How to pass CPA CFE May 2021 Day 1 Exam/Capstone 1
I found that many students are finding difficulty in passing CPA CFE day 1 exam. Even in 2020, professionally qualified CA from India and other countries could not get success in passing day 1 exam. Some have approached me to put one course exclusively for Day 1. I provide below in brief some important hints to pass this exam at first attempt.
Day 1 – Evaluating your soft / professional skills (4 hours)
The first day of the CFE is a Pass/Fail mark treated separately and distinctly from Day 2 or 3. You can pass or fail Day 1 regardless of how you do on Day 2 and Day 3. Similarly, if you fail Day 1, you need to re-do, and successfully complete Day 1 regardless of how you did in Day 2 or 3. The success is based on your holistic approach to the case, total solution. Day 1 is linked to the Capstone 1 module with the case being directly tied to your Capstone 1 case. Day 1 tests your soft/professional skills, at a senior management level discussion. You are not expected to discuss accounting or other technical competencies in any great detail but focus on the ‘enabling competencies’.
Day 1/ Capstone 1 case is mainly focusing enabling competencies. Therefore report will focus enabling competencies in depth and technical up to level 1. Enabling competencies are, problems solving and professional judgement, leadership, ethical, communication etc. (refer CPA competency map). Day 1 case is mainly related with problem solving issue. I briefly mention below steps to do Day 1 case.
- Read, understand, and highlight all important points and issues in the case carefully including required and format for the reply. Case will be around 40-50 pages. In the final day 1 exam, background of the case is same and linked to your Capstone 1 case. You can take around one hour to do this.
- During your reading, highlight with separate color a) points related with present structure particularly (SWOT analysis) strengths, weakness, opportunities, and threats b) factors affecting competition, demand and supply, customers, and suppliers (portal 5 forces) c) political, technical, environmental points, industry average if any d) key success factors e) mission and vision of the organization f) financial overview and etc.
- You are required to prepare your first part of your answer “Situation analysis” from above. However please ensure that you will provide your information in brief highlighting all important relevant details affecting the changes in circumstances.
- Identify all major issues related with capital investment, operational issues if any. You can write briefly issue1,2…and so on. In the second part, you are required to provide quantitative and qualitative analysis of major issues related with capital investment. Integrate data with taxation and mission and vision of the organization and provide your conclusion for each major issues. Also provide analysis and recommendation for operational issues as well. In part 2 for major issues, prepare excel sheet working showing very clearly all your calculations which marker can easily follow and understand. For PV calculation, use weighted average discount rate for all PV calculations.
- Second part is a major part of your answer…
- In last part, provide your final recommendation based on your analysis in part 2
- Ensure your communication is noticeably clear, easy to understand and provide integrated total solution of the whole case. You must come out from a big crowd, therefore see that your answer is highly effective and may win the heart of a marker.
Students are required to prepare a report. See the format of report in detail.
You can also see my you-tube video…link as below.
If anyone need any more information and like to go for coaching for Day 1 and or for full exam, please visit my website www.beyond.coach, cell: 16475056648, email: firstname.lastname@example.org. Beyond Accounting Coaching Services…Paresh Desai CPA-CGA, CMA (USA) FCMA(India)