[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for BEC.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[monikernc]

cool beans thanks. so there are emails, letters and memos, right? memos do not get salutations and sincerely but emails and letters do?

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[monikernc]

Is the correct answer really D?

Internal controls are likely to fail for any of the following reasons, except:

A. they are not designed and implemented properly at the outset.

B. they are designed and implemented properly as static controls, but the environment in which they operate changes.

Incorrect C. they are designed and implemented properly, but their operation changes in some way.

D. they are designed and implemented properly, and their design changes as processes change.

You answered C. The correct answer is D.

Control activities are only designed to provide reasonable assurance related to the achievement of the stated objectives. Internal control will fail if the control is not designed, implemented, monitored, and modified for operational changes. If the control is designed and implemented properly, and the design changes as processes change, then the control should not fail.

Internal controls are likely to fail if they are not designed and implemented properly, are static in nature (i.e., the control does not adapt to changes in the operating environment), or change operationally.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[MaLoTu]

@moniker – on all 3 of my WC I had a salutation. They tend to be email correspondence type situations in nature. Like, you are the accounting dept manager and the CFO has asked you to research XYZ.

[payaza2000]

@monikernc

I literally saw this question. One of my “trouble” ones. I think that I/C design will change as processes change. For example if we switch from a system utilizing Information Technology previously from a system that does not.

@monikernc,cortes123

I feel you guys, I feel I am getting a little burned out.

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[MaLoTu]

@moniker – you were choosing which one was the exception … you chose C which would cause to fail (so not an exception), but D is saying that ” they are designed and implemented properly, and their design changes as processes change”, if the design changes with process changes then no IC failure should occur … does that make sense?

[monikernc]

with except questions, i always forget by the 3rd answer option. i am getting dumber at this point i fear. doh!

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[MaLoTu]

I am just freaking out about the amount of formulas you need to know. I am going through WC management and although a lot of the questions are conceptual they require that you know the ratio formula so you can determine the effect that an event will have on the ratio.

[monikernc]

I hate ratios with a passion. BEC is a real test of will on my part.
I took the extra weeks to study because i had to reduce dependency on memorization. Doesn't work for me for most part. I have to know the underlying concept to be able to solve on demand. So ready for next Saturday at 4pm when i push exit, once and for all (i hope). REG won't be any better, either.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[MaLoTu]

The one thing that helps me with the ratios is that a lot of them like inventory/receivable type ratios, the inventory/receivable is in the denominator. So if it is asking about increase or decrease, I know that if the denominator increases it will have the decrease the ratio and vice versa.

[monikernc]

these graphs are driving me bonkers. i hope none pop up on my exam.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[CPA2BEE]

BEC is making me nervous guys! The “easy” one ain't so easy!

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Moeshow]

Thank you for everyones input on the written communication part.

I found the best way to remember the formulas is to just do the multiple choice questions. Plus, there are so many formulas that they recommend we know, that I'm not going to try and memorize all of them. My plan is just to memorize the ones that are on the multiple choice. Not worth getting all the formulas down when you'll probably see 1 to 3 questions at most on random formulas.

@Malotu I apply the same concept with the denominator and numerator.

Also, when a question says TURNOVER it usually has sales in the numerator. Like asset turnover: Sales/ avg asset. Fixed asset turnover: sales/ avg net fixed asset and etc. Simple plan: If I see a question asking for turnover and I do not know the formula, I just put sales as the numerator and whatever it is asking for as the denominator.

BEC 2/26/2016 81
FAR 05/2016

Purely Roger CPA Review, for now!

[Moeshow]

Actually, one more question regarding the written communication portion:

When we conclude do we put the “Please let me know if I can be of further assistance and etc” in your conclusion portion or a separate portion?

Might be a really dumb question, but when we put “sincerely” do we put our name or just CPA candidate?

BEC 2/26/2016 81
FAR 05/2016

Purely Roger CPA Review, for now!

[MaLoTu]

@Moeshow – I will totally remember that about turnover!

More clarification on the WC:

Conclusion paragraph regurgitating the language from the question. <You can add please let me know if I can help further here …
or
In a stand alone sentence right before the Sincerely …
Please let me know if I can help you further.

Sincerely,

CPA (this is all you need, or account manager, or whatever role they are asking you to assume. Be very generic)

[payaza2000]

Just for fun
A ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was $5,040. This year, the company expects the price per cup to be $9.00, variable manufacturing costs to increase 33.3%, and fixed costs to increase 10%. How many cups (rounded) does the company need to sell this year to break even?

A.
17,111

B.
17,500

C.
19,250

D.
25,667

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[Author]

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