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CPA Review Instructor Wants to Know Where BEC Got Its Start

Posted on by Adrienne Gonzalez

Ah, CPA review instructors, got to love them. They teach you everything you need to know, invade your home, isolate you from your spouse and get those annoying mnemonics stuck in your brain.

This one reached out to us to get a bit of background on the CPA exam to share with her students, who I’m sure will appreciate a primer on what becomes many candidates’ favorite exam section.

Hello Going Concern – I have a question about the BEC (Business Environment & Concepts) portion of the CPA exam. I know this is a fairly new section – at least in its current structure. Didn’t it come into being with the advent of the computerized exam, on the 18-month pass window, in the mid-2000’s?

The reason I ask – I am an instructor for one of the CPA review course companies, and I will be teaching the BEC portion of the exam soon. I would just like to give students a little history & overview. I cannot really find anything on the AICPA’s website.

Any help or comments would be appreciated.

Thanks,
“Teach”

You are sort of correct that no one knew what a BEC was until 2004 when the computerized exam arrived on the scene. Prior to that, the four sections of the exam were Business Law, Audit, ARE and FARE. We all know that FARE has since evolved into FAR, likely dropping the extra E to better match with the other three CPA exam sections (fun fact: when I started in CPA review in 2007, the E was still in use by a large number of students). At that time, ARE covered accounting and reporting, tax, and government/non-profit accounting.

Some components from the Business Law (shortened as LAW pre-2004) became the BEC we know today but it is fairer to say LAW became REG, which is why up until this year, some areas of BEC and REG overlapped and covered the same material.

I like to call BEC the junk drawer of the CPA exam, as they’ve tend to stick whatever they can’t stick anywhere else in that section. It seems to have gotten better with CBT-e but it’s too early in the new exam’s form to say that for sure.

When comparing the paper-and-pencil exam to its current computerized form, it’s pretty clear that the breadth of topics covered has increased. BEC has allowed examiners to stick in technology, IT (unrelated to audits), economics, corporate governance and ERM, among other things.

Hope that helps!

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Four Ways to Force Yourself to Study for the CPA Exam

I’ll save you the hoo-rah, I’m pretty sure you don’t need it. It’s March already; if you aren’t studying, you’re working, and if you’re doing both right now I worry about your decision-making capabilities. Oh well.

Masochistic or not, it isn’t always easy to get yourself motivated to study.

You have entire CPA exam strategies laid out on the CPAnet forums here, here, and look, you even have a hoo-rah. Not everyone is an Elijah Watt-Sells so get that out of your head and worry about what works for you.


That strategy – finding a perfect fit for your own needs as a CPA exam candidate – also goes for motivation.

So how do you force yourself to study? Here are a few ideas:

Bribe yourself – Sock away $xxx for a new toy and reward a passing score with whatever your bribe is. If you’re cheap/laid off/sinking $1000s into failed exam fees and broke, it could be a decent dinner or a movie. Define splurge for yourself and make that the carrot you dangle in front of your face to get you to study.

Commiserate – You can find plenty of miserable accountants taking (and not always succeeding at) the CPA exam. You can also find support and encouragement if you’re actually trying to pass, so use resources like CPAnet and Twitter to find other candidates to speak to. If you’re taking a live review, sign up with someone else from your firm and go to class together. It helps to have someone else keeping you in check.

Visualize your goal – This might be the most, um, cheesy of methods but it absolutely works. Write CPA after your name on business cards and put them up where you will see them frequently (but don’t hand them out, that’d be illegal); though this tactic isn’t meant as a substitute for actually preparing (sorry to break it to you), a little positive thinking takes the anxious edge off.

Plan – Sometimes knowing there is a clearly defined schedule takes some of the panic out of the CPA exam, and if you’re disciplined enough, you won’t need motivation. Sure, it’s robotic, but that’s what studying for the CPA exam is. The exam doesn’t ask you to think critically outside of the parameters of financial reporting and accounting, nor do you get bonus points for creativity. So maybe you just need to have a plan, stick to it, suck it up, and move on until you’re done. It’s the most miserable of the options but sometimes all that works.

So? What worked for you?