[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

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

[Anonymous]

You know you're an auditor when you read an AUD MCQ that starts with “n February 25, a CPA issued an auditor's report expressing an unqualified opinion on financial statements for the year ended January 31.” and all you can think is, “yeah right…no way would FS be issued that fast for a January 31, YE” 🙂

[Anonymous]

Would love some advice regarding auditing of cycles.

Some of the few MCQ that give me extreme difficulty.

Should I just keep reading the Becker text on this chapter and MCQ? This issue is probably stemming from my lack of experience in audit.

[thechapman]

This might just be me fishing for a little reinforcement, but does anyone think that this is enough prep for audit? Went through all the lectures taking very detailed notes, did all the homework and sims for each during that first round, and this past week I have redone the homework for each chapter. After taking FAR this seems like hardly any studying, but I only had 21 days in between sitting for FAR and sitting for AUD tomorrow. Anyone think that prep seems like enough, or am I kidding myself to think that?

Also, @_Nick_ what exactly is giving you trouble with transaction cycles? Just all the details that are specific to each cycle?

Passed - 2014

[Anonymous]

@thechapman, yep

Like assertions relative to certain procedures. I think I'll just keeping reading the chapter and working MCQ til it sinks.

[thechapman]

@_Nick_ do you happen to still have an audit book from college? I think mine explained that stuff much better than Becker did. Something I think is overlooked is learning all the documents and the order of them. You may know that you need to trace from a source document to the FS, but if you don't know that a purchase requisition comes before a purchase order then it makes it very difficult to get the questions correct.

Passed - 2014

[Anonymous]

It's definitely more the vocabulary and the business processes.

This is humbling. Wrong MCQ after wrong MCQ.

[willpassby2014]

When an auditor selects a sample of items from the vouchers payable register for the last month of the period under audit and traces these items to underlying documents, the auditor is gathering evidence primarily in support of the assertion that

Recorded obligations were paid.

Incurred obligations were recorded in the correct period.

Recorded obligations were valid.

Cash disbursements were recorded as incurred obligations.

I thought when we go from accounting records to source document the assertion is completenees and not existence. The answer is

Recorded obligations were valid. Any one can explain me why

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

@willpassby2014- think about it this way- what do the underlying documents tell you? Do they tell you that they were paid? Nope. Do they tell you that there were recorded in the proper period? Nope. Do they tell you that the cash disbursements were recorded as incurred obligations? Nope. But they do tell you that the recorded obligations were valid.

Jeff has a handy little memory tip for this. Tracing is for completeness and vouching is for existence. The way to remember this, per Jeff, is that C comes before E, and T comes before V. Those NINJA audios were pretty awesome!! 🙂

[Anonymous]

Random question for anyone using Becker- in A2 for the little mnemonic they give you to remember the format of the Compilation report…does it drive anyone else crazy that Gearty cannot pronounce ARSOM? He keeps saying ARMSOM. Smart dude but clearly cant read 😀

[Anonymous]

Also, WTF kind of mnemonic is this? “AMISAD MRFIR SALA”. I would be better off memorizing the entire compilation report rather than that gibberish lol

[Anonymous]

The nmenomics are absurd, Amanda_88

[Anonymous]

Ratios in appendix? I'm guessing I should spend the time to memorize and interpret?

[Anonymous]

For people using Becker..I'm listening to A2 (last section of A2) where he is going over the attestation standards and he says they're “just like our audit opinions where you had your 3 general standards, your 4 reporting standards, and 3 fieldwork standards”. I can't figure out what's he referencing- did I totally miss something in A1?

[thechapman]

@Amanda_88

That must be something they missed when updating because I believe those are the old GAAS standards. As long as My 2014 Becker isn't deceiving me now there are 5 general standards, 2 fieldwork standards, and 4 reporting standards for attestation engagements. I had the same question a couple weeks ago.

Passed - 2014

[Anonymous]

Okay, I could have sworn I heard that there were no longer GAAS standards. I was really confused for a minute. Thanks!

[Author]

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