[MCLKT]

Hi all of my Auditing class of 2013 Ninjas!

Is there a study group topic for Jan/Feb 2013 yet?

If not, can we start one?

I have scheduled my exam for 1/11. This is my second try (73 in Aug. 2012). Tonight I am going to take a mini practice exam to see what I remember and get and idea of my weak spots. And tomorrow I begin re-watching Yaeger vidoes. The entire timeline is to work book questions as I go through each module. Wrapping up the last video by Dec 14. And will do nothing but review, review, review until 1/10. Oh, and take my holiday vacation at the end of December, yikes!

What review material are you using? When is your exam? What topics have you covered? Any tips yet?

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[RGlazier12]

Holy hell, Becker Ch.4 simulations are an absolute nightmare.

CPA Candidate - Becker In-Class Study

AUD - January 10th, 2013 - PASSED 95
REG - February 28th, 2013 - PASSED 81
BEC - April 11th, 2013 - PASSED 85
FAR - May 30th, 2013 - PASSED 85
ETHICS - May 2013 - PASSED 95

[RGlazier12]

Can someone explain to me this question:

The Company failed to record an accrual for materials in transit on account of late vendor invoices for the period end. What is the impact on Inventory Turnover and Return on Equity?

It says in the answer that Inventory is understated, which I understand since it should include the materials in transit assuming they were shipped FOB shipping point, which the problem assumes (yet not explicitly, which is incredibly annoying). However it also says that COGS is overstated? I dont understand that part, because technically they haven't even recorded the inventory with the original entry:

Inventory… xxx

Cash/AP…xxx

How would COGS be overstated if this inventory hasn't even been added to existing inventory, I mean I understand if it had been added, and then if inventory is understated, then by default COGS would be overstated as its assumed thats where the amount inventory understated would go to. Ugh, maybe I'm thinking too much, and confusing myself. I guess the simple thing to remember is that if inventory is being adjusted higher, COGS has to adjust lower. Whatever.

CPA Candidate - Becker In-Class Study

AUD - January 10th, 2013 - PASSED 95
REG - February 28th, 2013 - PASSED 81
BEC - April 11th, 2013 - PASSED 85
FAR - May 30th, 2013 - PASSED 85
ETHICS - May 2013 - PASSED 95

[foreseeableCPA]

@RGlazier12

I was quite confused as well. This was in Ch 4 SIMS right? I too dont understand why COGS is immediately expensed.

CPA - Class of 2013
CIA - Class of 2016

[RGlazier12]

My father explained it as follows:

The question says in the physical inventory you counted it in, which means you adjusted the perpetual inventory via the books. Therefore, for example of the question about consignment, since you added it in the physical, you're inventory is overstated, and needs to be adjusted downwards, since you're not selling anything, just making an adjustment, the entry would be:

Inventory Adjustment (Acts as an expense account, so essentialy COGS) … xxx

Inventory… xxx

Therefore, increasing an expense to justify the write down on the inventory (I know this made zero sense to me too, but he said think when inventory adjusted down creates an expense, inventory adjusted up creates a profit).

CPA Candidate - Becker In-Class Study

AUD - January 10th, 2013 - PASSED 95
REG - February 28th, 2013 - PASSED 81
BEC - April 11th, 2013 - PASSED 85
FAR - May 30th, 2013 - PASSED 85
ETHICS - May 2013 - PASSED 95

[Anonymous]

From cpareviewfree.com sims relating to reviews of nonissuers, it is a required procedure to:

3 – Trace the financial statement amounts to the trial balance

Is this true? I thought you only would inquire and do analytical procedures?

[foreseeableCPA]

@AnnaMay84

I think you are right. Only inquiries and analytical procedures are used in reviews. Directional testing is used for audits. Also isnt it weird that it says trace the f/s amounts to the trial balance? Wouldn't that be vouching?

CPA - Class of 2013
CIA - Class of 2016

[Anonymous]

Yes! @ forseeable… I think i should stick with becker!

[foreseeableCPA]

lol! becker ftw!

CPA - Class of 2013
CIA - Class of 2016

[Lost.n.lost]

I'm just hoping they don't have A4 sims on the exam…I would leave it blank if they did…

[Anonymous]

Here's to 2013 and hopefully passing Auditing. I will you well @AnnaMay84.

[Anonymous]

Thank you @beechcrest! Happy new year!

[Lost.n.lost]

Does anyone know if we're suppose to round or leave the answer as is? I'm referring to the 6th sim in A5

[Anonymous]

My exam is tomorrow and am still not comfortable with the material.. 🙁 Should I be worrying about understanding the “tick marks” that auditors use? I really don't get this damn part of Auditing, and the PPS sampling, is this a big part of the Aud exam??

[foreseeableCPA]

@Lost

Are you using 2013 material? 2012 the sixth sim is a research question for me.

@Anna

I think you'll be okay. However, I really would not be surprised if they put a variable testing (mpu, ratio, difference, or pps) in a SIM. An auditor can use different types of tickmarks so thank God we dont have to memorize those in the book. Is there a particular question you have regarding the tickmarks? My exam in on thursday and Im going to review the whole book today and tomorrow. Need to pass this exam before I start working in a week. Have you tried to do the 2012 released questions?

CPA - Class of 2013
CIA - Class of 2016

[Lost.n.lost]

I'm using the 2012..it's about sampling..r u looking at the A5 sim?

[Author]

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