[jeff]

Resources:

AUD 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

AUD Exam Experience: https://www.another71.com/cpa-exam-forum/topic/aud-exam-experience-official-thread

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[N. Alex]

@ Adamdenton1

You are right. The materials are ok but Tim reverse them on the lecture 🙁

Trace is forward from top to bottom

Vouch is backward from bottom to top

Except for inventory it the other way around per page A4-34

I hope I am right…

[Anonymous]

I'm about to look and verify but I think you are right. As I was working more questions I noticed the inverse relationship with inventory that you just noted…hard to keep them straight.

[Anonymous]

@NAlex, now you have me all confused. Hopefully this will help, a little more clear than Tim.

https://www.youtube.com/watch?v=9LW5r9N8_nQ.

“Vouching Backward from Journal Entries (Top) to Source Documents (Bottom)

“Tracing Forward from Source Documents(Bottom) to Journal Entries (Top)

@AdamDenton1: Giving the answer some thought, to me it seems to make sense. The purpose of tracing is to find out if adequate reporting was done. Invoices are financial reports disbursements are cash outlays. Cash was paid for something were the right steps taken to complete this transaction. In this case invoices that represent money paid. They may have misused back in this case but that could also be used to confuse someone in the test. I would imagine back isn't officially part of the definition, its just a helpful way to differentiating the two in a relatively straight forward scenario. Let me know what you think learning process probably worth a few points to have this straightened out.

[N. Alex]

@CP-ET

I am not trying to confuse anyone…

Example: IC process for sales are (sales, credit approval, shipping, billing/invoice, accounting) so when we start from top “shipping” to lower level or lets say the next step of IC process “billing or invoice” OR from invoices to accounting its a completeness test. and its an existence test for the other way around…

I am going to review that chapter again in 4 days… I hope I will get more familiar with it..

Thank you for the link 🙂

[Anonymous]

Just finished Becker A6 today. I have 7.5 days of full time studying before my exam on Wed. Any tips or suggestions on how to attack the review?

[Anonymous]

Thanks for the help CP-ET and N. Alex. I'm still sold on that this is “vouching”, maybe I'm just hard headed haha. As N. Alex said this is searching for existence which is vouching. I am finding support for why this item in the accounting records was disbursed which is the invoice. I don't know anymore – I think I understand this fairly well so just going to keep moving and get out of chapter 4 and hit everything else hard before Saturday.

[Anonymous]

@ AMI (too lazy to type the rest sorry) I would say hit chapter 4 hard and learn the standard report like the back of your hand. Then get the variations from the standard report down as well and hope for the best. That's been my plan of attack over the past two weeks and I'm just going off of what I have read on these forums from those who have taken this exam already.

Good luck and keep us posted on what is working/not working for you in your review.

[Anonymous]

Does anyone have a good hold on when to restrict and when not to? (I.E. which reports get a restricting paragraph)

[Almost Done]

@ determined1… I believe agreed-upon procedures are generally restricted to management and those specifically listed in the report. Also called limited-use reports.

BEC: Passed
REG: Passed
FAR: Passed
AUD: Passed

[Anonymous]

@determined1

Here is the list of reports that I've summed up so far. Please let me know if I miss some so we can add them all up together.

Reports that contain restriction use paragraph: 7 [FAF-SOFA]

• FS audit of a nonissuer concerning an auditor’s required communication of significant deficiencies in Internal control

• Agreed-upon Procedures Engagement

• Financial Projection

• Specified Element, Account, or Item prepared to comply with a contract or agreement

• OCBOA – Prescribed Regulatory Basis

• *Financial Presentation to comply with contractual agreement or regulatory provisions

• Application of Accounting Principles

*With an exception of when the presentation/report is filed with a regulatory agency like SEC & included in a document distributed to the GENERAL PUBLIC, then the report should NOT be restricted at all.

Just as Tim Gearty was highlighting, ‘IT'S A SECRET!” Or anything that's confidential, it should contain restriction paragraph.

[N. Alex]

Does anyone know how to access AICPA AL sample test?

[N. Alex]

Never mind.. I just got it 🙂

[Anonymous]

Having trouble with this question since I think there are two right answers…

“When a CPA examines a client's projected financial statements, a CPA's report should:

(1) State that the CPA performed procedures to evaluate management's assumptions

(2) Explain the principal differences between historical and projected financial statements”

1 is correct, as it's in the scope paragraph. 2 is incorrect, but I see it in the opinion paragraph for a examined forecast – not a projection, but I figured they'd be relatively similar in this case.

[Jersey815]

Hi everyone – studying for AUD right now. I find that every exam requires a different skill set:

1.) REG: Least Memorization, Figuring out tricky tax calculations, Business Law easy concepts. If you know TAX, you will ace this exam. Especially Like Kind Exchanges, Cap G/L and Depreciation which are Tax Focused questions.

2.) BEC: Heavy on the memorization and calculation side – COSO rules are crazy to remember but you have to. Way too many formulas about different subjects. Memorization is KEY..

3.) AUD: Heavy on memorization and conceptual side – you have to read the MCQ extremely carefully and read the answer choices extremely carefully – patience & confidence helps with answering the questions. If you lack self confidence, the answer choices will drive you crazy

4.) FAR: Requires all of the above, the BEAST of all BEASTS..but at least the formulas are all related to Financial Reporting as opposed to BEC where formulas are all over the place (economics, finance, projections, cost accounting, etc)

AUD requires a lot of patience and understanding. I find it helpful to envision myself as an Auditor who is Auditing a company. I even picture different rooms in a building for the Billing Dept, Treasure, A/R, etc and visualize myself testing things. I think if you can make a little AUD movie in your head, it will help with questions…or I am just crazy!

[Jersey815]

@2013 CPA

I also found that part to be confusing.

Make sure you distinguish between FORECAST and PROJECTIONS. They both sound the same and to tell you the truth, the words linguistically are very similar, but from a Financial perspective they are two different things.

[Author]

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