CPA Exam BEC Section Content

The Business Environment and Concepts (BEC) section of the CPA Exam tests CPA candidates’ understanding of business concepts and the significance of a CPA’s professional duties and responsibilities within the larger context of the business environment. Areas covered on the BEC Exam are corporate governance, economic concepts and analysis, financial management, information systems and communications, strategic planning and operations management. One unique aspect of the BEC exam is that it requires the candidate to prepare and submit three Written Communication responses.

Many CPA candidates consider BEC to be the easiest section of the CPA Exam. However, BEC pass rates have historically been only slightly higher than those for other sections, and the exam still requires a serious study effort.

17-27% Corporate Governance

• Internal control and enterprise risk management frameworks

• Other regulatory frameworks and provisions

17-27% Economic Concepts and Analysis

• Economic and business cycles

• Market influences on business

• Financial risk management

11-21% Financial Management

• Capital structure

• Working capital

• Financial valuation methods and decision models

15-25% Information Technology (IT)

• IT governance

• Role of IT in business

• Information security/availability

• Processing integrity (input/processing/output controls)

• Systems development and maintenance

15-25% Operations Management

• Cost measurement concepts, methods and techniques

• Variance analysis

• Process management

• Planning techniques

BEC Course Structure Detail

Section1 Corporate Governance

Chapter 1 : Legal Issues of Corproate Governance

       Topic 1: Legal Issues of Corporate Governance

Chapter2 :  COSO's Internal Control Framework

       Topic 1: COSO's Internal Control  - The Basics

       Topic 2: COSO's Internal Control - Control Enviroment

       Topic 3: COSO's Internal Control - Risk Assessment

       Topic 4: COSO's Internal Control - Control Activities

       Topic 5: COSO's Internal Control - Information and Communiaction

       Topic 6: COSO's Internal Control - Monitoring Activities

       Topic 7: COSO's Internal Control - IC for Smaller Entities

Chapter 3 : COSO's Enterprise Risk Management Framework

       Topic 1: COSO's Enterprise Risk Management - The Basics

       Topic 2: COSO's Enterprise Risk Management - Governance & Culture

       Topic 3: COSO's Enterprise Risk Management - Strategy & Objective-Setting

       Topic 4: COSO's Enterprise Risk Management - Performance

       Topic 5: COSO's Enterprise Risk Management - Review & Revision

       Topic 6: COSO's Enterprise Risk Management - Information Communication & Reporting

Chapter 4: Sarbanes-Oxley Act of 2002

       Topic 1: Sarbanes-Oxley Act of 2002