Category: CFE Case Writing

CPA Canada’s CFE Day 1 is 4 hours long. It contains usually 4 strategic issues, 2 operational issues, and 1 or 2 big picture issues.

Before heading into the exam center, it’s a good idea to have a strategy on how you’re going to approach and solve the Day 1 case. This strategy should be formulated during your prep time and practiced until it becomes second nature.

I described the basics of Day 1 here. So in this blog post, I’ll explain the Day 1 approach that I teach my students.

Day 1 approach

Step 1: Overview the case

First, we flip through all the pages. The goal is to understand what the exam paper is all about:

• How many pages are there?
• How many appendices?
• What are the titles?
• What are the appendices made up of (quant, qual or both)?
• How long is the board dialogue?

This is a quick process that takes 1 minute max.

Step 2: Read narrative, board dialogue and F/S

Now that we know what the case is all about, we read the narrative (first few pages), the board dialogue (which is usually Appendix I) and F/S (if given). All of those are read in detail.

Step 3: Build the outline as you’re reading step 2

You can have either paper or computer outline. Whichever you choose, you should build an outline. It helps to capture the case facts, keep things organized, and saves you from re-reading the case.

Here in step 3, we build the outline. This is done simultaneously as we are doing step 2.

At this point in the approach, you should know all the strategic issues, operational issues, and the big picture issues.

Step 4: Quick read the appendices

Here in step 4, we “quick read” the remaining appendices. The goal is to find what issue each appendix belongs to and if there are any important case facts that might affect all other issues (ie, hidden big picture issues). Don’t read in detail, take 30 sec – 1min max per Appendix.

If any appendices affect SAF (for example, the big picture constraint), then go back to your outline and add the new information to it. This happened in the May 2022 CTI v1 case.

I recommend spending on steps 2, 3 and 4 (combined) 1 hour and 20 minutes.

Step 5: Finalize time budget

It’s time to allocate your remaining time budget and start solving the AOs. Exact time allocation techniques and time budget templates are available in CFE Review.

Step 6: Read appendix in detail & solve

Finally, we read each appendix in detail and solve the AOs.

Summary

Here’s the summary:

• Step 1: Overview the case
• Step 2: Read narrative, board dialogue and F/S
• Step 3: Build the outline as you’re reading in step 2
• Step 4: Quick read appendices
• Step 5: Finalize time budget
• Step 6: Read appendix in detail + solve

Extra resources

Extra resources are available at CFE Review course.

In CPA Canada CFE Day 1, it is typical to have 4 to 5 strategic issues. In some cases, there could be a strategic issue that have multiple options within it. For example, the issue may require you to analyze: keep vs drop, make vs. buy, repair vs replace.

In this article, I’ll discuss the best approach on how to format these issues.

Multiple Options – Quants

For each strategic issue, a quantitative and qualitative analysis is required. The same is true when a strategic issue contains multiple options. Each option will need a corresponding quantitative and qualitative analysis.

For the quantitative component, the following steps should be taken:

• Excel appendix should have a clear title and headers to separate each option.
• In Excel, choose the right technique/calculation approach and find ways to save time on set up. For example, if there are multiple product production options, you can set up your common inputs for each as the rows, and your products as the columns. This will help you avoid duplication of headers for each separate calculation.
• Include short support for calculations.
• Summarize results of each option’s quants in your memo. Include assumptions and other considerations
• Conclude which option is better and why.

At least 2-3 assumptions are needed for each quants you prepare. Be sure to have a balance between the different options if applicable.

Example

Using Creative Toys Inc. (CTI) as an example, the first strategic issue is that the doll head division has low margins, and the board wishes to make this more profitable by automating the manufacturing or outsourcing the production to one of two suppliers. We have 3 options within 1 issue (manufacture, outsource #1, outsource #2).

For the quants, we provide NPV calculation for each scenario and conclude in the memo. The first option is to update the equipment and we write a separate interpretation of the results:

The second and third options are for outsourcing. We write a conclusion for each:

Multiple Options – Qual

For the qualitative component, the following steps should be taken:

• Using bullet form, write 4-5 pros and cons (total) for each option. 
• Ensure there is a balance between pros and cons for each (i.e. not all pros or all cons).
• Integrate AT LEAST 4 situational analysis factors. There should be a balance in linking factors to each of the options within the AO.

Example

Continuing from the earlier example, for the qual, we write pros and cons for new manufacturing equipment vs outsourcing. We would write 4-5 pros/cons for manufacture vs outsource and 4-5 pros/cons of outsource #1 vs outsource #2.

Notice how we combine the pros/cons by writing “Pros of X/Cons of Y”. This is an effective way to cover both options.

Extra resources

Overall, when an AO contains multiple issues, tackle each one as a sub issue with it’s own quantitative and quantitative analysis, and conclusion. Be sure then to create an overall conclusion that considers each of the issues. 

Extra resources are available at CFE Review course.

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.

 

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.

 

In preparing for Day 1 of the CPA Canada CFE, it’s important to understand that Day 1 is a continuation of the Capstone 1 case. Similar to Capstone 1, Day 1 will test your ability to problem solve, make decisions and communicate recommendations. Because Day 1 is so different from the other CFE days, candidates often wonder how much of the original Capstone 1 case to read and remember, what parts of Capstone 1 repeat in Day 1, and what parts can be ignored.

Capstone 1 vs. CFE Day 1

CFE Day 1 picks up where Capstone 1 left off. Day 1 is the same company as you had in Capstone 1, only several years in the future (for example, 5 years after Capstone 1). What this means is that you will be working with the same industry, same business and same key stakeholders. For this reason, I highly recommend that you study in-depth the Capstone 1 case to familiarize yourself with key concepts.

If you’re a PEP student taking Capstone 1, you will get the case and read it as part of the module. If you’re an internationally trained accountant, I don’t recommend taking Capstone 1, instead download the case from CPA Canada’s website and study it.

Day 1 differences

The Day 1 case will go over which strategic options from Capstone 1 the company decided to pursue, environmental changes, new options, new financing, a big picture issue and operating issues. For this reason, you do not need to memorize how the Capstone 1 strategic options were assessed and concluded as a group. What is important to keep in mind is that you will have to use a similar approach in assessing this new Day 1 case, which is following the CPA Way, including qualitative and quantitative assessments for each new option, and overall conclusion.

Capstone 1 concepts to memorize

While you will be primarily using new information for the Day 1 version , it’s important to study and remember key concepts from Capstone 1, as some will be applicable.

Below list provides key areas you should remember from your Capstone 1 case. The Capstone 1 case is extremely lengthy, therefore, I recommend to outline key pages for your reference.

• Mission / Vision / Values – You will be required to compare the Capstone 1 M/V/V to that provided in the Day 1 and comment on any changes or additions.
• Users / Key Stakeholders – Important to understand the needs of each.
• Key Success Factors (KSF) – You will be required to list them in Day 1. There are usually no changes to KSF in Day 1, so you can list them as they were in Capstone 1.
• Internal & External assessment (SWOT) – Remember some of them and list in Day 1. In Day 1, I suggest putting 80% of SWOT from the new Day 1 case and 20% from the original Cap 1.
• Objectives / Goals / Targets – New goals will be stated but important to keep prior ones in mind.
• Financing – Remember key ratios, bank covenants, and interest rates from Cap 1 so that you can compare with those in Day 1.
• Constraints / Big picture – New constraints will be presented.

Additionally, you should make note of key industry and company information. For example, number of products sold, locations, branches, key competitors and so on.

You can download an example of my Capstone 1 summary here to understand how to best summarize the Capstone 1 case.

Conclusion

It’s very important to study the Capstone 1 case prior to Day 1 of the CFE. As part of my CFE exam preparation program, you can use my Cap 1 summary notes to study what’s relevant from Capstone 1. Reviewing these notes prior to Capstone 2 will also make it easier to tackle Capstone 2’s Day 1 practice cases.

 

When writing CPA Canada PEP and CFE exams, planning your approach and AO times in an outline is a key component of passing. With the option to do the outline on paper vs. computer, many candidates question which approach is better. Check out the below considerations when deciding which method is best for you!

Paper Outline

Pros:

• Outline will always be in front of you. You don’t need to spend time scrolling up and down to check your plan. This will help you better stick to your allocated time and ensure you are answering the AOs fully.
• You have more flexibility in positioning and formatting the outline in the way you want. You can draw arrows, highlight, and circle key items on your outline easily. Computer outlines don’t provide the same flexibility.
• You can easily cross off and markup AOs from your plan as you complete them. This will help you keep track of how many AOs you have left to complete and any that you need to return to. For example, you can put a “?” sign next to AOs you did not fully complete to remind yourself to return to them. In an electronic outline, the same question mark may get lost in the paragraphs of text.
• You can easily highlight and match AOs with key background information and appendices directly, instead of relying on a summary (which could take more time to write/type out). For example, you can highlight in blue color an AO in the narrative. When you see case facts related to the same AO in appendices, you can highlight with the same blue color to keep track of the information. 

Cons:

• Paper outline is more time consuming as handwriting takes longer than typing. This is valuable time taken away from preparing your answer.
• There is a risk you may not be able to read your handwriting (if your handwriting is as bad as mine), or your outline could get smudged if you erase or rub it. This may cause you to miss out on critical points for your analysis. Electronic outlines don’t have the same problems.
• Per CPA Canada exam rules, you can’t use a pen or mechanical pencil for the PEP and CFE exams. This will cause your writing to be messier as HB pencils are not as sharp.

Electronic (computer) Outline

Pros:

• Allows you to prepare your answer faster, since you don’t have to re-write items from the paper outline to the computer once you’ve completed it. You can easily copy and paste items from your outline to your answer, or convert your outline into your final answer.
• There is flexibility in re-ordering your electronic outline as you can easily change the ordering of AOs by cutting and pasting them to their new positions. You can also leave blank space between AOs in your outline so detail can be filled in as you read the case and gather more / new information. Paper outline doesn’t give the same flexibility because there is limited space.
• You can create a time budget in Excel faster than on paper (see example here).
• If you run out of time, you at least have something on your computer already to build your answer from, such as the key issue and critical case facts. You may get RC for this if you have enough relevant content.
• You can build the structure of your response around your outline and less time is needed to restate the issue statements. This provides a smooth transition to typing out your answers.
• There is reduced risk of missing a required that you forgot to transcribe from paper to your computer, assuming your computer outline is well organized.
• Saves you time from flipping between case papers and outline to capture all the requireds.

Cons:

• For long cases, you will have to scroll up and down from section to section to stick to your plan. This takes time and may cause you to lose track of AOs. To solve this, I recommend students to create their outline as a “skeleton” (by using templates) and convert it into their final answer. This is better than typing your entire outline at the top of the memo and copying below as your answer AOs.
• You must capture all AOs and key case facts by typing them out. This will be more time consuming for long cases that have extensive detail, or if your typing speed is slow. The recommended minimum typing speed for CPA Canada exams is 40-45 WPM. You can check your typing speed here.
• Typing out has shown to be less effective for remembering and interpreting information than writing them out by hand. 

Conclusion

I recommend electronic outline for most candidates due to its speed, flexibility and ability to convert your outline into your final answer. To be successful with electronic outlines, you must have good organization skills and efficient case writing. In my interviews with Honour Roll students, I found some students prefer paper outlines while others prefer computer outlines. Ultimately it’s not the method that defines your exam success, but your approach, organization and practice.

Regardless of the method chosen, you should be practicing your outlining skills on each case you write. Try attempting both methods and determine which one is most effective and efficient for you. I show examples of both outlines and explain how to outline like Honour Roll students in my PEP and CFE success courses.

 

When preparing electronic outlines for CPA Canada PEP and CFE cases, many writers question whether this can be left in their memo or should it be deleted before submission.

The answer is YES, you can leave it, the markers are not concerned with having outline left in the memo. However, you must make it clear it’s only an outline. Here’s how to do that!

Step 1: Label your outline

I suggest putting a short “Outline” header at the top to make it clear. This includes both Word and Excel documents. For Word, simply write “Outline” at the top. For Excel, you may be using it to track the timing on AOs; make sure this is labeled as “time budget”, “tracker” or “outline” so that it’s not confused with an Exhibit.

Step 2: Keep it brief

Don’t make your outline very detailed, it’ll take valuable time and this could confuse the marker into thinking this is the final response. Your outline should briefly state the business information, users, requireds, any relevant appendices you need to refer back to from the case, a timeline, and for Excel the priority in which you will answer AOs and the time you are allotting for each. Outline should not contain technical criteria, attempt an analysis, or conclusion. Instead, keep it brief and save your longer write-up for the memo.

Step 3: Put outline at the start

It should be clear to the marker when your outline ends and when your memo begins. Some writers may choose to start the memo in a fresh new page, but this is not necessary.

What all writers need to do is put a header after the outline, to signal to the marker that the memo starts from that point onwards. The header should address who the memo is written to (user names), from (always “CPA”), what the memo is regarding (via a subject line; name of the company), and optionally the date the memo is written. Writing an introduction paragraph in CPA cases is not necessary; once you put the header, start solving AOs.

Conclusion

Markers will not penalize writers for keeping an electronic outline in your Word document. As long as you are keeping your outline and memo response distinct to avoid any marker confusion, you do not need to spend any additional time deleting your outline at the end of the exam. Having the outline there is a great reference to you to help you avoid flipping back and forth between hard copy case papers to track all the case facts. 

 

You’ve successfully completed Capstone 1 and have one final module before you can arrive at the CFE. You’re almost there! Below is a guide to ensure you are well prepared for this next 8-week course.

What is Capstone 2?

Capstone 2 has only one objective: to prepare you for the CFE. It has no exam, no facilitator, and no new technicals to learn. Essentially this module is designed to ensure you are eligible to proceed to writing the CFE. Capstone 2 provides you two things:

• Practice cases for the CFE
• Marking by the national marking centre (NMC)

To pass Capstone 2, you must attend the module workshop, complete module workshop activities, and reach at least 75% on the weekly activities.

Structure of Capstone 2

The module’s activities include:

• 12 marked practice cases
• 2 marked module workshop cases
• 4 unmarked practice cases
• 2 surveys (one at the module workshop and one at the end of the capstone)
• Capstone 2 introduction quiz
• Academic honesty quiz
• Module workshop participation

The practice cases given to you in Capstone 2 are all past CFE cases (except Day 1 practice cases, which are new every year). You can download these past CFE cases ahead of time from the CPA Canada CRC. In the CRC, you can find them in the “CFE Reports,” which are 300-400 page documents that summarize each CFE. You will need to open the CRC webpage, download all reports, scroll through and extract the exam cases/solutions one by one. I’ve already extracted and organized them in my CFE Review course.

Realistically it is not challenging to pass Capstone 2. Your target is not to “pass it” (you will certainly pass), but rather to use the marking and resources to study for the CFE. 

Capstone 2 resources

Here’s a list of resources:

• To kick off Capstone 2, a module workshop will be held to provide you with information and practice session of all three CFE days. 
• Weekly webinars that are hosted by each region. These webinars will cover technical topics encountered in weekly practice cases.
• Facilitator-monitored discussion board for questions, announcements and can even be used to find study partners.
• A sample CFE study calendar and a Capstone 2 calendar of when cases are due.
• Video walkthrough and spotlight videos on various topics related to the CFE.
• Marking of your cases by the National Marking Centre (NMC)
• Sample strong answers to the practice cases
• Feedback guides, debrief notes, and walkthroughs to the practice cases.

What’s not available in Capstone 2:

• Assigned facilitator to ask questions and get feedback (you post in forums for someone to answer)
• Personalized marking of cases (NMC marking is generic and impersonal)
• Additional practice cases for Day 1 (you get only 3 practice versions)
• Marking of additional cases
• Technical practice drills to develop your skills in a specific technical area

Case submissions

Throughout Capstone 2, you will need to submit your cases to NMC for marking. Your case responses must be written in Word and Excel, and uploaded to D2L dropbox. Submissions containing an extra file (for example, two Word files) will not be marked. 

The Excel portion of case responses must be written using only one worksheet. Don’t  use multiple worksheets (tabs).

The naming convention is also different from prior modules. You must use your candidate ID number in place of your name. For example, a Week 2 Day 3 practice case would be “1234567_W2D3.docx”. Note that not all cases are to be submitted on Friday. Refer to the Capstone 2 calendar for the submission deadlines.

Feedback received in Capstone 2 

NMC will provide feedback on the 2 module workshop and 12 practice cases throughout the module.

Quartile performance scores will be provided to help you determine where you rank in relation to overall population.

Once you receive feedback, you should compare the total score from your feedback guide to the quartile performance document. This will help you determine where you rank in relation to overall candidate performance. For cases that are not assessed by the NMC, the quartile performance is based on historic candidate results.

Mock cases

During week 4, you’ll write a “mock CFE.” The mock CFE is a simulation of the CFE exam: you’ll write back-to-back x1 Day 2 and x3 Day 3 cases. Day 2 should be written in five hours, and the Day 3 cases in four hours. The mock CFE will help you gauge how ready you are for the exam,

For the mock CFE Day 3 cases, you must write each case in a separate Word and Excel file and submit to the corresponding dropbox in D2L. This is different than the CFE, where the response for all three Day 3 cases will be written in one Word and one Excel file.

CPA Canada strongly recommends that you wait until Week 3 of Capstone 2 to write the mock CFE. This will ensure that you have received feedback from the National Marking Center on their Week 1 and 2 practice cases and are provided with an opportunity to apply some of the skills they have learned on the mock CFE.

Should you take Capstone 2 if you’re MOU student?

As a internationally trained accountant, you have the option to take Capstone 2, but it’s not required. I don’t recommend taking Capstone 2 due to limited exam-prep resources in that module. Instead, consider taking more personalized exam coaching program.

Should you take Capstone 2 if you’re re-taking CFE?

If you were unsuccessful at the CFE, you can choose to re-take Capstone 2 before your next attempt. Here are my suggestions:

• If you need to re-write only CFE Day 1, don’t re-take Capstone 2.
  • If you are writing version 2 of your Day 1 exam case, then use the 3 practice cases you received previously to study.
  • If you’re writing a new Day 1 exam case, then purchase only the Capstone 2 materials (usually $250 + tax).
• If you need to re-write only CFE Day 2/3, don’t re-take Capstone 2.
  • You already received the practice cases and feedback guides from your previous attempt. You are going to miss only on the latest CFE cases and the marking services. You can get the latest CFE cases and high quality marking services from me.
• If you need to re-write CFE Days 1/2/3, consider taking Capstone 2.
  • There are different factors to consider. Has it been a while since you’ve taken Capstone 2? Has your Day 1 exam case changed? If you said yes to any one of these two questions, I suggest re-taking Capstone 2. If you said no, I suggest taking a CFE coaching program.

Conclusion

The key to success during Capstone 2 and the CFE prep is to debrief each of the cases you write. This will provide you an understanding of how each case is marked, what the ideal response looks like, and act as technical review. The time you spend on debriefing should be at least as long as the time taken to write the case and should be done right after writing the case.

You also want to ensure you are writing your cases in the allotted time, as this will better prepare you for exam conditions. Lastly, if you can have peer review it would be a great opportunity to learn different approaches and help you see cases from a different perspective.

Extra study resources are available in CFE Review course.

 

If you’re preparing for Capstone 1, you’ve successfully completed all your module exams and are one step closer to writing and completing the CFE. This article will help prepare you for what to expect as you enter the 8-week course that is Capstone 1.

What is Capstone 1?

Capstone 1 focuses on teamwork. You’ll be placed in a team made of 4 to 5 students. You’ll work together to solve issues in one big case (50-60 pages long case).

To pass, your team must complete a written report and oral presentation. 

• Written report is completed in several parts and you’ll get feedback from your facilitator after each part. You’ll write in Word and Excel.
• Presentation is made to volunteer CPAs acting as a panel. The presentation is about 30 minutes, followed by Q&A of 15 minutes.

The main challenge of Capstone 1 is teamwork. I find that many students are put into teams where there is no synergy and one person does more work that the other. It’s important that you speak up and ensure everyone is performing their fair share. Don’t take more work than you have to, your target in Capstone 1 is to have free time to prepare for CFE.

The Capstone 1 case repeats in CFE Day 1. The users, background, and parts of the situational analysis remain the same, while the strategic and operational issues will change.

Your Role During Capstone 1

You and your team will solve strategic and operational issues in the case. There are usually 4 strategic and 5-10 operational issues. The quants will be difficult and require a lot of detailed analysis. I suggest assigning a team member with Finance background to the quants parts. 

You can assign each member 1 strategic issue and divide the remaining work equally. You can assign situational analysis to one member, all quants to another member, and divide equally the remainder. One way or another, you should discuss as a team and assign equal amount of work so that everyone contributes fairly.

During the presentations, your role will be to present the part you worked on to the panel of CPAs.

Scheduling will be difficult within your team as everyone may have different busy times and availability. This will require you to be flexible. During the first week, your team will make a Team Schedule. I suggest using this as the main scheduling tool as it will help you stay organized and plan the meetings.

During the presentations, your role will be to present the part you worked on to the panel of CPAs.

You can pass/fail Capstone 1 as a team or individual. Refer to the diagrams below for the passing schemes:

Team passing profile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individual passing profile

Outline of Capstone 1

Capstone 1 begins with a module workshop where attendance is required. You’re expected to complete the module workshop pre-work and I highly recommend that you read over the entire case.

In the first week, you’ll complete planning documents (team agreement, project plan, and a project schedule). In the next weeks, you’ll work on situational analysis, strategic and operational issues, with the final report being submitted at the end.

At the end of Capstone 1, you’ll make a presentation. You will use presentation software, such as PowerPoint or Google slides, and presentations must not exceed 30 minutes. The presentation won’t contain the same amount of detail as the written report.

Important dates

Throughout Capstone 1, you will have two live 30-minute chat calls with the facilitator to address any questions and raise any concerns.

Weekly submissions are due Friday and revisions are due on Mondays. I recommend scheduling team reviews prior to Friday in the case of problems and be sure to designate some time in your schedule for revisions to be safe.

Success tips for Capstone 1

Here are some helpful tips for the written report:

• Schedule and plan ahead: Knowing which weeks will be more challenging will help you plan around these tough times.
• Review the submission guidelines as a team: Review guidelines, like word count, so that there are no errors. It’s easy to make small mistakes as an individual, so review them as a team to ensure your report is 100% accurate.
• Leverage team strengths: If someone is skilled in one area, let them complete that part. For example, someone working in tax can provide more depth on tax implications.
• Understand the entire report: This will be a huge benefit when you reach the CFE Day 1 stage. During CFE Day 1, you’ll be dealing with the same case, so knowing the report inside-out will help you pass Day 1.
• Take advantage of chats: Be prepared, ask lots of questions and ask for feedback.

Here are helpful tips for the presentation:

• Prepare as a team: Practice together to master the speaker handoffs and overall flow of the presentation.
• Practice your part: No scripts or que cards will be allowed, so practice as much as needed so that you’ve memorized your part.
• Be high level: Make your presentation like a business proposal, with less detail and more high level.
• Have backup slides: Show details in backup slides at the end of the deck, in case you are asked by someone regarding this at the end of the presentation.
• Practice Q&As: All team members will be required to answer at least one question to pass. You should develop an approach as a team to who will answer as well as anticipating which questions will be asked.
• Dress for success: You should dress in professional business attire.

Conclusion and extra resources

Don’t stress over Capstone 1. While it does require active effort, Capstone 1 has 99%+ pass rate from my coaching experience. You should be using your free time during Capstone 1 to study for the CFE, which is your ultimate challenge.

Extra study resources for CFE are available in CFE Review course.

 

For many CPA candidates, sticking to the allotted case time is one of the major challenges in case writing. Being able to dedicate your time to the conditions being marked will be critical in achieving overall competency success.

1. Use common abbreviations

Time spent typing out full names of accounts, financial statements, company name, users’ names, etc. can be used alternatively towards further analysis with the use of abbreviations. However, be careful in only using common abbreviations that are well known in the CPA world. These will include terms you often see abbreviated in the modules, Knotia and practice cases. For example, you can use abbreviations such as P&L (Profit and Loss Statement), ABC method (Activity Based Costing method), A/R (Accounts Receivable), IRR (Internal Rate of Return), HB (Handbook), IFRS, ASPE, Quant (quantitative), Qual (qualitative), F/S (Financial Statement), AO(Assessment Opportunity) etc. Avoid using your own created abbreviations to eliminate potential confusion from the reader.

As a workaround, you can define your own abbreviation at the start of your memo in brackets, then use it throughout. For example, “Company ABC is interested in investing in buy-one-get-one (BOGO) products. The benefits of BOGO products are that…On the other hand, BOGO products have risks such as…” 

2. Don’t quote entire Handbook sections

Be sure when copying and pasting HB sections, that you only copy what is relevant. In other words, only the few sentences that you plan on analyzing and concluding on with case facts. Copying the entire HB section will not earn marks, and may in fact lead you to discussions that do not hit the key points. The HB section should be interpreted, as how you use the standards will be the main focus of your assessment grade. 

Debriefing your cases and keeping a summary of the relevant HB paragraphs and sections for reference will help provide ease when writing cases.

3. Only write what is necessary

When writing your AO analysis, it’s important to avoid the temptation to focus on the quantity of what you write and instead focus on being concise. Avoid long introductions for issues, and instead address the issue in a single sentence. Do not reiterate general case facts. Instead, your introduction could look like: “Susan is considered if revenue related to the sale of concert tickets have been recorded correctly”. This will leave you more time to get to the details of the task.

The same logic applies to your analysis. Condensing your analysis/conclusions of each point to 3 to 4 sentences should be enough to get the point across. If you are hitting the word limit on your assignments, you likely have some room to improve your ability to be brief. Take time when debriefing your cases to focus on what could have been removed / what was critical to include.

4. Apply formats for the specific analysis

Much of improving speed with case writing comes from knowing how to format specific AOs. By reviewing and templating these AOs during your debriefing process, you can eliminate some of the work upfront by already knowing how to set up your qualitative analysis or your Excel spreadsheet. As you do more cases, you will notice many AOs repeating over and over again.

Keeping track of how these are commonly answered and assessed on the Feedback Guide will allow you to spend more time on your actual answer, instead of formatting. For example, for a control weakness, get in the habit of setting up a WIR (Weakness, Implication and Recommendation) format. Or for Special Reports, practice laying out your response with the reports, assurance level, pros/cons etc. Additionally, you should consider whether using a table, paragraph or pros/cons is the optimal analysis.

5. Improve your typing speed

Time is driven by speed and distance. The above tips will help you reduce your distance (ie, you’ll write less). But how can you increase your speed? Most CPA candidates have an average typing speed of 40-45 words-per-minutes (WPM). By increasing the typing speed to 50-60 WPM, you can put more things down in shorter amount of time, thus earning more marks. Most students practice their typing 1-2 times a week using online tools. However, these tools use words and phrases that are irrelevant to CPA cases. SpeedType, on the other hand,  is tailored for CPA Canada candidates. It’s a typing training and time management tool that helps you type faster through lessons that cover all CPA Canada competencies. Practicing 2-3 times a week will ensure you’re typing faster and learning how to manage your time. Check out SpeedType here for free. 

Conclusion

Practicing these skills over the course of modules and capstones is the best way for CPA candidates to improve their time management and overall case-writing skills. Consider implementing this review as part of your case debriefing process.