PBC CAST TAKES CPA EXAM - YouTube

- I don't even know what CPA stands for,

to be honest with you.

- Certified public accountant.

- But, we can't fact check that.

- [Crew Member] And action.

- Hi, I'm Brittany Furlan Lee.

- I'm Emily Tosta.

- My name is Jessica Sarah Flaum.

- I'm Christian A. Pierce.

- I'm Amy Letcher. - I'm Pete Gardner.

- And today, we are going to be taking

(laughs) real CPA exams.

(upbeat music)

- I'm truthfully feeling a lot of pressure.

I feel like my character would really expect me to succeed.

My mother is a CPA.

I feel like I should have it in my genes.

- Don't let her down.

- I'm horrible at tests.

I'm horrible at anything under pressure.

- I was a straight a student. - Oh God, I knew it.

(upbeat music)

- Which of the following characteristics

most likely would heighten an auditor's concern

about the risk of material misstatements arising

from fraudulent financial reporting?

- So many words.

- Didn't understand a word of that, but here we go!

- A, the entities industry is experiencing

declining customer demand.

- B, employees who handle cash receipts are not bonded.

- C, bank reconciliations

usually include in transit deposits, I mean, come on.

- D, equipment is often sold at a loss

before being fully depreciated.

- Okay, so financial reporting--

- Yes, and it's material misstatements,

and I have no idea if that has anything to do with anything,

but I really think it's D.

- (laughing) Okay. - I think, number...I don't.

What is, "are not bonded?" What does that mean?

- Um, I don't know.

- Um...B?

- In-transit deposits, C? - Yeah?

- [Crew Member] This is a timed exam.

- Oh, it is? - Yeah, okay, what?

- We don't have that much time!

You know, you can't overthink it.

You kind of just have to go with your gut.

- I'm gonna say, C. - What? Okay, I'm saying, D.

- Oh my God, I have anxiety. There's only one right answer?

My answer was D, equipment is often sold at a loss

before being fully depreciated.

- My answer was B,

employees who handle cash receipts are not bonded.

- [Crew Member] And there's a reason why

neither of you are accountants.

You're both incorrect. The answer is A.

(buzzer buzzing)

(upbeat music)

- A CPA has been requested by former audit client

to reissue the auditor's report for the prior period.

Before reissuing the report, the CPA should...

- A. obtain a letter of representation

from the former client's management.

- B, make inquiries of the former client's attorney

regarding pending litigation.

- C, review the former clients records

to verify its compliance with debt and loan agreements.

- D, consider whether there is substantial doubt

about the former client's ability

to continue as a going concern.

I've no idea what any of that means.

- I'm just going with my gut, which is usually really bad.

Oh, we circled the same one.

- Oh, cute. - Besties!

- Well, we're both gonna be wrong.

All right, so we both picked A.

- D. - A.

- [Crew Member] Congratulations, (bell rings) Pete's right.

(Pete and Amy reacting)

- Oh my god, this is so important to me!

- Oh, we're smart! - Yes!

Oh my god, one point! - Oh my god!

Who wants to hire me to do their taxes?

- Well, nobody.

(upbeat music)

- What kind of fraudulent activities

most likely could be perpetuated due to the lack

of effective internal controls?

Who wrote this, a fucking android? Who talks like that.

- Fictitious transactions may be recorded

that cause an understatement of revenues

and an overstatement of receivables, that's A.

- Are you sure? - It's gonna be A.

- Maybe. This is B.

Claims received from customers for goods returned

may be intentionally recorded,

intentionally recorded in other customer's accounts.

That sounds shady.

- C, authorization of credit memos by personnel

who received cash may permit the (stumbling)

misappropriation of cash.

D, the failure to prepare shipping documents

may cause an overstatement of inventory balances.

- Well, it's been A, an A multiple times, I'm gonna go C.

- D. - Oh!

You went with D three times in a row.

- I mean it's gotta--

- And two times, it hasn't been right.

- I mean it's gotta, just statistically,

it has to right at some point.

- Yes, all right, we'll see what happens.

- How much longer? - [Crew Member] Zero seconds.

Final answer? - Mine was A.

- Mine was B.

- [Crew Member] You must be good at taking tests, Jessica,

'cause it's C.

(bell ringing)

(both banging on table)

- We're acing this thing. - Ooh, smiley face.

- It's just making me feel like dumb, which I am,

but I don't like being called out on it.

(upbeat music)

- A US manufacturer has a production operation in Mexico.

The production costs 116 and 50 pesos

to produce and ship to Europe.

- Where the product sells for 20 euros.

If 0.1099 US...we're gonna need this (beeps).

- What the (beeps),

how are we supposed to know what pesos is?

- If 0.1099 US dollars are required to buy one Mexican peso

and 0.8928 US dollars are required to buy one euro,

what amount of US dollars is profit on the sale?

- Requires calculator, you don't say. Okay, so--

- [Crew Member] 15 seconds. - Oh come on!

- What, what? No no no no no, no no no, okay. (yells)

- Okay, what are we thinking about?

Okay, the product costs-- - It's B.

- Wait, what? - It's B.

I did it all up here. - Really?

- Yeah, I'm like a beautiful mind.

- I don't know if I believe you.

- [Christian] Well, then you do the math.

- (sighs) I know, I don't really want to.

- I'm gonna chill.

- (mumbling) Ship to Europe where the products sells...

- This is like that shitty stuff in math class

where they're like,

(adding machine whirring)

Billy has seven yams and he gave 17 of them to Troy.

How many does Billy have left?

And you're like, "But you said he had seven."

- Equals...

(adding machine whirring)

That, okay, dah, dah, dah, dah.

- Does it help if you make the computer noises?

See, your computer noise

is different than my computer noise.

Your is, "Dah, dah, dah, dah, dah,"

mine is (making beeping noises).

- Oh, the numbers, the Mexican numbers have an enye.

- Wait actually, no they don't.

- (chuckling) They're numbers.

- Okay, this is... I'll just go with B.

- Yeah, we're going with B!

- I'm just confused about

what exactly I've done here, okay, wait.

(adding machine whirs)

I know the timer went off, but I'm just...

like people at the Oscars,

I'm just pretending it didn't happen.

(Pete singing) - I think it's A.

- I'm gonna go with C.

Pencils down and then...

- [Crew Member] Amy, you did not tell us

that you're a math genius.

The answer was indeed A.

(bell rings)

(Pete and Amy yelling)

- Oh my god, I should have done A!

I should have done A. I always do A.

- My high school math teacher, I just want to thank you,

Mrs. Brand, for your hard work and dedication to my brain.

(upbeat music)

- Last one, a project should be accepted

if the present value of cash flows for the project is... A.

- Equal to the initial investment.

- B.

- Less than the initial investments.

- C.

- Greater than the initial investment.

- D. - Equal to zero.

- Greater than the initial investment, right?

- I mean-- - C, god dammit.

- I don't even really know what a project is

in this context. - Yeah.

- I always like to add god dammit

to whatever sentence I say,

because it adds a little flourish.

- I feel like this one's like a no brainer,

but then again--

- Why would you start a company

if you're not gonna make any (beeps) money?

- Then again, who knows?

- [Crew Member] What are your final answers?

- D.

- I'm gonna say C, as well.

- It's A, I'm A.

- [Crew Member] I'm so sorry.

You are both incorrect, the answer is C.

(buzzer buzzing)

- Oh. - Greater.

(Pete and Amy cheering)

- Well, we got two right out of five.

- Two out of five. That's literally a C.

- For being two girls with no accounting--

- [Crew Member] 40%. - That's an F!

This is the first time in my life I've ever gotten an F.

- I got one question right.

I think Jess got three right?

- I got to write two right. - Two right.

We're ready to be accountants now. Give us your money.

- [Crew Member] You got a 20%, and you got a 40%.

- There we go. - That is not that bad.

- We got three out of six.

- [Crew Member] So you each got 50%, which means you failed.

- Okay, well, here's the thing.

- Well, I don't know, 50, is 50 a fail?

- Really, it's about whether you are a glass half full

or a glass half empty. - Right, exactly.

Yeah, we're down with that.

- We haven't even gone through all the schooling.

Think about it, if we studied for like a week,

we could be CPAs, immediately.

- Yeah, I'd probably do pretty well at this, yeah.

- Actually, I think the opposite.

I think accountants are little followers

who, they're like, "oh, what, books?"

- She scares me a little bit.

- I learned that I am a math genius!

- And I learned that I can really read,

even in a tough situation.

- Accounting is a lot harder than it looks,

which that's a lie, because I knew it was hard,

and it looks hard, so I learned that I'm right.

- I thought the test was incredibly difficult.

I think that there's so many words

that I had no idea what they meant.

I honestly kind of admire accountants

a little bit more after this,

because you have to be very smart and really know your stuff

to be able to complete this exam.

(upbeat music)

- So, for more of this and stuff like it, watch "PBC."

- Parent's, Babies, Children.

(both laughing)

- Yes, that's what it means.

- Watch "PBC" on YouTube, like, and subscribe.