Wiley's CPA Jan 2023 Focus Notes
Business Environment and Concepts

Quick reference tools for the 2023 CPA BEC exam

Wiley's CPA Jan 2023 Focus Notes: Business Environment and Concepts offer practical and hands-on flashcard-style notes on the Business Environment and Concepts section of the Certified Public Accountant (CPA) exam. Perfect for targeted review sessions focused on essential, core concepts covered on BEC, the 2023 Focus Notes include:

• Corporate Governance
• Economic Concepts and Analysis
• Financial Management
• Information Technology
• Operations Management

Designed for motivated CPA candidates sitting for BEC in 2023, Wiley's CPA Jan 2023 Focus Notes: Business Environment and Concepts are the proven solution for testing your knowledge in quick study sessions leading up to exam day.

Preface xi

Corporate Governance and Internal Control 1

Corporate Rights, Responsibilities, and Authority 1

17 Principles of Internal Control 6

Limitations of and Deficiencies in Accounting Controls 10

Categories of Controls 12

Internal Control Monitoring Purpose and Terminology 15

Fraud Risk Management 19

The COSO ERM Model 22

Enterprise Risk Management: Limitations 25

Introduction to Enterprise Risk Management 26

ERM Components, Principles, and Terms 32

ERM Governance and Culture—Principles 1–5 36

ERM Strategy and Objective Setting—Principles 6–7 37

ERM Strategy and Objective Setting—Principles 8–10 38

ERM Performance, Review, and Communication—Principles 10–11 39

ERM Performance, Review, and Communication—Principle 12 40

ERM Performance, Review, and Communication—Principle 13 41

ERM Performance, Review, and Communication—Principle 14 42

Monitoring, Review, and Revision—ERM Principles 15–16 43

Monitoring, Review, and Revision—ERM Principles 16–17 44

ERM Communication and Reporting—Principle 18 45

ERM Communication and Reporting—Principles 19–20 46

Practical Steps for Starting an Enterprise Risk Management (ERM) Initiative 47

Information Technology and Communications 50

Risks and Controls in Computer-Based Accounting Information Systems 50

The COBIT Model of IT Governance and Management 52

System Development and Implementation 55

Introduction to E-Business and E-Commerce 57

Risks of E-Commerce 58

Introduction to Enterprise-Wide and Cloud-Based Systems 59

Data Governance and Data Management 61

Data, Metadata, and Data Integrity 67

Data Structures, Software, and Databases 71

Information Systems Hardware 73

Size and Power of Computers 74

Storage Devices 75

Transaction Processing 76

Accounting System Cycles 77

Emerging AIS Technologies 78

What Is Big Data? 83

Bitcoin and Blockchain85 Artificial Intelligence and Machine Learning 89

Computer Networks and Data Communications 96

The Internet—Structure and Protocols 98

Economic Concepts 101

Demand101

Supply105 Market Equilibrium 108

Consumer Demand and Utility Theory 110

Inputs and the Cost of Production 111

Gross Measures—Economic Activity 113

Gross Measures—Employment/Unemployment 114

Aggregate Demand and Supply 115

Business Cycle 116

Price Levels and Inflation/Deflation 118

Money, Banking, and Monetary/Fiscal Policy 121

Reasons for International Activity 123

Introduction to Business Strategy and Market Analysis 127

Financial Management 128

Introduction to Financial Management 128

Time Value of Money Tools 132

Financial Valuation 134

Introduction and the Payback Period Approach 135

Introduction and Financial/Capital Structure 140

Introduction to Working Capital Management 148

Accounts Receivable Management 152

Quality and Inventory Management 153

Quality Control 157

Performance Measures and Management Techniques 164

Manufacturing Costs 164

Costing Methods 166

Cost Behavior Patterns 170

Absorption and Direct Costing 175

Joint and By-Product Costing 181

Budgeting184 Master and Static Budgets 185

Forecasting Techniques 191

Cost-Volume-Profit (Breakeven) Analysis Calculations 194

Transfer Pricing and Benchmarking 196

Measurement Frameworks 197

Project Management and Benchmarking 202

Index 206