Am I the only one who thinks BEC is harder than AUD?

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  • #1651439
    nalratoss
    Participant

    I can stand logic, AUD has lots of logic and it focuses around a central dogma (like genomics central dogma), auditor provide reasonable assurance, internal control is tested to see how much evidence (substantive testing) is needed, audit opinion is given (or not, in case of other services provided by public accountant).

    But with BEC, half is calculation: cost accounting, capital budgeting, working capital. The other half is concepts like IT and economics. It feels like a mess without logic within.

    Me now I’m getting frustrated with working capital calculation.

    This might bite me but during undergrad I never like finance. I always felt finance is the counter-accounting. Finance is like market projection and a little math, while accounting is record tracking and evidence.

    And I have two more study units in Gleim BEC before starting the 2nd half of BEC—-IT.

    FAR-80

    AUD-77

    REG-75

    BEC-82

     

    I'm done done!

Viewing 12 replies - 1 through 12 (of 12 total)
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  • #1651442
    nalratoss
    Participant

    I know as an accountant I probably shouldn't say I fear math, but with BEC, if you forget one part of equation, you're dead.

    FAR-80

    AUD-77

    REG-75

    BEC-82

     

    I'm done done!

    #1651444
    Ana
    Participant

    count me in. Aud is way easier than Bec. I was an auditor and cost accting was an enemy in school. Passed Bec first on first try but now I lost it….argghhhh

    BEC - 78
    AUD - 75
    REG - 64, 77
    FAR - 73, 73, 73, 82
    Ethics: 74, 84, 98
    Finally done after 23 months.
    #1651447
    Anonymous
    Inactive

    It’s funny how everyone has different strengths and weaknesses. Audit was much harder than BEC for me. BEC was a review of our Business 101 classes with additional information. Whereas AUD had a lot of new material that I was unfamiliar with and was much more conceptual. I like calculations and formulas, so I enjoyed BEC.

    Keep up the good work and it will all start to click!!

    Goodluck!!

    #1651552
    fblessed777
    Participant

    @nalratoss, I share your view. AUD was doable for me. But, with BEC, it gives me hard time. I don't know how to tackle it. By the way, did you take the exam recently? .I scheduled to take the exam on 11/30. Any tip will be appreciated, especially TBS and WC parts. Thanks!

    #1651574
    shawn in VA
    Participant

    Both exams are difficult but in different ways. I feel BEC is a bunch on non related topics and you get thrown random topics on the exam that may not be in your material (IT for example that is covered in review materials but many state not sufficiently).

    AUD you really have to understand the flow and concepts. I have to read the question twice to really understand what they are asking and figure out which part of the audit they are asking (planning, internal control, evidence, etc).

    AUD - 84
    BEC - 81
    FAR - NINJA in Training
    REG - 75
    AUD - 84

    BEC-  81

    REG-75

    FAR- TBD

    #1665077
    FutureCPA
    Participant

    I am studying bec right now and I hate it with a passion. Too many formulas to memorize and too many concepts. I feel like BEC is all formulas and memorization…sigh I also think this might be the hardest section for me…

    In the game way too long to back down now.
    #1665149
    Skynet
    Participant

    The Cost Accounting & the Variance questions was what kicked my @$$. Thankfully I barely passed with a 78.

    AUD - 90
    BEC - 78
    FAR - 84
    REG - 87
    World Domination Plan

    Phase I : Pass CPA Exams - Complete
    Phase II : Megan Fox - In Progress
    Phase III : Megan Fox & Scarlett Johansson Lingerie Pillow Fight
    Phase IV : Form the new Charlie's Angels with Megan Fox, Scarlett Johansson, & Gal Gadot
    Phase V : TBD

    BEC : 78
    REG : 87
    FAR : 84
    AUD : 90

    World Domination Plan

    Phase I : Pass CPA Exams - Complete
    Phase II : Megan Fox - Initiated
    Phase III : Bring back 8-Tracks
    Phase IV : Megan Fox & Scarlett Johansson Lingerie Pillow Fight
    Phase V : TBA

    #1665455
    Anonymous
    Inactive

    BEC is definitely harder than AUD!

    #1665457
    cmcook
    Participant

    I thought AUD was much easier than BEC.

    I remember hating studying for BEC so much, but the exam wasn't nearly as bad as I thought it would be. I think it helped that I had spent years working for a small financial tech company where I helped our CIO all the time with software requirements, testing, etc. As a result, I knew a lot more about IT than I realized.

    The exam isn't as bad as you think it will be, promise. Even if you don't have a ton of IT knowledge.

    Death before surrender
    #1665460
    Abdulmajid
    Participant

    for me? its substaaaaaantially harder than AUD

    BEC - (33, 24, 65, 65) 12/10/2017
    AUD - (46, 58) 10/19/2017
    REG -
    FAR -
    If the plan doesn’t work, change the plan, but never the goal
    #1665796
    mad max
    Participant

    By the time I sat for BEC, I was only needing to “memorize” like 5 formulas. The most difficult concepts for me to grasp at the time was IRR, which is the rate that sets the NPV to 0, along with DOL and DFL (DOL+DFL=DTL).

    Here are some personal tips:

    First, I think this list is pretty good for a comprehensive formula list… https://www.another71.com/cpa-exam-forum/topic/first-time-poster-bec-formulas/

    Second, go here and read the fifth post (from rsg149) in regards to BEC SIMs and formula memorization… https://www.another71.com/cpa-exam-forum/topic/just-took-the-new-bec/

    Now before I go in to detail, I'd say it's much more important to practice working with the formulas themselves and understanding the concepts and implications of each metric, then worrying about memorizing every single one on its face. With that said, of course the more you know, the better it is.

    For cost accounting, You definitely need to know how to calculate the six major variances, but they basically only use two formulas (there are many different methods of studying these, and many tricks that will make it easier). I would look up YouTube videos if you do not have any easy to understand source materials for this part.

    For liquidity measures, e.g., working capital, quick ratio, and current ratio are all extremely easy to remember and use. Keep in the back of your mind how a change in one ratio can have an effect on the others by using examples with simple numbers.

    For turnover measures, whatever is getting turned over, take the average of that number and put it in the denominator. E.g., inventory turnover is COGS /Avg Inventory.

    For return ratios, you are usually putting NI in denominator and your performance benchmark such as total assets or sales in the denominator; e.g., Return on Assets = NI/Avg Assets and Return on Sales = NI/Sales

    For inventory planning, just remember EOQ formula. “To OverDose Overseas makes you a square root” which reads as 2OD/C, hence EOQ= sqrt(2OD/C) where O= Order Cost, D= Demand, C = Carrying Cost.

    Reorder point and safety stock are EZ … ROP = avg demand * avg lead time and safety stock = (Max demand * Max LT) – ROP. Note that when avg demand is similar to max demand, and avg LT is similar to max LT, there is no required safety stock.

    For economics, remember the two ways to calculate GDP. That is, the income method of GDP = W+R+I+Pr and the expenditure method of GDP = C+G+I+(X-N). Just remember “WRIP” and “CGIX”. Then, remember the formulas under GDP, and go down the line. NDP = GDP – Depr, NI = NDP – NFFI – INDIRECT TAX, PI = NI – SS – CORP I/T – TRANSFER PAYMENTS – UNDISTRIBUTED CORP PR, DI = PI – PERSONAL TAX . It's a long formula, but if you do enough problems, this will become second nature. You will probably do something like writing it down on exam day only to find out that you don't even need to consult your notes.

    Other economics topics tend to be easier, in regards to formulas. The reserve ratio, MPS+MPC=1 , the multiplier effect, etc are generally simple formulas. Also, have a through understanding of price elasticity of supply/demand. E.G Price elasticity of demand = %ΔQ/%ΔP (Most of the elasticity formulas are set up in a similar fashion).

    For Cost of Capital, know the costs of Equity, and the costs of Debt. If you can solve for these, weighted average cost of capital (WACC) is easy as pie. Understand how a compensating balance can affect COst of capital.

    Standard Capital budgeting problems focus on algebraic equations, so as long as you understand the concepts and know how to solve algebraically, there is not much to remember. Similar thing can be said about NPV/IRR/payback period calculations… you do not need to worry about formulas insomuch as being able to apply the time value of money concepts.

    The leverage formulas were probably the most tricky for me to memorize, and (key point) can be calculated a number of different ways:

    DOL = %ΔEBIT/%ΔSALES or DOL=(S-VC)/(S-VC-FC)=CM/OP INCOME
    DFL = %ΔEPS/%ΔEBIT or EBIT/(EBIT-INTEREST)
    DTL = DOL*DFL=(%ΔEBIT/%ΔSALES)*(%ΔEPS/%ΔEBIT)=%ΔEPS/%ΔSALES or [Q(P-V)]/[Q(P-VC)-FC-I]

    There, we just covered the majority of the formulas for BEC. Good luck!

    AUD - 82
    BEC - 90
    FAR - 90
    REG - 86
    Four for four. Licensed in NJ as of 10/18/17
    #1665911
    Anonymous
    Inactive

    Aud made sense and flowed, bec is definately more difficult for me.

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