What Can Be Tested on CPA Canada CFE Day 2? (Clear, Practical Guide)
CFE Day 2 is widely considered the hardest day of the entire CPA exam. It’s long, technical, and requires you to demonstrate depth — meaning you must score C or CD on as many Assessment Opportunities (AOs) as possible.
This guide breaks down exactly what can be tested on Day 2 so you can study with confidence and focus on the right areas.
How Day 2 Is Structured
Day 2 is a single 5‑hour case with two major components:
Common AOs (everyone writes these)
Role AOs (based on your chosen role)
The Common section tests Financial Reporting (FR) and Management Accounting (MA) only.
Your Role section tests the competencies from your elective:
Assurance
Performance Management (PM)
Tax
Finance
What’s Tested in the Common AOs (FR + MA)
The Common section usually includes 6 AOs — a mix of FR and MA.
Recent CFEs show roughly 3 FR AOs + 3 MA AOs.
The complexity is higher than Core 1 and Core 2.
Expect non‑routine, advanced topics, especially in FR.
Non‑Routine FR Topics Commonly Tested
These are the FR topics you must know cold for Day 2:
Revenue recognition (complex scenarios)
Financial instruments
Leases
Income taxes
Business combinations
Investment in associates
Earnings per share (EPS)
Foreign currency
Investment properties
Joint arrangements
Accounting policy changes
Share‑based compensation
Employee benefits
Agriculture
Operating segments (IFRS)
Interim reporting (IFRS)
Borrowing costs (IFRS)
Fair value measurement
Having concise, well‑organized FR notes is essential for these.
MA Topics Commonly Tested
MA AOs are more repetitive. Expect variations of:
Variance analysis
Break‑even analysis
Pricing decisions
Budget analysis
Data analytics & information systems (DAIS)
Contribution margin
Decision analysis (quant + qual)
Practice multiple versions of these to build speed and confidence.
What’s Tested in the Role AOs
Your Role section is based on the elective you chose in PEP.
Depth is tested at the elective level, not Core level.
There are usually 7 Role AOs, meaning you spend most of your time here.
Assurance Role AOs
Audit planning memo
Control deficiencies
Audit procedures
Special reports
Assurance is predictable and template‑friendly — a major advantage.
Performance Management (PM) Role AOs
Performance measures
Strategy (mission, SWOT, objectives)
Decision analysis (quant)
Decision analysis (qual)
PM is a balanced mix of quant and qual.
Finance Role AOs
Valuation
Capital budgeting
Sources of financing
Ratio analysis
WACC
Finance is calculation‑heavy and time‑intensive.
Tax Role AOs
Corporate taxable income/payable
Individual taxable income/payable
Employee benefits
Tax is technical and requires strong rule recall.
Your Strategy for Day 2
Your goal is simple:
1. Get 2–3 Cs in FR or MA (Depth Level 2)
You only need depth in one of these — not both.
2. Get 4–5 Cs in your Role (Depth Level 3)
This is critical.
Failing your Role = failing Day 2/3.
3. Touch every AO
Even a partial attempt can earn RC, which counts toward sufficiency.
Final Thoughts
Day 2 is tough, but it’s predictable.
If you focus on:
Non‑routine FR
Repetitive MA topics
Your Role AOs
Strong structure
Time management
…you’ll put yourself in the best position to succeed.
If you want help building FR notes, practicing Role AOs, or getting marked feedback, I’m here for you.
If you need help in your CPA Canada Coaching, please feel free to reach out:
RavGun CPA Academy
https://www.ravguncpaacademy.com/
+1 437 833 9540
