As you prepare for the CPA Canada CFE, knowing your role subject is very important.  A question that a lot of CFE writers have is this: Should you review in-depth topics outside of your role too? For example, if you have chosen Performance Management (PM) as your role, should you review in-depth Financial Reporting (FR), Management Accounting (MA), and PM topics exclusively, or should you also get very familiar with Finance (FN), Taxation (TX), and Assurance (AS) technicals? This article will give you useful tips and tricks how to study for these secondary topics.

CFE Blueprint

The CFE is designed to assess your competencies across a big range of technical areas and your ability to apply these competencies in real-world scenarios, which we call “cases.” As a PM candidate, for example, your main focus is PM competency. However, this does not mean you should overlook other technicals.

To understand what areas you should be focusing your study time, it’s important to understand the CFE passing profile.

To pass Day 2/Day 3 of the CFE, you must pass the following 4 levels:

• Level 1 – Sufficiency Level: Combined Cs and RCs from Days 2 and 3. This includes all competencies, meaning those outside of your role as well.
• Level 2 – Depth Level: Need C in FR or MA. Regardless of your selected role, FR and MA are tested for all candidates. In one or the other (not both), you need 3 to 5 Cs.
•  Level 3 – Role Level: Score Cs on Day 2 in your assigned role. This is role specific. For example, if your role is Assurance, you will need to score enough C-level grades in Day 2 pass. Aim for 4-5 Cs.
• Level 4 – Breadth Level: This one tests on everything: FR, MA, FN, AS, TX, SG. Counts both Day 2 and Day 3. To pass Level 4, you need at least 2 RCs in all areas.

In summary, studying your role will help you pass Level 3 and Level 4, studying for FR and MA will help you pass Level 2 and Level 4, but you are required to study all competencies to pass Level 1 and Level 4.

The good news is that you don’t have to study these in-depth! For example, if you selected PM as your Day 2 role, you must score Cs in PM. You must also score Cs in FR or MA . However, on Day 3, you can get a mix of RC and C on secondary areas, such as Assurance, Tax and Finance. Aim to get 70% Cs and 30% RCs in these secondary topics.

Tips for Studying non-role AOs

Here are some study tips for the secondary areas:

1. Focus on Core-level topics: There is no need to study complex topics. These secondary areas are tested at the same level as you’ve seen in Core 1 and Core 2. For example, in Tax, you can expect basic questions like personal & corporate tax returns, employee vs contractor, salary vs dividends, but you won’t get tough questions like Section 85 rollovers, re-structuring or amalgamations. Another example is CAS in Auditing. While CAS should be studied for Assurance role writers, it’s not needed for non-Assurance writers. Day 3 assurance AOs are very repetitive, there’s a very low chance you’ll be required to look up CAS.
2. Study historical AOs: Though there are diverse topics that can be tested in Day 3, ~80% of them are repetitions from past CFEs. I recommend that, as you practice Day 3 cases, you spend some time summarizing the AOs in an Excel file. This will help you see a pattern of the repetitive topics. I’ve already done this and have 2015-to-now CFE data in my coaching programs. This strategy will help you study smart and use your time efficiently.
3. Embrace cases and mock exams: Practicing cases and mock exams is the best method in your preparation for the CFE. Past cases provide opportunities to apply knowledge and skills in an environment similar to the actual exam. Similar to how you learn a new language, no matter how much theory you read, it’s the actual experience talking that helps you master the skill.

Conclusion

In conclusion, while your role on Day 2 is the main competency you must master, it’s essential to maintain a balanced approach during preparation. Study your role in-depth. Study FR or MA in-depth. Then study all other topics at the core-level, which means knowing 80% of the subject. Remember, you don’t need to be an expert in these secondary areas; just get comfortable with the basics and common topics. This balanced approach will give you the confidence and skills needed to tackle all parts of the CFE successfully.

Extra resources

I’m Gevorg. I’m an instructor and CPA Canada exam coach. If you want CFE tutoring, sign up for my CPA CFE Review Course, for a comprehensive learning package.