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Wiley CPAexcel Exam Review 2018 Study Guide. Business Environment and Concepts

  • ID: 4450660
  • Book
  • March 2018
  • 576 Pages
  • John Wiley and Sons Ltd

All the Information You Need to Master the 2018 CPA Exam

The Wiley CPAexcel Study Guides four–volume set, fully updated for the 2018 CPA Exam, reviews all four parts of the exam. The Study Guides provide the detailed information candidates need to master or reinforce tough topic areas. Content is organized into Bite–Sized Lessons that map perfectly to the Wiley CPAexcel online course. The books are designed to supplement the online course but may also be used as a stand–alone study tool.

  • Detailed text covers the complete AICPA content blueprint
  • Organized in Bite–Sized Lesson format
  • Maps perfectly to the Wiley CPAexcel online course
  • Explains every topic tested
  • Used by leading review providers


Auditing and Attestation Business Environment and Concepts Financial Accounting and Reporting Regulation

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About the Authors ix

About the Business Professors xi

Welcome to Business Environment and Concepts xiii

Corporate Governance 1

Internal Control Frameworks 2

Introduction to COSO, Internal Control, and the COSO Cube 2

17 Principles of Internal Control 6

Types and Limitations of Accounting Controls 10

Internal Control Roles and Responsibilities 13

Internal Control Monitoring Purpose and Terminology 16

Internal Control Monitoring and Change Control Processes 20

Enterprise Risk Management Frameworks 26

The COSO ERM Model 26

Risk Management Policies and Procedures 32

Fraud Risk Management 36

Other Regulatory Frameworks and Provisions 43

Economic Concepts and Analysis 49

Introduction to Economic Concepts 50

Microeconomics 54

Introduction and Free–Market Model 54

Demand 56

Supply 59

Market Equilibrium 61

Elasticity 64

Consumer Demand and Utility Theory 70

Inputs and the Cost of Production 72

Market Structure and Firm Strategy 75

Introduction to Market Structure 75

Perfect Competition 76

Perfect Monopoly 79

Monopolistic Competition 81

Oligopoly 83

Summary of Market Structure 85

Macroeconomics 86

Introduction to Macroeconomics 86

Aggregate Demand 89

Aggregate Supply 95

Aggregate (Economy) Equilibrium 97

Gross Measures Economic Activity 99

Gross Measures Employment/Unemployment 103

Business Cycles and Indicators 106

Price Levels and Inflation/Deflation 109

Money, Banking, and Monetary/Fiscal Policy 113

International Economics 120

Introduction and Reasons for International Activity 120

Issues at National Level 123

Role of Exchange Rates 126

Issues at Entity Level 130

Currency Exchange Rate Issue 130

International Transfer Price Issue 135

Globalization 139

Introduction to Globalization 139

Globalization of Trade 142

Globalization of Production 146

Globalization of Capital Markets 148

Globalization and Power Shifts 152

Becoming Global 156

Business Strategy and Market Analysis 160

Introduction to Business Strategy and Market Analysis 160

Macro–Environmental Analysis 162

Industry Analysis 164

Entity/Environment Relationship Analysis 167

Generic Strategies 169

Summary and Extensions 173

Financial Management 177

Introduction to Financial Management 178

Concepts and Tools 179

Cost Concepts 179

Time Value of Money Tools 184

Interest Rate Concepts and Calculations 192

Financial Valuation 200

Introduction to Financial Valuation 200

Valuation Techniques General 203

Valuation Techniques CAPM 205

Valuation Techniques Option Pricing 209

Valuation Techniques Business Entity 212

Hedging and Derivatives 220

Capital Budgeting 228

Introduction and Project Risk 228

Evaluation Techniques 231

Introduction and the Payback Period Approach 231

Discounted Payback Period Approach 234

Accounting Rate of Return Approach 236

Net Present Value Approach 238

Internal Rate of Return Approach 241

Ranking Projects 245

Capital Project Ranking Decisions 248

Financing Options 251

Introduction and Financial/Capital Structure 251

Short–Term (Working Capital) Financing 252

Introduction to Short–Term Financing 252

Payables 253

Standby Credit and Commercial Paper 256

Receivables and Inventory 258

Long–Term (Capital) Financing 260

Introduction to Long–Term Financing 260

Long–Term Notes and Financial Leases 261

Bonds 264

Preferred Stock 268

Common Stock 271

Cost of Capital and Financing Strategies 275

Working Capital Management 278

Introduction to Working Capital Management 278

Cash Management 280

Short–Term Securities Management 286

Accounts Receivable Management 290

Inventory Management 294

Current Liabilities Management 298

Ratios and Measures for Working Capital Management 299

Introduction to Ratio Analysis 299

Liquidity Measures 301

Operational Activity Measures 304

Financial Management Risk Concepts Summary 307

Information Technology 313

Information Technology Governance 314

Risks and Controls in Computer–Based Accounting–Information Systems 314

The COBIT Model of IT Governance and Management 317

Introduction to Enterprise–Wide and Cloud–Based Systems 319

IT Functions and Controls Related to People 322

Role of Information and Technology in Business 326

IT and Business Strategy 326

System Types by Activity 328

System Types by Data Structure 330

Data Structures, Software, and Databases 332

Information Systems Hardware 336

Transaction Processing 338

Emerging Technologies 342

Emerging Technologies in AIS 342

Big Data 346

Bitcoin and Blockchain 348

Machine Learning and Artificial Intelligence 353

Information Security/Availability 357

Protection of Information 357

IT Security Principles 357

Managing Cyber Risk: Part I Applying COSO Principles to Cyber Risk 360

Managing Cyber Risk: Part II A Framework for Cybersecurity 363

IT Policies 369

Introduction to E–Business and E–Commerce 371

E–Commerce Applications 373

ERM for Cloud Computing 376

Mobile Device, End–User, and Small Business Computing 378

Multi–Location System Structure 381

Computer Networks and Data Communication 382

The Internet Structure and Protocols 386

Logical and Physical Access Controls 388

Logical Access Controls 388

Physical Access Controls 391

Encryption and Secure Exchanges 393

System Disruption/Resolution 396

Organizational Continuity Planning and Disaster Recovery 396

Backup and Restoration 399

Computer Crime, Attack Methods, and Cyber–Incident Response 401

Processing Integrity (Input/Processing/Output Controls) 405

Program Library, Documentation, and Record Management 405

Input and Origination Controls 407

Processing, File, and Output Controls 410

Accounting System Cycles 412

The Accounting System Cycle: Introduction 412

Revenue Cycle 415

Expenditure Cycle 419

Production Cycle 422

HR and Payroll Cycle 425

General Ledger, Reporting, and Financing Cycle 429

Systems Development and Maintenance 432

System Development and Implementation 432

Operations Management 437

Financial and Nonfinancial Measures of Performance 438

Quality Management 438

Balanced Scorecard and Benchmarking 442

Competitive Analysis 446

Ratio Analysis 450

Risk Management 454

Performance Improvement Tools 457

Cost Accounting 462

Manufacturing Costs 462

Spoilage, Cost, and Inventory Flow 465

Cost Behavior Patterns 469

Cost–Volume–Profit Analysis 472

Absorption and Direct Costing 480

Job Costing 487

Process Costing 491

Joint and By–Product Costing 498

Sales and Direct Cost Variance Analysis 501

Overhead Variance Analysis 507

Process Management 512

Cost Relevance 512

Special Decisions 518

Transfer Pricing 522

Activity–Based Costing and Process Management 526

Planning Techniques 531

Budgeting 531

Forecasting Techniques 536

Index 541

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown