The Business Environment Synoptic: exam tips

The Business Environment Synoptic: exam tips

Karen Groves explains what the BESY examiner wants

At Level 2, the Business Environment Synoptic (BESY) unit is usually the last unit students complete as ITBK and POBC knowledge is also assessed within this unit, together with the Business Environment content.

There is no PCTN knowledge assessed in the unit (unlike the old AQ2016 Synoptic), which is why sometimes students will opt to study PCTN after BESY.

The assessment focusses on your previous bookkeeping knowledge, and the importance of effective communication, ethics and sustainability and the impact of technology. It also covers the economic and legal environment. For the assessment, there will be written tasks, some requiring you to analyse a scenario and provide advice.

Assessment debrief and feedback

The assessment lasts for two hours, and you will have eight tasks to complete. I have broken the tasks down and flagged the areas where students lose the most marks.

The screenshot below is taken from the AAT Examiner’s guide, which illustrates the tasks where most marks are typically lost:

Task 1 – Different business types and their functions

For this task, you need to ensure that you are confident with the key features of different types of businesses and structures, company formations and the responsibilities of the different business functions. Marks are typically lost on struggling to identify which functions would or would not be required in a given scenario.

Student performance in this task is usually very good.

Task 2 – The finance function, its information requirements and sources, and its role in the wider organisation

For this task you will need to be able to identify the role of the finance function, different types of technology policies and if they are specific to the finance function. You’ll have to consider planning/time management, characteristics of good quality information, identifying primary and secondary information, and using appropriate communication methods.

Marks are typically lost on the role of different types of technology, characteristics of good quality information from a given scenario and identifying the role of the finance function when provided with a scenario.

Student performance in this task is mixed, with some students performing very well and others not so well.

Task 3 – Corporate social responsibility (CSR), ethics and sustainability

This is a key part of your AAT studies. You must be able to define CSR, have a good understanding of ethics and sustainability and be able to identify the benefits of CSR and the rationale for different measures.

Areas of weakness in this task include students not being able to identify the rationale for CSR measures or benefits from CSR measures and understanding the difference between guiding principles and specific rules. Students perform well in this task overall.

Task 4 – Processing bookkeeping transactions and communicating information

This task is assessing your knowledge and understanding from the ITBK unit, including bookkeeping transactions, coding, discounts, purpose of the books of prime entry, ledgers and financial statements.

Business communication, using acceptable business language (no jargon, slang, or ‘text speak’!) is also assessed in this task; for example, you could be provided with a scenario whereby you have received an invoice which is incorrect, and you must email the supplier to resolve the discrepancies. This should not faze a well-prepared student, so make sure you pick up the relevant points from the scenario and use these in your answer. For example, names, document dates, references, details on what has been ordered, quantities, amounts – include it all and make sure your answer is professionally worded.

Key point

When you work through the AAT practice assessments, the system will not mark any written tasks, so ensure that you take a screenshot of your answer before you click ‘submit’, so you can go back and check against the model answers later.

Marks are generally lost by students who do not know how to process discounts, so go back over your previous ITBK study notes. Also, the examiner has reported that students do not read the task requirements carefully, so ensure that you do!

Student performance isn’t great on this task, with only just over half of students achieving competency.

Task 5 – Control accounts, reconciliations and using journals to correct errors

Warning! It is very important that you have a good understanding of the previous POBC content to achieve a good mark in this task.

The task will assess errors, types of errors, and if they are or are not disclosed by the trial balance, reconciliations, differences in control accounts and journal entries. So, unless you are happy with these areas, go back over your POBC study notes.

Marks are lost here by students not being able to identify unpresented cheques and outstanding lodgements, identifying reasons for differences in control accounts and processing journal entries when VAT and net amounts need to be calculated (again – go back over ITBK and POBC content).

Student performance isn’t great on this task, with only just over half of students achieving competency.

Task 6 – Principles of contract law

This task will assess your understanding of the basic legal definitions, types of law, intention and remedies. For example, is there a valid contract in place? Is there a breach of contract?

Marks are lost on this task by students who struggle with the aspects of legal remedies, and intention to create legal relations.

Student performance isn’t great on this task either, with only just over half of students achieving competency.

Task 7 – Bookkeeping systems, receipts and payments and the importance of information and data security

For this task you will need to understand the different types of documents, difference between financial and management reporting, importance of confidentiality and data security, controls in both manual and digital systems. You will have to apply knowledge of digital systems in a scenario, accounting for irrecoverable debts and the role of payable/receivable teams.

Marks are typically lost on digital bookkeeping knowledge and application (which is why we include a Sage Business Cloud unit for our own students), irrecoverable debts and the role of the receivable/payable teams.

Student performance isn’t great at all on this task, with less than 40% of students achieving competency.

Keypoint reminder

When you work through the AAT practice assessments the system will not mark any written tasks, so ensure that you take a screenshot of your answer before you click ‘submit’, so you can go back and check against the model answers later.

Task 8 – The external business environment

For the last task, you will need an understanding of supply and demand, principles of a good tax system and different types of taxes, risk and uncertainty, the impact of exchange rate movement and globalisation.

Marks are lost by students on the impact of exchange rate movement, risk and uncertainty and government intervention. Overall, students perform well in this task.

Remember!

Read the question carefully, do lots of written question practice – and good luck with your exam!

• Karen Groves is an AAT tutor and AAT Faculty Director at e-Careers