CPA PEP Prep Q&A

Failed Day 1 of the 2015 CFE? Confused About Enabling Competencies?

 
Picture of Mike Katsevman
Failed Day 1 of the 2015 CFE? Confused About Enabling Competencies?
by Mike Katsevman Send a message - 14 Jan 2016, 2:43 PM
 


Failed Day 1 of the 2015 CFE?  Confused About Enabling Competencies?

The accounting world is buzzing with the new CPA Professional Educational Program’s Common Final Examination (CFE), but as a writer of the 2015 CFE, a lot of students are left confused about the structure of the new Day 1. Are you one of them?

CPA Candidates who failed Day 1 of the 2015 CFE (but passed Days 2 and 3), received a blank piece of paper from CPA Canada with one word: FAIL. The big question is, why?!

Let me help:

The easy explanation is Enabling Competencies are soft skills. Defined as a person’s EQ or Emotional Intelligence Quotient such as: interpersonal skills, habits, leadership, relationships and personality traits.

The CPA Competency Map, “a map for the CPA profession, [which] profiles the competencies required of a CPA on the path to, and upon, certification”, breaks it down into 5 separate sections:

1. Professional and Ethical Behaviour:

You’ve been warned: expect chaos. Every case you write will be a combination of constant chaos at a particular client’s site. A client is behaving unethically, or you’re being asked to perform a task where you’re not independent, or where your work is being called into question. 

Lesson Learned: Apply moral, ethical, regulatory, professional and legal standards, and you’ll be fine.

2. Problem-Solving and Decision-Making:

Just like in real life, people will save their worst problems, just for you (you know the ones they can’t figure out themselves, even after talking to 5 different people). A client may ask you to scope out their problem, collect relevant data, conduct an analysis including performing complex quants (yes, even at the enabling competencies level), then recommend a solution, that’s not just useful, but creative.

Lesson Learned: Provide a complete, analysis with quantitative and qualitative factors and produce something creative, that’s out of the box. You’re now an operations expert.

3. Communication (both written and oral):

This one really is about your role. You know – the point of why you’re brought into the case. You’re not just a billable commodity; you’re contributing value, even in 6-minute billing increments. The point of this competency is to adapt the response based on the appropriate terminology and knowledge useful to your client.

Lesson Learned: Prepare a thorough analysis, while understanding your role, using the terminology that’s relatable to your client’s industry and field. Understand the importance of confidentiality.

4. Self-Management:

Let’s face it. You can’t be an expert in everything in life. As a general life skill, it’s important to focus on your individual strengths and focus on doing what you do best. From the exam context, you need to adapt to the time pressures of the exam and focus on implementing macro level strategies that will help your clients in the long-term. 

Lesson Learned:  Don’t leave anything blank. Don’t do it. Force yourself to redistribute your time. Don’t invent anything or talk about anything that you have no experience with. Don’t be afraid to suggest to use a specialist – check out CAS 620 for more information.

5. Teamwork and Leadership:

Remember that accountants and auditors care about a concept called Audit and Review level assertions? Think about completeness for a second; it’s an essential component of every proper plan. Proper planning and execution is two-fold: your ability to manage teams and your ability to work as a team member. Your job is not done until you commit to understanding everyone’s needs and address them.

Lesson Learned: Prepare a proper case plan for every response you write. Ensure you’re identifying the key big picture issues and monitor your planning document while writing. Make sure you’re providing advice to all parties involved and make sure you evaluate every opportunity using depth.

Final Words:

The confusing part is: in order to reach a big picture perspective, you may need apply technical knowledge first as part of problem solving. You can’t completely ignore the requirement of technical knowledge across Financial Reporting, Assurance, Tax, Finance, Performance Measurement and Governance. Don't ignore the technical requirements you need to review to arrive at the enabling competencies conclusion.

Now what?

Practice, practice, practice! You don’t have to do it alone .

As of October 2015, PrepFormula is the largest CPA Prep program in Canada based on site traffic. This means, more active users used our resources than any other CPA program in Canada. 

If you’re struggling, here’s my direct line: 416-829-2103 and my e-mail: mike.katsevman@prepformula.com

I look forward to our chat.

Mike Katsevman, CPA, CA, LPA



Picture of Angela Hernandez
Re: Failed Day 1 of the 2015 CFE? Confused About Enabling Competencies?
by Angela Hernandez Send a message - 16 Jan 2016, 8:09 AM
 

Thank-you for such insights, I wish I read this before taking on my CFE, Everyone should have a look at this.

Picture of Douglas Justo
Re: Failed Day 1 of the 2015 CFE? Confused About Enabling Competencies?
by Douglas Justo Send a message - 21 Jan 2016, 4:26 AM
 

Thankyou Prep, I wrote my personal key points to passing CFE while reading this, thanks!

Picture of Bonka Nikolova
Re: Failed Day 1 of the 2015 CFE? Confused About Enabling Competencies?
by Bonka Nikolova Send a message - 1 Feb 2016, 11:54 AM
 

Thank you!