 Hello, and welcome to the session in which we would look at CPA exam changes that's taking place July 1st, 2021, specifically, we're going to be looking at BEC changes. This is part four of four. In other words, I already covered FAR, RAG, and audit. BEC is the last section. So the best thing for you is to look at all four changes in order to make a strategic decision. Now I'm planning to hold a live session after I publish this recording, maybe couple live session. If you have any questions, we can discuss those sessions, but it's very important for you to understand all four sessions so you can plan strategically for taking the exam. I'll help you to the best of my knowledge. What should you do in this live session? If you're interested, please join me. Now, if you're a CPA candidate, and most likely if you're watching this video, you are a CPA candidate, I strongly suggest you check out my website. Farhatlectures.com. 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In other words, how's your class average doing on the CPA exam? How's your accounting students on average does on the exam? This gives you an idea about the rigor of your accounting program. I do have resources for other courses as well. Connect with me on LinkedIn. And on LinkedIn, if you have any doubts, go ahead and check my recommendations. Check out the people that already used my system and passed the exam. They can tell you in their own words how they used it and how successful they were. Please like this recording and share it. It helps me a lot. Connect with me on LinkedIn and Instagram. So the way I'm going to do this is just like I did for the other three parts. First, I will go into the changes. What was downgraded from analysis to application? What's downgraded from application to remembering and understanding? Simply put, those are the skill level evaluation, analysis, application and remembering. This is the easy remembering and understanding and it gets more difficult. So first, I'm going to start to look at downgraded from analysis to application. Simply put, the questions about this topic should get easier. And for that topic, capital structure, capital structure of a corporation is being downgraded. I call it downgraded. It's not really downgraded, but you guys get the point. Now you're going to get multiple choice and you might get a simulation, but the simulation may not be as difficult. What does that mean specifically downgraded? Simply put, this is the 2019 blueprint. And under the 2019, you had this third concept for capital structure. You had to compare and contrast the strategies for financing the new business initiative. That's gone. So now what's what remain are those two concepts and they are both at the application level. So they're no longer testing you when it comes to the capital structure on the analysis level, but the other two are still remaining. So you still have to know it. You still have to know about capital structure, but it's not as bad. Also downgraded now from application to remembering and understanding. It means here they're only going to give you multiple choice questions. The first topic is IT system development and maintenance. The second topic is IT continuity and recovery plans. When I looked at about IT continuity and recovery plan, it's like they did downgraded it, but they also did some changes to the terminology. In 2019, they used to call it continuity and recovery plans. Now they call it most likely business resilience. And it's under remembering and understanding. Now it used to be under application, which is again good because now it's remembering and understanding. So this is all basically in a sense, good news. But look, if you're going to learn about IT development and maintenance, it's not a big deal. If you're a little bit more older, they're going to be testing you under remembering and understanding. But if you know a little bit more, you know, you will ace those questions. So it's not really, I wouldn't say this is a huge difference. Okay. Those downgraded, you know, I don't think it's a huge difference. In my opinion anyway. Content to be removed, that's a little bit relevant. The first one is regulatory framework. And to be more specific, this is what it looks like. This section here, other regulatory framework and provision. This is, you no longer see it in the 2021 blueprint. So this is gone. This is good. Also some macroeconomic topics such as GDP, computation, aggregate demand curve, money supply, analysis of impact on overall economic analysis. Basically, simply put this section here from 2019, the application section, this section here is gone. Now they changed the, for the 2021, they changed the terminology a little bit. For example, identify and define business cycle. Now understand the business cycle. It's still, it's still understanding. But the point is they change the terminology a little bit. Okay. But otherwise, this, this section is gone, which is good. Less information to know. It's not a big deal. I wouldn't say this is relevant. Yes. Good for, I'm happy. I don't teach economics in the first place and I'm happy to get rid of this section. So let's, let's work for you. Now this is all kind of good news. What's more challenging is kind of, if you want to call it bad news, but it's not really bad news is the addition. What they're going to be adding to the BEC section. They're going to be adding a new section called business processes. And under that processes, they're going to be asking me about SOC, which is it's covered in audit. So SOC basically covered in audit and covered in BEC. And I do cover SOC in my courses anyhow. So that's good news for me because I already have those topic covered. But this is a new section to this is a new big section, business processes under business processes. You're going to see SOC and you're going to see something about data analytics and you're going to learn about business processes. And within business processes, you're going to learn about internal control. So let me tell you something. Here's the good news about this new section. If you took, if you're taken BEC before audit, you're going to learn about internal control. Because notice here, they tell you to identify an appropriate mix of business controls, which is, you know, segregation of duties, input, edit checks, authorization and approval verification. Those are things that you also need. You need to know for audit. So this is internal control. You need to learn about SOCs in this section. Also something you need to know for audit. I'm sorry. I meant to say internal control, you need to know for audit. So that's the good news. Although they're adding, but they're kind of interrelated. Identify the sequence of steps and information, documents and tools and technology commonly used in key business processes. Sales, cash collection, purchasing. Sounds like auditing as well, right? But it's being tested in BEC. So if you learn it here, it's going to benefit you for audit. And if you learn it in audit first, it's going to benefit you here. So don't think it's a lot of information in my opinion anyhow. But this is the big part in my opinion. This is the big part, but it's not as, look, how much do you have? And the good news is, you know, there is remembering and understanding a lot of application and to analysis. So it's not as bad. It's not as bad. The other new section that's going to be, they're going to be adding is data. Again, this section will overlap with your auditing because auditing you also need to about, you need to know about data. Data governance, data extraction, data governance, extracting the data, transforming the data, loading the data visualization. And notice the good news is they're all remembering, understanding and application. So nothing under analysis and evaluation. So is this a lot of information? In my opinion, it's not. It should not be, you should not change your life. Or if you have any plans, don't change your plans in my opinion. Okay. I do what works for you. But all what I can do is give you the information, tell you what's being added, what's being removed. Now all this information obviously is from the blueprint. Is it possible that I missed maybe an addition or some adjustments? Of course. The blueprint is, I don't know, two, 300 pages. I'm not really sure. So it's very hard for me to compare those documents. I did my best. I opened my laptop and desktop and I try to analyze it as much as I can. So I did my best, but that's all what I can do. But if you're taking a CPA course, they should because you're paying these guys thousands of dollars. I mean, I'm giving you an idea about what's coming up, but you're paying these guys thousands of dollars. They should keep you updated in my opinion. But I tried my best. I tried my best. And the best way is to look at the blueprint yourself. You want to familiarize yourself with it. That's not a big deal. Once again, at the end of this recording, I'm going to invite you again to visit my website to check it out. I have helped hundreds of thousands of students. I might be able to help you. Can you piss away $30? Try it. That's all what I can tell you. Okay. Anyhow, study hard, stay safe, connect with me on LinkedIn, check out my LinkedIn recommendation, and let's wait for this vaccine.