[jeff]

Welcome to the Q2 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

[RWCPA]

I took the BEC exam yesterday and I have no idea what to think. I feel like the testlets got harder from one testlet to the next. The first was pretty easy I thought, I got through it in about 30 minutes. The second was much more difficult and took me over an hour, every single question was very detailed and long. Way more calculations in the second and third tesltlets that provided a lot of info not needed to answer (I hope). A little advice to all is to memorize everything you can about COSO don't just be familiar. I only had 15 minutes left by the time I got to the WC; BSd my way through two and didnt get to start the 3rd. Hoping for the cards to fall my way, good luck to all. I'm starting AUD material right now..

[happygal]

Thanks @ CPA2021 for putting that up!

I have another question, my ninja notes say that when using Income Elasticity of Demand
a normal goods is when >1
an inferior good is when < 1

but my Roger lecture says when its positive > 0 then in its normal good
and when negative it is a inferior good <0

I am a really confused by this, any help?

[Anonymous]

You know actually I don't have elasticity as a concept down that way at all. For me the important part was to know whether demand was relatively elastic (greater than 1) or relatively inelastic (under 1) or perfectly elastic = 0.

In other words at 0 the change in demand perfectly correlates with the change in price. Price up 5% demand down 5% (and vice versa). Over 1, the merchant takes a hit in demand if he/she raises the price, under 1 the merchant has a customer base that won't buy that much less product if the price goes up.

[Anonymous]

Ugh on RWCPA's experience. I have 30-40-40 allotted for the testlets and an hour for the writing. Sounds like if you do well on the first testlet it's calculation city. I hope not.

[Anonymous]

Or maybe not – sigh 0 = perfectly inelastic Meaning that there is no correlation between the price change and the demand.

I should know better really, no excuse, this is why it's so important to do MCQ's

If the coefficient of elasticity is zero, then the consumer demand for the product is said to be

A. Perfectly inelastic.
Answer (A) is correct.
When the coefficient of elasticity (percentage change in quantity ÷ percentage change in price) is less than one, demand is inelastic. When the coefficient is zero, demand is perfectly inelastic.
B. Unit inelastic.
C. Unit elastic.

“That means when the demand is unaffected by any change in price of the commodity, the elasticity zero. Under the zero elasticity condition , neither the supply of commodities nor the demand for the commodities show any variation dispite change in price.”
D. Perfectly elastic.

[quamikazee]

Need help with the following. I didn't think it was “c” because I figured if they are updating the audit committee then they would have to monitor internal control first. I chose “a”

So why is it “c”?

Question:

All of the following management activities of the Falco Insurance Group, Inc. are evidence of the ongoing monitoring of internal controls built into the company's system, except:
a. The CEO and CFO review monthly disaggregated gross margin and operating margin data by line of coverage.
b. The CFO reviews changes in liability reserves in excess of a specified threshold.
c. The CFO updates the audit committee on status of internal control.
d. The CEO and CFO are required to formally verify that all major disbursements such as for claims and reinsurance premiums fully comply with the planned program of insurance.

Choice “c” is correct. Regular reporting to the audit committee represents reporting of deficiencies, not ongoing monitoring.
Choice “d” is incorrect. Ongoing monitoring of internal controls include such functions as verification that major disbursements meet the criteria for planned risk retention as part of a program of insurance. Formal authorization of all major disbursements such as for claims and reinsurance premiums for this purpose represent an ongoing monitoring.
Choice “b” is incorrect. Ongoing monitoring of internal controls include such functions as authorization of major disbursements, reviews of large or unusual transactions and high level reviews of disaggregated information. Reviews of changes in liability reserves in excess of a specified threshold represent ongoing monitoring.
Choice “a” is incorrect. Ongoing monitoring of internal controls include such functions as authorization of major disbursements, reviews of large or unusual transactions and high level reviews of disaggregated information. Monthly reviews of disaggregated gross margin and operating margin data by line of coverage represents ongoing monitoring.

REG - 81 - 2/3/16
BEC - 87 - 4/5/16
AUD - 87 - 6/10/16
FAR - 8/29/16

Becker Self Study only

[Anonymous]

Is it the “built into the companies system” keywords in the question that are supposed to tip you off? All of the other three answers rely on financial data generated automatically by the company's control systems, whereas updating the audit committee is at the discretion of whomever is supposed to do that.

[MaLoTu]

updating the audit committee is IC because it is reporting of deficiencies, but the question calls out ongoing monitoring. Monitoring has 2 facets: ongoing monitoring and communication of deficiencies.

[Anonymous]

Ah!!! Yes, ML2, now it looks obvious. 🙂

[Pony Boy]

Just a quick update on my BEC exam experience from Saturday (04/02). MCs went well, as there was much more of an emphasis on conceptual questions than ratios or computations, which others on this thread have mentioned. WC were very straightforward and pretty simple. It took me ~35 minutes to complete the 3 writing tasks. Goodluck to everyone else taking BEC this week or this testing window. Now moving on to FAR I believe. The bad part is that there is over a month to wait until the scores get released.

REG (02/2016)- PASS
BEC (04/2016)- PASS
FAR (06/2016)- PASS
AUD (08/2016)-

"Stay Gold, PonyBoy, Stay Gold"

[Anonymous]

You know I have to say I think I'm more impressed with the people on here who take sections 4 or 5 times, than the one's who score in the 90's on each section.

[MaLoTu]

I don't know if I am wrong or the question is badly written:

Very rarely will information systems meet all user requirements when initially implemented. As a result, systems development personnel may be tempted to make unauthorized changes to the software or system to meet user needs. To mitigate this risk, management should implement:

A. logical access controls.

B. proper segregation of duties.

C. data input controls.

D. change management control policies.

The answer is D, but policies are IC, so if it is D then why is B even an option. Especially since IT controls are primarily granting and restricting access, which this seems to be the case …

Any thought?

[I_Need_2_Pass]

I agree CPA2021. I'm taking the exam on Thursday and the possibility of failing and retaking is torturous! I would be extremely happy with a 75.

[hannahFletcher16]

@pony boy. I am taking the exam tomorrow for the 2nd time. Do you think that tests taken in the same week or testing windows are more similar than ones taken in different testing windows? I don't know where I went wrong during my first test, besides I know I failed the written portion. But it seemed easy the whole time, which now I know that means fail.

Anyway, if they are similar, what should I hit hard on review tonight?

Thanks in advance!

[MaLoTu]

@hannah, I failed with a 74 and I am so nervous about this time! One thing I can assure you is that every test is different. This will be my third attempt. My first exam, the entire first testlet was almost all calculations. From what I can tell COSO still seems to be a primary, but I am hearing a lot less about IT this time around.

[Author]

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