CPA - CERTIFIED PUBLIC

ACCOUNTANT

Presented by: Morgan International

Wednesday 28th March, 2012

A LITTLE ABOUT MORGAN

Present in over 31 cities [ Middle East, North America, Europe, India and North Africa ]

Covers programs in: - accounting (inc. management accounting)

- auditing (external and internal)

- finance

- treasury

- marketing

Services thousands of students annually

Offers - certification programs

- training and development programs

Teams up with leading international institutions

About Morgan

- human resources

- supply chain & logistics

- IFRS

- essential skills

- facilities management

Our Associates & Distribution Partners

Morgan is proud to be associated with leading regional institutions, such as AUS and others;

• The America University in Cairo in Egypt

• Alexandria University in Egypt

• Riyadh, Jeddah and Dammam offices in KSA (teamed up with Dar El Hekma for ladies classes in Jeddah and JIC in Jubail)

• QFBA in Qatar

• Infocenter in Kuwait

• Bahrain Institute of Banking & Finance in Bahrain

• Orbit Institute in India

• PDI L.L.C in Syria

• Al Mushrif Training Center in Abu Dhabi, UAE

• UAE University in Al Ain, UAE

• International Training Institute in Oman

• Beirut Arab University in Lebanon

• …..

TODAY’S CPA

What does CPA Mean? • A Certified Public Accountant (CPA) is a trusted financial advisor who helps individuals,

businesses, and other organizations plan and reach their financial goals.

• CPAs provide a wide range of services and are employed in public accounting and other professional services firms, business and industry, government and education.

• Only CPAs can perform the mandatory audits of all publicly traded U.S. companies; accountants do not have the same privileges.

But, aren’t CPA’s and Accountants the same thing?

All CPAs are accountants but not all accountants are CPAs.

• Anyone can call himself/herself an “accountant.” In order to become a CPA each US State Board of Accountancy determines the law and rules for each state and jurisdiction for those professional requirements.

• Most states have a minimum of three requirements for licensure: Education, Experience and Exam or Uniform CPA Examination requirements. Only then are individuals granted licenses to practice by state boards of accountancy.

• In addition, CPA’s, like Attorneys, must pass a background check to ensure that they have not engaged in any conduct that would justify their suspension or disbarment from practice before the IRS.

COMPARING CPA

TO OTHER DESIGNATIONS

CPA and CMA • In today’s changing economic climate, it is becoming crucial to obtain a certification so as to boost your chances of

getting a job or promotion.

• Both the CPA (Certified Public Accountant) and CMA (Certified Management Accountant) are important qualifications that accountants can consider after finishing their university program.

• Accountants who take and pass a CPA or CMA certification have better chances of obtaining higher paying posts that non –certified colleagues.

• Both certifications are equally important, with the CPA, you are attaining a license to practice which is a highly accredited and accepted certification that an accountant can get.

• CPA certification generally covers a very broad scope. It largely focus on providing auditing skills as well as knowledge of all financial and tax regulations.

• Accountants who attain their CMA certification are more skilled in handling the responsibilities that pertain to financial analysis, strategies and management. The CMA may advise a company on corporate spending, budgeting, financial planning and issues related to taxation compliance.

• The CMA is unlike the CPA because he or she seldom works with the public. Instead, the certified management accountant is usually employed directly by a company in the capacity of in-house counsel on all financial affairs. The CMA may work with company employees to help them make good choices regarding investments or help them discover tax breaks and loopholes, but their primary job is to oversee the financial issues that affect the overall corporate structure.

CFA • A CFA is a Chartered Financial Analyst. Unlike CPAs, they tend to delve more into finance by examining the flow of

money, and assessing stocks and the overall market.

• A financial analyst is concerned with providing a comprehensive understanding of the financial status of a given investment opportunity.

• Earning the CFA designation can move your resume to the top of the pile in extremely competitive fields, including portfolio management, investment banking, business development, and corporate mergers and acquisitions.

• Thus, a CFA is focused more on financial aspects, while a CPA is more of an accounting position.

THE HIGHS TO BECOMING A CPA

Top Ten Reasons to become a CPA 1. Global Acceptance CPA is the Gold Standard of Accounting. It is a key requirement for advancement in the profession 2. Credibility CPA allows the holder to be viewed as encompassing honesty, objectivity and expertise 3. Distinction CPA sets those with the credential apart, or above, those without it 4. Recognition Certification becomes a public recognition of professional achievement, within and outside of the profession 5. Competitive advantage Employers and clients value the experience that comes with the charter or certification

Top Ten Reasons to become a CPA

6. Job Security A certification holder should not worry about his job, even during turmoil 7. Diversity of Career Options CPA provide the holder with a wide range of choices within the accounting, auditing, advisory, assurance , taxation, etc

8. Opportunity and Rewards CPA opens doors to greater career opportunities and higher compensation 9. Connections CPA is a right of entry to an elite network of professionals worldwide 10. Prestige and respect A CPA is respected and admired by his peers, clients, and social circles.

Pick a Public Path

• Staff accountant or junior auditor are typical entry-level positions

• In the first few years, main responsibilities include assisting senior auditors and prepare for the USCPA exam

• At a Big Four firm, graduates work as a staff auditor for a year or two and then move up to a senior-level auditing post, then manager, then senior manager and ultimately to partner level

• Morgan is the first choice when it comes to CPA certification for many aspiring Big 4 candidates

Pick a Private Path

• The first job will likely be working in the controller's department to prepare monthly reports or internal audits, or in the budget department to do forecasts or in mergers and acquisitions.

• Graduates who follow this track typically seek additional education or credentials to boost them into a job as an assistant controller, then controller and eventually chief financial officer. Options include earning a master's degree in accounting, or becoming a CPA.

Pick Something Else

• Government or non-profit or education

Accounting Career Path

• The U.S. Bureau of Labor Statistics says that employment of accountants and auditors is expected to grow faster through 2018 than for all the occupations the bureau tracks.

• CPAs are in demand. According to the American Institute of Certified Public Accountants (AICPA), 75% of today’s CPAs will be retiring within the next 15 years. Add that to the renewed focus on business ethics, the global economy and new technology and your potential is almost endless

Therefore;

Competition for top candidates is fierce and will only become fiercer, meaning firms will have to do more to recruit and woo their candidates of choice. That puts you, the fresh new talent, in an enviable position.

CPA Marketplace Why CPAs Are in Demand

• Tax Accountant

• Financial Analyst

• Staff Accountant (General, International, Forensic, etc)

• Business Analyst

• Controller

• Financial services

• College and university instructor , and more

Current Positions in Demand

Your career options are so diverse and not to mention exciting, below is a

snapshot of where you could be headed too:

• The Music Industry…

Derek Ferguson, CPA is Chief Financial Officer of Bad Boy Records, Sean Combs’

(aka P. Diddy) Record Company

• The FBI…

Eulondra Griffith is a supervisory special agent at the (FBI) thanks to her degree in

accounting which has helped her chase down identity thieves, investigate crooked

CEOs, and trace money laundering trails throughout the Middle East and Switzerland.

• Hollywood…

Did you know that the only two people to know who won the Oscars before the rest of

the world are CPAs from PricewaterhouseCoopers? They work from a secret location

to count the ballots and determine the winners on Oscar night!

Where do CPA’s work?

THE COST OF A CPA

The Market is calling for CPA’s

• One way to detect the importance of the certification you are seeking to attain, is via the job posting requirements in the market

• Majority of accounting job postings in UAE require that you’ve undertaken the CPA certification

Hiring Trends

A license or designation is a plus when competing for accounting jobs. "Of the placements I do in accounting, 25 percent of people have their CPAs… " Downs says. "Many industry clients are asking for CPAs….. In public accounting, they always want the CPA." “Recruitment Manager at Robert Half International”

Derived from Robert Half International 2009 Salary Guide; Public Accounting, Audit, Tax, and Management Services *Large public accounting firms = $250 million + in sales. Salary does not reflect overtime or bonuses which are significant portions of compensation for these positions.

Public Accounting – Audit, Tax & Management Services

• Usually , starting salaries for CPAs are comparable in public accounting and the

private sector.

• For someone with a few years experience, the salaries are a little bit higher in the

public sector.

• However, for someone that stays long term in public accounting, they are often

offered a handsome premium to move to the private sector.

• If one continues long enough to become a partner, especially in a big 4 firm, salaries

can reach a healthy mid six figure level with a very healthy bonus package.

• Many CPA’s make well above a million dollars every year.

Salary Trends

THE CPA EXAM

The CPA Exam consists of four sections:

Part I: Financial Accounting and Reporting (FAR) This section covers knowledge of generally accepted accounting principles for business enterprises, not-for-profit organizations, and governmental entities, and the skills needed to apply that knowledge. Part II: Auditing and Attestation (AUD) This section covers knowledge of auditing procedures, generally accepted auditing standards and other standards related to attest engagements, and the skills needed to apply that knowledge. Part III: Regulation (REG) This section covers knowledge of federal taxation, ethics, professional and legal responsibilities, and business law, and the skills needed to apply that knowledge.

Part IV: Business Environment and Concepts (BEC) This section covers knowledge of general business environment and business concepts that candidates need to know in order to understand the underlying business reasons for and accounting implications of business transactions, and the skills needed to apply that knowledge. A high degree of organization and discipline is necessary to pass all four parts within the allotted 18 months…

THE CPA EXAM CONTENT

• Must work each testlet in order must submit testlet to move on to the next • Not permitted to go back • IFRS Tested • Codification used for Research • No Writing Skills - All moved to Business • Passing Grade 75

Task Based Simulation

No. 2

Task Based Simulation

No. 1

Multiple Choice Testlet

No. 3

Multiple Choice Testlet

No. 2

Multiple Choice Testlet

No. 1

Task Based

Simulation

No. 6

Task Based Simulation

No. 5

Task Based Simulation

No. 4

Task Based Simulation

No. 3

60 Points 40 Points

O n e c o m p l e t e T e s t l e t

2012 Format Auditing: 4.0 hrs Financial: 4.0 hrs Regulation: 3.0 hrs

THE CPA EXAM FORMAT

Task Based

Simulation

No. 7

Concepts & Standards(including

IFRS)

20%

Financial Statements

30%

Specific Transactions

30%

Government Acct'g

10%

Not-for-Profit Acct'g

10%

A&A: Engagement

Performance & Understanding the Assignment

14% A&A: Understanding

the Entity & Environment

18%

A&A: Performing

Audit Procedures &

Evaluating Evidence

18%

A&A: Evaluate Findings,

Communication & Reporting

18%

Accounting & Review

Engagements

14%

Professional Responsibility

18%

Ethics,Professional &

Legal Resp.17%

Business Law19%

Federal Tax Procedures &

Accounting Issues

13%

Federal Taxation of Property

Transactions14%

Federal Taxation of Individuals

16%

Federal Taxation of

Entities21%

Written Communication

No. 2

Written Communication

No. 1

Multiple Choice Testlet

No. 3

Multiple Choice Testlet

No. 2

Multiple Choice Testlet

No. 1

• Must work each testlet in order must submit testlet to move on to the next • Not permitted to go back • ALL Writing Skills • 15 - 20% of questions do not count • Passing Grade 75

85 Points 15 Points

Written Communication

No. 3

O n e c o m p l e t e T e s t l e t

2012 Format Business: 3.0 hrs

Economic Concepts &

Analysis18%

Financial Management

21%

Information Systems &

Comm.17%

Strategic Planning

12%

Operations Management

14%

Corporate Governance

18%

THE CPA EXAM PROCESS

Exam Process

APPLYING FOR THE CPA:

• Provide the transcript and University Certificate for Morgan to advise

• Relate the requirements to the correspondent State board jurisdictions

• Complete in the Evaluation Form request and send it to FACS or WES (part of the NACES.org

the institution held reliable for all credentials equivalencies worldwide) along with the

Transcript and Certificate

• Complete the Exam Application and send it to the State board

• Receive NTS (notice to schedule) in 6/8 weeks of the application time

• Schedule the exam time and Prometric location ( the testing centers in Dubai are Amideast

and Dubai Knowledge Village.)

• The CPA Exam is available only in a computer-based format.

Exam Process (Cont)

APPLYING FOR THE CPA:

• The Exam is offered during the following “testing windows” (across the Middle East: UAE,

Kuwait, Bahrain, Lebanon, soon Egypt and KSA)

– February, May, August and November

NB*: Candidates with permanent residencies or long-term residencies in addition to natives of one of the following countries:

Egypt, Qatar, Oman, Saudi Arabia, Jordan, Bahrain, Kuwait, Lebanon, and the UAE can sit for the CPA Exam in the above mentioned countries.

The definition of "Long term resident" is someone who has residency issued by the local authorities that enable the person to work, rent a place, and open a bank account. The residency is usually sponsored by a company. The resident person does not need any visa to travel back and forth to the country of where he/she is resident. The above excludes individuals with multiple entry visa whether as a visit visa or business visa.

*Syrian citizens are not eligible to sit in the international locations

Exam Process (Cont)

• CPA CERTIFICATION BASIC REQUIREMENTS:

A candidate has 2 eligibilities to meet when taking the CPA:

1. The examination requirements which will qualify him/her to take the exam,

2. Meeting additional requirements for getting the official certification/license of the CPA.

In general, most of the states require from 1 to 2 years of Accounting experience attested by a CPA. Some states also require Ethics exam, or additional University credits.

Exam Requirements

Examples of State Board Requirements:

• New Hampshire: Bachelor degree with 120 credit hours; including 12 Business Credits + 12 Accounting

Credits. Residency is NOT a requirement for the state of New Hampshire.

• California: Bachelor degree with 120 credit hours; including 24 Credits of Business + 24 Accounting

Credits. Residency is NOT a requirement for the state of California.

• Colorado: Bachelor degree with 120 credit hours; 27 Accounting Credits including Specialized accounting courses + 21 Business Credits. Residency is NOT a requirement for the state of Colorado.

• Maine: Bachelor degree with 120 credit hours; Have completed basic courses in accounting and auditing defined as 15 semester hours in accounting, auditing and/or ethics to include at least 3 credits in accounting and 3 credits in auditing. Residency is NOT a requirement for the state of Maine.

Licensure Requirements

• New Hampshire: If a BA Holder then 2 years of experience OR If MBA Holder then 1 year of experience.

• California: 2 years of experience + Ethics exam OR 1 year of experience + 150 Credits + Ethics exam.

• Colorado: 1 year of experience + Ethics exam OR Additional 30 Credits to include a total of 45 Accounting Credits and 36 Business. Applicants are required to pass an open-book examination on professional ethics. The examination is a home-study course prepared by the American Institute of Certified Public Accountants (AICPA).

• Maine: 150 Credits including 15 Accounting including Audit AND 2 years experience.

NB: In general, most of the states require that Accounting experience is to be attested by a CPA holder.

THE SUCCESSFULLY

PROVEN WAY TO BECOME A CPA

• Becker Professional Education is the leading international provider of preparatory coursework for professional certification exams, including the certified public accountant (CPA) and chartered financial analyst (CFA) examinations, serving 40,000 students at 350 locations around the world. For more information please visit www.becker.com

• For more than 50 years, Becker Professional Education has helped equip professionals and their companies for the challenges of tomorrow in the Accounting, Finance and Project Management professions.

• Becker Professional Education is a subsidiary of DeVry Inc. (NYSE: DV) and a global leader in professional education. Their CPA Exam Review is the largest and longest-running review program worldwide. Becker provides world-class web-based and live in-house continuing professional education for accounting and finance professionals.

About Becker

Why Becker

• Becker CPA students who complete the course pass the CPA exam at double the rate of non-Becker candidates

• Continually updated materials

• Accurate material and content

• Effective tools and resources

• Unique ‘work and remember’ methodology

• Specialist and certified instructors

• A combination of live and multimedia integrated system

• Program flexibility

• Expert support throughout the program and all through exam day

The Becker Learning System The Becker CPA Review combines rigorous methodology, all-inclusive content and expert instruction to

ensure candidates are fully prepared on exam day:

• Comprehensive Textbooks

• Pass- Master software

• Final Exam and Simulation Software

• In-class multimedia presentation

• e Flashcards

• Final Review

• Convenient Make-up

• Expert Guidance

• Academic Support

• Morgan Promise

LIVE PROGRAM Live Classes

• 34 lectures: 2 days per week, 4hours of classroom time (with live certified/chartered instructors and multimedia presentation)

• In-class Mock Exams

Preparation time

• On average, 12-14hrs per week of personal study time is recommended

MORE REASONS TO TAKE THE

CPA

IFRS on the CPA Exam

Accounting professionals today need a wider range of skills than ever before to survive in an industry that grows more technical and international every year and for this :

• IFRS was introduced at the beginning of 2011 to the CPA Exam because it is now considered an important part of entry-level practice for newly licensed CPAs. Craig Mills AICPA Director says “Data collected during a practice analysis -- used in determining how to update the exam questions -- indicated that a significant number of newly minted CPAs need to have a working knowledge of IFRS when they enter the workforce”.

• Another reason why IFRS is important, if a company owns a foreign subsidiary or is owned by a foreign entity, its auditors and accountants will most likely need to be able to deal with IFRS financial statements.

As of August 2011, the CPA Exam went international. You can now sit for the exam at your convenience at a Prometric Centre :

• Bahrain • Kuwait • Lebanon • UAE • and Japan

CPA Exam is NOW International

Here’s what the first batch of CPA International Exam takers had to say!

“….a comprehensive studying material by Becker and provided by Morgan have enabled me to pass the exams from the first attempt while keeping my full time job. If you put in the time and effort, follow the study plan, Morgan will definitely help you succeed…” Rita Haidar (passed all 4 parts of the CPA exam)

“…truly speaking, I did not refer to any other study material except for Becker. I devoted and concentrated my efforts based on the teaching methodology and the result has paid off, I passed on my first attempt…” Sivakumar G

Thank You

For more info visit: www.morganintl.com