National Entrance Examination Information 2010 Questions and Answers for Student Reference

Printed: February 2010 CMA Manitoba [email protected] www.cma-manitoba.com

2010 NATIONAL ENTRANCE EXAMINATION INFORMATION Questions and Answers for Student Reference What is the purpose of the CMA National Entrance Examination? The objective of the Entrance Examination is to evaluate whether candidates have acquired the CS-1 competencies indicated in the CMA Competency Map. The Entrance Examination will focus mainly on the technical skills of candidates within the accounting, risk management, and financial components of the six functional competencies through the use of multiple-choice questions.

What is the format of the CMA Entrance Examination? The 2010 Entrance Exam will be a four-hour, multiple-choice exam that will test with the following emphasis for the six functional CMA competencies (F1 to F6): • • • • • •

(F1) Strategic Management (F2) Risk Management and Governance (F3) Performance Management (F4) Performance Measurement (F5) Financial Management (F6) Financial Reporting

5-15% 5-15% 20-30% 10-20% 10-20% 15-25%

I didn’t take courses by those names. How will I know what will be tested? The CMA Competency Map Entrance Requirements can be downloaded from the CMA Canada website. Within each competency area, this syllabus identifies the disciplinary domains (areas of study from post-secondary programs) as well as the cognitive skill level that can be tested (page vi). For example, the disciplinary domains for performance management include management accounting, marketing, operations management and information technology/management (page 16). One topic within this area is the ability to interpret and explain the results of cost estimation and regression analysis, which can be tested at the Application and Performance level (page 17). 2010 is a transition year with respect to Canadian GAAP and the International Financial Reporting Standards (IFRS). On the 2010 Entrance Exams students will still be tested on Canadian GAAP (old handbook) as well as IFRS. An IFRS Bridging Manual is available to help Entrance Exam writers transition between Canadian GAAP and IFRS and is reflective of the knowledge that will be tested on the Entrance Exams. The depth and breadth of IFRS content will not deviate from the content covered in the manual. Students are also encouraged to review the 2010 Sample Entrance Exam as it is representative of the types of questions that will be tested in both Canadian GAAP and IFRS.

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Can I view a previous copy of the exam? In the interests of improving the maintenance of a consistent passing standard over time, The Society of Management Accountants of Canada utilizes the equating methodology. This involves the reuse of selected multiple-choice questions on future examinations. Consequently, the questions contained in recent past exams are not published. Sample exams may be accessed through the CMA Manitoba website.

When am I eligible to write the exam? Students must have a university degree or have been admitted on an exception basis. All prerequisite topics must be satisfactorily completed according to the equivalency standard established by CMA Manitoba or through successful completion of the CMA Accelerated Program.

What are the pre-requisite requirements? The pre-requisite requirements that relate to exam eligibility are identified as follows: #111 #123 #205 #212 #229 #241 #332 #342 #339

Introductory Accounting Human Resources / Organizational Behaviour Marketing Economics Intermediate Accounting I (Assets) Management Accounting I Statistics/Quantitative Methods Management Accounting II Intermediate Accounting II (Equities)

#405 #424 #442 #451 #501 #502 #503 #504 #505

Operations Management Taxation Corporate Finance/Financial Management Information Technology Advanced Management Accounting Advanced Financial Accounting Strategic Management Internal Control/Internal Auditing International Business

What are the Critical Manitoba CMA Entrance Examination Policies? •

Registered CMA student members must write the Entrance Examination by June 30 of the academic year following that in which they have completed the Pre-Requisite Requirement. As an example, students who completed the entire syllabus prior to September 2009 must write the Entrance Examination by June 2010.



Based on syllabus completion or the Entrance Exam rewrite policies, if a student is required to write the exam at a specific offering but does not, their membership will be terminated. Students who wish to appeal the policy to request a time extension should extenuating circumstances prevent adherence, must make a written submission for consideration by the CMA Management Review Committee.

What are the Critical National Entrance Examination Policies? •

You must achieve a passing grade on the Entrance Examination in order to proceed to the CMA Strategic Leadership Program.



All students who have failed the Entrance Examination will normally be required to rewrite within 13 months of the original examination date.



Three attempts at the examination are allowed. 2

How much time should I allow for exam preparation? This will vary depending on one’s educational background and the length of time it has been since some of the pre-requisite syllabus courses had been taken. The Manitoba policy provides students with a minimum of one year to prepare after completing the pre-requisite syllabus courses. For some students this time frame is appropriate to allow for an in-depth review of the Entrance Examination Syllabus in advance of attending the Preparation Support Program offered by the CMA office. Students are advised that complete coverage of the preparation material and the required level of knowledge for each topic identified in the Entrance Examination Syllabus are essential to ensure successful completion of the Entrance Examination. It is strongly recommended that each student prepare a study plan. The first step includes an assessment of your current knowledge level of each sub item of the exam syllabus and an estimate of the total amount of time it will take you to increase your knowledge to the required exam level (e.g. remembering & understanding, application & analysis). Compare this amount of time to your calculation of the amount of study time available to you between now and the exam date, so that you can make any adjustments as necessary (e.g. reduce/eliminate volunteer activities, discuss study time with your employer, schedule vacation time). Preparing a study plan that merely spreads coverage of the syllabus topics over the amount of time you have available is counterproductive and may not lead to the desired result. Students should be aware that attendance at the Manitoba Prep Support Program sessions is not sufficient prep for the exam. Not only is advance work required in order to gain any benefit from the sessions, but complete and in-depth review of the exam syllabus topics is necessary for success on the exam.

When is the Entrance Examination Offered? The Entrance Examination is offered twice per year, in June and October. The Exam Preparation sessions, however, are only available prior to the June offering; students who are planning to write in October are encouraged to attend the Spring sessions. •

June 2010 exam date:



October 2010 exam date: Thursday, October 14, 2010

Tuesday, June 15, 2010

9:00 a.m. to 1:00 p.m. 9:00 a.m. to 1:00 p.m.

How can I receive more information about the exam and the preparation involved? All students who are giving consideration to writing the 2010 or 2011 Entrance Examination are encouraged to arrange for individual counselling with Connie Sherry, Program Manager, at @cmacanada.org . The meeting will provide you with details about the exam, the preparation involved, and suggestions for establishing a study schedule. You are welcome to invite your spouse or significant other to attend the meeting with you, as it may provide them with an appreciation of the commitment that will be required of you.

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Will any sessions be held to assist in preparing for the exam? An Examination Preparation Support Program will be available to help you prepare for the Entrance Examination; registration is optional but strongly encouraged. The program will consist of eight days of sessions (4 Saturday/Sunday) and one simulated exam offering. Material will be provided on CD ROM. The Entrance Examination Preparation Support Program is offered to supplement the students’ exam prep process but the sessions are not sufficient to adequately prepare them for the exam. Students should be well immersed in their review of the syllabus and must be prepared to complete the presession work in order to gain benefit from the sessions. CMA Manitoba is unable to deliver preparation sessions prior to the October exam date, but an exam simulation will be offered on a Saturday morning in September; the date has not been finalized but may be scheduled for September 11, 2010.

When will the 2010 Preparation Sessions be held and what will the focus be? It must be acknowledged that there are any number of aspects that involve integrated competencies; for example: a capital budgeting issue (F5), the relevant costs that would go into that decision (F3) and the performance measures associated with this (F4). The sessions, however, will be segmented according to the functional competency topics: 1

Financial Reporting

April 17 & 18, 2010

2

Performance Management

May 1 & 2, 2010

3

Risk & Governance / Financial Management

May 15 & 16, 2010

Exam Simulation – 9:00 a.m. to 1:00 p.m. 4

Performance Measurement / Strategic Management

May 29, 2010 June 5 & 6, 2010

IMPORTANT – Students attending the prep sessions must complete a considerable amount of preparation and pre-session work in order to gain benefit from the sessions. Failure to do so will jeopardize your understanding of the session coverage and prevent the sessions from being valueadded to your exam prep process. The information provided at the session will be at a relatively high level and based on the assumption that students have completed the necessary preliminary review of the concepts and the assigned questions/cases/past exams that will be the focus of the various sessions.

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Does Prep Program registration include all required study material? The information/material provided on the CD ROM and posted to the Imparano website will form the basis of coverage at the prep sessions. However, students should ensure they have access to current editions of Intermediate Financial Accounting and Cost Accounting texts. Candidates will be expected to apply accounting standards in accordance with International Financial Reporting Standards (IFRS) as of January 1, 2009. A bridging manual may be accessed through the CMA student page of the Manitoba website.

What preparation is recommended for a re-write attempt? At minimum students are strongly encouraged to retake exam preparation sessions. If a student has had one or two unsuccessful attempts and they completed the pre-requisite syllabus requirements over an extended time frame, they should give consideration to taking the 10-month Accelerated Program in order to be provided with the necessary in-depth review. Students should also review the performance details provided on the examination result to identify areas of weakness. Other considerations to improve performance may be re-registration in a prerequisite syllabus course(s) to obtain greater foundation knowledge. Individual counselling is available by contacting Connie Sherry, Program Manager – [email protected].

Will there be any other material or sessions available? •

Although prep session registration, which includes the exam simulation, is strongly encouraged, the exam simulation will be available as a separate registration. Students will have an opportunity to practice-write an exam under simulated examination conditions.



All multiple choice questions are drawn from the Society's question bank and are sequestered. The actual June 2009 examination is not, therefore, available for review; however a sample June 2009 Exam book with substitute questions is available to provide students with an understanding of the nature of the Entrance Exam. The book may be accessed through the Student and Candidate section of CMA Manitoba website. A 2010 Sample Exam to incorporate applicable IFRS aspects will be posted as soon as possible. Please note that the exam questions and level of difficulty change over time.

What is the Application Process? An Application To Write the 2010 Entrance Examination is included with this information. This form must be submitted with payment. Also attached is the registration form for the Prep Support program, Exam Simulations (if not taking the Prep course), and June and October Entrance Exams. Please pay attention to the registration deadlines. All students (including Accelerated Program students) are required to complete an application to write the Entrance Exam.

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What is the cost of the Exam and Preparation Support Program and when are fees payable? The Prep CD ROM and details regarding the advance work necessary to gain benefit from the sessions are normally available early in the new year and provided upon payment of session fees. Early registration is therefore encouraged. 2010 Preparation Program: Registration Deadline March 12, 2010 • $1000.00 fee includes the CD ROM, four two-day weekend sessions and a simulated exam • $35.00 late fee for registrations after March 12, 2010 • $105.00 Cancellation Fee (includes GST) • No refunds after April 14, 2010 Registration Deadline May 25, 2010 May 29th 2010 Exam Simulation only: • $70.00 fee provides for participation in the exam simulation • $15.75 Cancellation Fee (includes GST) • No refunds after May 27, 2010 Registration Deadline May 3, 2010 June 15th 2010 Entrance Examination: • $300.00 fee • $35.00 late fee for registrations after May 3, 2010 • $36.75 Cancellation Fee (includes GST) • No refunds after June 11, 2010 Registration Deadline September 7, 2010 Sept 11th 2010 (tentative) Exam Simulation only: • $70.00 fee provides for participation in the exam simulation • $15.75 Cancellation Fee (includes GST) • No refunds after September 9, 2010 Registration Deadline September 1, 2010 October 14th 2010 Entrance Examination: • $300.00 fee • $35.00 late fee for registrations after September 1, 2010 • $36.75 Cancellation Fee (includes GST) • No refunds after October 8 , 2010 Examination Acknowledgements and instructions will be mailed to all registrants who are verified as being eligible to write the exam. The Examination Acknowledgement confirms the student’s registration for the exam, provides exam location details and must be presented to the exam invigilator on the day of the exam.

What if I register for the Prep Sessions and can’t attend? Although Prep Session attendance is optional, it is strongly encouraged. Because the tuition fee also includes the program’s CD ROM and the support/material provided by the Imparano lecturers and website, refunds for any portion of the fee after the deadline indicated will not be considered. Any appeals with supporting documentation would have to be submitted for review by the Management Review Committee. 6

How many times may I write the exam? Three attempts at the exam are allowed.

What happens if the exam is not written by the required date? Based on syllabus completion or the Entrance Exam rewrite policies, if a student is required to write the exam at a specific offering but does not, their membership will be terminated. Students who wish to appeal the policy to request a time extension should extenuating circumstances prevent adherence, must make a written submission for consideration by the CMA Management Review Committee. The details surrounding your request must be forwarded to the attention of Petra Noack Menzies, Accreditation Administrator, at @cma-canada.org. Students who have registered for the exam even though they are not obligated to write it at that particular offering, but subsequently reassess their preparedness and wish to withdraw, must apply for a refund. An appeal to request the deferment of fees to another offering will only be considered where extraordinary circumstances have prevented the student from attending the scheduled exam.

What are the Manitoba refund policies? •

Students who have paid for the June 2010 Entrance Examination, but decide not to write or are not eligible to write because they have not been able to satisfactorily complete the pre-requisite syllabus courses, must notify the office in writing no later than 4:30 p.m. on June 11, 2010 for the applicable refund as outlined on the registration form. Notification of withdrawal from the October exam must be received at the CMA office by 4:30 p.m. on October 8, 2010 in order for the applicable refund to be processed.



The entire Entrance Examination fee will be forfeited if the withdrawal request is received after the dates indicated above. The only exception will be illness; a medical certificate will be required, which must be submitted by June 30, 2010 or October 30, 2010. •

Exam fees remitted for June 2010 cannot be applied to the October 2010 examination if a student does not feel prepared to write.

Where is the Exam written in Manitoba? The main exam centre is in Winnipeg, usually at the University of Manitoba for the June exam and the Masonic Memorial Hall or CMA Professional Centre for the October exam (depends on the number of exam writers). For Manitoba students who reside over 100 km from the city, provision will normally be made for the exam to be held close to their community.

What if I will be in another province prior on the date of the exam? If this information is available at the time you submit the application for Pre-Approval, please indicate the exam location in the space provided. Otherwise, please contact @cma-canada.org so that arrangements through another province can be investigated. 7

What type of calculator can be used during the exam? Only the following models of calculators are authorized for use on the Entrance Examination: • • •

Texas Instruments Hewlett Packard Sharp

TI BA II Plus (including the Professional model) HP 10bII (or HP 10Bii) EL-738C

Are awards available for exceptional performance on the exam? Annually, the Society of Management Accountants of Manitoba provides the following awards for the Entrance Examination:  Frank Gosling Memorial Gold Medal for the highest mark $1,200 nd $900  Robert Syme Memorial Silver Medal for the 2 highest mark

When are the Entrance Examination results released? The results from the June exam should be available by late July and are mailed to all students; October exam results will be available mid November. Exam marks are not provided over the phone or through pick-up at the CMA office. Entrance Examination results may also be accessed via the CMA Canada web site. The results will be password protected to guarantee the security of the information for each individual. Access details will be forwarded to exam writers.

What happens after I pass the National Entrance Examination? Candidates are eligible to commence the Strategic Leadership Program (SLP) which, along with the Practical Experience requirement, must be completed within five years of passing the Entrance Exam. Students who are successful with the June 2010 Entrance Exam will be able to commence the SLP in September 2010. Successful October 2010 exam writers may have the opportunity to commence a compressed year 1 of the SLP in late November, depending on the number of interested candidates, or would have to wait until September 2011 to commence the program. The SLP includes two assessments that must be passed, each requiring a minimum grade of 60%. The Case Examination at the end of Year 1 is an individual assessment and the Board Report at the end of Year 2 is a team-based assessment; candidates will have a maximum of three attempts to pass each of these assessments. Those who postpone commencement of the SLP for a year or two after passing the Entrance Exam may risk being able to complete the SLP within the required 5-year time frame if they encounter difficulty with either or both of the program assessments.

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What is necessary to participate in the Strategic Leadership Program? The Strategic Leadership Program (SLP) requires a considerable time commitment and students must be prepared to put forth the necessary effort. Participation in the program requires access to a computer with internet connection to retrieve learning materials, submit reports and participate in electronic discussion groups. Candidates will find it more convenient if the equipment is home based; however, access through one’s workplace may be an alternative if agreeable with the employer. Candidates must be employed in a full-time related position in order to participate in the SLP. The position will be assessed at the beginning and near the end of the program to ensure that the candidate’s skills and responsibilities are at least at an overall CS-2 Basic Proficiency level of the required CMA functional competencies outlined in the Competency Map. Students should view the SLP as a graduate level program in which effective business communication skills, both written and oral, are necessary. Candidates must have the necessary foundation knowledge with respect to business writing and grammar/mechanics issues, including an understanding of proper referencing techniques and the correct format for footnotes or endnotes for bibliographies. Strong word processing skills are also beneficial for the report components. Students must be prepared to seek remedial assistance through technology, business communication or effective writing courses if weaknesses exist and are encouraged to upgrade these skills prior to program registration. One of the strengths of the SLP is the diversity that candidates bring to the program and the interactive sessions; it is the group dynamics and range of experiences that contribute to the richness of the program. The number of sections, as well as the minimum and maximum group sizes, are reviewed at the beginning of each program intake, according to the number of eligible candidates. Those who decide to postpone commencement of the program may apply for a subsequent intake and every attempt will be made to satisfy that request. However, preference will be given to those candidates who just recently passed the Entrance Exam, should space be limited in the section(s) offered.

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Where do I start in preparing for the 2010 Entrance Examination? If you are enrolled in the Accelerated Program, the instructors will recommend preparation aspects. If you have been completing courses on an individual basis through university studies, or are re-writing the Entrance Exam, the following aspects are suggested: •

Download the CMA Competency Map Entrance Requirements This document will serve as your focus for the necessary in-depth review that you should commence immediately.



Assess your current knowledge level of each sub item of the syllabus and estimate the total amount of time it will take you to increase your knowledge to the required exam level (e.g. knowledge and comprehension K/C or application and performance A/P). Compare this amount of time to your calculation of the amount of study time available to you between now and the exam date.



Download the IFRS Bridging Manual from the student section of the CMA Manitoba website.



Establish a study schedule/routine so that you can fulfil the above requirements. Discuss this priority with family, friends and your employer and enlist their support.



Purchase updated versions of Intermediate Financial Accounting and Cost Accounting texts, if you did not complete the Accelerated Program.



Register for the Exam Preparation Support Program early in the New Year in order to obtain the CD ROM and complete the pre-session work. The IFRS bridging manual should be available in early February.



Form a study group if you feel this will be beneficial.



If you are currently completing courses and are therefore not required to write the 2010 Entrance Exam, be prepared to back away from writing until next year if you can’t be as prepared as you must be. Attempting the exam and being unsuccessful will put undue stress on you for a rewrite attempt.



Take things one step at a time and don’t let the material or process overwhelm you. Divide your prep into manageable and realistic stages so that you can chart your progress and celebrate your accomplishment.

Saying that you want to pass the Entrance Exam isn’t enough. You must translate those words into actions. The goal must be a priority and you will have to have the necessary commitment in order to be successful. You should be prepared to take advantage of the assistance and resources available…prep sessions, study group members, exam simulations, or whatever avenue is best for you and meets your needs. Of no less importance is the support of family, friends, and employer, so that you are able to focus your efforts accordingly. Attaining the CMA designation is a significant achievement and the rewards are great. We know you can reach that goal! 10

National Entrance Examination Information 2010 -

details surrounding your request must be forwarded to the attention of Petra Noack Menzies, ... Robert Syme Memorial Silver Medal for the 2nd highest mark.

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