[Wannafree]

Hi AuD gurus
I have done fairly well as far as ratios are concerned in BEC ,but struggled in AUD ratios questions.Forgot some formulas like coverage ratio and couldn’t solve it.This time did my best to memorize the ratios and looking for tips.
Please share your tips or which ratios should I know cold etc.Confused that in AUD you take closing balance rather average in denomintor .Is it sure a rule ?
Thanks in adavance

[Snickets]

The ratios for Audit are not nearly as extensive as the ones needed for BEC in my opinion. The other sections tend to cover these more extensively. BUT it is the CPA exam so be sure your ready for almost anything.
I'd reccomend knowing all the basics pretty well such as:
Quick/Acid Test
Current Ratio
AR TO
Inventory TO
Times Interest Earned
*These and a few more basic ones I may have missed would be very helpful. Make a few notecards and know how to work them and you should alright I would imagine.

AUD 84
FAR. 78(expired/retake 5/9/16)
BEC 77
REG 76

[Mike J]

I would write the ratios over again 5 or 6 times.

Then group them together eg liquidity ratios together and equity together. Etc.

Then study how similar some ratios are. eg You put on bottom what you turn over. Typically, turnover ratios are dividing net SALES by what you're turning over. Eg Total Asset turnover is Net Sales / total assets. A RETURN on net assets is Net Income / total assets.

In other words, just think about it logically.

[NeedsA75]

Pretty annoying that we have to study the hell out of ratios for BEC and then turn around and study them again for AUD. To be honest, Becker's ratio section for AUD is a lot less extensive than BEC and I don't think that's on purpose. I'm just focused on the big ones that Snickets listed above.

[Author]

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