| The CPA BEC Exam is generally perceived to be | | | | Unlike the other sections (AUD, FAR and REG), |
| the easiest part of the CPA Exam, but is it true? | | | | BEC does not have simulations and comprises |
| Thousands of CPA candidates were caught off | | | | 100% of multiple choice in the form of 3 separate |
| guard and failed the exam every year. This article | | | | "testlets". |
| attempts to uncover the reasons of such failure | | | | Why People Fail The CPA BEC Exam |
| and suggests ways for candidates to maximize | | | | 1. They Grossly Underestimated The Time And |
| the chance of passing success. | | | | Effort Of Preparation |
| First of all, you may be surprised to discover | | | | Many candidates seem to have unexpectedly fail |
| these facts about the CPA BEC Exam: | | | | BEC and I believe the primary reason is |
| - BEC has the lowest passing rate among the 4 | | | | under-estimation. They might have thought that |
| sections in 2009 | | | | these relatively "soft" subjects with no simulations |
| - The term "CPA BEC" is most searched on the | | | | can't be dangerous, and made the critical mistake |
| Internet among the related terms for the 4 | | | | of not spending enough time and/or effort to |
| exam sections. This means that many people | | | | study. |
| have encountered problems or difficulty with BEC | | | | 2. They Got Caught In Detailed Questions |
| and are looking for solutions. | | | | People have gotten nasty surprises from |
| CPA BEC Exam: An Overview | | | | information technology, which represents a |
| BEC is a 2-hour examination covering "Business | | | | significant 25% of the entire exam. The |
| Environmental and Concept", which I interpret as | | | | examiners tend to get into the tiny details in this |
| general business related topics that the CPA | | | | particular topic. Candidates who are not too |
| examiners want you to know. | | | | familiar with IT should be really careful. |
| Major topics covered include the following: | | | | 3. They Didn't Know The Questions Could Be |
| - Various forms of business entities | | | | Very Tricky |
| - Basic economics | | | | Another trap that candidates fall into is managerial |
| - Common financial models and calculations such | | | | / cost accounting. The concepts look easy but |
| as EVA, NPV and IRR | | | | people just can't get them right without lots and |
| - Information technology, meaning business | | | | lots of practice tests. Remember, it is a heavily |
| information system, its security and applications | | | | tested topic representing 22-28% of the exam. |
| - Managerial and cost accounting | | | | As you can see, IT and cost accounting accounts |
| - Financial options (debt vs equity) and related | | | | for 50% of the exam! There is no way you can |
| knowledge such as the loan covenants. | | | | pass without mastering these two sub-sections. |