Wiley CPAexcel Exam Review July 2020 Study Guide

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• About the Authors ixAbout the Business Professors xiWelcome to Business Environment and Concepts xiiiCorporate Governance 1Internal Control Frameworks 2Introduction to COSO, Internal Control, and the COSO Cube 217 Principles of Internal Control 7Types and Limitations of Accounting Controls 11Internal Control Roles and Responsibilities 14Internal Control Monitoring—Purpose and Terminology 17Internal Control Monitoring and Change Control Processes 21Enterprise Risk Management Frameworks 27Introduction to Enterprise Risk Management: Strategy and Risk 27ERM Components, Principles, and Terms 34Governance and Culture 37Strategy and Objective Setting 42ERM Performance, Review, and Communication 52Monitoring, Review, and Revision 62Communication and Reporting 66Fraud Risk Management 72Other Regulatory Frameworks and Provisions 79Economic Concepts and Analysis 85Introduction to Economic Concepts 86Microeconomics 90Introduction and Free-Market Model 90Demand 92Supply 95Market Equilibrium 98Elasticity 101Consumer Demand and Utility Theory 107Inputs and the Cost of Production 109Market Structure and Firm Strategy 113Introduction to Market Structure 113Perfect Competition 115Perfect Monopoly 118Monopolistic Competition 120Oligopoly 122Summary of Market Structures 124Macroeconomics 125Introduction to Macroeconomics 125Aggregate Demand 127Aggregate Supply 134Aggregate (Economy) Equilibrium 136Gross Measures—Economic Activity 138Gross Measures—Employment/Unemployment 142Business Cycles and Indicators 145Price Levels and Inflation/Deflation 149Money, Banking, and Monetary/Fiscal Policy 153International Economics 160Introduction and Reasons for International Activity 160Issues at the National Level 163Role of Exchange Rates 166Issues at Entity Level 170Currency Exchange Rate Issue 170International Transfer Price Issue 175Globalization 179Introduction to Globalization 179Globalization of Trade 182Globalization of Production 186Globalization of Capital Markets 188Globalization and Power Shifts 192Becoming Global 196Business Strategy and Market Analysis 201Introduction to Business Strategy and Market Analysis 201Macro-Environmental Analysis 204Industry Analysis 206Entity/Environment Relationship Analysis 209Generic Strategies 211Summary and Extensions 215Financial Management 219Introduction to Financial Management 220Concepts and Tools 221Cost Concepts 221Time Value of Money Tools 226Interest Rate Concepts and Calculations 235Financial Valuation 243Introduction to Financial Valuation 243Valuation Techniques—General 246Valuation Techniques—CAPM 248Valuation Techniques—Option Pricing 252Valuation Techniques—Business Entity 255Hedging and Derivatives 263Capital Budgeting 271Introduction and Project Risk 271Evaluation Techniques 274Introduction and the Payback Period Approach 274Discounted Payback Period Approach 277Accounting Rate of Return Approach 279Net Present Value Approach 282Internal Rate of Return Approach 285Project Ranking 289Capital Project Ranking Decisions 292Financing Options 295Introduction and Financial/Capital Structure 295Short-Term (Working Capital) Financing 296Introduction to Short-Term Financing 296Payables 297Standby Credit and Commercial Paper 300Receivables and Inventory 302Long-Term (Capital) Financing 305Introduction to Long-Term Financing 305Long-Term Notes and Financial Leases 306Bonds 309Preferred Stock 314Common Stock 317Cost of Capital and Financing Strategies 321Working Capital Management 324Introduction to Working Capital Management 324Cash Management 326Short-Term Securities Management 332Accounts Receivable Management 336Inventory Management 340Current Liabilities Management 344Ratios and Measures for Working Capital Management 345Introduction to Ratios and Measures 345Liquidity Measures 347Operational Activity Measures 350Financial Management Risk Concepts—Summary 353Information Technology 357Information Technology Governance 358Risks and Controls in Computer-Based Accounting-Information Systems 358The COBIT Model of IT Governance and Management 361Introduction to Enterprise-Wide and Cloud-Based Systems 363IT Functions and Controls Related to People 366Role of Information Technology in Business 370IT and Business Strategy 370System Types by Activity 372System Types by Data Structure 374Data Structures, Software, and Databases 376Information Systems Hardware 380Transaction Processing 382Emerging Technologies 386Emerging Technologies in AIS 386Data Analytics 390Data Analytics 390Emerging Technologies in AIS: Big Data 396Data Visualization 399Statistics in Business Analytics 411Simple Linear Regression in Business Analytics 419Bitcoin and Blockchain: Implications for Accounting and Control 423Artificial Intelligence and Machine Learning 428Information Security/Availability 432Protection of Information 432IT Security Principles 432Managing Cyber Risk: Part I—Applying COSO Principles to Cyber Risk 435Managing Cyber Risk: Part II—A Framework for Cybersecurity 438IT Policies 444Introduction to E-Business and E-Commerce 446E-Commerce Applications 449ERM for Cloud Computing 452Mobile Device, End-User, and Small Business Computing 454Multi-Location System Structure 457Computer Networks and Data Communication 459The Internet—Structure and Protocols 463Logical and Physical Access Controls 465Logical Access Controls 465Physical Access Controls 468Encryption and Secure Exchanges 470System Disruption/Resolution 473Organizational Continuity Planning and Disaster Recovery 473Backup and Restoration 476Computer Crime, Attack Methods, and Cyber-Incident Response 479Processing Integrity (Input/Processing/Output Controls) 483Program Library, Documentation, and Record Management 483Input and Origination Controls 486Processing, File, and Output Controls 489Accounting System Cycles 492The Accounting System Cycle: Introduction 492Revenue Cycle 495Expenditure Cycle 499Production Cycle 502HR and Payroll Cycle 505General Ledger, Reporting, and Financing Cycle 509Systems Development and Maintenance 512System Development and Implementation 512Operations Management 517Financial and Non-Financial Measures of Performance 518Quality Management 518Benchmarking, Best Practices, and the Balanced Scorecard 522Competitive Analysis 527Ratio Analysis 532Risk Management 537Performance Improvement Tools 540Cost Accounting 545Manufacturing Costs 545Spoilage, Cost, and Inventory Flow 551Cost Behavior Patterns 555Cost-Volume-Profit Analysis 558Absorption and Direct Costing 566Job Costing 573Process Costing 577Joint and By-Product Costing 584Sales and Direct Cost Variance Analysis 587Overhead Variance Analysis 594Process Management 599Non-Routine Decisions: Relevant Costs 599Non-Routine Decisions: Special Decisions 604Transfer Pricing 609Activity-Based Costing and Process Management 613Planning Techniques 619Budgeting 619Forecasting Techniques 624Index 629