2020 CPA BEC REVIEW NOTES

1. 2020 - BEC
FLASH CARD
SAMPLE
Prepared By SURYA PADHI | suryapadhicpa@gmail.com
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2. BUSINESS ENVIRONMENT
AND CONCEPTS
●COVERS EVERY TOPIC OF BEC in 5 Sections
● AUTHORED BY SUCCESSFUL CPAs
● BASED ON TRUSTED RESOURCES
● ALL OF THE NEED-TO-KNOW CONCEPTS AND EQUATIONS
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3. BUSINESS ENVIRONMENT
AND CONCEPTS
●AREA – I : CORPORATE GOVERNANCE
●AREA – II : ECONOMIC CONCEPTS
AND ANALYSIS
●AREA – III : FINANCIAL MANAGEMENT
●AREA – IV : INFORMATION
TECHNOLOGY
●AREA – V : OPERATIONS
MANAGEMENT
● 400 SLIDES
●WITH MNEMONICS AND TIPS
●SHORT CUTS
●WITH UP TO DATE TOPICS
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4. AREA - I
Corporate Governance
• Knowledge and use of internal control frameworks
• Knowledge and use of enterprise risk management frameworks
• Identifying key corporate governance provisions of regulatory frameworks and laws such as the
Sarbanes-Oxley Act of 2002
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5. Corporate Governance: Financial Expert-
● Public companies are required to have an audit committee, which must have a
'financial expert' who has:
○ An understanding of GAAP and financial statements
○ Experience in preparing or auditing financial statements
○ Experience with internal auditing controls.
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6. Component of Enterprise Risk
management
● Component of Enterprise Risk Management are IS EAR AIM
○ I - Internal Environment
○ S - Setting Objective
○ E- Event Identification
○ A - Assessment of Risk
○ R - Risk Response
○ A - Activities
○ I - Information and communication
○ M - Monitoring
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7. As per SOX Rule, whistleblowers will be
compensated
● Usually a reward of 10 to 30% of the sanctions imposed. If you blew the whistle
and the SEC imposed penalties of $1 million on the perpetrator, you would be
awarded somewhere between $100k-$300k. If the sanctions imposed are $1
million or more, a bounty (reward) is mandatory.
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8. What is Anti-Retaliation Provision?
● Protects whistleblowers from losing their job. It is illegal to punish a
whistleblower to provides truthful information about any federal offense.
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9. Controls; What is the Objective of
internal control?
● To have effective and efficient operations, reliable financial reporting, and be
compliant with laws and regulations.
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10. What is Preventative Controls?
● Controls that prevent an error before it occurs
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11. What is Detective Controls?
● Designed to detect an error after it has occurred
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12. What is Corrective Controls?
● Controls meant to reverse the effects of an error
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13. For full flash cards
I wanted this system to be simple, effective, and fast so that you
can succeed on your CPA Financial Accounting & Reporting test
with a minimum amount of time spent preparing for it. Over
time it is proven repetition helps memorize various terms and
applying the terms in the examination.
Visit http://cpa.suryapadhi.com/education/cpa-2020.html
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