@yankee
I still used Becker. The information in the book is good. I just dont think they spend enough time on it. It's like they are speeding through trying to give you mnemonics and don't actually teach you the process. So i sat there and really tried to grasp all the transaction cycles. Understand the actual cycle first, then their controls, then the test of controls procedures. I believe in A4, there's a table for each cycle. Those helped me. Knowing when to vouch, trace, or observe etc.
Here's a little guide i came up with from the material. It helped me correlate certain assertions to certain audit procedures.
(Based of FIVE CARROT CARS from Becker)
Foot/crossfoot: verify mathematical accuracy—valuation
Inquiry: request info from internal/external parties (especially litigation or pledged/obsolete inventory)
Vouching: looking for existence( what’s recorded actually exists)
Examination/Inspection: usually existence assertion
Confirmation: from 3rd parties (Bank=valulation, Account Receivable=existence)
Analytical procedures: look for relationships (Planning &Final Review Stage)
Reperformance: test out the control yourself
Reconciliation: Existence and valuation (ex:book vs bank record)
Observation: look at process (usually completeness) ex: inventory
Tracing: looking for completeness(everything that exists was recorded)
Cut off reviews: look at year end transactions (classification, cutoff, and/or valuation)
Auditing related accounts simultaneously: liabilities&interest expense, PPE&repairs expense, Investments÷nd or interest income
Representation Letter: you need it except for compilations
Subsequent event review: valuation of assets&liabilities and adequate disclosures
Sometimes just connecting the words in your mind (like completeness and trace) help. especially when you are narrowing down the options. Hope it helps
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