The CPA Exam’s Written Communication tasks, found exclusively in the Business Environment and Concepts (BEC) section, assess your ability to write clear, professional, and concise responses to business-related scenarios.
While these tasks account for only 15% of your BEC score, they are critical for demonstrating your ability to communicate effectively—a skill essential for success in the accounting profession.
This guide provides a comprehensive overview of CPA Written Communication tasks, practical strategies for tackling them, and tips to help you excel.
What Are CPA Exam Written Communication Tasks?
Contents
- What Are CPA Exam Written Communication Tasks?
- Why Are Written Communication Tasks Important?
- How to Approach CPA Exam Written Communication Tasks
- Written Communication Strategies for Success
- Practical Examples of Written Communication Responses for the CPA Exam
- How Are CPA Exam Written Communication Scored?
- Common CPA Exam Written Communication Pitfalls to Avoid
- CPA Exam Test-Day Tips for Written Communication
- Frequently Asked Questions
- Bottom Line
Written Communication tasks require candidates to compose responses to business scenarios, such as memos or letters, that test their ability to communicate ideas clearly and professionally. These tasks typically include:
- Explanation of Concepts: Writing a clear explanation of technical accounting, business, or financial principles.
- Problem Solving: Providing solutions to business problems or justifying decisions.
- Analysis: Summarizing data, identifying key points, and presenting actionable recommendations.
Example Prompt: “Explain the benefits of adopting a budgeting system for a mid-sized company and provide recommendations for implementation.”
Your response will be evaluated for:
- Content: How well you address the question and include relevant information.
- Organization: Logical flow with a clear introduction, body, and conclusion.
- Writing Style: Proper grammar, spelling, and professional tone.
Why Are Written Communication Tasks Important?
CPAs regularly need to prepare reports, write emails, and communicate complex information to stakeholders who may lack technical expertise.
The Written Communication tasks simulate these real-world scenarios and assess whether you can deliver your ideas effectively. Mastering these tasks not only helps you pass the BEC section but also prepares you for professional challenges.
How to Approach CPA Exam Written Communication Tasks
Understand the Prompt
Carefully read the question to identify the main task. Break the prompt into key components:
- Objective: What is the main goal (e.g., explain, recommend, justify)?
- Audience: Who will read your response (e.g., client, manager)?
- Scope: What specific details or examples are required?
Example Breakdown:
Prompt: “Discuss the impact of recent tax law changes on small businesses and provide strategies for compliance.”
- Objective: Discuss impacts and suggest strategies.
- Audience: Likely a client or small business owner.
- Scope: Focus on recent tax law changes relevant to small businesses, such as new deduction rules or credit opportunities.
- Use a Clear Structure
Structure your response with three distinct sections:
Introduction:
State the purpose of your response and briefly outline the main points you’ll address.
Example: “This memo outlines the recent tax law changes affecting small businesses and provides strategies to ensure compliance. Key areas of focus include new deduction limits, updated reporting requirements, and opportunities to optimize tax savings.”
Body:
Address each point logically, with one idea per paragraph and provide examples or calculations where necessary.
Example Calculation: “Under the updated tax law, businesses can deduct 20% of qualified business income (QBI) for pass-through entities. For example, if a business has $100,000 in QBI, the deduction equals $20,000.”
Conclusion:
Summarize the key takeaways and include a call to action, if appropriate.
Example: “By understanding these changes and implementing the suggested strategies, small businesses can ensure compliance and optimize tax savings. Please contact us for further assistance with these adjustments.”
Maintain a Professional Tone
Your writing should be formal, concise, and free of jargon unless the audience is familiar with technical terms. Avoid casual language or abbreviations, and use complete sentences.
Focus on Grammar and Spelling
Errors in grammar or spelling can detract from your professionalism. Proofread your response before submission to catch mistakes. For instance:
- Incorrect: “Its important to analyze the implications of these changes.”
- Correct: “It’s important to analyze the implications of these changes.”
Written Communication Strategies for Success
Practice Writing Regularly
Incorporate writing practice into your CPA Exam preparation. Use sample prompts from CPA review courses to craft responses and improve your skills. Evaluate your practice responses for clarity, organization, and accuracy.
Address All Parts of the Prompt
Ensure that you answer every question or directive within the prompt. For example:
If the prompt asks you to “analyze trends and provide recommendations,” don’t stop at just analyzing trends; include actionable recommendations as well.
Use Bullet Points Sparingly
While bullet points are acceptable for organizing key details, your response should primarily consist of complete sentences and paragraphs. Reserve bullet points for listing specific examples or steps.
Incorporate Relevant Terminology
Use terminology specific to the topic to demonstrate expertise. For instance, if discussing financial management, reference terms like “working capital,” “current ratio,” or “cash flow forecasting.”
Practical Examples of Written Communication Responses for the CPA Exam
Example 1: FAR Prompt
Prompt: “Explain the benefits of using accrual accounting over cash accounting for financial reporting.”
Response:
Introduction:
“Accrual accounting provides a more accurate representation of a company’s financial health compared to cash accounting. This memo highlights key benefits, including improved financial statement reliability and enhanced decision-making.”
Body:
“Accrual accounting recognizes revenue when earned and expenses when incurred, providing a complete picture of financial performance. For example, a company earning $50,000 in December but receiving payment in January will report this income in December, aligning revenue with the period it was earned. This approach enhances reliability and comparability, critical for stakeholders like investors and lenders.”
Conclusion:
“By adopting accrual accounting, companies can produce more accurate and insightful financial statements, improving decision-making capabilities. For further guidance on transitioning to accrual accounting, please contact our office.”
Example 2: REG Prompt
Prompt: “Discuss the impact of the Section 179 deduction on small businesses and provide a calculation example.”
Response:
Introduction:
“The Section 179 deduction allows small businesses to deduct the cost of qualifying assets in the year of purchase, providing significant tax benefits. This memo explains its advantages and includes a practical example.”
Body:
“The Section 179 deduction encourages investment by reducing taxable income immediately. For instance, a business purchasing $50,000 of equipment can deduct the full amount, lowering taxable income by $50,000. Assuming a 25% tax rate, this results in a tax savings of $12,500. Limits apply, including an annual cap of $1,080,000 for 2022.”
Conclusion:
“Utilizing the Section 179 deduction can significantly benefit small businesses by reducing upfront tax liability. Contact us for assistance in determining eligibility and maximizing deductions.”
How Are CPA Exam Written Communication Scored?
Written communication tasks are evaluated on content, organization, and writing mechanics, such as grammar and spelling.
Responses are graded both automatically and manually to ensure clarity, professionalism, and relevance to the prompt. Addressing all parts of the prompt and maintaining a clear structure with proper grammar are key to earning maximum points.
Common CPA Exam Written Communication Pitfalls to Avoid
Ignoring the Audience
Tailor your response to the intended audience. Writing a technical explanation for a non-technical client may confuse them, while overly simplistic language may seem unprofessional to an executive.
Overloading with Jargon
Avoid using excessive technical terms unless the audience is familiar with them. For instance, instead of saying, “The balance sheet is prepared in accordance with ASC 205,” say, “The balance sheet follows financial reporting standards.”
Providing Irrelevant Information
Stick to the prompt and avoid including unnecessary details. For example, if the prompt asks about tax deductions, discussing unrelated credits may dilute your response.
CPA Exam Test-Day Tips for Written Communication
Use the Clock Wisely
Allocate approximately 10–15 minutes per written communication task. Spend a few minutes planning your response, the majority of the time writing, and the final minutes reviewing.
Avoid Leaving Tasks Blank
Even if unsure, attempt every written task. Partial credit is awarded for addressing relevant points and maintaining proper structure and grammar.
Proofread Your Response
Review your work for clarity, spelling, and grammatical errors before moving on. A polished response demonstrates professionalism.
How to Practice for Written Communication
Use CPA Review Courses
Enroll in a CPA review course offering written communication practice. Many courses provide sample prompts and feedback to help refine your skills.
Simulate Exam Conditions
Practice writing responses under timed conditions to simulate the exam environment. This builds confidence and improves efficiency.
Seek Feedback
Share your practice responses with a mentor or CPA professional for constructive feedback. Understanding areas of improvement ensures steady progress.
Frequently Asked Questions
What is the purpose of the written communication tasks on the CPA Exam?
The written communication tasks evaluate your ability to compose clear, concise, and professional responses to business scenarios. These tasks test skills essential for communicating complex ideas effectively in real-world accounting roles.
How are written communication tasks scored?
Written responses are graded on content, organization, and writing mechanics, such as grammar and spelling. Responses must address all parts of the prompt, follow a logical structure, and use professional language to earn full credit.
What is the best way to structure a response for the written communication tasks?
Use a clear structure with an introduction, body, and conclusion. Begin by outlining the purpose of your response, provide detailed explanations or examples in the body, and summarize key points in the conclusion.
Can I use bullet points in my written communication responses?
While full sentences and paragraphs are preferred, bullet points may be used sparingly to organize key details or steps. However, ensure your overall response maintains a professional tone and logical flow.
Bottom Line
The Written Communication tasks of the CPA Exam provide an opportunity to showcase your ability to communicate professionally and effectively. By understanding the requirements, structuring your responses clearly, and practicing regularly, you can excel in this critical component of the BEC section.
With consistent effort and the right strategies, you’ll develop the skills needed to succeed on the exam and in your accounting career.