CPA Business Environment and Concepts (BEC)

Certified Public Accountant Business Environment and Concepts examination.

Corporate GovernanceEconomic Concepts and AnalysisFinancial Management
Information Technology and Data AnalyticsStrategic Planning and Operations ManagementRisk Management and Internal Controls
Business Ethics in PracticeEffective Communication in BusinessApplying Cost Accounting Techniques
Time Management for Exam SuccessActive Learning and PracticeMastering Multiple-Choice Questions
Corporate GovernanceEconomic Concepts an...Financial ManagementInformation Technolo...Strategic Planning a...Risk Management and ...Business Ethics in P...Effective Communicat...Applying Cost Accoun...Time Management for ...Active Learning and ...Mastering Multiple-C...
Advanced Topics

Risk Management and Internal Controls

Protecting the Business

Risk management is identifying and addressing potential problems before they happen. Internal controls are policies and procedures to safeguard assets and ensure accurate reporting.

Key Components

  • Risk Assessment: Spotting potential threats.
  • Control Activities: Steps to minimize risks.
  • Monitoring: Regularly checking if controls work.

Importance for CPAs

Strong controls help prevent fraud, errors, and regulatory penalties.

Real-Life Example

A company separates duties so one person can't both approve and pay invoices, reducing the risk of theft.

Examples

  • A company installs security cameras to deter theft.

  • Regular audits catch policy violations before they become big problems.

In a Nutshell

Risk management and internal controls keep businesses safe and reliable.

Next
Business Ethics in Practice