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The CMA®Exam:

Preparation Workshop

, May 2012

The CMA Certification

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• The CMA (Certified Management Accountant) is the advanced professional certification specifically designed to measure the accounting and financial management skills that drive business performance.

• Leading employers—from multinational corporations to private firms, academic institutions, and not for-profit organizations—seek out CMAs to fill positions requiring critical accounting and financial management skills.

• How important is certification in regards to compensation? • CMAs earn 122% more in average salary and 117% more in total

compensation (including salary and other compensation) than their noncertified peers. This means that on average, earning a CMA will more than double your salary.*

• This translates to a total of up to $2.6 million in extra lifetime earnings for someone in their early 20’s.*

• IMA members continue to provide incredible value to the organizations where they work.

• Source: IMA Website

Potential Benefits to Individuals

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• Pride in accomplishment

• Official International recognition of the recipient’s knowledge

• Enhanced career advancement opportunities

• Impetus to improve work and communication skills

• Increased job security

• The ability to qualify for work using specialized software or in sensitive governmental or corporate areas

• Qualification to hold office in particular professional societies

• Enhanced prestige or visibility in his or her job and professional community

• The potential for financial remuneration

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MOTIVATION

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Potential Benefits to Corporations

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• An independent metric with which to screen job applicants

• A knowledgeable work force

• Encouragement of continuing education for employees

• Enhanced employee understanding of matters and concepts

beyond their immediate job descriptions

• The availability of objective criteria with which to award

raises and promotions

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Who Issue The CMA Certificate ?

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• The Institute of Management Accountants

( IMA) is dedicated to excellence within the management

accounting profession.

• The Certified Management Accountant (CMA) designation

was developed in 1972 .

• The Institute of Certified Management Accountants (ICMA)

was created by IMA for the purpose of developing and

administering the CMA program

WHAT IS CMA , CFM , CPA, ACCA

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• CMA = Certified Management Accountant

• CFM = Certified Finance Manager

• CPA = Certified Public Accountant

• ACCA = Associate Chartered Certified Accountant.( after 5

years becomes FCCA)

• CFA = Certified Financial Analyst

• CIA = Certified Internal Auditor

• Other Cs.

Part 1 –Financial Planning, Performance and Control

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Part 2 –Financial Decision Making

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Education Qualification

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• To be certified as a CMA or CFM, candidates must fulfill

both an education requirement and an experience

requirement. Verification of one of the following must be

presented to complete the education requirement:

• Bachelors Degree, in any area,

– from an accredited college or university..

• Professional qualification comparable to the CPA, CMA,

CFM,

Experience Requirement

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2 years in a management accounting or financial management

position

or

2 years in public accounting

or

2 years in academia

Becoming a CMA Applicant Checklist

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This checklist is a step-by-step guide to fulfilling the following general certification requirements: Membership in the Institute of Management Accountants Apply for admission into certification program Paying the Entrance Fee Satisfying the Education Qualification Satisfying the Experience Qualification Passing scores (or a waiver) for all required examination parts Compliance with the IMA Statement of Ethical Professional Practice

Exam Registration

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• When you are ready to take an exam, you must submit an

Exam Registration Form.

• You can take the exams in any order

• You will receive an acknowledgement of your registration, an

authorization number, an authorization period, and

instructions for scheduling your exam at a Prometric Test

Center.

• It is your responsibility to schedule your exam within the

given time period.

Taking the Exam

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• You may register for one part at a time or you may register for multiple parts.

• You will be required to take all the multiple-choice parts that you register for within the same 120-day authorization period.

• Therefore, if you wish to schedule your exam preparation over several months, you should register separately for each part of the exam in accordance with your study plans.

• Can I take both of the exam parts the same day? – Yes, the new two-part testing format offers candidates the option of

sitting for both parts on the same day. This is an efficient way to earn your CMA certification if you are sufficiently prepared for both exams and the testing center has available testing appointments.

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How long will I have to complete the new CMA program?

Candidates must complete the new CMA program within three years from the date of entry into the program. Candidates also must register for an exam part within

the first 12 months of entering the program. If you do not register for an exam part within the first 12

months or complete the program within three years, you will have to repay the entrance fee. If you do not successfully complete both parts within

three years of entering the certification program, the passed part will expire.

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How many questions will be on each exam and how much time will I have?

On each part of the exam, there will be 100 multiple-choice questions and two 30- minute essay questions.

You will have 3 hours to complete the multiple-choice section and one hour to complete both essays.

The essays will be presented after you have completed the multiple-choice section of the exam or after 3 hours, whichever comes first.

Once you complete the multiple choice section, you cannot go back.

You must stay in the essay section to complete the exam. Note:

You MUST score at least a 50% on the multiple-choice section of the exam to be eligible to take the essay sectio

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• Will I receive an immediate Pass/Fail score?

– No. Immediate results will not be provided because the essay

questions will be graded off line.

– The scores for the multiple-choice section will be added to the

scores of the essay section for a total weighted score of pass/fail

reflected in a scaled score for the entire part.

– Candidates are not required to “ pass ” both sections; the total score

determines pass/fail status.

– The scores will be mailed approximately 6 weeks after the end of

the month in which you took the test.

– For example, if you test in May, you would have you results by mid-

July, and if you test in June, you would have your results by mid-

August.

Exam Schedule and Locations

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Exams are administered through the worldwide network of

Thomson Prometric Testing Centers and are available in

accordance with local customs. To locate a Testing Center and

to schedule exam appointments, visit

www.prometric.com/ICMA .

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Will the exam fees change?

The exam registration fee will be $350 per part. If a candidate registers

for both parts at the same time for the same testing window, the fee will

be $300 per part.

The total cost for all parts will decrease from $760 to $700 (or $600 if

the candidate registers for both parts at the same time for the same

testing window).

The $200 entrance fee into the program will not change.

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All topics tested up to Level C

Level A:Knowledge and comprehension

The “basics” or fundamentals

Level B:Application and analysis

“Intermediate” level

Level C: Synthesis, evaluation, and recommendation

“Advanced” or “Mastery” level

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To pass the exam, you need:

Knowledge

Understanding

Confidence

Effective Time Management

Commitment

Sample multiple-choice question

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• Norton Inc. has a 2 to 1 current ratio. This ratio would

increase to more than 2 to 1 if

a) a previously declared stock dividend were distributed.

b) the company wrote off an uncollectible receivable.

c) the company sold merchandise on open account that earned

a normal gross margin.

d) the company purchased inventory on open account.

• Answer: ?

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The blocks that form the Pyramid of success

this pyramid is based on an in-class review course

All blocks complete the pyramid…so all blocks are of same importance for success

We can change some of the titles on the blocks to personalize it to our theme as

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Read the question first

Skim through the answers

Read the stem of the question and search for key words and hints

When to use Wise-Guessing

If ONLY a few seconds left, NEVER leave a question unanswered

even if this means you answer randomly

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2 types of essays: Problem solving and Written responses

•General Tips:Read the questions first

Read the whole essay (search for key words)

Take notes while reading

Start essay with a brief introduction

Include all relevant information you know, with the aim to earn

more points

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• Problem Solving Essay type:

– Include formula you will use for calculations

– Show detailed calculations

– Don’t forget the RIGHT answer

• Written Response type:

– Use simple English

– Design a structured reply as such:Introduction (make it brief and

straight to the point)

– Body (analyze, compare, interpret etc. Some written responses

would require bullet point listing.)

– Conclusion (closing your response)

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• For questions with lengthy information, start from the actual

question and then search for the information required to answer it.

• If you are not sure how to approach a particular question, eliminate

obvious wrong choices before starting the computation.

• Avoid manual calculations even if they are simple additions

More general tips…

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• Spend one minute on each question in the first round

• Spend two minutes for each question in the second round

• Spend two minutes for each question in the final round

• Plan to get maximum marks from the easier areas by

spending more time for prep and practice

• Start your prep with a clear schedule and exam window in

mind

• Communicate with your employer, family and friends

Specific Test Taking Tips

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• Answer the questions that you know first.

• Avoid dwelling on any particular question for long periods of time. Each question is worth the same number of points regardless of its difficulty.

• Mark the difficult questions for later review. Use the ―Mark‖ feature to skip questions that can addressed later. You don’t want to run out of time.

• Read each question carefully, noting any key words. Pay close attention to the wording of the question –particularly to the words such as except, least, and most.

• If you are uncertain about an answer, make an educated guess. You are likely to know something about the topic in the question and are often able to eliminate at least one incorrect option.

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• Answer ALL of the questions. The CMA exams do not

penalize for incorrect answers. Points are not deducted

from your score for an answer that it incorrect –i.e., zero

points for wrong answer, whether it is blank or

incorrect.

• Keep track of time. When taking the multiple-choice

test, plan the amount of time given vs. the number of

questions that will be presented Watch the time you

invest in each question—don’t get stuck for too long on

one question.

• Use the full time allotted to you.There is no advantage in

ending the test early; review your work, make

corrections, or go back to more difficult questions.

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• Scratch paper. You will be given a booklet to be

used as scratch paper. Although not graded, you

should label your notes and calculations clearly.

When you go back to review your work, it is much

easier and quicker if you do it neatly.

• Manage Test Anxiety. It’s natural to be nervous. Try

to channel anxiety in a positive way. Know where

the testing center is and go beforehand if possible.

Be prepared!

Specific Essay Question Tips

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1. Read the entire question carefully for requirements.

2. Keep track of time as you work through the scenarios. Do not

spend too much time on any one question. Each scenario

should take you about 30 minutes.

3. Begin by writing key words on scrap paper: thoughts, data, and

anything else that can be used to answer the question.

4. Be aware of the verb clues that state what is being asked. This

will help you formulate and organize your answer. Note that

you may have more than one task—for example, define “abc”

and interpret its applicability to “xyz.”

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• Begin your answer with one or two sentences that directly answer

the question. If possible, rephrase the question’s essential terms in a

statement that directly answers the essay question.

• Support each point with sufficient detail to show that you understand

all the issues relevant to the question.

• Make it as easy as possible for graders to give you points. The goal in

grading is to award you points, so show your thinking clearly.

• Writing skills will be graded beginning January 1, 2012. Be clear,

organize your response, and use good grammar.

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• Proofread your answer for organization and clarity. Make sure

that the grader will be able to easily follow your thinking.

• Do not leave a question blank. If you do not have enough time to

write a full response, write an outline of your main points to

show what you know in order to get partial credit.

• Use cut/paste or copy/paste functions only within a single

question. These functions do not work across questions and can

lead to lost data. If you find your answer to Question 1 also

answers Question 2, write “see my answer to Question 1.”

Writing skills –new requirement

effective January 2012

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• Overarching principle →Relevance

• Specific criteria for judging writing skills on the CMA exam

• Use of Standard English: proper grammar, punctuation, and

spelling.

• Organization: essay response is arranged logically and

coherently.

• Clarity: candidate clearly communicates message with well

constructed sentences and the appropriate use of vocabulary.

Exam Prep Suggestions

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• Read Learning Outcome Statements

• Familiarize yourself with ICMA’s ratio definitions

• Memorize and understand Statement of Ethical Professional Practice

• Get to the testing site at least half an hour before your appointment

• Join study groups,

• Practice, practice, practice!!!

What NOT to do…

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Cheat

Share live exam questions

Assume you know the subject matter

Spend too much time on any one question

Give up

presented by: Mr.Omer Osman Eltayeb CMA, CFM,CIA, FCCA

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