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PassMap for CMA Part 1 Section F (2020) Now Available

Note: This announcement applies only for CMA Part 1 candidates taking the exam in 2020, and not to candidates taking the exams through October 31st, 2019.

The CMA Part 1 Section F PassMap is available in My Studies for HOCK students who have the CMA Review or CMA Complete materials. We continue to welcome your feedback about the PassMap, whether positive or negative, so that we can be sure that we are providing the most useful study tools.

If you don’t have your HOCK CMA materials yet, you can learn more about the HOCK CMA Exam Prep including our exclusive “You Pass Or We Pay” Guarantee, and start studying today.

PassMap for CMA Part 2 Now Available

A few months ago, HOCK introduced our interactive study planner called the PassMap that combines the study plans with a personalized schedule in an online dashboard, allowing you to easily track and see your progress through the materials, including a progress bar and countdown to your exam date. If you fall behind or change your expected exam date, you can easily adjust your schedule with a few clicks.

Now, the CMA Part 2 PassMap is available in My Studies for HOCK students who have the CMA Review or CMA Complete materials. We continue to welcome your feedback about the PassMap, whether positive or negative, so that we can be sure that we are providing the most useful study tools.

If you don’t have your HOCK CMA materials yet, you can learn more about the HOCK CMA Exam Prep including our exclusive “You Pass Or We Pay” Guarantee, and start studying today.

Follow HOCK international on Social Media for News, Updates, Tips, and Special Offers

Do you want to stay current with the latest news, updates, tips, and special offers from HOCK for the CMA, CPA, and CIA exams? If so, be sure to follow HOCK on your favorite social media network!

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Changes to CIA Program Eligibility and Exam Retake Windows Effective September 1, 2019

“To align with the three-part CIA exam, the CIA program eligibility window has been adjusted from 4 years to 3 years. This reflects the amount of time typically required to complete the certification process. Candidates who are already approved into the program prior to September 1, 2019 will maintain a 4-year program window. Candidates approved into the program on or after September 1, 2019 will have 3 years to complete the program. Candidates can still request a one-year extension.

In addition, effective September 1, 2019, the waiting period to retake an exam will be shortened from 90 to 60 days. As long as it is still within the program eligibility window, candidates can retake the exam after waiting 60 days.”

Source: The IIA

Start Preparing for the CIA Exams

2020 CMA Exam Materials Update – Part 2 Sections C-F

HOCK is pleased to announce that the Part 2 Volume 2 Textbook (Sections C-F) for the 2020 CMA exams is now available. The questions and videos for Sections C through E are also ready for 2020. Questions and videos for Section F are still in development and will be available in the coming weeks. All HOCK students who have the materials for the current exam syllabus have access to the 2020 materials at no additional charge.

An important reminder: students studying for exams through October 31, 2019 should continue to use the old/existing materials to prepare for their exams. Only students studying to take the exams in 2020 should use the new materials. More information about the 2020 CMA exam changes is available here.

Topics added/changed in CMA Part 2 Sections C-F (Textbook Volume 2) for 2020:

  • Section C: Qualitative Factors in Decision Analysis (pages 117-118).
  • Section F: The entire Ethics Section was re-written for the 2020 exam syllabus (pages 235-283).

Topics deleted in CMA Part 2 Sections C-F (Textbook Volume 2) for 2020:

  • Section E: Accounting Rate of Return.

Please watch our web site or social media pages for further announcements regarding future materials updates for the 2020 CMA exams.

As always, if you have any questions about the materials or the exams, please do not hesitate to contact us.

CIA Part 3 Textbook Update July 2019

The CIA Part 3 Textbook has been updated, and the new files are available for current students to download in My Studies. This update made some changes to Section IV to synchronize the textbook with the new 2019 CIA Part 3 Videos. It is not necessary to re-study any topics already studied, but if possible we do recommend switching to the new textbook to continue studying.

If you have any questions about these changes, please contact us and we will be glad to assist you.

You can also learn more about the HOCK CIA Textbooks and other exam prep materials if you are not already a HOCK student.

Critical Audit Matters Begin Testing on the CPA Audit Exam July 1, 2019

While Critical Audit Matters (CAMs) were added to the PCAOB Standards in 2017, reporting of CAMs is only effective for fiscal years ending on or after June 30, 2019. Additionally, CAMs will be tested on the CPA Audit exam beginning July 1, 2019. Therefore, both practitioners and CPA exam candidates need to be familiar with CAMs.

CAMs are an additional section in the auditor’s report in which the auditor provides disclosure about any areas of the audit that were particularly difficult or had significant estimates or judgement in them. While I am not going to cover the requirements of CAMs here, I want to outline why this reporting is important and can help users of financial statements better understand a company. I will do this by giving brief examples of two companies that each have goodwill of $10,000,000 on their balance sheet.

First, let us imagine that Company A made a significant investment in Company Z three years ago and recognized $10,000,000 of goodwill related to 7 patents owned by Company Z. All of the patents are still valuable and there are no potential competing products in development. So, Company A has $10,000,000 of goodwill that is not impaired and not likely to become impaired in the near future. Assuming that Company A will receive an unqualified opinion from its auditor, there will be no specific mention about the goodwill in the auditor’s report and the only mention of the goodwill in the financial statements will be its inclusion on the balance sheet. (There may be some disclosure about the goodwill in a note if the amount is material to the financial statements.)

Next, let us assume that Company B made a significant investment in Company Y three years ago and recognized $10,000,000 of goodwill related to the brand name and reputation of Company Y. Now, the $10,000,000 of goodwill is being tested for impairment. Though the auditor feels that they did enough testing, and they are comfortable that the goodwill is not impaired, they know that there were a lot of estimates and believe that the goodwill could become impaired in the near future, or, if the industry changes rapidly enough, the goodwill may lose all of its value. In coming to this conclusion, the auditor knows that their decision involved especially challenging, subjective, and complex judgment. At this point, Company B will receive an unqualified opinion from their auditor, but unlike Company A there will be specific mention of the goodwill in the audit report as a Critical Audit Matter.

Prior to the PCAOB addition of Critical Audit Matters, the language of the reports for both companies could have been copied and pasted out of the Standards and would behave been the same for both companies. However, based on the situations, the $10,000,000 of goodwill that is on each balance sheet is different and was looked at very differently during the audit. With the addition of Critical Audit Matters in the audit report, the users of the financial statements will get more information about the goodwill of Company B in the report. Even more importantly, that information is coming from the perspective of the auditor and not management.

My unofficial definition of a CAM is that it is any material account or disclosure that could have been reported another way than it was reported in the financial statements. If there were extensive estimates, subjective decisions, or substantial use of auditor judgment, then I think that the users of those financial statements would want to know what the other considerations were for reporting it.

If you are taking the CPA Exam, you need to know Critical Audit Matters starting in July of 2019. If you are not a CPA Candidate, but prepare or audit financial statements for a publicly-traded company in the US, then this is something that you may have already started preparing for and doing during engagements.

To help all CPA candidates prepare for this new topic, we are offering our two videos covering Critical Auditor Matters free of charge. Use the buttons below to play each of the videos.

Critical Audit Matters (16 Minutes)
Reporting Critical Audit Matters (16 Minutes)

If you have written or read any CAMs as an auditor or user of financial statements, I would be interested to hear your experience so far with CAMs in the comments.

Brian Hock, CMA, CIA

2020 CMA Part 1 New Topic: Integrated Reporting (Section A)

Integrated reporting is one of the new topics on the syllabus of the CMA Part 1 Exam beginning in January 2020. The focus of integrated reporting is reporting more about the company than just the financial statements.

One way of looking at integrated reporting is that it is similar to companies applying the balanced scorecard approach to themselves. In the evaluation of employees, a balanced scorecard approach is when the evaluation consists of more than just the evaluation of the work of the person compared to the financial budget. While there are managers who are able to achieve short-term results, sometimes the way that they act towards their colleagues, customers, and suppliers means that the success does not carry into the long-term. The four traditional perspectives that are assessed under a balanced scorecard evaluation are: learning and growth, business processes, customers, and financial performance.

For companies, the financial statements provide only a limited picture of the health of the company based on what information is required to be reported. Integrated reporting is the process of companies reporting more than just their financial results, but also their impact on stakeholders, the environment, and anyone who comes into contact with the business. The primary purpose of integrated reporting is to explain not just how the company has created value in the past, but how it will continue to create value in the future.

If you are studying for the CMA exams in 2020, you will learn about Integrated Reporting in Part 1, Section A. Whether you are studying for CMA or not, you can learn more about Integrated Reporting here: https://integratedreporting.org/

Integrated reporting is a topic that will continue to become more important and is something that accountants will be working with increasingly in the future. Whether or not you need to study integrated reporting for the 2020 CMA exams, I encourage you to learn more about it, and if you have any experiences with integrated reporting already, you are welcome to share those experiences in the comments.

Brian Hock, CMA, CIA

2020 CMA Exam Materials Update – Part 1 Sections D-F

HOCK is pleased to announce that the Part 1 Volume 2 Textbook (Sections D-F) for the 2020 CMA exams is now available. The questions and videos for Sections D and E are also ready for 2020. Questions and videos for Section F are still in development and will be available in the coming weeks. All HOCK students who have the materials for the current exam syllabus have access to the 2020 materials at no additional charge.

An important reminder: students studying for exams through October 31, 2019 should continue to use the old/existing materials to prepare for their exams. Only students studying to take the exams in 2020 should use the new materials. More information about the 2020 CMA exam changes is available here.

Topics added/changed in CMA Part 1 Sections D-F (Textbook Volume 2) for 2020:

  • Section D: Expanded discussion of Lean Resource Management (pages 112-116).
  • Section E: More details added to the steps of software development (pages 227-231).
  • Section F: New Section for 2020 covering Technology and Analytics (pages 244-370).

Topics deleted in CMA Part 1 Sections D-F (Textbook Volume 2) for 2020:

  • Section E: Internal Auditing.

Please watch our web site or social media pages for further announcements regarding the rest of the materials updates for the 2020 CMA exams.

As always, if you have any questions about the materials or the exams, please do not hesitate to contact us.

2020 CMA Exam Materials Update – Part 1 Sections A-C and Part 2 Sections A-B

HOCK is pleased to announce that the first Sections (Textbook Volume 1) for both Parts of the 2020 CMA exams are available. All HOCK students who have the materials for the current exam syllabus have access to the 2020 materials at no additional charge.

An important reminder: students studying for exams through October 31, 2019 should continue to use the old/existing materials to prepare for their exams. Only students studying to take the exams in 2020 should use the new materials. More information about the 2020 CMA exam changes is available here.

Topics added/changed in CMA Part 1 Sections A-C (Textbook Volume 1) for 2020:

  • Section A: Added Integrated Reporting (pages 41-53).
  • Section A: Terminology change of uncollectible accounts to credit losses (pages 59-70).
  • Section A: Added depreciation for tax purposes (pages 110-111).
  • Section A: Updated leases for new accounting standards (pages 131-135).

Topics deleted in CMA Part 1 Sections A-C (Textbook Volume 1) for 2020:

  • Section A: Deleted off-balance sheet financing.
  • Section B: Deleted best practices for budgeting.

Topics deleted in CMA Part 2 Section A-B (Textbook Volume 1) for 2020:

  • Section A: Deleted EBITDA ratios.
  • Section A: Deleted off-balance sheet financing.
  • Section B: Deleted bankruptcy.
  • Section B: Deleted tax implications of transfer pricing.

Materials for the remaining Sections of the new 2020 CMA exam syllabus will be released as they are completed in the coming weeks. Please watch our web site or social media pages for further announcements.

As always, if you have any questions about the materials or the exams, please do not hesitate to contact us.