[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. 🙂

[Cpachance]

@funtiks can you expand on Ratios (BEC)? I have becker materials and have yet to look at BEC. Are the ratios in A-4 of the Audit book (the appendix sections) not sufficient?

[katerina2665]

@eliasm6, oh no noooo, i wish 🙂 i studied way longer than that, i started FAR September, had it in November, failed, then had it in January, failed again, then moved to Reg, had it in the end of February, failed, got really pissed, and then things actually started moving. I think in total i studied 5 months for FAR, 2 for REG, the shortest so far for BEC, little less than a month, it was actually the easiest one for me.

[Anonymous]

@katerina, i was about to say if you studied for reg in 12 days you'd be the queen of CPA exams. But still props for getting them all done in one testing window. Gotta be pretty stressful.

[funtiks]

@cpachance, the ratios in appendix are definitely sufficient.

If you didn't take BEC yet, you're going to need to know those for BEC too.

Also, Becker definitely doesn't cover IT as willey does.

EDIT: You should also know basic structure of the income statement, including COGS and sales.

FAR - 76*, 73, 85
BEC - 69, 72, 78*, 80
AUD - 72, 71, 90
REG - 71, 74, 85

AFTER 3 YEARS I'M DONE!!!

[Anonymous]

When control risk is assessed as low for assertions related to payroll, substantive tests of payroll balances most likely would be limited to applying analytical procedures and:

a. Inspecting payroll tax returns.

b. Footing and crossfooting the payroll register.

c. Observing the distribution of paychecks.

d. Recalculating payroll accruals.

I feel like this question is very unfair.

[NYCaccountant]

@ Elias I think it's D.

I think C is more a test of controls, to make sure they are properly segregated and operating effectively, so

Because control risk is low, and they are ask for substantive procedures, you basically should do the bare minimum.

I would do analytical procedures and test the reasonableness of the estimates made by management in regards to the accrual of the payroll. If there is a 1-3% variation in total payroll expense year over year, I think thats enough to provide reasonable assurance that it's not materially off.

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

[Cpachance]

So obviously the transaction cycle is going to be a large portion of the exam. I don't feel bad about it but certainly don't feel good. Any recommendations on some free material I can find to help supplement my becker stuff?

[Anonymous]

@ NYCaccountant It is D, but also footing and crossfooting is a substantive test. Becker said its an important substantive test just is not effective enough for when control risk is low. I just feel like that's pretty subjective.

[Gabe]

Anyone care to walk me through their thought process on this one?

The physical count of inventory of a retailer was higher than shown by perpetual records. Which of the following could explain the difference?

A. Inventory items had been counted but the tags placed on the items had not been taken off the items and added to the inventory accumulation sheets.

B. Credit memos for several items returned by customers had not been prepared.

C. No journal entry had been made on the retailer’s books for several items returned to its suppliers.

D. An item purchased “FOB shipping point” had not arrived at the date of inventory count and had not been reflected in the perpetual records.

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

[Gabe]

@elias. You can automatically rule out C (as it is more of a control test). Also A seems to be more of a control test as well. So, let's say you're testing payroll and you get the payroll register in excel format (it happens). At this point footing and cross footing is kind of a “given” (oh I checked the formula and it was correct). B is more of a “given” (especially with excel) and requires practically no work. So, I'd go with D as it is more work than B, but still “limited.” Does that help? (this coming from someone who has tested payroll too many times to count)

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

[Anonymous]

@gabequinn

I'll take a stab at it

Higher physical inventory counts compared to the amount shown on the perpetual records show that there is something in your physical inventory that hasn't been noted in the perpetual records(computer system).

Choice (B) states that you received items, hence physical inventory is up, but the credit for the return has yet to be recorded by the perpetual records causing your perpetual records to show more.

physical count = you're counting

perpetual = system records inventory based on real time.

[Anonymous]

Can someone please summarize the rules/highlights for comparative financial statement for me? I was super confused about what the current CPA should do? especially when the opinions are no the same (Prior year modified and current year unmodified)!!!

Thanks!

[Anonymous]

@gabe yea that helps, i guess that's just a question where experience will help you. I don't have any audit experience so i guess i'm at a disadvantage, oh well haha.

[Anonymous]

Nothing like a Becker practice final exam to burst your confidence…

[Gabe]

@CPA agreed. I did it with FAR and it messed with my head, so I stopped doing them. I still do the MCQ because it's something I haven't seen before, but I'll do them 30 at a time, if that makes sense. I'd rather go in feeling confident than defeated before I even start

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

[Author]

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