One of the biggest challenges a candidate faces when taking the CPA exam is being able to switch gears as they move through the various tests. With the multiple-choice section, for example, the candidate needs to be able to eliminate the incorrect answers. On the writing portion, however, a different sort of logic is required, that of being able to present thoughts in a logical and precise sequence.
Being able to shift gears while progressing through the legs of the exam requires a set of fundamental skills, from knowledge of auditing to bec written communication. What follows is a rundown of the seven fundamental skills needed to pass the CPA exam.
Analysis and Evaluation of a Business Process
Having a body of accounting knowledge is one thing, but being able to apply that knowledge to a business process is something entirely different. For example, to pass the CPA exam, a candidate must be well versed in cost accounting, but if they are working with a manufacturing firm, they must also understand how costs are treated as products move through the manufacturing process.
Research into an Accounting Problem
To do their job, a CPA must have an extensive body of accounting knowledge, but from time to time it is critical that they be able to carry out research to address a particular accounting topic. To pass the CPA exam, you might need to choose an appropriate search term to retrieve information on a given topic from a database.
Application of Technology
Like never before, the accounting profession works with a huge amount of technology. To pass the CPA exam, a candidate must demonstrate that they can perform analysis and calculations using a range of technological tools, such as electronic spreadsheets. Further, a CPA must be able to manage data with both software and hardware.
Analysis
A CPA must be able to not only create financial statements, but they must also be able to analyze them to determine their meaning. The exam might ask candidates to identify patterns and trends.
Problem-Solving and Judgment
Generic problem-solving skills are always a good skill to have as a CPA. With these, a CPA can be expected to gather information in the effort to determine a best course of action.
Decision-Making
Decision-making is closely related to problem-solving, but it also includes a few different factors. A good example of this might be the ability to determine a course of action based on company goals within the constraints of regulatory or financial limitations.
Efficiency, Effectiveness, and Organization
Possessing these traits means that a person can get a job done and do it well without wasting time and taking advantage of too many resources. When accountants are organized, they can store information where it can be found and used when it is needed. Further, the faster it can be found, the better.
Accounting is a profession that requires organization in order to perform tasks and finish a job. Many of these tasks might be done by the accountant, but others may be delegated to someone else.
Like so many other professions, accountants must, above all else, be good communicators, whether in writing or in speech, to all people within an organization and outside of it.
