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Wiley CPAexcel Exam Review 2014 Study Guide, Regulation by O. Ray Whittington

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Chapter 3: The Solutions Approach

The solutions approach is a systematic problem-solving methodology. The purpose is to assure efficient, complete solutions to CPA exam questions, some of which are complex and confusing relative to most undergraduate accounting problems. This is especially true with regard to the new simulation type problems. Unfortunately, there appears to be a widespread lack of emphasis on problem-solving techniques in accounting courses. Most accounting books and courses merely provide solutions to specific types of problems. Memorization of these solutions for examinations and preparation of homework problems from examples is “cookbooking.” “Cookbooking” is perhaps a necessary step in the learning process, but it is certainly not sufficient training for the complexities of the business world. Professional accountants need to be adaptive to a rapidly changing complex environment. For example, CPAs have been called on to interpret and issue reports on new concepts such as price controls, energy allocations, and new taxes. These CPAs rely on their problem-solving expertise to understand these problems and to formulate solutions to them.

The steps outlined below are only one of many possible series of solution steps. Admittedly, the procedures suggested are very structured; thus, you should adapt the suggestions to your needs. You may find that some steps are occasionally unnecessary, or that certain additional procedures increase your own problem-solving efficiency. ...

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