[jeff]

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

[Anonymous]

Thank you Yama1317. What about in a simulation where we can decide if whether IRCRDR increasesdecreasesdoesn't change (so all three risks we had to answer). For the two examples above, would you say that only IRCR changes or would say that DR also changes. I guess you're saying that it would be rare for one of these risks to DIRECTLY change more than of these risks at once?? I can't really think of an example that would only change DR since its sort of the counter balance of the other two.

[Amay]

Exactly. In simulation I would answer the same way. DR is a secondary analysis after already determining CR and IR.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Exactly. In simulation I would answer the same way. DR is a secondary analysis after already determining CR and IR.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

Can someone explain to me how vouching/tracing additions to the PPE Sub Ledger would test for existence? Wouldn't going from the additions to the ledger test for completeness? Are we not “going up” here?

[Anonymous]

Can someone explain to me how vouching/tracing additions to the PPE Sub Ledger would test for existence? Wouldn't going from the additions to the ledger test for completeness? Are we not “going up” here?

[Amay]

Vouching and tracing are 2 different things. Vouching tests for existence (going from the G/L or books to supporting documentation) and tracings tests for completeness (going from supporting documentation to the G/L). So it depends what the question was asking…

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Vouching and tracing are 2 different things. Vouching tests for existence (going from the G/L or books to supporting documentation) and tracings tests for completeness (going from supporting documentation to the G/L). So it depends what the question was asking…

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

It said vouching but the terms vouching/tracing are used interchangeably on the exam. So you can't really go by that.

[Anonymous]

It said vouching but the terms vouching/tracing are used interchangeably on the exam. So you can't really go by that.

[Amay]

Ummmm that's not very helpful then!! LOL

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Ummmm that's not very helpful then!! LOL

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

Vouching and tracing are like non-identical twins. LOL. I think my analogy makes it even more confusing.

It's easier to just think the situation if referring to existence or completeness.

Completeness is NOT in the FS that we are looking for.

Existence is actually in the FS that we verifying if it should be really there.

[Anonymous]

Vouching and tracing are like non-identical twins. LOL. I think my analogy makes it even more confusing.

It's easier to just think the situation if referring to existence or completeness.

Completeness is NOT in the FS that we are looking for.

Existence is actually in the FS that we verifying if it should be really there.

[Amay]

I would just think about this way then: You are testing additions, so an additions listing is your frame of reference. How do you determine that the additions included in the listing truly exist? You trace/vouch from the listing to other source document. In this case, the source document is the PPE Sub Ledger.

How do you determine that the additions listing is complete (i.e. not missing any)? You trace/vouch from other source document to the additions listing to make sure it is included. If an item that is in the PPE Sub ledger is included in additions listing, it is considered complete. If it is missing, it is considered incomplete.

Hope my logic helps a little bit.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

I would just think about this way then: You are testing additions, so an additions listing is your frame of reference. How do you determine that the additions included in the listing truly exist? You trace/vouch from the listing to other source document. In this case, the source document is the PPE Sub Ledger.

How do you determine that the additions listing is complete (i.e. not missing any)? You trace/vouch from other source document to the additions listing to make sure it is included. If an item that is in the PPE Sub ledger is included in additions listing, it is considered complete. If it is missing, it is considered incomplete.

Hope my logic helps a little bit.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Author]

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