[jeff]

AUD Resources:

Free AUD Notes & Audio – https://www.another71.com/cpa-exam-study-plan

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

AUD Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[PC]

Is AUD similar to FAR in respects to HW grades?

I'm just wrapping F1 and I did well on a few of the shorter ones (80s-90s) but there was a 102 question beast that I scored a 66% on. I did very well with conceptual on FAR HW problems and was expecting to do very well on AUD HW because it seems like it's all conceptual so I was disappointed by that.

[Anonymous]

FAR and AUD are very different. A conceptual problem on FAR is still based on fact, whereas one on AUD is based on interpretation…or something like that. So, don't get discouraged that your scores are a lot different, because it's very different stuff! I tend to do well with conceptual things, too, but learned in my Auditing class that Auditing would still give me a run for my money, because it's weird applications of concepts, rather than just concepts. I didn't have the greatest scores in Auditing in school, but I still passed, so I'm hoping it's the same here. 😛 The best I can tell you for figuring these out is that you have to take it slow, read the question carefully, and then carefully weigh to find the best answer. Almost every question will have several possible questions, but one will be slightly better in some miniscule way, and that's the one you're after. 😛

[Anonymous]

FAR and AUD are very different. A conceptual problem on FAR is still based on fact, whereas one on AUD is based on interpretation…or something like that. So, don't get discouraged that your scores are a lot different, because it's very different stuff! I tend to do well with conceptual things, too, but learned in my Auditing class that Auditing would still give me a run for my money, because it's weird applications of concepts, rather than just concepts. I didn't have the greatest scores in Auditing in school, but I still passed, so I'm hoping it's the same here. 😛 The best I can tell you for figuring these out is that you have to take it slow, read the question carefully, and then carefully weigh to find the best answer. Almost every question will have several possible questions, but one will be slightly better in some miniscule way, and that's the one you're after. 😛

[Anonymous]

@Lilla

The only other one I could even see being close to the answer aside from revenue would be inventory because it is an asset. But during every audit, the audit MUST be skeptical about the overstating the good things (ie: assets/revenue) and understating the bad things (expenses/liabilities). The standards specifically point out that improper revenue recognition is a big time issue like you said correctly. See below for the exact paragraph. Your logic about overstating expense and understating revenue would be more of a IRS tax audit I think. Essentially, the AICPA does not want inherently biased companies to be overstating their revenue to get better financing/credit worthiness and mislead investors to their financial health.

A Presumption That Improper Revenue Recognition Is a

Fraud Risk

.41 Material misstatements due to fraudulent financial reporting often

result from an overstatement of revenues (for example, through premature

revenue recognition or recording fictitious revenues) or an understatement of

revenues (for example, through improperly shifting revenues to a later period).

Therefore, the auditor should ordinarily presume that there is a risk of material

misstatement due to fraud relating to revenue recognition. (See paragraph .54

for examples of

[Anonymous]

@Lilla

The only other one I could even see being close to the answer aside from revenue would be inventory because it is an asset. But during every audit, the audit MUST be skeptical about the overstating the good things (ie: assets/revenue) and understating the bad things (expenses/liabilities). The standards specifically point out that improper revenue recognition is a big time issue like you said correctly. See below for the exact paragraph. Your logic about overstating expense and understating revenue would be more of a IRS tax audit I think. Essentially, the AICPA does not want inherently biased companies to be overstating their revenue to get better financing/credit worthiness and mislead investors to their financial health.

A Presumption That Improper Revenue Recognition Is a

Fraud Risk

.41 Material misstatements due to fraudulent financial reporting often

result from an overstatement of revenues (for example, through premature

revenue recognition or recording fictitious revenues) or an understatement of

revenues (for example, through improperly shifting revenues to a later period).

Therefore, the auditor should ordinarily presume that there is a risk of material

misstatement due to fraud relating to revenue recognition. (See paragraph .54

for examples of

[Anonymous]

@dutkas As soon as you mentioned the IRS audit, it all clicked. Whoops. And then I remembered Jeff's recording specifically saying that the standard way of viewing the accounts is flip-flopped for a tax-motivated company, and I apparently remembered just the tax side of things (probably because I work in taxes). Thanks for the clarification! I need to remember that outside of my office, companies are motivated by profit, not by losses. 😛

[Anonymous]

@dutkas As soon as you mentioned the IRS audit, it all clicked. Whoops. And then I remembered Jeff's recording specifically saying that the standard way of viewing the accounts is flip-flopped for a tax-motivated company, and I apparently remembered just the tax side of things (probably because I work in taxes). Thanks for the clarification! I need to remember that outside of my office, companies are motivated by profit, not by losses. 😛

[Anonymous]

No problem, are you ready for your test!? I feel like I am more than prepared for Audit rather FAR when I felt maybe 70% ready. Hopefully I'll have a passing AUD score to offset the failing FAR score come release time.

[Anonymous]

No problem, are you ready for your test!? I feel like I am more than prepared for Audit rather FAR when I felt maybe 70% ready. Hopefully I'll have a passing AUD score to offset the failing FAR score come release time.

[Anonymous]

I feel like I am underestimating this test…meaning I feel way more prepared than I think I should! So I'm counting on some serious studying this weekend to fill in the gaps. I've got more that I want to do pre-test, but I'm feeling OK. Here's hoping.

And hey, you don't know yet that you failed FAR! Last time, your prediction was 8 points short of actuality…so if that happens again, you'll have a 79. 🙂 Even if you don't pass it, you could still do great for this window. I debated doing 3 in this window (FAR/AUD/REG), but don't think I would've been brave enough to attempt 4. So, bravo to you. 🙂

Good luck tomorrow! You've studied hard, now to convince the Prometric computers that you know as much as you do. 😉

[Anonymous]

I feel like I am underestimating this test…meaning I feel way more prepared than I think I should! So I'm counting on some serious studying this weekend to fill in the gaps. I've got more that I want to do pre-test, but I'm feeling OK. Here's hoping.

And hey, you don't know yet that you failed FAR! Last time, your prediction was 8 points short of actuality…so if that happens again, you'll have a 79. 🙂 Even if you don't pass it, you could still do great for this window. I debated doing 3 in this window (FAR/AUD/REG), but don't think I would've been brave enough to attempt 4. So, bravo to you. 🙂

Good luck tomorrow! You've studied hard, now to convince the Prometric computers that you know as much as you do. 😉

[Masry1989]

Hello guys , please I want to know what is the difference between using SAS standards in Review engagements and using PCAOB standards in review

as all I know is that non issuers- private companies should be reviewed according to SSARS

so what is the difference between SAS and PCAOB in this point ??

Thanks

[Masry1989]

Hello guys , please I want to know what is the difference between using SAS standards in Review engagements and using PCAOB standards in review

as all I know is that non issuers- private companies should be reviewed according to SSARS

so what is the difference between SAS and PCAOB in this point ??

Thanks

[Letsdothis]

Hey guys I am a bit lost

I am using Wiley (2013) book and I am confused…the book states

For exams before June 30,2013

AU 326 Audit evidence

328

329

etc

For exams after June 30, 2013

AU-C 500 Audit Evidence

501

505

etc

which do I use if I am testing end of this month?

We all have the ability to be whomever we want to be in this life. It's just a matter of DETERMINATION, PERSISTENCE, PATIENCE and the WILL to follow through. Never give up!

[Letsdothis]

Hey guys I am a bit lost

I am using Wiley (2013) book and I am confused…the book states

For exams before June 30,2013

AU 326 Audit evidence

328

329

etc

For exams after June 30, 2013

AU-C 500 Audit Evidence

501

505

etc

which do I use if I am testing end of this month?

We all have the ability to be whomever we want to be in this life. It's just a matter of DETERMINATION, PERSISTENCE, PATIENCE and the WILL to follow through. Never give up!

[Author]

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