[go2134]

Hey guys, I took my exam on Monday. I thought my MCQs were relatively easy, with only a few difficult ones peppered in the last testlet. That being said, there were questions that were NOT covered in Becker, but were covered in CPAExcel.

The SIMS were extremely fair, but I struggled more so than I’d like to admit for 2 reasons. 1, I struggled with because I didn’t get a chance to study for the FAR question I got, but in all honesty it was very, very, fundamental FAR concepts (I think that’s about all I can say about that).

My other downfall was not MASTERING navigating the AL. I got cocky and figured I wouldn’t have to practice much with it, but if I were better with it, I’m sure I could have found at least 3 of the Sims word-for-word; and that’s not counting the 2 research questions I got.

What I wish I focused more on: I’m fairly strong with Relevant Assertions and Audit Procedures, but I would have focused a little more on which kinds of procedures go with Balances vs. Transactions, and how the exams prefer their answers. I grew very frustrated practicing Sims and yelling at my computer when they asked for Rights & Obligations of A/R and wanted me to say Confirmations instead of examining Agreements for Factored A/R, but that’s the way they want it.

What I’m glad I did: I got to the testing center 45 minutes early and looked over all of my notes immediately before I went in, and during the 10 minutes I had to click “Agree” before starting the exam, I wrote down everything I could think of that I might forget.

During the test, I’d be sure to highlight the key words in the question (e.g., review, audit, issuer, except for, etc.), it really helped jog my memory and kept me from making foolish mistakes.

When it came to MCQs I got stuck on, I looked for key words in the answers to narrow them down (e.g., if a question was on Tests of Controls, eliminating any answers that say “Project an estimate”)

My best advice is this, don’t make the mistake of “Learning the Questions”, when I was confused on something, I would use other sources to figure it out (CPAExcel is very dry, but it gives you clear-cut outlines of the standards). And don’t keep reading your notes over and over, keep practicing questions and you’ll be surprised when you teach yourself something but debating over answers.

Any other questions, feel free to ask.

[go2134]

My mistake, definitely meant to say CVER.

Please keep in mind that the procedures are very general to cover many different items, so there are certain instances where others will be used. Example: Rights & Obligations can usually be proved for A/R by Inspecting Debt Agreements, or for PP&E by examining the Titles & Deeds.

Now I want you to realize that Sales & Revenues are very unique, because that's where most of the problems can go wrong. And considering that A/R is more complicated due to the Allowance for Doubtful Accounts and Pledging & Factoring, you likely will have to perform a lot of substantive procedures here.

Rights & Obligations – Confirmations of A/R: Now in my opinion, confirmations doesn't really make sense, because unless the customer knows that their Balance has been sold to an agency, their response isn't going to prove anything. BUT, I'm assuming that they are insinuating that the client is indeed aware of this, and their response would be that they owe someone else, not the original company. (I literally yelled at my computer for about 5 minutes on this problem….but it's the answer they want. That is why it's good to practice the sims.)

Rights & Obligations – Review of Subsequent Events: Now this is another one that can be argued, but it makes more sense. The logic is, at the Balance Sheet date, all you know is that there are a bunch of people who owe the company money. If you find evidence that some of their Accounts have been sold off and not recorded, you want to see just how much that affects the rest of the account. You won't obtain concrete evidence until the balance is actually paid off and recorded in the Cash Receipts journal. So say you and 9 other people owe me $100 at year end, but I sell all your accounts to Jeff for $20. A months from now, when you look in my cash receipts journal and see I only have $20 recorded, but all of the Accounts that were there on the BS date are now taken off, you're going to question if I had the RIGHTS to those Accounts in the first place.

Is it a stretch? Yes. Would those better suit Valuation, Allocation, & Accuracy? Yes. But sometimes the answer they want will drive you nuts. Just keep it in the back of your mind.

[Cpachance]

^^^^^ Thank you for your response, that definitely makes sense!! im with you though. Logically, at least for me, those don't really make sense, but I guess if that is what the test wants I will just have to keep practicing until I can think like the test.

[Sarah1421]

Random AUD Exam experience question – I'm burnt out having gone through Sim 2&3 from A4 today. I'd say that the most difficult and lengthy of these questions (a couple were quick and easy – so not those!) were comparable to my FAR exam sims… I just made the mistake of starting way my simulation section with less than an hour and couldn't finish them.

Did you find the AUD exam simulations to be of a similar difficulty to the ones I'm referencing in Becker? Obviously, everyone has a different mix of strengths… I'm just curious.

I clocked an 1:45 on Simulation 2 and still got a few answers wrong. I spent an HOUR on 3 of the questions from Sim 3. It didn't make me feel too prepared!

FAR - 90
AUD - 91
BEC - 86
REG - 87

[mjp44]

Question about this this sim – A4 Sim 1 question 7…specifically the answer to #5, in which Derek reviews December revenues.

The relevant assertion is Cutoff but why cant it be Existence…Hes trying to identify if revenues are overstated. He could vouch sales entries by going back to the shipping documents/invoices correct?

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[Sarah1421]

Good question – I think existence is appropriate, but it's not the BEST answer in this scenario. Because it deals with year end, your gut should lead you to cutoff procedures. It's probably more likely that an entity would “move” sales rather than make them up entirely at the end of a reporting period.

This exact situation could happen in February (unexplained upswing in sales since last year during February) and “Existence” would be the likely assertion.

I'm starting to get really frustrated with these sims…. I thought I'd feel better on the second time through!

FAR - 90
AUD - 91
BEC - 86
REG - 87

[go2134]

Sarah, you've got the right idea.

The question explicitly states that the last month showed the significant increase, compared to the whole year.

In this instance, you're worried about them recording revenue in the wrong period AND overstating revenue, but cutoff procedures will provide you with evidence for existence, completeness, and proper recognition.

Whenever they mention “at year end”, your gut instinct should be to go to Cutoff procedures.

Also from your question from before, I found the sims in Becker took about the same amount of time on the exam, if not a bit less time. Just remember that they can only test you on so much, so spread the love on some other chapters too, and come back to it later to enhance your understanding of it.

[mjp44]

I think i get it now. Cutoff encompasses existence test as well as proper recognition in the correct period…therefore it is a better assertion than just existence.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[go2134]

Just to reinforce that, Cutoff provides primary Sufficient evidence on the proper recognition in the correct period. As a result of these procedures, secondary evidence for Existence & Occurrence, and Completeness will also be obtained, but will need to be further corroborated by other evidence.

While Existence and Completeness cover the entire period, Cutoff focuses solely within the months immediately before and after year end.

[Hunnsterr]

Thanks a lot go2134

BEC - 88
REG - 72, 78
FAR - 75
AUD - 64, 64, 3rd attempt!!!

"A day of worry is more exhausting than a day of work" - John Lubbock

[keochuoi]

Please help, I posted my question in the AUD study thread but this one seems to be more active :))

Can somebody give me tips on how to do the research questions? I had no problem looking up the AL in FAR, but for some reasons, I'm having a hard time with AUD. I Use Becker. Even if I look at their answers and use their suggested keywords, I still cannot find the answer as given by Becker. For example, in AUD 4, there's a sim asking you to look up guidance on what is covered in the Letter of Audit Inquiry. I could never find AU-C 501.22.

What is your approach on this? Do you just look for title mostly (that's what worked for me with FAR)?

[Sarah1421]

keochuoi – On that question in particular (actually, on my FAR exam as well), I started by looking for the overall topic we were discussing and did an overall search – in this sim, “Letter of inquiry” was the starting point. I left the term “audit” out because I remember being drilled with just “letter of inquiry” in my studies. Then, I used the “search within” function (which searches within the results I pulled up) with attorney – NO RESULTS. So, knowing that I needed specific guidance that's attorney specific, I consider what other terms might I exchange for attorney – Legal?! That pulled up the right guidance…. granted it was a few choices down.

I think it's important to pull key words from the question itself, but be mindful of your audit vocabulary. I think they try to be a little tricky by saying it slightly differently in the question that it's presented in the literature.

Also, do you have your 6 month access to the full Authoritative Literature from the AICPA? go2134 posted the link in this thread. I started using it yesterday while practicing my Sims. My only complaint is that the search function is a little different, but it's still good practice.

FAR - 90
AUD - 91
BEC - 86
REG - 87

[keochuoi]

The word “Legal” did it!!! Thanks Sarah1421. I thought Becker should have given a better suggestion for keywords. I saw the link for the AL, will definitely practice researching. Wednesday 7/30 is the day!!!!

[Sarah1421]

So glad I could help and GOOD LUCK!!! Let us know how it goes… 🙂

FAR - 90
AUD - 91
BEC - 86
REG - 87

[Anonymous]

@go2134

A quick question.

I thought analytical procedures and inquiry are for the review only.

They are not applicable to the compilation, no?

[go2134]

Normally, yes. If the information is questionable, you are then required to perform them as well. I kept them there just because I wanted to remember that those are the most you will do. Sorry, I didn't have my notes in front of me when I wrote that out.

[Author]

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