[PrinceofDubtown]

So I’ve finally finished working through the lectures/problems/sims in audit, and am now in the review period (taking the exam October 5th, so have a little over two weeks).

I am positively discouraged. I started reviewing today and realized the massive amount of data I’ve got to absorb between now and exam day. I understand things at a high level like what’s been suggested on here, but just the little details of stuff (reports, what goes into an other matter paragraph, summary financials, etc etc) just seems like too much. I feel like I’ll never get all this crap by exam day and that I’ll never feel prepared.

Does anybody have any words of encouragement? Any advice for how to approach this review? I’ve done well on progress tests (averaging 88%-89% overall), but I just don’t feel like I’ll ever pass.

FAR - 92 (7/13)
AUD - 98 (10/13)
REG - 92 (7/14)
BEC - 95 (8/14)

[Anonymous]

Congratulations on finishing your materials! That's a great accomplishment. To be discouraged is normal. It's part of test anxiety. I feel very anxious when it's like a few days closer to the testing day.

I heard a lot of great feedback about Becker's Final Review set. So I ordered it 1 week before my testing day. It was delivered 4 days later so I decided to push my schedule back to the last week of August. I miraculously passed!

Here, add this to your final review materials for AUD-By Numbers:

2 CPA 3Non-CPA

PCAOB is comprised of 5-FT members; 2 CPAs 3-Non-CPAs; CPA can only act as Chair of the Board if he has not practiced CPA for the past 5 yrs.

3-5 “outside” directors

An audit committee consists of members of the BODs, usually 3-5 “outside” directors, who are neither employees nor part of mgt. and who do not have a material financial interest in the company.

5 audit clients (issuers) & less than 10 audit partners

Small accounting firms may be exempted from the partner rotation requirement

10 hours of service

Independence is impaired if the audit engagement team includes the lead partner, the concurring partner, & other individuals who provided more than 10 hours of service during the annual audit period.

10% & 10 days

Any officer, director, or owner of more than 10% of any equity security must file a report indicating how many shares they own within 10 days after becoming an officer, director, or more than 10% owner.

30 days

Financial interest is received through an unsolicited gift or inheritance and is disposed of as soon as practicable, no later than 30 days after the person has knowledge of and the right to dispose of the financial interest

35 days

Form 10-Q is due 35 days after each of the first 3 fiscal quarters

45 days

The PCAOB defines the documentation completion date as 45 days following the report release date for issuers.

60 days

Auditing standards require the final audit documentation file to be assembled within 60 days following the report release date for nonissuers.

60 days

Form 10-K must be filed within 60 days after the end of the fiscal year

60 days

While it is recommended that the written communication of control deficiencies be made by the report release date, a window extending 60 days beyond date is acceptable.

60 days

The auditor must communicate control deficiencies to mgt. in writing within 60 days of the report release date.

90 days or less

WebTrust assurance services performed by CPA to conduct examinations every 90 days or less to ensure that the site continues to adhere to stated business practices & disclosures, provide safe, secure transactions, and protect private information.

1 year

Minimum requirement for the auditor to meet with the audit committee without management present at least once each year

1 Year , not to exceed or Not to exceed 1 Year

If there is substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, not to exceed 1 yr. beyond the date of the FS being audited. (US.GAAS)

1 year or At least, but not limited to 12 months from the BS date

Auditor's consideration of the entity's ability to continue as a going concern. (ISAs)

1 year + or Over 1 year – Overdue in fees

Independence is impaired with respect to a client who is more than 1 year overdue in the payment of professional fees.

1 year or Annual

Only PCAOB-registered firms can audit SEC issuers and must update its application for registration annually.

1 year or At least annually

All firm personnel subject to independence requirements should confirm their independence in writing (paper or electronic form).

1 year or Annually

Test of Controls/Prior evidence regarding operating effectiveness is acceptable. –> Controls related to significant risks should be tested annually

1-Year cooling off period

Audit firms may not audit public companies whose CEO, CFO, etc. is also a previous employee of the accounting firm who worked on the audit during the preceding year.

2 years

(ISAs) Issuers and all assurance team members, who have been periodically rotated off the engagement after a period of no more than 7 years, should be subject to a time-out period of normally 2 years.

2-year time out period

(Issuers) All other audit partners are subject to a 2-year time out period before returning to the engagement.

3 years of Every 3 years

Each audit organization performing audits in accordance with GAGAS must have an external peer review at least once every 3 years.

3 years or Every 3 years

Evidence obtained in prior audits: If controls have not changed, OE must be tested at least every third year. The CPA, however may also choose, based on the circumstances, to retest OE more often than once every third year.

3 years, or Once every 3rd year

Test of Controls/Prior evidence regarding operating effectiveness is acceptable. –> New tests must be performed once every third year

3 years or Every 3 years

CPA firm that is an AICPA member, must have a peer review in order to maintain membership in the AICPA

5 years

Audit documentation must be maintained/retained by CPA firms for nonissuers for at least 5 years. (document retention period for nonissuers)

5 years or Every 5 years

(Issuers) Lead partner or coordinating partner & reviewing partner must rotate off the audit.

5-year time out period (Issuers)

Lead partner & reviewing partner are subject to a 5-year time out period before returning to the engagement.

7 years

Audit documentation must be maintained/retained by the public-registered firms for at least 7 years.(document retention period for issuers)

7 years

SOX requires CPA firms to maintain the documentation of their risk assessment & response.

7 years

(ISAs) Issuers and all assurance team members should be periodically rotated off the engagement after a period of no more than 7 years.

100 issuers or lesser

Registered public accounting firms that provide audit reports for 100 or fewer issuers must be inspected at least once every 3 years

100 + or Over 100 issuers

PCAOB must conduct annual inspections of registered public accounting firms that regularly provide audit reports for more than 100 issuers

$10,000

Independence is not impaired in a financial institution client issues to the audit team members cash advance or credit card balances not exceeding $10,000.

$10,000

The auditor responds either “yes” or “no” to the identification of findings that must be disclosed pursuant to section 510(a) of OMB Cir. A-133 including reportable conditions in IC over major programs, material noncompliance with LR&C, & questioned costs greater than $10,000

$100,000

Penalties of no more than $100,000 can be imposed by PCAOB if associated inviduals would be found to have violated (OTHER PROVISIONS) the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports.

$300,000

Programs classified as major are those that expend $300,000 or more in federal financial assistance.

$500,000

The Single Audit Act (OMB Circular A-133) requires entities that expend total federal assistance equal to or in excess of $500,000 in a fiscal year to have an audit performed in accordance with the Act.

$750,000

Civil monetary penalties of no more than $750,000 can be imposed by PCAOB if associated inviduals would be found to have violated the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports, specifically for intentional or knowing conduct, including reckless conduct, that results in violations or repeated instances of negligent conduct.

$2,000,000

Penalties of no more than $2,000,000 can be imposed by PCAOB if a registered firm would be found to have violated (OTHER PROVISIONS) the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports.

$15,000,000

Civil monetary penalties of no more than $15,000,000 can be imposed by PCAOB if a registered firm would be found to have violated the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports, specifically for intentional or knowing conduct, including reckless conduct, that results in violations or repeated instances of negligent conduct.

$75M > $700M

An accelerated filer [AF] is defined as an issuer with a worldwide market value of outstanding common equity held by non-affiliates of $75M > $700M

$700M or more

A large accelerated filer [LAF] is defined as an issuer with a worldwide market value of outstanding common equity held by non-affiliates of $700M or more.

[Anonymous]

Congratulations on finishing your materials! That's a great accomplishment. To be discouraged is normal. It's part of test anxiety. I feel very anxious when it's like a few days closer to the testing day.

I heard a lot of great feedback about Becker's Final Review set. So I ordered it 1 week before my testing day. It was delivered 4 days later so I decided to push my schedule back to the last week of August. I miraculously passed!

Here, add this to your final review materials for AUD-By Numbers:

2 CPA 3Non-CPA

PCAOB is comprised of 5-FT members; 2 CPAs 3-Non-CPAs; CPA can only act as Chair of the Board if he has not practiced CPA for the past 5 yrs.

3-5 “outside” directors

An audit committee consists of members of the BODs, usually 3-5 “outside” directors, who are neither employees nor part of mgt. and who do not have a material financial interest in the company.

5 audit clients (issuers) & less than 10 audit partners

Small accounting firms may be exempted from the partner rotation requirement

10 hours of service

Independence is impaired if the audit engagement team includes the lead partner, the concurring partner, & other individuals who provided more than 10 hours of service during the annual audit period.

10% & 10 days

Any officer, director, or owner of more than 10% of any equity security must file a report indicating how many shares they own within 10 days after becoming an officer, director, or more than 10% owner.

30 days

Financial interest is received through an unsolicited gift or inheritance and is disposed of as soon as practicable, no later than 30 days after the person has knowledge of and the right to dispose of the financial interest

35 days

Form 10-Q is due 35 days after each of the first 3 fiscal quarters

45 days

The PCAOB defines the documentation completion date as 45 days following the report release date for issuers.

60 days

Auditing standards require the final audit documentation file to be assembled within 60 days following the report release date for nonissuers.

60 days

Form 10-K must be filed within 60 days after the end of the fiscal year

60 days

While it is recommended that the written communication of control deficiencies be made by the report release date, a window extending 60 days beyond date is acceptable.

60 days

The auditor must communicate control deficiencies to mgt. in writing within 60 days of the report release date.

90 days or less

WebTrust assurance services performed by CPA to conduct examinations every 90 days or less to ensure that the site continues to adhere to stated business practices & disclosures, provide safe, secure transactions, and protect private information.

1 year

Minimum requirement for the auditor to meet with the audit committee without management present at least once each year

1 Year , not to exceed or Not to exceed 1 Year

If there is substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, not to exceed 1 yr. beyond the date of the FS being audited. (US.GAAS)

1 year or At least, but not limited to 12 months from the BS date

Auditor's consideration of the entity's ability to continue as a going concern. (ISAs)

1 year + or Over 1 year – Overdue in fees

Independence is impaired with respect to a client who is more than 1 year overdue in the payment of professional fees.

1 year or Annual

Only PCAOB-registered firms can audit SEC issuers and must update its application for registration annually.

1 year or At least annually

All firm personnel subject to independence requirements should confirm their independence in writing (paper or electronic form).

1 year or Annually

Test of Controls/Prior evidence regarding operating effectiveness is acceptable. –> Controls related to significant risks should be tested annually

1-Year cooling off period

Audit firms may not audit public companies whose CEO, CFO, etc. is also a previous employee of the accounting firm who worked on the audit during the preceding year.

2 years

(ISAs) Issuers and all assurance team members, who have been periodically rotated off the engagement after a period of no more than 7 years, should be subject to a time-out period of normally 2 years.

2-year time out period

(Issuers) All other audit partners are subject to a 2-year time out period before returning to the engagement.

3 years of Every 3 years

Each audit organization performing audits in accordance with GAGAS must have an external peer review at least once every 3 years.

3 years or Every 3 years

Evidence obtained in prior audits: If controls have not changed, OE must be tested at least every third year. The CPA, however may also choose, based on the circumstances, to retest OE more often than once every third year.

3 years, or Once every 3rd year

Test of Controls/Prior evidence regarding operating effectiveness is acceptable. –> New tests must be performed once every third year

3 years or Every 3 years

CPA firm that is an AICPA member, must have a peer review in order to maintain membership in the AICPA

5 years

Audit documentation must be maintained/retained by CPA firms for nonissuers for at least 5 years. (document retention period for nonissuers)

5 years or Every 5 years

(Issuers) Lead partner or coordinating partner & reviewing partner must rotate off the audit.

5-year time out period (Issuers)

Lead partner & reviewing partner are subject to a 5-year time out period before returning to the engagement.

7 years

Audit documentation must be maintained/retained by the public-registered firms for at least 7 years.(document retention period for issuers)

7 years

SOX requires CPA firms to maintain the documentation of their risk assessment & response.

7 years

(ISAs) Issuers and all assurance team members should be periodically rotated off the engagement after a period of no more than 7 years.

100 issuers or lesser

Registered public accounting firms that provide audit reports for 100 or fewer issuers must be inspected at least once every 3 years

100 + or Over 100 issuers

PCAOB must conduct annual inspections of registered public accounting firms that regularly provide audit reports for more than 100 issuers

$10,000

Independence is not impaired in a financial institution client issues to the audit team members cash advance or credit card balances not exceeding $10,000.

$10,000

The auditor responds either “yes” or “no” to the identification of findings that must be disclosed pursuant to section 510(a) of OMB Cir. A-133 including reportable conditions in IC over major programs, material noncompliance with LR&C, & questioned costs greater than $10,000

$100,000

Penalties of no more than $100,000 can be imposed by PCAOB if associated inviduals would be found to have violated (OTHER PROVISIONS) the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports.

$300,000

Programs classified as major are those that expend $300,000 or more in federal financial assistance.

$500,000

The Single Audit Act (OMB Circular A-133) requires entities that expend total federal assistance equal to or in excess of $500,000 in a fiscal year to have an audit performed in accordance with the Act.

$750,000

Civil monetary penalties of no more than $750,000 can be imposed by PCAOB if associated inviduals would be found to have violated the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports, specifically for intentional or knowing conduct, including reckless conduct, that results in violations or repeated instances of negligent conduct.

$2,000,000

Penalties of no more than $2,000,000 can be imposed by PCAOB if a registered firm would be found to have violated (OTHER PROVISIONS) the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports.

$15,000,000

Civil monetary penalties of no more than $15,000,000 can be imposed by PCAOB if a registered firm would be found to have violated the provisions of SOX, or PCAOB rules, or SEC laws relating to the preparations & issuance of audit reports, specifically for intentional or knowing conduct, including reckless conduct, that results in violations or repeated instances of negligent conduct.

$75M > $700M

An accelerated filer [AF] is defined as an issuer with a worldwide market value of outstanding common equity held by non-affiliates of $75M > $700M

$700M or more

A large accelerated filer [LAF] is defined as an issuer with a worldwide market value of outstanding common equity held by non-affiliates of $700M or more.

[tough_kitty]

Wow, it's a long list….but are we really expected to know all of it for the exam???

FAR: 81 (May 2013)
BEC: 81 (July 2013)
REG: 83 (August 2013)
AUD: 82 (November 2013)
California CPA since 1/30/14

[tough_kitty]

Wow, it's a long list….but are we really expected to know all of it for the exam???

FAR: 81 (May 2013)
BEC: 81 (July 2013)
REG: 83 (August 2013)
AUD: 82 (November 2013)
California CPA since 1/30/14

[olive]

@amordiva thanks for posting that! I do a lot better when I can associate studay material with numbers or lists, and this has both!! I will definitely be using this. I need all the help I can get on AUD!

AUD - Nov13 - 76
BEC - Aug13 - 77
FAR - Jan13 - 74, Apr13 - 74 bummer, Aug13 - 76 Finally!!
REG - Nov12 - 82

Whoooo hooo!!

[olive]

@amordiva thanks for posting that! I do a lot better when I can associate studay material with numbers or lists, and this has both!! I will definitely be using this. I need all the help I can get on AUD!

AUD - Nov13 - 76
BEC - Aug13 - 77
FAR - Jan13 - 74, Apr13 - 74 bummer, Aug13 - 76 Finally!!
REG - Nov12 - 82

Whoooo hooo!!

[Anonymous]

That long list is composed of 45 items which I compiled from day-1 I began my review for retake in AUD till I sat last quarter using Becker's 2013 AUD Version B.

That's sure easy 1, 2 or 3-point increase on your score when you read it every other day till the last day of your review.

[Anonymous]

That long list is composed of 45 items which I compiled from day-1 I began my review for retake in AUD till I sat last quarter using Becker's 2013 AUD Version B.

That's sure easy 1, 2 or 3-point increase on your score when you read it every other day till the last day of your review.

[Author]

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