How To Study for CPA Canada Core 1

Preparing for Core 1 of the CPA Canada PEP program can be challenging. With the right study strategies, you can make your progress easier and more effective. By using a mix of study techniques, practicing active learning, and staying organized, you can improve your chances of passing the Core 1 exam. In this article, I’ll share helpful study tips to prepare for Core 1 and help you get set up for success on the exam day.

What does Core 1 test?

Before diving into study strategies, it’s important to understand the competencies you’ll be tested in Core 1. This module covers Financial Reporting (FR), Assurance, Tax, and Finance. Of these, FR is the biggest part of the module and the exam. Here is the exam blueprint, showing the weight of the four technical competencies assessed in the Core 1 MCQs:

At Core 1 level, the focus will be on fundamental concepts rather than advanced material. For example, in the Tax section, you won’t need to study rollovers, reorganization, or acquisition of control impact. These are too complex for Core 1. Instead, the focus will be on personal and business related tax issues, filing and payment deadlines, classifications of employees, and so on. Check out my Ultimate Guide for CPA Canada Core 1 for more details on what to review.

How exactly do you study?

There are many different study methods: 

  • Active recall
  • Spaced repetition
  • Mind mapping
  • Summarization
  • Feynman technique
  • PQRST (Preview, Question, Read, Summary, Test)
  • PQ4R, (Preview, Question, Read, Reflect, Recite and Review)

I’ve tried most of these methods and the one that I found to be most effective is the active recall. It means to retrieve information from memory without looking at your notes. This method is effective because it forces your brain to work harder, making the learning process more active and engaging. Here are a couple of practical methods to implement active recall in CPA studies:

Quizzing: One of the best ways to apply the active recall technique is to quiz yourself. For example, after reading a chapter on audit assertions, create a list of questions based on the key concepts covered (or use the end of chapter questions) and try to answer without looking at the notes. This tests your understanding and also helps to find areas where you need to review again. 

Flashcards: Flashcards are an excellent tool for studying key definitions and concepts. Write important terms, formulas, and concepts on one side of the card, and their definitions or explanations on the other. This method allows for quick reviews and can be especially helpful for retaining complex information. Make sure to regularly shuffle the cards and quiz yourself to ensure you’re able to recall the information xx. 

How do you take notes?

Effective note taking helps with understanding and retention of important concepts. Here’s a suggested technique:

  • Step 1: Read the chapter’s title, heading and subheadings. This will tell you how big is the chapter and how much space/time you need to take notes.
  • Step 2: In a physical notebook or digital note taking app, create an outline using the chapter’s headings and subheadings. Leave space under each heading to add key points.
  • Step 3: As you read each section, write down the main ideas in your own words under the corresponding heading. Keep it brief, focusing on key concepts. You’ll know what’s important based on highlighted keywords. For example, in the chapter below, the word “WACC” is highlighted in green. This tells us it’s important. Also the WACC formula is highlighted, this means it’s important too. The remaining paragraphs are not highlighted, so they can be less detailed or even skipped.
  • Below is example of how our notes on this section would look like:
    • You’ll notice it’s brief, in bullet form, and doesn’t have filler words (like “the”, “of”, “since”). These are just visual distractions, we can skip them.
  • Step 4: Color code or underline important terms, formulas, or definitions to easily spot them when reviewing later.
  • Step 5: Create 1-2 sentence summary at the very end to wrap-up what you just read.
  • Step 6: Periodically review your notes before the exam to refresh your memory and ensure retention.

For FR competencies, it’s helpful to prepare separate summaries for IFRS and ASPE. This lets you to clearly identify differences between the two frameworks.

Should you study alone or in a group?

When I was a CPA student, I tried both studying alone and in a group. I found studying alone worked better for me. I’ve had friends who studied in a group, or with a study buddy, and they said it helped them a lot. So it depends on your preference and whether you can find a group that matches your study style.

Studying in a group has lots of benefits. Collaborating helps to improve your understanding. One of the most effective ways to deepen your understanding is by explaining topics to others. When you communicate your thoughts, you reinforce your own knowledge and identify any gaps in your understanding. For example, discussing complex concepts like the various IFRS 15 steps with peers can help clarify details that might be confusing when studying alone. You can also quiz each other. This method encourages active recall, making it more likely that you’ll remember the information during the exam. You can incorporate a mix of question types, like MCQ, true/false, or case AOs, to cover a range of topics and difficulty levels. You can also mark each others cases and get feedback. Study groups also give motivation and accountability, helping you stay on track with your study schedule. 

Stay organized

Finally, staying organized is crucial for maximizing your study efficiency and ensuring you cover the study material effectively. One of the best ways to do this is by creating a study plan. Outline what topics you plan to cover each week leading up to your exam, breaking down larger subjects into manageable sections. Fore Core 1, the module syllabus is a good starting point to build the plan. A study plan helps you allocate enough time for all chapters, preventing last-minute cramming and reducing stress as the exam date approaches.

Also, it’s helpful to track your progress. Keeping a checklist of topics you’ve covered, or tracking of your AO grades, allows you to visualize your achievements and see what still needs attention.

Extra resources

Sign up for CPA Review courses for exam strategies, technical summary notes, mock exam cases and extra set of MCQs.