Top 10 Tips to Mastering Task Based Simulations on the CPA Exam

Introduction

CPA exam simulations aren’t exactly rocket science, but they’re an integral part of the CPA exams. For this post, we’ll cover the importance of simulations on the CPA exams, the different types of simulations you’ll face, and tips on how to master Task-Based Simulations (TBS).

What are CPA simulations?

The CPA Exam primarily includes traditional multiple-choice questions (or MCQs) Task-based simulations (TBS).

Simulations are primarily case studies that have been condensed into an integrated question set. This helps the examiners to evaluate your knowledge in a specific area and how well you can apply this conceptual knowledge to real-life situations. Comparatively, simulations test your skill sets at a higher level than that of multiple-choice questions.

As an example, a simulation could ask you to update an audit report, prepare part of a financial statement, or adjust a journal entry. You may also be asked to apply the Code of Professional Conduct of AICPA to a particular situation. In all such cases, the examiner will evaluate how well you can apply your accounting knowledge.

AICPA Definition

This is how AICPA defines task-based simulations against multiple-choice questions:

“Simulations typically include greater background information and context to create a more robust, authentic experience for candidates to demonstrate their knowledge and skills.

Simulations provide a flexible format for presenting a realistic setting. This allows the AICPA to assess higher-level skills by requiring individuals to apply what they know in a real-world context”

What are the Different Types of Task-based Simulations CPA?

There are five kinds of simulations, as follows:

Research

Research-type simulations provide the candidate with some authoritative literature that must be analyzed. You’ll then need to find the specific information that will answer the question given in the task.

Essentially, it’s a simple research-based task where the candidate has to find and quote the code section that will answer how the topic has to be addressed.

Journal Entries

These types of simulations provide the candidate with financial documentation that must be analyzed to determine whether the data needs to be entered into the journal or not. The options before you will be whether to enter the data into debits or credits or simply state ‘No Entry Given.’

Matching

This simulation on its face looks very simple but not as much as it seems. You have to match several terms with the correct option in a list provided with definitions and numbers.

There are more potentially correct answers on the list than terms, so this will require in-depth knowledge of the subject to pick the correct answer.

Fill-in-the-Blank

These simulations are rather complex. You will be given information along with a spreadsheet. The task is to make the required calculations and fill in the missing dollar amount based on them.

There are several possibilities here.

You could be working with balancing documents such as Balance of Cash Flows sheets or Operations and Investments documentation. The goal here is to assess your capabilities of problem-solving and computation.

Document Review Simulations (DRS)

As it sounds, you will be given real examples of source documents such as memos, bank statements, and invoices and asked to review them. In these documents, certain phrases, paragraphs, or keywords will be highlighted that need to be analyzed to conclude whether the edits made are correct or not.

Apart from this, you might have to go through the source documentation also to study the background information and provide an opinion.

In short, these CPA simulations test the candidate’s ability to analyze documentation and trace back information.

These are the five types of task-based simulations you’ll see on the CPA exam.

Are FAR CPA Simulations More Difficult?

There is also another type of simulation but this is specific to the FAR (Financial Accounting and Reporting). Let us check it out.

CPA FAR Simulations

If you’re studying for the FAR section of the CPA exam, practice taking simulations that focus on inventory adjustments. The simulation provides an unadjusted inventory balance from the trial balance and asks you what adjusting journal entries must be recorded.

This is a real-life scenario as accounting departments face all the time. The goal of this evaluation is to determine what the final adjusted inventory balance would be at the end of the financial period.

10 Tips to Master CPA Task-Based Simulations

There are two main facets to the CPA exam in the USA. One is the multiple-choice questions (MCQs) and the other is the task-based simulations.

The MCQs enable the AICPA examiners to understand a candidate’s capability in the areas of remembering, application, and understanding the topics. On the other hand, simulations are a test of practical skills and exploratory analysis abilities.

This makes TBS critically important for the CPA exam as it constitutes almost 50% of the score on all 4 of the CPA exam parts. Hence, if you want to pass the CPA exam the first time around, focus on the simulations part during your preparations for the exam.

Moreover, it has been estimated by the experts that CPA examinees require on average about 2 hours to solve the simulations and get the scores. You should therefore practice with this target in mind during your studies for the exam.

Here are the top 10 tips to mastering simulations that will help you to keep exam anxiety away.

Tip 1: Get through with MCQs

Quickly go through your MCQs during CPA exam preparations. The more you speed up on this short answer format, the more time you will have to study for the simulation part.

Then, read the simulation questions carefully to better navigate to the answers.

Tip 2: Take time to understand the essay

Take your time on the simulation part of the test. Inadequate research can easily lead to a failed attempt.

Take at least 10 to 15 minutes of your time to make the best use of authoritative literature tools to understand the essay so that you can get the questions right.

Tip 3: Be conversant with the right tools

AICPA provides a range of tools so that you can solve the simulation questions quickly on exam day. These include calculators, Excel spreadsheets, spell check, exhibits and highlights, and authoritative literature.

Ensure that your CPA review course includes real-time mock exams so that you get hands-on experience.

Tip 4: Plan your exam time

While practicing with prep courses and mock exams, do not focus on the content only but also on the time taken to go through them. This will ideally prepare you for the exam day.

Distribute the four hours available with 90 minutes being for MCQs and the remaining 150 minutes for simulations.

Tip 5: Practice repeatedly till perfection

One of the ways to get on top of CPA simulations is to repeatedly solve them till you know the right way to do it.

While practicing, bookmark your mistakes, learn from them, and make sure that you are not repeating them in the next rounds of revision.

Tip 6: Set realistic goals and re-evaluate them

Start your prep with the easier sections and advance progressively to the tougher ones in keeping with your CPA goals.

For example, if you’re solving 30 MCQs in a day, plan to cover include 1 simulation question to solve. As you get closer to exam day, include more simulations in your daily exam prep to fine-tune your abilities in this section.

Tip 7: Think like a CPA

This tip goes over and above endlessly practicing on simulations in your CPA study materials. It can make a huge impact on your performance though.

Attend CPA-based events and hear from people who have already passed the exam. Chat with mentors on how to handle simulations effectively.

Tip 8: Highlight the main points

Reading an essay or going through a bunch of documents can be tough.

While scanning through the passages in simulations, highlight the main points and the keywords with the tools provided within the CPA exam software. You can then focus on the key aspects that need analysis in the questions.

Tip 9: Be prepared for the surprises

You might get simulations in the exam that you might not even be aware of. In such cases, keep them to solve after you are through with all the other questions.

Tip 10: Try to solve all simulations

Each simulation solved takes you a step further toward your target of becoming a CPA. It might not be possible to finish every question, but make the effort to hit each one and don’t leave any untouched. This way, you increase the chance of passing the exam with flying colors.

Follow these top X tips to mastering simulations and your CPA goals should be that much nearer.

Becker CPA Simulations

To be confident of passing the CPA exams, considered to be among the toughest in the finance and accounting niche, you should follow the study materials of reputed prep providers. In this connection, Becker is among the top in this field.

What does Becker bring to the table?

The highlight of Becker’s simulations is the bundle of simulated exams, that is, 3 full-length simulated exams per section for a total of 12. The questions in Becker simulations are never repeated, something that cannot be said for other course providers. This is a huge benefit when preparing for CPA simulations as it prepares you well for this section.

The greatest strength of Becker simulations is this – 12 mock simulations that replicate the real exam scenario, each unique and exclusive and not seen before.   

Grading of Simulations in the CPA Exam

Since CPA simulations make up over 50% of the exam. Naturally, this will cause some anxiety among candidates. The good news is that simulations are graded positively; you won’t get a negative mark for a wrong answer. Hence, your strategy should be to attempt ALL the simulations on exam day, regardless of whether you get it right or wrong. If by chance you get an unknown one right, it is a bonus for you.

Computers grade the simulation questions apart for the written communication section. However, this section is graded by a computer too unless your score is borderline on the passing score. In that case, a human examiner will grade this section instead of a computer program.

An advantage here is that you get partial credit for simulations in the CPA exam which considers several responses. You get credit for each correct response from that bunch.

Summing up

A vital point now is how many CPA simulations should you practice with. The answer is simple – as many as you can. Choose a CPA Review provider with adaptive learning software that will help you to know your areas of weaknesses and practice more in that direction.