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Exam Number : BEC
Exam Name : CPA Business Environment and Concepts
Vendor Name : AICPA
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BEC test Format | BEC Course Contents | BEC Course Outline | BEC test Syllabus | BEC test Objectives


Business Environment and concept section is treated as one of the most challenging exams because of its extensive material and it deals with business and economic concepts. The CPA BEC section will help you to move one step further in business knowledge and help them apply the knowledge in real-world scenarios.

Business Environment and concepts covers:

Business environment in general, and its core concepts.
Foundational grounding in accounting and are exposed to underlying reasons for accounting implications Financial management information technology, and business strategies in addition to accounting concepts.
Economic concepts, financial management, information systems and communications, strategic planning and operations management. Testing to determine different business strategies with their knowledge in strategic planning and market risks.
Making financial decisions, forecasting trends in the market, and understanding internets implication in business.

Topic Percentage
Corporate Governance 16% – 20%
Economic Concepts and Analysis 16% – 20%
Financial Management 19% – 23%
Information Systems and Communications 15% – 19%
Strategic Planning 10% – 14%
Operations Management 12% – 16%

BEC1 Business Environment and Concepts (BEC)
BEC2 Section introduction
BEC6 Summary blueprint
BEC7 Area I — Corporate Governance
BEC9 Area II — Economic Concepts and Analysis
BEC11 Area III — Financial Management
BEC13 Area IV — Information Technology
BEC16 Area V — Operations Management

The Business Environment and Concepts (BEC) section of the Uniform CPA Examination (the Exam) tests knowledge and skills that a newly licensed CPA must demonstrate when performing:
• Audit, attest, accounting and review services
• Financial reporting
• Tax preparation
• Other professional responsibilities in their role as certified public accountants
The content areas tested under the BEC section of the test encompass five diverse subject areas. These content areas are corporate governance, economic concepts and analysis, financial management, information technology and operations management. Reference materials relevant to the BEC section of the Exam are included under References at the conclusion of this introduction.
Content organization and tasks
The BEC section blueprint is organized by content AREA, content GROUP and content TOPIC. Each group or syllabu includes one or more representative TASKS that a newly licensed CPA may be expected to complete when performing audit, attest, accounting and review services, financial reporting, tax preparation or other professional responsibilities.
The tasks in the blueprint are representative. They are not intended to be (nor should they be viewed as) an all-inclusive list of tasks that may be tested in the BEC section of the Exam. Additionally, it should be noted that the number of tasks associated with a particular content group or syllabu is not indicative of the extent such content group, syllabu or related skill level will be assessed on the Exam. Similarly, examples provided within the task statements should not be viewed as all-inclusive.

Area II of the BEC section blueprint covers several subjects related to Economic Concepts and Analysis, including the following:
• Knowledge of economic concepts and analysis that would demonstrate an understanding of the impact of business cycles on an entitys industry or business operation
• Determining market influences on the business environment, such as globalization
• Determining the business reasons for, and the underlying economic substance of, transactions and their accounting implications
• Understanding financial risks and the methods for mitigating the impact of these risks
Area III of the BEC section blueprint covers several subjects related to Financial Management, including the following: • Assessing the factors influencing a companys capital structure, such as risk, leverage, cost of capital, growth rate, profitability, asset structure and loan covenants
• Calculating metrics associated with the components of working capital, such as current ratio, quick ratio, cash conversion cycle, turnover ratios
• Determining the impact of business decisions on working capital
• Understanding commonly used financial valuation and decision models and applying that knowledge to assess assumptions, calculate the value of assets and compare investment alternatives Area IV of the BEC section blueprint covers several subjects related to Information Technology (IT), including the following:
• Understanding the role of IT and systems, including the use of data in supporting business decisions.
• Identifying IT-related risks associated with an entitys information systems and processes, such as processing integrity, protection of information and system availability, including those risks introduced by the relationships with third-parties.
• Identifying application and IT general control activities, whether manual, IT dependent or automated, that are responsive to IT-related risks, such as access and authorization controls, system implementation testing and incident response plans.
Area V of the BEC section blueprint covers several subjects related to Operations Management, including the following:
• Understanding business operations and use of quality control initiatives and performance measures to Excellerate operations
• Application of cost accounting concepts and use of variance analysis techniques
• Utilizing budgeting and forecasting techniques to monitor progress and enhance accountability
The test focuses on testing higher order skills. Based on the nature of the task, each representative task in the BEC section blueprint is assigned a skill level.
BEC section considerations related to the skill levels are discussed below.
• Remembering and Understanding is tested in all five areas of the BEC section.
Remembering and understanding tasks focus on the knowledge necessary to demonstrate an understanding of the general business environment and business concepts, such as those involving enterprise risk management.
• Application is also tested in all five areas of the BEC section. Application tasks focus on general subjects such as those found in the subjects of economics and information technology, and the day-to-day financial management tasks that newly licensed CPAs perform, such as those involving calculations involving ratios, valuation and budgeting.
• Analysis skills, tested in Areas II, III and V involve tasks that require a higher level of analysis and interpretation. These tasks, such as comparing investment alternatives using calculations of financial metrics, financial modeling, forecasting and projection, frequently require newly licensed CPAs to gather evidence to support inferences.
The representative tasks combine both the applicable content knowledge and the skills required in the context of the work that a newly licensed CPA would reasonably be expected to perform. The BEC section does not test any content at the Evaluation skill level as newly licensed CPAs are not expected to demonstrate that level of skill in regards to the BEC content.
References — Business Environment and Concepts • The Committee of Sponsoring Organizations of the Treadway Commission (COSO):
– Internal Control – Integrated Framework
– Enterprise Risk Management – Integrating with Strategy and Performance
– COSO-issued application material, thought papers and guides related to the above frameworks
• Sarbanes-Oxley Act of 2002:
– Title III, Corporate Responsibility
– Title IV, Enhanced Financial Disclosures
– Title VIII, Corporate and Criminal Fraud Accountability
– Title IX, White-Collar Crime Penalty Enhancements
– Title XI, Corporate Fraud Accountability
• Current business periodicals
• Current textbooks on:
– Accounting Information Systems
– Budgeting and Measurement
– Corporate Governance
– Economics
– Enterprise Risk Management
– Finance
– Management
– Management Information Systems
– Managerial Accounting
– Production Operations



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AICPA Business Practice Questions

AICPA Advocacy | BEC PDF Dumps and test Braindumps

The AICPA asked the IRS and Treasury to make clear that the submitting of a Paycheck insurance policy program personal loan forgiveness software isn't an election through the taxpayer to forgo the worker retention credit score for wages said on the application exceeding the volume of wages integral for personal loan forgiveness.

The 2d edition of the Paycheck insurance plan software is not the same as the first. Two AICPA executives discuss what CPAs deserve to comprehend.

The AICPA said Wednesday that it expects SBA and Treasury to open the Paycheck coverage program’s software window to all lenders by means of Friday. The AICPA is additionally encouraging organizations to enhance the utility technique for small enterprise customers in quest of aid.

The $900 billion COVID-19 reduction package handed Monday provides $284 billion for a revised Paycheck insurance policy application (PPP) and clarifies that groups can declare tax deductions for prices paid for with forgiven PPP loans.

The advantage for the deductibility of PPP-funded prices raises some practice questions, and traps for the unwary lurk within the particulars.

Amid difficult circumstances, the AICPA’s tax coverage and advocacy efforts provided successful outcomes that benefited the accounting career and taxpayers in 2020.

The AICPA's Eileen Sherr, CPA, CGMA, MT, discusses fresh IRS suggestions related to the tax medication of loans beneath the SBA’s Paycheck coverage program.

In a letter to Congress, dated Dec. three, tons of of countrywide trade associations and their state and regional affiliates asked that legislation be enacted before the conclusion of 2020 reversing the IRS’s position that amounts forgiven in loans below the PPP be nondeductible business fees.

The financial fallout from the coronavirus pandemic is posing new challenges to state expert licensing statutes. CPAs have a job to play in advocating for accountable licensing law.

An AICPA letter suggests that the want for certain borrowers to complete a new kind and supply wide documentation supporting their request for reduction funds be reconsidered and that other strategies be evaluated in assessing a borrower’s decent religion certification.




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