We all know that the CPA Canada Professional Education Program (CPA PEP) is a long, rigorous, and often taxing journey (pardon the pun). PEP often takes anywhere from 1.5 to 2 years to complete, with several grueling exams. When all six PEP modules are complete, you become qualified to write the Common Final Examination (CFE), thus completing the educational component of the CPA Canada designation.

Now, what if I told you, instead of 1.5 to 2 years, you can achieve all of PEP’s glory and fast-track to the CFE, in merely 8 months? AND earn a Masters in Accountancy (MAcc) degree from a reputed institution along the way? Sounds nice doesn’t it?

Well, there are pros and cons to both pathways, but it’s key that you know both of your options.

MAcc Pathway to CPA

The regular CPA PEP pathway is covered in one of our articles, so let’s focus on the MAcc pathway. The MAcc is a type of program offered by select post-secondary institutions (PSIs) in Canada and, more importantly, it’s accredited by CPA Canada. This means MAcc can give you part or all of the CPA PEP courses. Not only do these accredited programs provide an alternative means to achieve completion of PEP modules, but they also provide a graduate diploma or a Master’s degree upon completion.

These programs are commonly offered in-person/in-class, so if you’re a candidates who doesn’t fancy online coursework (which is the mantra of CPA PEP), MAcc is a good fit for you. Here’s a list of all the accredited programs in Canada by province, which I’ve also put in the screenshot below.

As you can see, not all accredited programs fast-track to the CFE. For example, Brock’s MPAcc program (not MAcc) provides exemption only from CPA PEP’s Core 1 and Core 2 . On the other hand, Brock’s MAcc program, along with Carleton University’s MAcc program, provide exemptions from all six CPA PEP modules, thus fast-track you to the CFE. So make sure whichever program you decide to pursue, you review what exemptions you gain from it. 

Brock’s MAcc Program to CFE

As I have taken Brock’s MAcc program, I will share my thoughts on this option. This program is a continuous, 8 month graduate program that runs from January to September. It consists of 10 courses, 5 each term. Courses include all 4 electives from CPA PEP (yes, you heard me, all four), while CPA PEP only makes you take two electives (either Assurance, Finance, Taxation or Performance Management). It also includes Brock’s own version of Capstone 1 and 2, which is more demanding than CPA PEP’s Capstones 1 and 2.

The level of preparation provided in MAcc program for the CFE is substantial; it essentially over-prepares you. Naturally this contributes to higher chance of success on the CFE. This program can be taken after completing Brock’s BAcc (Bachelors in Accounting undergraduate program), however, you DO NOT need to have an undergraduate program from Brock to qualify for Brock’s MAcc. For example, I completed my Bachelor’s in Accounting from Conestoga College, and was accepted into Brock’s MAcc program. Here you can find more details of Brock’s MAcc and list of courses.

Not all MAcc programs are continuous 8-month programs. Some, such as Carleton’s MAcc, has a similar structure and course breakdown, but it consists of 2 four month terms spread over two summers, with a co-op term in-between if needed. The structure and duration are aspects you should make notes of when conducting research on these alternatives pathways to CFE.

In Part 2 of my blog series, I provide pros/cons to both pathways and my recommendations on which pathway makes sense for each type of candidate, such as working candidate vs full-time student. Check it out here!

Author: Abhimanu Goyal, Successful CFE writer and MAcc

If you are an Internationally Trained Accountant (ITA) and the accounting body you are associated with has an MOU/MRA in place which gives you an exemption from Capstone 1 and 2, you may be wondering if it’s worth taking them.

Taking the Common Final Exam (CFE) directly helps you save time and money, but you may be missing out on crucial learning materials. Let’s understand what Capstone 1 and 2 offer and whether it’s worth it.

Format of CPA Capstone 1

Capstone 1 is designed to teach teamwork and enabling skills. Candidates are put into groups where they complete team-based assignments and a presentation. There are no new technicals covered, it’s meant to train teamwork and presentation skills. 

The key benefit of Capstone 1 in preparing for the CFE is that the case covered in Capstone 1 repeats on CFE Day 1. 

This means by taking Capstone 1, you’re more familiar with the Day 1 case, thus you have a higher chance of clearing the Day 1 exam. 

The fee for Capstone 1 is $1,300CAD + taxes (changes annually, see the latest fees in Ontario here).

Here is a detailed video on Capstone 1.

 

 

Format of CPA Capstone 2

Capstone 2 is the final module before the CFE.      

 

 

 

 

  Image source: CPA Canada  

The entire module is designed to prepare you for the CFE. You’ll receive:

• Workshop – writing and study tips for all three days of CFE
• One-hour weekly webinars
• Individualized feedback on responses from national markers
• Excel tracking street
• Short video walkthroughs
• Case specific debrief guidance 
• Technical knowledge support through the Learning eBooks 
• Support provided by lead facilitators on the discussion board
• 12 marked practice cases 
• 2 marked Module Workshop cases 
• 4 unmarked practice cases 

All cases provided in Capstone 2 are the prior CFE exam cases.  The one-hour weekly webinars provide general tips, such as time management and case writing best practices.

The key benefit of Capstone 2 is the 12 case marking provided by the National Marking Centre. You’ll receive detailed feedback on how you performed and what areas you can improve on. Some students often find the marking to be generic, however, with not much explanations.

Here is a sample feedback from Capstone 2 markers:

 

 

 

 

 

 

The fee for Capstone 2 is $1,300CAD + taxes (changes annually, see the latest fees in Ontario here).

Here is a detailed video on Capstone 2.

 

Pros vs Cons

Pros of taking up Capstone 1 & 2 / Cons of directly writing CFE

• Both Capstone 1 and 2 will train you on case writing. This will expose you to the Canadian CPA exam system way earlier through the group presentations, case study and marking
• You will be very well prepared for Day 1, as you will be involved in the Capstone 1 case from the very beginning
• You will receive supplementary study materials, such as walkthrough guides and debrief notes
•  Your Capstone 2 cases will be marked by the National Marking Centre. This will help you understand your strengths and weaknesses for all three days of CFE

Cons of taking up Capstone 1 & 2 / Pros of directly writing CFE

• In both Capstone 1 and 2, strict schedules need to be followed. This can be difficult with a full time job, self study time and other personal errands
• There is no instructor in Capstone 2, which means it’s a self-study module with no immediate support
• There are high costs and you end up spending a whole lot more, approximately $2,600CAD + taxes, just for Capstone 1 & 2, and $1,500 more for writing the CFE.

Keep in mind, you can choose to take only Capstone 2. This helps you get the feel of CFE, which is the real challenge. Since the majority of Capstone 1 is teamwork, it may not help you much in preparing for the CFE. Another option is purchase only the review materials of Capstone 2. These cost around ~$280CAD and you get just the cases and the marking guides. Your cases will not be marked by the CPA National Marking Centre. This helps you save costs and you can pay just the CFE fees.

Conclusion

In summary, there seem to be more pros in taking Capstone 1/2 , but this does not mean it’s the best option for you.  I took the last route, the review materials, and signed up for coaching classes. I cleared the CFE in the very first attempt. You don’t have to follow what I did, or for that matter what anyone else has done. Follow what you are comfortable with, taking into consideration your study time, personal situation, costs, and what you plan to invest in your CPA.

Hope this helps! 🙂

Author: Leela Pai, ICAI and successful CFE writer.

Summary:

• CVP analysis helps to determine the impact of cost and volume on profit 
• Used for many purposes: 
  • Analysis of impact of cost/volume on profit
  • Calculating breakeven point (BEP), in terms of sales revenue or in terms of sales units, for single product or multiproducts. 
• In CPA Canada cases, the requirement for which the CVP analysis is made is specified
• Once the requirement is specified then the calculation process is initiated. 
• For calculating CVP, the following information is used:

1. Sales price (SP)
2. Variable cost (VC)
3. Contribution margin (CM) (= SP – VC)
4. Fixed cost (FC)
5. Target Profit

CVP

CVP analysis is tested often in CPA Canada cases and exams. It’s part of Management Accounting (MA) competency, which is tested in-depth in Core 2, Performance Management (PM), Finance and the CFE.

CVP analysis helps to determine the impact of cost and volume on profit. It helps managers understand how the profit changes, based on changes in other variables, such as selling price, variable cost, and fixed costs.

CVP is an umbrella topic that includes several different calculations. The most commonly tested are:

• Contribution margin (CM) analysis
• Break-even point (BEP) analysis.

Contribution Margin (CM) analysis

CM analysis is used to determine the profitability of a product, before considering any fixed costs. The best way to understand CM is through the profit equation of MA:

Selling price (SP) – Variable Costs (VC) – Fixed Costs (FX) per unit  = Profit

The above formula is per unit. To calculate for total, the formula is:

(Selling price (SP) – Variable Costs (VC)) x Qty of Units – Fixed Costs (FX) = Profit

CM is the result of deducting VC from the SP. The formula for CM is:

Selling price (SP) – Variable Costs (VC) = Contribution Margin (CM).

In CPA cases, you’ll be provided with either total amounts or per unit amounts. Put these numbers in Excel, apply the above formula, and calculate the CM.

The most common AOs that will test you on CM are:

• New product launch
• Outsource decision (known as Make or Buy)
• Keep or add or drop (product, service, department, customer)
• Special order
• Cost-benefit analysis

Break-even point (BEP) analysis

BEP analysis can be done for a single product or multiple products. I’ll discuss both below:

BEP for single product

BEP determines the number of units, or the selling price, at which point the profit is 0. The formula for BEP is terms of units is:

BEP in units = (Fixed Cost + Target profit (if any)) / CM per unit

Formula for BEP is terms of selling price is:

BEP in selling dollars = (Fixed Cost + Target profit (if any) + Variable Costs x Qty) / Qty 

In CPA Canada eBook, the formula uses the term “contribution margin ratio” and the formula is Fixed costs / CM ratio, however I find the broken-out formula  I put above easier to understand.

BEP for multiple products

Similar to above, we’re trying to determine the number of units, or the selling price, at which point the profit is 0. Since there are now multiple products, the formula changes.

BEP in units = (Fixed Cost + Target profit (if any)) / Weighted Average CM (WACM) per unit

The WACM is calculated using the sales mix. The sales mix tells you the % of each product that is normally sold at the company. CPA cases usually give this number. If it’s not provided, calculate using the sales (revenue) figures for each product. 

BEP in selling dollars = (Fixed Cost + Target profit (if any) + Total Variable Costs x Qty) / Qty 

Exam focus

Here are some ways you are tested on CPA exams:

• (1) The FC and target profit (if any) will be given in CPA cases in most cases while you may be asked to calculate SP, CM, WACM etc.
• (2) The exam might complicate the FC and say “fixed cost will increase if the sales activity exceeds this limit.” In this case, you have to provide two calculations, first for the sales activity below the limit and second for above the limit.
• (3) The sales may be fixed. In this case, you will need to treat the sales like fixed costs. This testing scenario is covered in my Core 2 case pack.

 

On the CPA Canada PEP and CFE exam results days, there is no better sound than hearing my students say: “I passed!”. I am grateful for my students who have provided honest testimonials on their experience with Gevorg CPA review courses. 

Thanks to all my students for your continued support and congratulations on your promising future as CPAs!

Shraddha is an international accountant who started her CPA Canada journey during the pandemic. She found the CPA Canada modules and exams different from her past experiences, resulting in a few unsuccessful attempts. She reached out to me for coaching and after a few changes to her study style, case writing , and time management methods, she passed her exams. I’m now coaching her for the CFE exam, after which Shraddha can apply for the Canadian CPA designation.

If you are looking for help with your CPA Canada PEP and CFE exams, reach out to me for a quick phone consultation.

 

The process of getting the Canadian CPA can be an overwhelming journey. With multiple pathways to consider and exams to navigate, it’s often difficult to know where exactly to start. Below information on how to become a CPA in Canada will help you plan your designation in more manageable steps.

Steps to becoming a Canadian CPA

To get the Canadian CPA designation, you must complete the “Four E’s”:

1. Entrance requirements
2. Education requirement
3. Examination requirements
4. Experience requirements

Step 1: Entrance requirements

There are different pathways to entering the CPA program, depending on your educational background.

#1 – If you have a Canadian degree in an area other than accounting

If you have obtained a Canadian degree in a subject other than accounting, you will be required to begin your CPA journey through the CPA preparatory courses (formerly CPA PREP). PREP will help you gain the necessary accounting technical knowledge. After you’ve complete the required credit hours in PREP, you can then enter the CPA Professional Education Program (PEP), discussed in Step 2. For differences between CPA PREP and PEP, check out our detailed article.

#2 – If you have a Canadian degree in accounting

If you have obtained a Canadian undergraduate degree in accounting, you will meet the necessary subject area coverage to enter directly into the CPA Professional Education Program (CPA PEP). PEP is designed to further develop technical depth in specific accounting areas. 

#3 – If you have a Masters degree in accounting

If you have a Master of Management & Professional Accounting (MMPA) that is accredited by CPA Canada, it will allow you to enter directly into the last module  of PEP, Capstone 2, and onto the Common Final Exam (CFE). Most MMPA programs are offered in 1 or 2 year terms, usually attended full-time. For more information about the Masters program, check out our Masers in Accounting (MAcc) to CPA  article.

#4 – If you have international credentials

If you have international credentials, such as an international CA, you’ll be provided streamlined programs to help you obtain your education and examination requirements. Bridging pathways are offered to take you right to the last modules (Capstone 1 and 2) and unto the CFE. For more information on international accounting bodies, refer to International CPA Guide and our article on passing the CPA Canada CFE for international Indian accountants.

Step 2: Education requirements

The educational requirements begin at the CPA PEP program. PEP is designed around technical topics and focuses on depth of knowledge. There are 6 PEP modules and you’ll start with Core 1. 

 

 

 

 

Image source: CPA Canada

The purpose of these modules are to build the foundation for and refine your technical understanding, introduce you to case writing responses, and to further develop your studying habits. Details about the PEP program are available in our article here.

Step 3: Examination requirements

To complete the CPA certification program, you will be assessed on your knowledge and skills in key competency areas. These competencies are summarized in the CPA Canada Competency Map. 

• The 6 technical competencies you will be assessed are: financial reporting, management accounting, audit and assurance, finance, taxation, and strategy and governance. 
• The 5 enabling competencies areas are: professional and ethical behavior, problem-solving and decision-making, communication, self-management, and teamwork and leadership. 

In both the PREP and PEP pathways, you will participate in modules with weekly assignments in the structure of formatted objective questions and short cases. At the end of each module, you must successfully complete the module exam to be admitted to the next module.

After completing core and elective courses in PEP, you will enroll in Capstone 1, which includes presentations and an 8-week team-based assignment in the form of an integrated business case. This will help you prepare for Day 1 of the Common Final Exam (CFE). After Capstone 1, you will begin the Capstone 2 module, which is designed to refine your case writing responses to lead you directly into CFE. 

Image source: CPA Canada

The Common Final Examination (CFE) is a three-day exam that evaluates your depth and breadth of all competency development. To pass the CFE, you must pass all three days. Day 1 will be marked separately, and Days 2 and 3 will be assessed as a separate entity. Check out Gevorg’s CFE breakdown (YouTube) to learn more.

As examination and module dates are set to certain times of the year, candidates should review CPA academic calendars in advance to plan their program completion.

Step 4: Experience requirements

Aside from educational requirements, to complete the CPA program you will need to capture your professional experience in the online practical experience reporting tool (PERT). This should be done simultaneously as you go through the stages of PEP onwards.

 

 

 

 

 

 

CPA Canada requires a minimum of 30 months (or 24 months in Quebec) of paid employment experience, with the allowance of up to 12-months from prior work experience. The purpose is to demonstrate your professional knowledge, and also how you uphold the CPA Way in your values and ethics towards various situations. 

Your experience must be supervised, you must regularly record detailed reports, you must meet with your CPA mentor at least semi-annually, and your experience will be assessed by CPA Canada. For more information on specific requirements, check out Gevorg’s PERT video (YouTube) and CRC Resources for CPA practical experience requirements.

There are two paths for obtaining your work-related experience, they are: Pre-Approved Route (PPR) and the Experience Verification Route (EVR). 

The major difference between the two is that PPR is for programs within an employer that have already been reviewed and approved by CPA to meet the requirements. Because of this, the reporting process is more streamlined with technical competency areas prepopulated. You will still need to fill-in the required enabling competencies. Your employer will also arrange for you to be matched with a CPA mentor to monitor your progress. 

As part of the EVR stream, you will be required to self-assess your level of technical and enabling proficiencies, and to outline specifics on the employer and job duties. Candidates will need to seek out their own CPE mentor.

The purpose of your CPA mentor and supervisor is to ensure your experience is accurately reflected in your experience report and you are on the right path to embodying the qualities of a CPA. If you need help with PERT, Gevorg’s PERT coaching program provides sample reports and writing lessons.

Exam resources

The combination of post-secondary and PREP/PEP education, successfully passing the module exams/CFE, and meeting the professional work experience requirements will result in you completion your CPA certification and obtaining your CPA. While each individual may have their own journey, it is about finding the right CPA path for you!

If you need support along the way, get in touch with our professional CPA coaching team.

In Part 1 of my PEP vs MAcc blog series, I discussed Masters in Accounting (MAcc) and how it can benefit CPA Canada candidates. 

Here in Part 2, I will compare obtaining the CPA Canada designation through MAcc vs PEP, define the key criteria, discuss pros/cons of each, and provide recommendations on which pathway best suits for each type of candidate.

Pathway

First, let’s look at the two pathways.

• CPA PEP: This is the CPA Professional Education Program (CPA PEP) which is usually taken after a candidate completes an undergraduate degree in accounting or PREP courses. PEP is completed almost entirely remotely (online), with one in-person weekend workshop per module (Saturday and Sunday). This program is designed for both full-time and part-time working candidates.
• MAcc: Discussed in-depth in Part 1 of my series,  MAcc is a type of program that is accredited by CPA Canada; it’s designed to deliver part or all of the PEP program, usually full-time. For the sake of this comparison, we will look at a MAcc program that delivers the entire CPA PEP program (not part of it).

Both pathways lead CPA candidates into the Common Final Examination (CFE), so let’s look at the timelines to see how quickly you can reach the CFE.

Timeline

As an example, let’s say you want to write the CFE in September 2023. Here’s what the timelines look like:

• CPA PEP: In order to write the September 2023 CFE, you need to enroll in Core 1 in Spring 2022 (April 30 to June 24, 2022). This will allow you to finish Capstone 2 in Summer of 2023 (mid July to early Sept 2023), before writing the CFE in September 2023.
• MAcc: Let’s look at Brock University’s MAcc located in St. Catherine’s, Ontario. Brock University MAcc begins in January 2023 and will finish around mid July 2023 (continuous 7-8 month stretch), leaving the student the remainder of time to study for the September 2023 CFE

This means the MAcc pathway is faster (8 months vs 16-17 months).

Cost

Costs can get very detailed, so I’ll keep it simple; all prices are in CAD.

• CPA PEP: Cost is approx. $10,000 and it is often reimbursed by companies where being a CPA is considered an asset.
• MAcc: Cost of the program itself is approx. $10,000. Textbooks are approx. $1,000-$1,500. Reimbursements for this may vary company to company (provided candidate is working). There is also a cost of living, as the candidate will likely be attending the program full time, so may need to relocate if not currently residing on campus. Cost of living includes rent, food, fuel for travel etc. These additional relocation costs are an important distinction of the two pathways.

The cost for writing the CFE is approx. $1,500 and it’s applicable to both pathways so it is disregarded.

Overall, MAcc costs more than PEP ($13K+ vs $10K ).

Hours

This is different from timeline discussed above because this is the total time commitment for each pathway.

• CPA PEP: Provided the candidate is working, they will need to spend an additional 15-20 hours on top of a normal working week (37-40 hours) = 55-60 hours per week.
• MAcc: Each term consists of 5 classes. Lectures are approx. 15-20 hours per week, which requires an additional 35-40 hours of studying each week, due to the intensive nature of the program, and requirement to maintain a 70% average = 50-60 hours per week.

This means both take approximately the same amount of time commitment.

Here’s a summary:

	CPA PEP	MAcc
Timeline	Pro: Can be done while working, which will allow the candidate to earn salary while studying. Will also allow the candidate to contribute to their 30-month experience requirement. Con: Length is approx. 16-17 months.	Pro: Significantly shorter timeframe to reach CFE (8 months), compared to CPA PEP (16-17 months). Pro: Allows you to focus 100% on studies, and not worry about work. Con: Does not allow you to work full-time (with a full course load). However, part-time may be possible. This will halt your ability to contribute towards the 30-month work experience criteria.
Cost	Pro: PEP is cheaper than MAcc, due to cost savings on relocation. If you can save on relocation costs for MAcc, then costs are comparable between the two programs. Con: Despite program costs being similar, there is far better support provided in MAcc compared with CPA PEP. MAcc is offline and good resources are available on-demand (ie, live professors).	Pro: Program costs can be reimbursed as was the case for me (I work at Canada Revenue Agency). Con: Can be substantially more expensive than CPA PEP (relocation costs).
Hours	Similar.	Similar.

Extra benefits

Before concluding, here are some additional benefits of the MAcc route:

• MAcc can earn you a Masters in Accounting which will add to your resume and may assist in future teaching opportunities (especially at the institute you received the Masters from)
• Good networking opportunities with professors and other students (more face-to-face interaction compared with PEP)
• Capstone 1 is done in-person
• Some MAcc have good co-op/internship placements built into the program if opted for
• If you’ve been unsuccessful at CPA PEP and were de-registered from the program, you can switch to MAcc and skip the PEP modules you’re struggling with.

Conclusion

If you’re someone working full-time, CPA PEP is the better choice. From cost savings and ability to earn a salary, it’s makes the most sense. However, if costs and ability to take time off are not obstacles for you, then I recommend going for MAcc, given the extra benefits and better support.

If you’re a non-working candidates who is still in school, MAcc is the better option, as they can save time. You can also start straight after your undergrad, retaining much of your technical knowledge. MAcc is also a good option for you if who can’t manage both work and studies simultaneously.

Choosing your CPA pathway is an important decision. Consider all the pros/cons, including costs and time commitment, before making your final choice. Your decision is further impacted by the type of MAcc program you choose, as some cover only parts of CPA PEP. Make sure to explore all your options and don’t limit yourself to just CPA PEP!

Author: Abhimanu Goyal, Successful CFE writer and MAcc

As you transition from CPA Canada preparation courses (PREP) to the professional education program (PEP), you may wonder what are some of the differences and what can be expected as you embark on the next phase in your CPA journey. Here is my breakdown of the two programs.

Course Structure

PREP courses are fundamentally based on providing specific subject coverage to those with non-undergraduate and non-accounting degrees. Since the program requires 30 credit hours or 10 courses, there is much more technical breadth. The courses contain core and non-core components, designed to give you exposure to various subjects included in an accounting degree.

PEP is designed to dive deeper into technical topics, so it focuses on depth. There are 6 PEP modules and you’ll start with Core 1. 

 

 

 

 

Image source: CPA Canada

Core 1 and Core 2 are mandatory, then you can select 2 of 4 elective modules: Tax, Assurance, Performance Management (PM), Finance.

Once you finish these modules, you take Capstone 1, Capstone 2 and the Common Final Exam (CFE). PEP is designed to lead you into the CFE with no breaks between Capstone 1, 2 and the CFE exam. 

Image source: CPA Canada

Both PREP and PEP use the online D2L platform to provide study materials, assignments, connect you with peers and facilitators. Just like PREP, PEP offers 8-week course structure of approximately 20-hours a week of study. PEP also offers extended courses which last 20-weeks, instead of 8 weeks. Your study habits and time management for submitting assignments in PREP would have effectively prepared you for PEP. Writing case-based exams will be your biggest challenge in PEP.

Course content

During PREP, each course is focused on one topic entirely. For example, Intermediate Financial Reporting 1, Corporate Finance, Audit, and Taxation are separate testable topics. In PEP, several technical topics are tested in one module, requiring you to identify and analyze several issues together. For example, Core 1 module tests on Financial Reporting, Audit, Tax, and Finance, at the same time.

PREP is not centered around case writing. Instead, it focuses on understanding correct calculations and treatment of accounts. Unlike PREP, PEP focuses on case writing techniques, including how to format responses using the CPA Way. You will be provided case scenarios where you will be required to identify the issue in a practice setting, and provide an analysis. This analysis will involve judgment and interpretation of the CPA Canada Handbook to provide final recommendations, as opposed to more technical responses in PREP. PEP also focuses on company strategies, overarching issues and themes throughout a case.

 

 

 

 

 

 

 

Sample PEP case.

This requires lots of practice and effective study strategies to succeed.

Course Success!

To successfully pass PREP, you’re required to have 65% cumulative average (60% for all core courses and 50% for non-core courses). PEP requires a 75% grade and this is to get to the exam. This threshold is based on practice cases and integrative problems, which are part of your weekly assignments. Both PREP and PEP have a final examinations. PEP module exams are based on average performance (“curved”).

PEP also has mandatory module workshops. These are once per module, at the start. Core 1 is the only module with two workshops: it has an orientation workshop at the beginning and module workshop in the middle. At the start of Core 1, you’ll also be granted access to the Professional Experience Reporting Tool (PERT), which is one of the requirements to graduate from the CPA certification program. Gevorg’s PER Review provides sample PERT reports.

PREP has 5 semesters per year, while PEP has 4 semesters, classified by seasons (winter, spring, summer and fall). Not all PEP modules are offered each semester, so more planning and coordination will be required to achieve your target CFE date. Module calendars are posted a year in advance for both PREP and PEP so you can plan in advance. 

Overall, PREP is a great foundation for technical issues, time management, and self management with studies. PEP is geared more towards refining your technical in real-world case scenarios and developing your communication skills through written analysis and recommendations. As with PREP, CPA Canada’s PEP will offer several resources to assist you in your success during the modules.

When I got my Indian CA degree – being one of the toughest exams – it made me feel so proud and led me to believe that I could conquer it all. I was so happy to know that ICAI has an MOU with CPA Canada. With MOU, we do not have to go through the entire CPA Canada journey and instead give the CFE directly. Within one year of moving to Canada, I was super stoked to clear my CFE on my first attempt! I will share here my tips of what helped me pass the CFE.

CFE was an altogether different experience. Definitely being an Indian CA, the conceptual knowledge is strong but you realize there are so many differences. To start with:

IFRS and ASPE

We hadn’t studied IFRS nor ASPE back home, hence this was new. I wouldn’t say it was tough, but embracing that change and understanding how it goes felt different. I suggest that you give it a lot of time. Read the CPA Canada Handbook, the Learning E-book, and other notes helps immensely to strengthen IFRS and ASPE concepts.

The CFE format

The format is very challenging because we are not used to case-based exams. You must understand the format and this takes a while. Study the way you need to approach the paper, the case-based exams, and the kind of answers expected by CPA Canada markers. You need to allot a lot of time at first just on understanding how to approach the exam. I wrote more than 70+ cases to get familiar with this format.

Computer-based CPA exam

As it’s a laptop-based exam, not handwritten, both your typing speed and the time you spend seeing the screen matters. You need to practice many cases just to get comfortable with the screen usage. It can still get too much when you give the three day CFE exam. It can be really challenging as the exam is for 4-5 hours each day. It can be pretty exhausting when this is the first subjective professional exam on screen that you will be giving.

The right answer

We at ICAI have always focused on getting the right answer. The Canadian CFE focuses on hitting the right steps. It’s about the right time allotted to the Assessment Opportunities (AOs) and not always focusing on the right answer. Otherwise, you can be doing an AO right, but might lead you to not being able to complete the paper, which will cause you to be unsuccessful at the CFE. Hence balancing the questions in the right way is important. Remember: time management > right answer.

Open book CPA exam

In the Canadian CPA CFE exam, the Handbook is available. We may not have been exposed to that kind of exam in the past, so it’s helpful to study the sections of the Handbook which are important (eg Financial Reporting). In case you are tested on a topic that you don’t know, you need to know where to look for it. It can be overwhelming at first, hence getting used to the CPA Handbook early and familiarizing with the content in advance is important.

In summary, I suggest Indian CAs taking the Canadian CFE:

• Make sure to allot time to understand the new standards and focus on writing answers in the right format.
• Technicals are important but they must be adapted to the case.
• You should get used to writing your cases on the laptop and solve as many cases you can because that’s a fantastic way to brush up your technical knowledge.
• Don’t focus on hitting the right answer, especially in quantitative subjects like MA and Finance, instead focus on applying case facts and recommending to the users.
• Ensure you take advantage of the open CPA Handbook but only for areas you believe you need to focus on because time management is key and you can’t waste a lot of time searching for answers.
• Be mentally prepared for the back-to-back three days of 4-5 hour exams, that can be overwhelming.

This CPA exam is overall amazing and you learn a lot. It’s designed in such a beautiful way to be exposed to the Canadian systems that you only come out much more future ready in Canada!

Good luck!

Extra resources

CFE study resources are available at the CFE Review.

Author: Leela Pai, ICAI and successful CFE writer from Sep 2021

For most CPA Canada students, the greatest challenge with the exams is finding the time to study. Between full time jobs, family commitments and other priorities, most of your spare available time is spent studying. Here are some helpful tips to make this process smoother and optimize your balance with work and study.

1. Define your priorities

In order to begin to know how to manage your time best, you have to first determine what is important to you. For example, let’s say you’re taking CPA Tax and Assurance electives but you know Tax is your weaker subject so it’ll be important to spend more time on this. Or let’s say you have family events every Friday evening. If this is important to maintain, plan your study schedule around this day of the week. Identifying your priorities during a demanding time will help you determine what items can be sacrificed and what cannot.

2. Create a study plan and schedule

Once you have established your goals and priorities, you can begin to organize these accordingly. This would include mapping out hard timelines, such as CPA module deadlines for cases, appointments, work events, etc. As you highlight these important dates, you become more aware of your workload and the value in managing your time efficiently. Make sure you’re being flexible with your schedule too, and avoiding late minute cramming or overworking yourself on certain days. Ensure you’re making time for the critical materials: case writing (uninterrupted), debriefing, and technical overviews.

3. Get into a routine

Staying disciplined with your study schedule will eventually become a habit. This will help you feel more in control and at ease with balancing your study, work and personal commitments. Find the best time of day for you to study and be consistent with it daily.

4. Make use of your free time

To ensure you’re maximizing all your time, short intervals of studying such as on the commute home or on a lunch break at work prove to be productive. Taking even a small step towards your goal of passing the CPA exams makes a difference if work consumes most of your day. Also, find opportunities to carve time out for yourself, including relaxing, socializing, and exercising on a regular basis. This will make your study time more productive because you’re less burnt out.

5. Consider available resources

Establish what resources are available to you and how they can best target your studying. This may include your facilitator, D2L forums, study buddies, peer study groups, courses, video tutorials, extra cases, etc. Mapping out what resources you can utilize each step of your study schedule will ensure you are studying the material in the detail required.

Conclusion

While it can be difficult to find motivation to study in CPA Canada’s PREP and PEP programs on top of working several hours, keep your mind set focused that this is temporary until you successfully pass the CPA exams. If you need support or coaching, get in touch with Gevorg for a free consultation call.