BEC CPA Exam
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1. ordering costs costs of labor associated with order placement
-order frequency:
costs of entering purchase order, processing receipt of inventory, inspecting
inventory to ensure goods received, and processing vendor invoice and payment
2. ORC I/C process is designed and implemented by organizations management, BoD,
and employees to provide reasonable assurance an organization will achieve:
O = operating
R = Reporting
C = Compliance
3. CRIME need this to achieve ORC with the 17 principles
1. C = Control Environment
2. R = Risk assessment
3. I = Information and Communication systems
4. M = Monitoring
5. E = (Existing) Control Activities
4. EBOCA related to the control environment
E = Commitment to ethics and integrity
B = board independence and oversight
O = organizational structure
C = commitment to competence
A = accountability - establishing performance measures, incentives, and rewards
5. SAFR -related to risk assessment
S = SPECIFY objectives - allow identification & assessment of risks related to the
objectives
A = Identify & ASSESS change - external environment, business model, and
leadership
F = consider potential for FRAUD - points of focus include assessing incentives,
, BEC CPA Exam
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pressures, opportunities, and attitudes
R = Identify & analyze RISKS - how they should be managed
6. OIE -related to information and communication principles
O = OBTAIN & use information - generate & use relevant, high quality info
I = Internally communicate information - flow of info up, down, and across
E = Communicate with EXTERNAL Parties - two-way communication channels using
variety of methods
7. SO D -related to monitoring
SO = Ongoing &/or Separate Evaluations - whether components of I/C are present
and functioning
D = Communication of DEFICIENCIES - communicate in timely manner and take
corrective action
8. CATP -related to "existing" control activities
CA= "Select & Develop" control activities - mitigate risks
T = "Select & Develop" technology - achievement of objectives
P = Deployment of Policies & Procedures - put into action
9. COPS Document
O = Overall Assessment - supported by component evals
C = Component Evals - supported by principal evals
P = Principal Evals - serve as source for isolating and defining I/C
S = Summary of I/C deficiencies - summarized and impact overall assessment
10. CPER C = Value CREATION
P = Value PRESERVATION
E = Value EROSION
R = Value REALIZATION
11. value creation
, BEC CPA Exam
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ROIC > cost of capital
-created when benefits exceed cost of resources used, this may include people,
financial capital, technology, process and brand
12. value preserva- sustainable operating profit - ongoing
tion -ongoing operations efficiently and effectively sustain created benefits
-high customer satisfaction with profitable product lines is evidence
13. value erosion when faulty strategy and inefficient/ineffective operations cause value to decline
14. value realization dividends/SP > cost "cap gain"
-when benefits created by organization are received by stakeholders in either
monetary or nonmonetary form
15. business context trends, events, relationships, and other factors that may influence, clarify, or
change an entity's current and future strategy and business objectives
16. risk capacity maximum amount of risk that an entity is able to absorb in pursuit of strategy and
business objectives
17. risk profile composite view of risk assumed at "particular" level of entity or aspect of business
that positions management to consider types, severity, and interdependencies
of risk and how they may affect performance relative to strategy and business
objectives
18. portfolio view competitive view of "parent" risk the entity faces which positions management and
board to consider types, severity, and interdependencies of risk and how they may
affect entity's performance relative to strategy and business objections
19. organizational ability of an entity to withstand the impact of large-scale events, i.e. financial crisis
sustainability
20. performance measurement efforts to achieve or exceed strategy and business objectives
management
, BEC CPA Exam
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21. GO PRO defined by 5 interrelated components and supported by 20 risk principles
-somewhat resembles COSO for I/C but addresses broader issues of risk as it
impacts an entity
1. Governance and culture
2. Strategy and Objective-setting
3. Performance
4. Review and revision
5. Information, Communication and Reporting (Ongoing info-gathering and
feedback)
22. DOVES -governance and culture principles
D = Defines desired culture - how conservative or aggressive do we want to be?
O = Exercises board OVERSIGHT
V = demonstrates commitment to core VALUES (tone at top) - adopt code of
conduct
E = attracts, develops, and retains capable individuals (EMPLOYEES) - compe-
tence
S = Establishes operation STRUCTURE - carries out day-to-day operations
23. SOAR -strategy and objective setting principles
S = Evaluate alternative STRATEGIES - what is the vision?
O = Formulates business OBJECTIVES - why do we exist? - mission
A = ANALYZES business context - external and internal
R = Defines RISK appetite - creating, preserving, and realizing value
24. VAPIR -performance principles
V = develops portfolio VIEW (parent level)
A = ASSESS severity of risk
P = PRIORITIZES risks
I = IDENTIFIES risks (events)
R = implements risk RESPONSES - using "ARTS"
Study online at https://quizlet.com/_ck62l2
1. ordering costs costs of labor associated with order placement
-order frequency:
costs of entering purchase order, processing receipt of inventory, inspecting
inventory to ensure goods received, and processing vendor invoice and payment
2. ORC I/C process is designed and implemented by organizations management, BoD,
and employees to provide reasonable assurance an organization will achieve:
O = operating
R = Reporting
C = Compliance
3. CRIME need this to achieve ORC with the 17 principles
1. C = Control Environment
2. R = Risk assessment
3. I = Information and Communication systems
4. M = Monitoring
5. E = (Existing) Control Activities
4. EBOCA related to the control environment
E = Commitment to ethics and integrity
B = board independence and oversight
O = organizational structure
C = commitment to competence
A = accountability - establishing performance measures, incentives, and rewards
5. SAFR -related to risk assessment
S = SPECIFY objectives - allow identification & assessment of risks related to the
objectives
A = Identify & ASSESS change - external environment, business model, and
leadership
F = consider potential for FRAUD - points of focus include assessing incentives,
, BEC CPA Exam
Study online at https://quizlet.com/_ck62l2
pressures, opportunities, and attitudes
R = Identify & analyze RISKS - how they should be managed
6. OIE -related to information and communication principles
O = OBTAIN & use information - generate & use relevant, high quality info
I = Internally communicate information - flow of info up, down, and across
E = Communicate with EXTERNAL Parties - two-way communication channels using
variety of methods
7. SO D -related to monitoring
SO = Ongoing &/or Separate Evaluations - whether components of I/C are present
and functioning
D = Communication of DEFICIENCIES - communicate in timely manner and take
corrective action
8. CATP -related to "existing" control activities
CA= "Select & Develop" control activities - mitigate risks
T = "Select & Develop" technology - achievement of objectives
P = Deployment of Policies & Procedures - put into action
9. COPS Document
O = Overall Assessment - supported by component evals
C = Component Evals - supported by principal evals
P = Principal Evals - serve as source for isolating and defining I/C
S = Summary of I/C deficiencies - summarized and impact overall assessment
10. CPER C = Value CREATION
P = Value PRESERVATION
E = Value EROSION
R = Value REALIZATION
11. value creation
, BEC CPA Exam
Study online at https://quizlet.com/_ck62l2
ROIC > cost of capital
-created when benefits exceed cost of resources used, this may include people,
financial capital, technology, process and brand
12. value preserva- sustainable operating profit - ongoing
tion -ongoing operations efficiently and effectively sustain created benefits
-high customer satisfaction with profitable product lines is evidence
13. value erosion when faulty strategy and inefficient/ineffective operations cause value to decline
14. value realization dividends/SP > cost "cap gain"
-when benefits created by organization are received by stakeholders in either
monetary or nonmonetary form
15. business context trends, events, relationships, and other factors that may influence, clarify, or
change an entity's current and future strategy and business objectives
16. risk capacity maximum amount of risk that an entity is able to absorb in pursuit of strategy and
business objectives
17. risk profile composite view of risk assumed at "particular" level of entity or aspect of business
that positions management to consider types, severity, and interdependencies
of risk and how they may affect performance relative to strategy and business
objectives
18. portfolio view competitive view of "parent" risk the entity faces which positions management and
board to consider types, severity, and interdependencies of risk and how they may
affect entity's performance relative to strategy and business objections
19. organizational ability of an entity to withstand the impact of large-scale events, i.e. financial crisis
sustainability
20. performance measurement efforts to achieve or exceed strategy and business objectives
management
, BEC CPA Exam
Study online at https://quizlet.com/_ck62l2
21. GO PRO defined by 5 interrelated components and supported by 20 risk principles
-somewhat resembles COSO for I/C but addresses broader issues of risk as it
impacts an entity
1. Governance and culture
2. Strategy and Objective-setting
3. Performance
4. Review and revision
5. Information, Communication and Reporting (Ongoing info-gathering and
feedback)
22. DOVES -governance and culture principles
D = Defines desired culture - how conservative or aggressive do we want to be?
O = Exercises board OVERSIGHT
V = demonstrates commitment to core VALUES (tone at top) - adopt code of
conduct
E = attracts, develops, and retains capable individuals (EMPLOYEES) - compe-
tence
S = Establishes operation STRUCTURE - carries out day-to-day operations
23. SOAR -strategy and objective setting principles
S = Evaluate alternative STRATEGIES - what is the vision?
O = Formulates business OBJECTIVES - why do we exist? - mission
A = ANALYZES business context - external and internal
R = Defines RISK appetite - creating, preserving, and realizing value
24. VAPIR -performance principles
V = develops portfolio VIEW (parent level)
A = ASSESS severity of risk
P = PRIORITIZES risks
I = IDENTIFIES risks (events)
R = implements risk RESPONSES - using "ARTS"
