Author: Gevorg

Are you a professional accountant with a CPA designation looking to help university students get through their accounting courses or candidates in CPA Canada’s PREP/PEP programs get through their exams and successfully pass the CFE?

GevorgCPA Coaching is looking for enthusiastic and knowledgeable part-time Tutors who are familiar with CPA Canada’s education and examination process, including: technicals, marking, case writing, and exam strategies. The successful tutors will provide support to candidates in various GevorgCPA courses, demonstrate and give practical instruction in online class settings, and assist in the delivery webinars and other program-related activities.

GevorgCPA Coaching is Canada’s only CPA coaching provider that has been recognized in the national news as the CPA exam experts. Our flexible, integrated prep programs allow candidates to enter the CPA Canada PEP modules with strong academic knowledge, technical expertise and case writing skills. Our CPA PEP and CFE programs support candidates in their studies throughout the Core 1, Core 2, Assurance, PM, Tax, Finance, Capstone 1, Capstone 2 and the CFE. Student success is achieved through personalized coaching, the Honour Roll approach and our in-depth knowledge of the CPA examination process.

Duties & Responsibilities

• Demonstrate and give practical coaching in online setting (Zoom) on part-time basis
  
• Delivery introductory to advanced level tutoring related to CPA Canada’s PREP, PEP and CFE modules
  
• Mark practice cases and integrative problems as needed
  
• Devise educational models to demonstrate case writing principles
• Explain complex concepts in an easy to understand manner by using everyday examples
• Provide a safe and inclusive learning environment

Qualifications

• CPA designation or Bachelor’s Degree related to accounting
• Some experience with tutoring, marking, mentoring or teaching accounting to CPA candidates
• Demonstrated coaching skills, communication skills, and interpersonal skills
• Post-secondary teaching experience an asset

Benefits of working with GevorgCPA Coaching

• Connect with a pool of candidates actively seeking tutoring support
• Professional Development (PD) hours and opportunities for career development
• Learning opportunities from Canada’s leading CPA exam experts
• Increase your knowledge with discounts on GevorgCPA courses

Pay rate

• $50-$60/hour, depending on experience

Location

• Remote
  

How to apply

Update: The applications are now closed. Please contact the support team (support@gevorgcpa.com) if you’re interested in similar roles.

I’ve written about Financial Reporting (FR), Assurance, and Tax common topics in CPA Core 1 module in other posts. In this post, I’ll cover the common Finance topics.

Unless your background is in Finance or you have good knowledge in Finance, you’ll find the “Finance” Assessment Opportunities (AOs) in CPA Canada’s PEP Core 1 and Finance electives modules difficult to solve.

To make things worse, the CPA Canada Learning eBook has 20+ long chapters on finance, with topics ranging from Capital Budgeting to Working Capital Management.

So what topics do you need to know?

Common Finance topics to know

Here are some of the common Finance topics you should know for Core 1 and Finance elective:

• Cash Flow Forecast
• Valuation (EBITDA, Asset-based, CCF)
• Weighted average cost of capital (WACC)
• Capital Budgeting
• Payback
• Internal rate of return (IRR)
• Net present value (NPV)
• Financial analysis/Ratios
• Financing sources

All Finance topics that can be tested

The full list of Finance topics that you will be tested on are listed in the CPA Canada Competency Map.

Here’s a list of all Finance topics you can be tested on (warning: it’s a long list):

Specific topics:

• (A) External Environment and Impact on Finance Decisions/Analysis
  1. Nature of and accessibility to capital markets (financial markets, public offerings and underwriters, private placements, secondary markets)
  2. Capital market efficiency (efficient market hypothesis)
  3. Other factors in market pricing
• (B) Finance Concepts
  1. Risk/return
  2. Financial leverage and risk (impact on residual return, interaction with operating leverage)
  3. Financial management goals and objectives
  4. Impact of inflation/deflation
  5. Income tax considerations
  6. Time value of money (including risk-adjusted discount rates)
• (C) Financial Analysis in a Finance Context
  1. Free cash flow analysis
  2. Horizontal and vertical analysis
  3. Ratio analysis
  4. Trend analysis
  5. Sensitivity analysis
  6. Scenario/simulation analysis
  7. Payback (PB)
  8. Internal rate of return (IRR)
  9. Net present value (NPV)
• (D) Data Analytics in Finance
  1. Information representation for decision making
     • Data visualization of financial and nonfinancial data
     • Dashboards, graphs, tables, report design
     • Communication of information for quality decision making
     • Framing information recognizing uncertainty
  2. Quality of information for decision making
     • Dimensions of information quality – relevance, ease of use, integrity, timeliness
     • Types of data and their attributes (nature, sources, format, timing, extent and level of aggregation)
     • Professional skepticism regarding data
     • Information quality and the impact of processing models
     • Data cleansing
  3. Data and information modelling
     • Analytics and model building (descriptive, diagnostic, predictive, prescriptive)
     • Standards for data tagging and reporting (XML, XBRL)
     • Model validation
     • Interpretation and professional skepticism of models and analytics
• (E) Financing Decisions and Finance Management
  1. Inputs into determining cash flow needs
  2. Working-capital management
     • Nature of working capital
     • Role of liquidity
     • Cash and marketable securities management
     • Receivables, inventory, and payables management
  3. Sources of short-term financing (trade, factoring, lines of credit)
  4. Credit policy decisions (evaluating credit risk, determining collection policy and credit period, making use of cash discounts, organizing the credit function)
  5. Short-term versus long-term financial planning (objectives and process, forecasting, pro forma financial statements)
  6. Sources of medium- and long-term financing
     • Bank loans
     • Internally generated funds
     • Initial public offerings
     • Venture capital
     • Securitization
     • Government assistance
  7. Asset-based financing
  8. Lease financing (direct lease, sale and leaseback)
  9. Derivative financial instruments
  10. Project financing
• (F) Investing and Risk Management
  1. Forms of ownership and extent of ownership (direct, outsourcing, strategic partnerships)
  2. Nature and use of financial instruments
  3. Debt instruments
  4. Equity instruments
  5. Derivative financial instruments (options, rights, warrants, futures, forwards, swaps, other derivatives)
  6. Convertible securities
  7. Stock-based compensation (options, appreciation rights)
  8. Tools to hedge exposures (e.g., interest rate swap, foreign currency hedge)
  9. Other types of investments
  10. Portfolio diversification and optimal investment decision making
  11. Macro-economic risk assessment
• (G) Capital Structure Decisions
  1. Optimal capital structure
  2. Ownership and control considerations
  3. Financial leverage
  4. Tax considerations (tax shield, etc.)
  5. Effects of bankruptcy costs
• (H) Determination of the Cost of Capital
  1. Capital components and cost
  2. Capital asset pricing model (CAPM)
  3. Weighted average cost of capital (WACC)
  4. Marginal cost of capital
• (I) Distribution of Earnings
  1. Dividend policy
  2. Alternatives to cash dividends (stock distribution of profts dividend, stock split, share repurchase, dividend reinvestment)
• (J) Capital Budgeting
  1. Role and nature of capital budgeting
  2. Discount versus capitalization rate
  3. Investment in working capital
  4. Evaluation criteria (capital rationing, abandonment decisions)
  5. Tax effects
  6. Post-audit of capital investments
• (K) Cash Flow/Net Income Estimation
  1. Tax effects
  2. Effects of non-cash items
  3. Discounting
• (L) Valuation
  1. Purpose and nature of the valuation
  2. Fair market value concept
  3. Common inputs to valuation techniques (credit risk, market price, marketability, volatility, etc.)
  4. Approaches to valuation (for fixed income securities and/or equity instruments):
     • Asset based (adjusted book value, liquidation value, replacement cost)
     • Transaction based (capitalization of earnings, capitalization of cash flows, discounted earnings, discounted cash flow)
     • Market based (multiples)
  5. Approaches to the valuation of intangible assets
• (M) Corporate Finance Transactions
  1. Forms of expansion and divestiture (mergers, acquisitions, strategic alliances, joint ventures, spin-offs)
  2. Transaction considerations
  3. Key risks and rewards in corporate finance
  4. Synergies involved in the combination of entities
  5. International considerations (exchange risks, political risks, economic risk, international sources of capital)

You don’t need to know all these topics for Core 1

If you’re in Core 1, I recommend focusing on the common topics I listed first. It’s near impossible to study all above topics in the 8-week module timeframe. Although all these topics are examinable, from my experience, the key topics I listed are more commonly tested. If you want to see a list of common Tax topics for Core 1, check out this post.

For Finance elective, any of the above topics can be tested. I suggest studying all of them.

Need Help Passing CPA Exams?

Sign up for the Core 1 Review program to get extra practice cases,  study plan, engaging video lessons and personalized coaching with me.

CPA candidates often ask me whether they need technical summary review notes for Core 1.

Technicals are a big part of Core 1. You will be tested on Financial Reporting, Assurance, Tax and Finance issues. The topics that you will be tested on are listed in the CPA Canada Competency Map.

What are common technical topics in Core 1?

Some of the common FR topics include:

• Revenue recognition
• Lease accounting
• Financial instruments 
• Inventories
• Property, plant and equipment (PPE)
  
• Goodwill and intangible assets
• Impairment of assets
• Contingencies
• Non-monetary transactions
• Related party transactions
• Government assistance
• Subsequent events
• Asset Retirement Obligations

Some of the common Finance topics include:

• Cash Flow Forecast
• Valuation (EBITDA, Asset-based, CCF)
• Capital asset pricing model (CAPM)
• Weighted average cost of capital (WACC)
• Capital Budgeting
• Payback
• Internal rate of return (IRR)
• Net present value (NPV)
• Financial analysis/Ratios
• Financing sources

If you are looking for a summaries of key technicals, you can use these resources:

1. Core 1 Review course
2. CPA Canada Learning eBook summaries
3. HTKAcademy notes

The eBook and HTKAcademy are available for free to students in the CPA PEP program.

The Bottom Line

Getting technical summaries helps to speed up the study process, but it’s only half of the battle. It’s a common misconception that passing Core 1 requires you to know all technicals. Candidates fail Core 1 due to poor case writing skills, not knowing what to focus on, and lack of time management. My Core 1 Review course is effective in helping students pass Core 1, because it teaches these exact skills, among many other things.

Get Help with Passing Core 1

Sign up for the Core 1 Review program to get extra practice cases,  study plan, engaging video lessons and personalized coaching with me.

For the first time, the CPA Canada Common Final Exam (CFE) will be held regionally. CPA Canada announced today that the May 2021 CFE will be cancelled in CPA Ontario and Quebec, but will proceed as planned in CPA Western and Atlantic. The exam delivery approach for both the CPA Western and Atlantic schools will be the same as in the September 2020 CFE, involving the use of hotel rooms.

The decision is due to the high COVID-19 case counts and new variants, affecting heavily Ontario and Quebec. Out of province writers from Ontario and Quebec will not be allowed to write in other provinces.

The September 2021 CFE registration will open in May and it is scheduled to be held from September 13 to 15. Capstone 2 will be offered in July, and the registration will open again in May.

Why did CPA Canada make this decision?

In addition to what was said about health concerns, these are my thoughts:

• Historically CFE had been offered once per year in September, so adding May was mostly for the sake of scheduling flexibility and possibly higher graduation of CPAs into the market
  
• Most students in Quebec follow the university programs and those are designed to write in September
• There is really no “requirement” to hold CFE nationally, it just made sense from administration and marking points of view
• CPA Canada was not expecting to cancel the May 2020 CFE (last year), so there are extra set of cases that could be used, making it practical
• The costs/benefits of booking thousands of hotel rooms vs. postponing for 4 months must have not been financially viable
  

What does this mean for writers in Ontario and Quebec?

This news is certainly disheartening for the most of you. I recommend taking the time to re-strategize and focus on the positives:

• You now have 4 more months (15 weeks) to study
• You’ll get an extra set of CFE cases to learn from
• First time writers will now be writing WDI v2 and repeat writers the DHC v3 cases, so you’ll have extra set of Day 1 cases to study
• If you were on the fence about ordering a Performance Analysis Review (PAR) of your 2020 CFE, you can do so from March 16-21 and these PARs will be made available by July 1. I generally recommend PARs for candidates who were unsuccessful at the CFE and cannot work out their weaknesses.

Action items for Ontario and Quebec writers:

• Revise your study plan to add 15 weeks of more technicals and more cases (old CFE/UFE)
  
• Start planning your time off with your employers for August/September
• Mark the registration deadlines for Cap 2/ September 2021 CFE
  

What about writers in Western and Atlantic?

Not much changes for writers in Western (BC, Alberta, Saskatchewan, Manitoba, Yukon, NWT/Nunavut) and Atlantic (Nova Scotia, New Brunswick, Newfoundland), as far as your exam strategy goes:

• There will be ~65% less writers in your May 2021 exam, so less “competition” to tackle
• CFE is still going to be marked on the curve, put your best efforts to get ahead of the  curve (est’d 1,000-3,000 writers)
• You will be writing in hotel rooms, where there is more privacy and opportunity to focus
• You will get only physical copies of the CFE cases during the exam. This is different than the electronic PDFs you had in the PEP program. Print and practice with hard copy cases now and in Cap 2
  
• You will be using FolioViews software to look up standards. Download and practice the software to get familiar, when you get access
  

Action items for Western and Atlantic writers:

• Keep working on your technicals and case writing, there are only 10 weeks left (as of today)
  
• Follow the same study strategy as if the CFE was held nationally, nothing changes in your strategy
• Watch my YouTube videos and register for my CFE prep program, if you have not done so yet

I encourage candidates to use the extra four months to be productive. Stay home and study case writing and technical materials. This will help to prevent the spread of the virus and have you well-prepared for the postponed exam.

PEP and CFE Exam Coaching

My name is Gevorg. I’m an instructor and a CPA exam coach. I’ve been featured on CBC News and Google News as a CPA exam expert. If you want coaching with me, contact me or sign up for my CPA CFE Review Course.