. You’d write:

“This product line is well-accepted by the millennials according to the research, which means our company can leverage its strength of brand appeal to millennials to gain a significant market share, thus improving the bottom line.” In this example, I integrated one of SWOT’s strength factors into the analysis. You’re expected to integrate at every issue (strategic and operational), at least 4-5 times, at minimum.

Some rules about integration:

• You are not required to integrate every single point in the SA throughout your case. You can write something in SA but not integrate.
• You cannot integrate something that you didn’t write in your SA. For example, if the case has some opportunities that you didn’t write in your SA, you can’t integrate it.
• You can integrate the same item more than once.
• There is no need to remove items from your SA that you didn’t integrate. For example, when first completing SA, you won’t know which points are important and which won’t be integrated. It’s possible that you will find later that something you wrote in SA (e.g. some of KSF) are not needed later. There is no need to remove those.
• You can integrate both quant and qual SA items. For example, you can choose to integrate a constraint (i.e. bank covenant) or KSF, and they will both earn you points. 
• You should integrate 4-5 times in all strategic issues

Generally, it’s better to add more points to SA to give you more integration options later. However, be mindful of your time and don’t spend too much time on SA.

How is CFE Day 1 marked?

Below is the Feedback Guide (FG) on the Day 1 SA and how you will be marked. For this example, the case has 4 strategic issues (AO2 to AO5) and 2 operational issues (AO6 A and AO6 B).

To achieve “Yes” on strategic and operational issues (elements 1-4), you will be required to score a Level 3. Level 3 consists of incorporating and discussing 3 factors from your SA. To receive marks for “discussion”, you must clearly explain the implication and impact of the SA factor and why it’s important. You must state why and how it works in favor of the decision, or against it.

Notice how beyond integrating your SA in your analysis, there is also a requirement to integrate the quantitative analysis (element 6). This can include ratio analysis, YoY comparison, industry benchmark comparison, etc. It is not enough to state the amounts in your SA. To achieve “Yes” and a Level 3 in element 6, you must discuss 3 of the quant components in strategic and operational issues and how they impact / affect the overall health or position of the company.

Overall, to achieve “Yes” on your SA, you need to achieve a Level 3 on at least 3 of the elements and at least 1 partial (Level 1 and/or 2) on another.

Extra Resources

In conclusion, completing situational analysis is important before answering the strategic and operational issues on CFE Day 1. Integrating the SA throughout the analysis is essential, and to receive marks for “discussed”, the impact of the situational analysis factor must be clearly explained.

Get extra CFE practice cases and exam coaching here.

 

Are you preparing for the assurance portion of the CPA Canada PEP and CFE exams and wondering whether you need to write “According to CAS” when answering audit AOs? The answer is, it depends on the type of AO you’re dealing with.

Do you need to write “According to CAS…”?

For the common assurance AOs, such as audit planning memo, procedures, control deficiencies, you don’t need to put the CAS standard or mention “According to CAS…” Instead, you can answer based on a format (for example, RAMP, RAP, WIR format).

For non-routine, uncommon AOs, you should write the CAS standard. Examples are key audit matters, fraud, going concern, communication with the auditor, physical matter paragraphs, etc., for these you should write relevant CAS standard.

Another exception is special engagement reports, which I consider a “common” AO. Although it’s common and routine, it still requires writing CAS standards. You must include the CAS number to identify the special report. Examples of special reports are CAS 805, CSAE 3531/3530, CSRS 4400 etc. You can find a full list of special reports here.

How do I study CAS standards?

If you want to fully prepare for assurance AOs and understand CAS standards inside out, a good study strategy is to study them directly. Unfortunately, the Learning eBooks doesn’t divide its chapters per CAS standard, but you can use CAS Summary notes to help you. These notes summarize all relevant CAS standards, including special reports, like CSAE 3531/3530, CSRS 4400. Additionally, review procedures are available in case you get a review planning memo, which comes up in the Assurance and CFE exams.

Extra Resources

In conclusion, when answering audit AOs, it’s not always necessary to write “According to CAS…” However, you should always include the relevant CAS standard for special reports and non-routine audit issues. By studying CAS standards directly, you can ensure that you’re fully prepared for these types of uncommon AOs.

You can get my CPA Canada exam resources here.

 

Are you planning to take the CFE exam? If yes, then you might be wondering whether you should write the old UFE cases that you’ll gain access to once you start Capstone 2. If you’re not familiar with UFEs, let me give you a brief background.

What’s UFE?

The UFE (Uniform Evaluation) used to be the final examination for Chartered Accountants (CA) in Canada. In 2015, the three designations (CA, CGA, and CMA) merged to form the Chartered Professional Accountant (CPA) designation, and the UFE was replaced with the new CFE exam.

Now, the question is, should you write the UFE cases once you have access to them during Capstone 2? The answer depends on whether you’re a first-time CFE writer or an experienced writer.

Should you practice UFE?

If you’re a first-time CFE writer, then there’s no point in writing UFE cases. You’ll have so many CFE cases to deal with that you won’t have enough time to write UFEs alongside them. Instead, focus on the CFE cases and supplemental cases that are relevant to your current exam.

However, if you’re an experienced CFE writer, then I recommend writing some UFE cases as a technical review. I suggest allocating them at the beginning of your studies, before you start writing all the CFEs and supplemental cases. UFE cases will help you review technical areas, such as MA, Finance, and S&G, which do not change over time.

It’s important to note that UFE cases are quite different from CFEs in terms of finding requireds and solving the AOs. Additionally, some of the technicals, like Tax, are outdated. Therefore, use UFEs mainly for technical review and not to simulate the exam experience.

Which UFEs should you write?

Here’s a list of UFE cases that I personally recommend. You can start with these, and if you have more time, you can expand and write even more of the UFEs.

Day 2:

• Kinfolk Limited
• HandySide

Day 3:

• Bold Spice Ltd
• PonyUp
• Carl Carlson
• RWD
• Long Haul Trucking Inc
• Hemp Co
• Browns
• Get-a-Deal
• Bruin Car Parts
• Molly-Sue Brews
• Rent-a-Bike
• Fire in the Sky Inc.
• Digital Future Technologies
• Chinook Trailers Limited

Extra Resources

In conclusion, for most people, there’s no need to write UFEs since they’re outdated. However, if you’re an experienced writer and have already gone through all CFEs in one round, writing UFEs can be useful for technical review. Just remember to treat them as a review, not as a simulation of the actual exam.

You can get extra CFE practice cases and exam resources here.

 

Like Capstone 1, in CFE Day 1 you’ll be required to assess and provide recommendations on several strategic issues and operational issues. You will be expected to prepare a Situational Analysis (SA) that covers the company’s mission/vision/values, KSFs, constraints, quants, objectives and internal/external analysis (SWOT). You can read about the basics of CFE Day 1 here.

SA provides the foundation for your qualitative analysis of the strategic and operational issues. Most candidates find it easiest to integrate and refer to SWOT component of their SA.

Does Day 1 SWOT come from Day 1 or Capstone 1?

The key for Day 1 is to focus on the items that have changed from Capstone 1. Therefore, ~80%/90% of your SWOT should come from new information provided to you in new Day 1 case.

During Day 1 exam, the prior factors, such as economical environment, competition, regulations etc. will be replaced by current information. If you are provided with new information, there is a reason it’s there, and these should be added to your SWOT.

However, you will find that ~10%/20% of your Capstone 1 SWOT points are still relevant and can still be included in your Day 1 SWOT.

Let’s look at an example using a recent Capstone 1 case called Waste Disposal Inc. (WDI).

In Capstone 1, a key strength was the experienced management team (see first image below). This still would be applicable on Day 1 as owners are still actively managing. But notice how there are more items from Day 1, such as changed government regulations, competitive position and the consulting division (see second image below). These new factors are more relevant now and must be added to your SWOT.

Capstone 1:

Day 1:

So while you should be familiar with Capstone 1’s SWOT analysis, it’s not the primary focus for Day 1. Therefore, you can include a limited amount of Capstone 1 points to SWOT.

Make 80-90% of your Day 1 SWOT based on new Day 1 factors, and 10-20% based on Capstone 1. 

For more information on the Day 1 Situational Analysis, check out the following article.

Extra resources

Mastering Day 1 SWOT takes time and practice. Studying diligently and consistently is essential to passing CFE and achieving academic success, so stay focused, set clear goals, and prioritize your learning to achieve results. You can get extra CFE practice cases and exam resources here.

 

Update 2026: EBooks are now on the UWorld platform

CPA Canada’s Learning Library eBooks have transitioned from VitalSource to the UWorld adaptive learning platform as of April 1, 2025. If you’ve already accessed your eBooks through VitalSource (old way), you’ll still be able to view them there, but they won’t be updated going forward. If you have notes or highlights, export them in advance.

Steps to Access EBooks

1. Click on Technical Review

Access D2L and click on Technical Review (top, next to Content).

 

2. Click on EBooks on the left hand side

Click on Ebooks which will open all the volumes and chapters. 

 

4. You cannot download or print

The new platform does not allow printing, which is a major disadvantage as most students prefer to work with printed material.

 

FAQ

Q1. I’m re-writing CFE and not taking Capstone 2. Do I have access to it?

Yes, all candidates in the CPA program have access to eBooks. Use the steps above to download it.

Q2. I’m challenging CFE as an international accountant (MOU). Do I have access to it?

Yes, once you register to write the CFE, you’ll get access to it. Follow the steps above to download eBooks.

Q3. Are eBooks, Handbook and Knotia the same thing?

No, they are different. eBook is a learning resource to help candidates prepare for the CPA exams. Handbook contains IFRS and ASPE standards. Knotia is the platform that has the Handbook and other standards, such as Income Tax Act.

Previously, eBook was on Knotia. It’s no longer there, it’s been moved to D2L.

Q4. How does the eBook change the exam?

CPA Canada exams are based on the exam blueprint and Competency Map, not the eBook. This means the eBook has no impact on your exam, it’s just a textbook to help you learn. CFE is based on the Competency Map, which had minor changes in 2022.

Extra Resources

Extra resources to help you pass for CPA Canada exams are available in my CPA coaching platform.

Both writing and preparing for Day 2 of the CFE can be an overwhelming and exhausting task given the 5-hour exam time. Since it’s longer than the other CFE Days, most students find it hard to maintain focus and stamina throughout. These tips will help improve your concentration and help produce better results in your Day 2 cases.

You can read about the basics of CFE Day 2 here.

1. Stay fueled.

Keep your body fueled to keep your mind energized. Eat well prior to exam and keep snacks available throughout to stay nourished. Avoid a heavy diet as this may make you sleepy (e.g. pizza, pasta, burgers, fries, sweets). Eat light, healthy breakfast before going to the exam center. Take snacks that are convenient to eat, healthy, and let you type your case at the same time (e.g. granola bars, berries, carrots, nuts).

Staying hydrated will also have a positive impact on concentration. Be sure to drink throughout the study/exam time by having a water bottle readily available to you. (Note: CFE exam regulations say that metal or non-transparent containers are disallowed. Drinks must be in their original container or in a clear container, with no label. Also, cans/juice boxes should be unopened before entering the exam room and cardboard sleeves from coffee cups should be removed.)

2. Walk around.

Exercise and taking breaks to walk around will keep your blood flowing to the brain, which can help you stay alert and energized. It’s a good idea to have a quick exercise before your exam to get energized. I suggest going for a quick bathroom break during the exam (every hour or every 2 hours) to help you get distracted and re-focus.

3. Prepare your workspace.

Get your workspace ready for everything you will need over the course of the 5 hours. This includes having plenty of writing materials (i.e. pencils, highlighters, erasers), snacks, and water. This helps to avoid having to leave your desk during the study period. Leaving your space may take you out of the concentration from the case or technical on hand. You will also want to eliminate any distractions, such as phones, and study in a quieter place (eg office, den) to replicate exam conditions.

4. Get plenty of sleep.

Your memory and attentiveness when studying is greatly impacted by a healthy sleep pattern. Develop a consistent sleep schedule by getting the recommended 7 to 8 hours of sleep during your study period to avoid any disruptions in your performance. To further improve the quality of your sleep, implement these additional tips:

• Limit exposure to screens and electronic devices before bed
• Avoid caffeine and other stimulants before bed
• Go to bed at the same time each day
• Make your sleep environment comfortable and conducive to sleep (e.g. cool temperature, quiet, dark)
• Get regular exercise, but avoid strenuous activity close to bedtime
• Manage stress through relaxation techniques, such as deep breathing or meditation

5. Stretch and breathe.

During the 5-hour study period, it’s possible to get up and move around, but during the actual exam, it will be a little harder. You can leave your desk to go to the washroom but you can’t take a stroll around the exam room.

Stretching at your desk is a better alternative to get your blood moving and leave your muscles feeling less tense and stiff. Sitting for long durations, your posture may be impacted negatively which could increase back pain and distractions. Performing neck rotations, shoulder stretches, and arm stretches will help reduce discomfort.

Especially in times of more stress, taking deep breaths at your desk will help create more mental clarity, help calm anxious thoughts, and boost energy. As simple as inhaling and exhaling for 10 seconds can reground you.

6. Be consistent.

Consistency and repetition are key for building strong study habits. To train yourself to sit down and focus for 5 hours, you want to be consistent in the time of day you are doing this. Given that the exam will be held in the morning, I recommend to replicate the exam setting and practice your case writing at the same time in the mornings.

The consistency is also key in other study areas, such as having a set method of debriefing, your diet, and study routine.

Many candidates that fail CFE tell me that they didn’t actually practice Day 2 cases in 5-hours. “When I get to the exam, I’ll be able to write in 5 hours.” This is rarely true. Don’t make this mistake, the actual exam shouldn’t be your first time writing a Day 2 case in 5-hour time limit.

7. Focus on yourself.

During the exam, you will be surrounded by other writers reading, typing, and snacking. It’s important to remain focused on your own computer and time limits, and be uninfluenced by those around you so you do not waste valuable time.

Some candidates use ear plugs so they are unaffected by any surrounding noises in the exam room and you can too (note: ear plugs are given in exam centers and you can bring your own).

8. Goals and rewards.

As you prepare for the exam, reward yourself after reaching milestones. Go out to your favorite restaurant at the end of a study week, or it can be something smaller such as watching a desired film as a break. It’s important to celebrate and allow yourself to be proud of the progress you’re making. This will help reduce the resentment or lack of motivation towards the new study habits and help you stay motivated.

9. Dress comfortable.

You will be sitting in the same spot for an extended period, so ensure you’re feeling your most comfortable in what you’re wearing to avoid any unnecessary distractions. Keep it simple and prepare for cooler temperatures in exam halls. CFE exam center doesn’t have a dress code. Here are suggestions:

Comfortable clothes for women:

• Leggings or yoga pants
• Comfortable jeans (not too tight or too loose)
• Sweatpants or joggers
• Loose-fitting t-shirts or sweatshirts
• Hoody or light jacket
• Flats or sneakers

Comfortable clothes for men:

• Comfortable jeans or khakis
• Loose-fitting t-shirts or sweatshirts
• Hoody or light jacket
• Sneakers or loafers

If you’re planning to go back to the office after the exam, put your office clothes in your bag and change after the exam. 

10. Positive mindset.

Part of getting through the 5-hour stretch is not getting bogged down and de-motivated by any technicals you don’t understand. Worrying about these items will cause you to lose focus from the items you do know well, and the stress may cause you to lose track of your timing.

Remain grounded that you have studied and prepared well. Handle each AO one at a time and focus on what you know. Keep focused on the goal of passing and believing you can do it!

Extra resources

Implementing these tips will take time, so try implementing them into your daily routine leading up to the exam. You can get extra CFE practice cases and exam resources here.

 

Day 2 of the CPA Canada’s CFE is the one most candidates find daunting due to its length and depth requirements. This study guide will break down the CFE Day 2 exam into key components to help you successfully study and pass Day 2.

You can read about the basics of CFE Day 2 here.

1. Effective case reading.

As you are reading the Day 2 case, you want to keep track of company and background information. This will help provide context as you write your response. This includes timeline (eg. year-end, key events, current date, etc.), users (eg, owners, investors, bank, etc.), industry the company operates, business information (eg financial reporting framework), requireds, and any other key information.

The case may not specifically outline the financial reporting framework at the start. Make note if the company is operating privately or publicly, as this will hint whether the case is ASPE or IFRS.

If you’re using a paper outline, be sure to decipher between the required and the background information by use of margin notes or different highlights. There is a lot of information on Day 2, and it’s critical to understand what is relevant to your plan and what is not.

Be sure to read the “Common” section and only your role. Don’t get caught up in information irrelevant to your analysis. For example, the Common section may give information about the external environment, such as competition, government increasing taxes, rising demand, changing consumer preferences, etc. This is given for PM role writers for their SWOT. If you’re writing other roles, this is not for you.

2. Planning the case.

Whether you prefer to plan on paper or computer, planning is critical to ensure you stay within the allotted time and can complete all AOs. For more resources on electronic vs paper outline, check out this article.

As you read your case, you should be noting down the requireds. You can also make note of any relevant pages or appendices as part of your plan. Your goal in planning is not to decide how you will answer the issue, but instead to determine what the issue is and what format you will answer.

For each AO, you want to allocate a specific amount of time to complete it. This will be unique to you depending on your strengths and typing speed. I suggest for reading and planning to take 1 hour in Day 2. You may choose to allocate 15-20 minutes for each of common issues and 20-25 minutes to each of your role AOs. When setting the amount of time, be sure to consider the time it takes for excel quants and summarizing in memo.

3. Sticking to your time.

It’s important to stick to your time for each AO. Going overtime on one AO will result in reducing valuable time in a different AO and could even result in your not completing each.

Keep an eye on the time as you write and as you start wrapping up your AO when you have 1-2 minutes left. Note that the conclusion is often required for a C and should be included for each AO.

Remember that your analysis doesn’t have to be perfect to achieve a C, it only needs to be reasonable. Don’t overspend your time on an AO by trying to include all facts or quantitative components into your calculation.

Day 2 is a 5-hour exam. Practice each case within this 5-hour limit so you can realistically see how you would perform under exam conditions.

4. Applying the structure.

For each AO, your best chance of obtaining a C is to follow the CPA Way method of response. This includes the following format:

• Issue – Discuss the issue briefly using case facts. For example: “Company A received $50K for inventory they will ship in May. They have recorded this as revenue. The issue is whether this is the correct treatment.”
• Standard – More related to FR issues, Assurance or Tax. Discuss the appropriate standards that need to be considered based on the issue.
• Analysis – Integrate case facts to explain and assess whether the appropriate standards are being met. On Day 2, this step is critical for achieving depth. Make sure you explain how and why certain components are not met. Note that each criteria should have its own analysis.
• Measurement – Any associated calculations should be summarized.
• Recommendation – Was the initial treatment correct? If not, what adjustment needs to be made? What is the course of action you are recommending based on your analysis?
• Impact – Keep in mind any additional factors that may be indicated such as covenants, company goals, or profitability. Note that writing the impact statement is not needed for C. It’s optional to write it.

If you receive an AO that you’re not sure how to answer, use the above framework to help guide your response.

5. Remembering technicals.

Going into the CPA Canada Handbook during the exam will take valuable time. There are many routine AOs that come up frequently throughout your studies and Capstone 2, such as revenue recognition. I recommend that you learn and memorize the criteria for these AOs, so you can spend more time analyzing the standards.

Note that the criteria can be written in your own words, they don’t need to be copied directly from the Handbook. Creating your own study templates can help prepare for this.

Familiarize yourself with the Handbook, however, in the case that you receive a less common, non-routine AOs that you may need to look up. Familiarize means understanding the structure, not memorizing the entire handbook. For example, IFRS 15 has 5 steps, Appendix A, and Appendix B. Step 2 and Step 4 are the most important.

6. Practicing cases.

Practice is the best way to learn time management, technicals, understand which AOs require further study, and the format CPA is looking for. Capstone 2 will provide practice cases, but I recommend that you write additional cases to get exposure to more AOs and technicals.

Try to write some past year CFEs for more technicals. Only few FR and CAS standards have changed in these past exams. The biggest changes were in FR’s revenue recognition and lease standards. In Audit, biggest changes were in special reports.  Although it’s important to write many practice cases, be sure to only write cases you can debrief effectively.

You can find extra CFE Day 2 and Day 3 cases here.

7. Debriefing cases.

Debriefing is key to success on Day 2. The process of debriefing is your main study method, as you learn and understand how to write responses, what criteria to use, and how to integrate case facts.

It’s important to rewrite your response, review technical notes and the handbook to guide your understanding, and create your own case templates.

It’s recommended to mark your own cases even if they are being professionally marked. This will get you more familiar with critically assessing your work and the feedback guide. It will also give you an idea of how you performed while you wait some time for your marked case.

8. Using an AO tracker.

Tracking your AO grades for each competency in Day 2 will help you to map out which AOs are your strengths, and which ones need more review. It also shows your progress over the study period and can be a confidence booster heading into the CFE!

Capstone 2 provides an AO tracker and I have one in my CFE program as well.

Extra resources

Overall, read the case effectively so that you can plan and stick to your time for each AO, follow the CPA Way approach when assessing each AO and be sure to integrate case facts and implications.

Be sure to practice and debrief each case so you can track your progress by each competency. These steps will allow you to build a strong foundation for approach Day 2 of the CFE.

You can get extra Day 2 practice cases and exam resources here.