 the CPA evolution, which is the major CPA changes that's going to be happening at the beginning of 2024. Now, this recording is part of a series of recording that I discuss what's going to happen to the current CPA exam sections. In the prior sessions, I looked at financial accounting and reporting, and I explained to you that part of financial accounting and reporting, part of it will be core FAR, and the other part will go into the advance, which is called the bar, business analysis and reporting. And I also discuss auditing, what's going to happen most of the auditing will be in core auditing. So auditing is not changing a lot. It's not changing a lot, but you can see the recording yourself. Regulation, the regulation, which is the tax, part of it will be core RAG, which is the core tax. And part of it, it's going to something called TCP, tax compliance and planning, which is the advanced concept of taxation. In this session, I'm going to be discussing what's going to happen to the BEC section, business environment and concept. Now, the first thing you're going to be saying the BEC section is gone. Not really. The only thing that's going to be gone from the BEC section is the written communication will be removed. You might be saying, but not really the BEC section as a section is gone. Yes. But what's going to happen to the material, what's going to happen to the material you're going to see, I'm going to go over the blueprint part by part and show you everything that you are currently studying in BEC will be blended into the other section, but definitely the written communication will be gone. This is good news for a lot and not so good news for few who like to write. So let's go ahead and get started. Before we proceed any further, I have a public announcement about my company, farhatlectures.com. Farhat Accounting Lectures is a supplemental educational tool that's going to help you with your CPA exam preparation as well as your accounting courses. My CPA material is aligned with your CPA review course such as Becker, Roger, Wiley, Gleam, Miles. My accounting courses are aligned with your accounting courses broken down by chapter and topics. My resources consist of lectures, multiple choice questions, true false questions, as well as exercises. Go ahead. Start your free trial today. No obligation. No credit card required. So I'm going to be using the actual blueprint to cover the material. I'm going to click on BEC. It's going to take me to the BEC section. And notice the BEC, by the way, has five sections just to give you the overall picture. And these are the five sections, enterprise risk management, internal control and business processes, economics, financial management, IT, and operations management. So let's starting with the first section. Let's click on the first section, starting section by section starting from the beginning. And what's going to happen to this ERM and internal control as well as business processes. This section here, all of it, it's going to go to the specialty. What's the specialty? It's going to go to the information systems and control. So this section is not really going away. It's not really going away. It's going to be blended as part of the ISC information system and control. Let's go to area two. Area two is econ. Now over the years, econ has been trimmed. Every time we have a CPA exam changes, they're trimming down on econ. Well, they're not really getting good of it, but also they're trimming it down. So the econ section, this section here of it, market influences on businesses and financial risk management, those two sections will be part of bar. This section here, the economic and business cycles, I did not see it clearly, but it might be the information here might be blended with the econ, but it doesn't have this section anymore. So but B and C will be part of bar. So it's not really going away. It's going to be part of the business analysis and reporting, which is the advanced concept of financial reporting. Financial management, area three. Well, capital structure, this is going to be part of bar. Working capital, there is no section working capital, but most likely working capital concepts will be blended here and there and other sections, but there is no working capital. Financial valuation models and decision, that's going to be part of bar. And that's it. So it's going to be part three will be bar. So part two and part three will be part of bar, part four, information technology. Now information technology in general, it's going to go to the information system and controls. And I will have a separate recording showing you what's covered on the information system and controls, and it's going to be IT heavily IT. It's by its nature information system and control, we're going to have a whole section. Why? Because that's a reason why we are moving to this new CPA evolution is information technology, the use of information technology. Now we're going to have more than what's in the current IT. We're going to have more in the information system and controls, but we will discuss that later. So notice, so far, the four parts, they're not really going away, all what's happening, some of it in bar, some of it in information system and controls. And the last part, which is operations management, well, operations management also not going away. Financial non financial measure will be part of bar, cost accounting will be part of bar. The only thing I did not see is process management. You know, there's a lot of talk about different processes and the new CPA evolution, but process management wasn't there. And there's nothing about management philosophy unless it's rewarded in some in some other fashion. But this section most likely is gone. It's a small section. Planning and technique will be part of bar. So what can we say overall? Well, here's what's going to happen to BEC. BEC, the old BEC, part of it will be part of bar, part of it will be information system and controls. Now what should you do? That's the question you're asking. Okay, now you told me what's going to happen to be easy, but what should I do as a candidate? What should you do as a candidate? I'm going to have a separate recording because I still want to cover the information system and controls tell you what's covered there, then have a session about what's the best strategy, how to approach the CPA exam changes, because you need to know the information. You need to know what's covered, where it's covered and how it's covered. Once you know this, once you have the big picture, how do you know the big picture? Look at my recording, look at what I discussed and far and rag and all the thing changes, then I just discussed BEC. Look at them all, then I'll give you an overall picture in my opinion. I'm not going to tell you what to do in my opinion. I'm going to tell you here are the facts. Here's what you should do based on your circumstances and you should act properly. What should you do now? Well, if you're not part of Farhat Lectures and you're studying for the CPA exam, I strongly suggest you add Farhat Lectures to your CPA exam preparation. Good luck, study hard, stay safe and I will be here to help you in this transition from to CPA Evolution 2024. Good luck, everyone.