How to approach written communication in BEC?
Written communication is often referred to as the “essay portion” of the CPA exam. So why is that? Well, you basically are writing an essay or memo based on a specific prompt or scenario. Written communication (WC) is only applicable to the BEC section of the CPA exam. In fact, written communication accounts for 15% […]More
What is process documentation in a business process?
A company should prepare documentation for each business process that maps out the steps that need to be executed to complete a task. By documenting each business process, it allows the organization to understand the current state of the process and identify ways to improve the process. Who is involved in documenting a process? The […]More
What is an account reconciliation control?
Performing account reconciliations is a critical control that ensures that the underlying data reconciles with the accounting records (i.e. general ledger). Account reconciliations are a detective control that can identify issues in a business process. Why should a company perform account reconciliations? Here are a handful of reasons as to why a company should perform […]More
What are spreadsheet controls?
The BEC section of the CPA exam will test you on the key spreadsheet controls. If a business process relies on spreadsheets (e.g. Microsoft Excel or Google Sheets), then certain preventive and detective controls should be in place to ensure the accuracy and integrity of data and financial information. What are preventive spreadsheet controls that […]More
What are controls over standing data?
Standing data is data that is held in the system for long-term use and is not expected to change frequently (hence the term standing data). Another term for standing data is “master list” or “master data” Standing data can consist of customer information, product information, employee information, pay rates, tax codes, sales tax rates, etc. […]More
What are data processing controls?
The BEC section of the CPA exam will test you on the key data processing controls. The purpose of processing controls is to verify that data was properly processed through the system. Processing controls will identify if the data was processed incorrectly. The company would have data entry input controls to verify data is inputted […]More
What are the types of data entry input controls?
The BEC section of the CPA exam will test you on the key data entry input controls. Data entry input controls are preventive controls that a company should have in place for systems that collect data across various business processes. Data entry input controls help maintain high integrity and quality of the data entered into […]More
What are supervisory controls in a business process?
A supervisory control means exactly what you think it would mean. Supervisory controls are used to “monitor” a business process and are designed to prevent or detect issues. Supervisory controls are typically performed by the manager of a business process or executive team members. What are some types of preventive supervisory controls? Examples of preventive […]More