[kyle.brown]

So i have been getting my butt kicked on management assertions and the different transaction cycles and why it would be blah if you trace sales from sales journal to etc. Does anyone have insight on how to tackle this beast?

FAR - Passed 4/2016
AUD - Passed 11/2015
REG - ?
BEC - 05/28/2016

[TiredGACandidate]

My best advice would be to try and use logic in the answer. Stop and think about what the question is asking you first and foremost. Obviously you have to memorize what the assertions mean but once you have that down, you can logically deduce what the answer should be. I'm convinced that if the exam was visualized, it would be much easier. What specific trouble are you having?

BEC - 76
REG - 82
FAR - 55, 84
AUD - 72,67, 88
Done!!

[kyle.brown]

seems like i am getting a lot wrong about all the different assertions and i am not even sure where to start i have my test in a little under a month. I am almost done with the MCQ sitting at about 82% and i am going to start to read the book over again for the parts i highlighted and go over ninja notes.

FAR - Passed 4/2016
AUD - Passed 11/2015
REG - ?
BEC - 05/28/2016

[kyle.brown]

When there are numerous property and equipment transactions during the year, an auditor who plans to assess control risk at a low level usually performs:

Incorrect A.

tests of controls and extensive tests of property and equipment balances at the end of the year.

B.

analytical procedures for current year property and equipment transactions.

C.

tests of controls and limited tests of current year property and equipment transactions.

D.

analytical procedures for property and equipment balances at the end of the year.

This type of question keeps tripping me up for some reason and help getting this straight?

FAR - Passed 4/2016
AUD - Passed 11/2015
REG - ?
BEC - 05/28/2016

[TiredGACandidate]

This one is tricky and I would be lying if I didn't get the same answer the first time I answered it. Put yourself in the position of the auditor. Your goal right now is to determine there is little control risk by performing tests of controls. We then determine that there are numerous transactions of property and equipment for the year. Since we have assessed control risk low, meaning we are fairly confident that the controls in place will prevent a misstatement, we don't have to perform as much (limited) tests of details on current year property and equipment transactions.

If you were at a clients, and said “I've seen your process and am satisfied there is probably not a material misstatement when it comes to fixed assets” (obviously you have come to this conclusion by testing controls, then you see there are thousands of transactions (numerous transactions), you will probably think to test only a limited amount of current year fixed assets since if you decided to test a lot of these current year fixed assets, it may prove to be a big waste of time.

Does this help? This is how I looked at this answer. Not sure if someone feels it could be taught a different way.

BEC - 76
REG - 82
FAR - 55, 84
AUD - 72,67, 88
Done!!

[Author]

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