[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

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

[Qlad]

what will be the entry for Stock options offered to employee…and which ratio will it affect?

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[NYCaccountant]

Stock options expensing?

Stock compensation expense Dr. 10,000

Additional Paid in capital – Stock options – Cr. 10,000

This would affect the debt to equity ratio in that equity would increase as a result. Basically any ratio involving equity would be affected.

Actually technically, I've seen it done like this too:

Deferred options Dr. 10,000

Additional Paid in capital – Stock options – Cr. 10,000

And then when the options have vested:

Stock compensation expense Dr. 10,000

Additional Paid in capital – Stock options – Cr. 10,000

And also, equity would increase by 10,000, but when the expense passes through net income, equity would decrease by that same 10,000, so technically should be no affect, but I'm guessing the question might not give you that option.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Gabe]

Using the new WTB- is it just me or can you not “search” on the AL?

CPA, CFE
CISA- Experience will be completed by August 2016

[Anonymous]

I think it says on the side that you can't use the search function on the AL. it's very limited.

[jeff]

NINJA MCQ has a fully searchable AL: https://www.another71.com/introducing-ninja-mcq-adaptive-learning-technology/

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

[thehip41]

I've been using Ninja MCQ for AUD for the last week. I like.

I love that there are 80 sims. Good practice (practice feeling dumb imo)

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[NYCaccountant]

I'm going to buy the Ninja MCQ for AUD as a supplement. Right now, I've been using Wiley and CPAreviewforfree. I have the notes too, which I've been reading on the train, I really want to pass AUD on the first try and be done, so I'm (planning) to go all in.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[thehip41]

Im the same way NYC. I still have access to Gleim MC bank, bought wiley, bought Ninja MCQ for AUD. I just need to be done.

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[NYCaccountant]

I've always felt CPAreviewquestions are harder than Wiley and the exam. They generally test the minute detail, which is a little annoying , but makes your pay attention much more.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[JamesBJames]

How in the world did you all tackle the A4 stuff? I'm trying to get a good grasp on the “audit procedures by transaction cycle” section and… I think I'm losing the battle. There are so many flowcharts.

It doesn't really help that I have no audit experience and have to look up a lot of these terms. =/

Did you try to memorize the flowcharts or just get a general grasp of roughly where things went? I've been told the revenue and expenditure cycles are super important — is there anything else that I absolutely need to grind into my brain?

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

Feel free to add me on LinkedIn by clicking my username!

[Anonymous]

@ JamesBJames

I'd draw out the flowcharts and then compare it to the actual flowcharts in the textbook.

[thehip41]

James, they are important.

I tried to learn them at a high level. Pretend you are a Requistion. Where do you go, what happens to you?

You get created, approved, promoted to PO…..etc.

You need to understand the workflow before you can figure out if you need to vouch or trace something.

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[Anonymous]

Hey what' the difference between inspection and observation?

In Becker's A4 Sim 3 Question 5:

During the physical inventory count, the auditor requested that certain material containers be opened to ensure they were not empty.

Is the answer inspection instead of observation is because the auditor REQUESTED the containers to be OPEN to ENSURE they were NOT EMPTY? Does that mean if you were just observing the inventories you'd just walk down to the warehouse and just look around but no need to double check for actual inventories being inside the containers?

[JamesBJames]

I think so, @BFFWiley. Still working my way through A4, so maybe there's more detail later, but I considered observation to be very simplistic procedures. An auditor doesn't really understand something about the business yet, so they observe a certain process being done to become more knowledgeable about it. I've always thought of it like the auditor is invisible. They don't demand that the client do something, they don't really interact much — they're just watching and learning. As a result, this really doesn't provide the auditor with a lot of evidence.

Examination and inspection are more detailed procedures and provide better evidence because the auditor takes more of an active role in the process. I think it's usually related to something physical, too; for example, the auditor actually counts the inventory instead of watching others count it. An auditor requests something to be done in order to test an assertion. An auditor scans and scrutinizes certain details of documents, etc.

Hopefully that's on the right track. I've gotten a lot of these procedures sort of confused, too.

On the plus side, I think I've gotten the revenue and expenditure cycles down. I usually forget to add a document here and there, but the gist of it so far is a lot of things are sent to a lot of the different ARC functions, and then accounting (or some record-keeping function) matches everything and makes sure there are no mistakes.

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

Feel free to add me on LinkedIn by clicking my username!

[zieba]

I swear that I can answer audit questions just by reading the choices and picking the sensible, neutral choice, usually free of overreaching, declaratory statements and words. It's almost never ALL, it's almost never certain or 100%.

If you've read through your AUD materials, it's usually 50/50 or 33% shot.

Cutoff procedures trip me up. Bank recs and checks 12/31 1/1 that sort of thing.. kiting, lapping and procedures to detect. I need to really brush up on this.

AUD - 75*, 88 done 5/14! (*exp)
BEC - 74 , 77
REG - 65 , 76 (10 point combooo!!)
FAR - 69 , 75

Dr: perseverance
Dr: intelligence
Dr: luck
. Cr: . advisory score

[Author]

Replies