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Exam Number : BEC
Exam Name : CPA Business Environment and Concepts
Vendor Name : AICPA
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BEC Exam Format | BEC Course Contents | BEC Course Outline | BEC Exam Syllabus | BEC Exam 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
Exam (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 Exam 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 topic 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 topic is not indicative of
the extent such content group, topic 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 topics 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 topics 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 topics 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 topics related to Operations
Management, including the following:
• Understanding business operations and use of quality control initiatives and
performance measures to improve operations
• Application of cost accounting concepts and use of variance analysis
techniques
• Utilizing budgeting and forecasting techniques to monitor progress and
enhance accountability
The Exam 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 topics 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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The BEC CPA (Certified Public Accountant) exam is designed to test candidates' knowledge of the business environment and concepts that CPAs must be familiar with. This exam covers a wide range of topics, including corporate governance, economic concepts, financial management, and information technology.

One of the key areas covered in the BEC CPA exam is corporate governance. This section covers topics such as business ethics, legal responsibilities, and the role of the board of directors. Candidates must demonstrate their knowledge of the various types of governance structures and the different stakeholders involved in the governance of a company.

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Another important area covered in the BEC CPA exam is economic concepts. This section covers macro and microeconomic principles, including supply and demand, elasticity, and the business cycle. Candidates must demonstrate their understanding of how economic factors impact businesses and how businesses can respond to changes in the economy.

The financial management section of the BEC CPA exam covers topics such as financial analysis, risk management, and financial reporting. Candidates must demonstrate their ability to analyze financial statements and make sound financial decisions based on that analysis. They must also be familiar with different types of financial instruments, such as bonds, stocks, and derivatives.

Information technology is another key area covered in the BEC CPA exam. This section covers topics such as data analytics, cybersecurity, and the use of technology in financial reporting. Candidates must demonstrate their understanding of the importance of technology in business operations and how technology can be used to improve financial reporting and analysis.

The BEC CPA exam also covers topics such as global business, sustainability, and operations management. Candidates must demonstrate their understanding of how businesses operate in a global environment and how they can achieve sustainability goals. They must also be familiar with operations management principles, such as supply chain management and quality control.

To prepare for the BEC CPA exam, candidates must have a strong foundation in business concepts and principles. They must be familiar with financial reporting and analysis, economic concepts, and business operations. Candidates should also be familiar with accounting standards and regulations, such as the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). Preparing exam with killexams.com resources is much easy. Killexams exam PDFs containing actual exam questions, practice tests and exam simulator is very effective for the exam. Moreover, these exam resources are very authentic and dependable as compared to other resources on internet.

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BEC CPA exam is an important certification for professionals in the accounting industry. It covers a wide range of topics related to the business environment and concepts that CPAs must be familiar with. Candidates who pass the exam demonstrate their expertise in financial reporting and analysis, economic principles, and business operations. The certification is highly regarded in the industry and can help professionals advance their careers in accounting and finance.


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