[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

[barelystayingsane]

To add to what curious dude said, GAAS requires that you state that management is responsible for the design, implementation, and maintenance of internal controls, whereas ISAs use the verbiage “whatever management determines is necessary to keep the financial statements free of material misstatements” or something along those lines.

Also, curious dude, remember that GAAS, not GAAP, deal with standards, including report presentation.

[barelystayingsane]

@10key I can't help with the first example, but for the second example, to start things off, you would never really perform an audit of interim financials. You would perform a review, which as you mentioned, is negative assurance. I know it's nitpicky, but it's important to distinguish between the two. An audit is an assurance engagement, an attestation engagement, and an audit engagement. A review is only an assurance engagement and an attestation engagement.

I don't know any situation where a user of a financial statement would really need to have positive assurance that an interim financial was free from material misstatement. Therefore, accountants just perform a review, which provides some assurance, albeit a lower level of assurance.

[barelystayingsane]

@10key I can't help with the first example, but for the second example, to start things off, you would never really perform an audit of interim financials. You would perform a review, which as you mentioned, is negative assurance. I know it's nitpicky, but it's important to distinguish between the two. An audit is an assurance engagement, an attestation engagement, and an audit engagement. A review is only an assurance engagement and an attestation engagement.

I don't know any situation where a user of a financial statement would really need to have positive assurance that an interim financial was free from material misstatement. Therefore, accountants just perform a review, which provides some assurance, albeit a lower level of assurance.

[TinyBear]

BECKER SELF STUDY – WHAT'S WORKING FOR ME

Hey everyone. I took auditing back in July and failed with a stupid 73. Due to current financial constraints and pure stubbornness, I am reusing the same Becker materials to completely go through the auditing course again. I will tell you, auditing is my weak point and I hate it… so it sucks that I'm here doing all this again. But I digress.

I've been creeping on this forum for a while to see what works best for everyone. The first time through Becker Audit, I did all the mindless highlighting and little note-taking… Sorry, but who decided that was a good way to learn? With audit round 2, I am going through all the videos… but I have not touched my book. I am simply listening to Tim Gearty and taking notes that I think will help me. It requires pausing the videos at times, so it's definitely taking longer. But I'm finding that I'm actually learning and retaining the information WAY MORE than I did the first time through the course. The first times through the homeworks are turning out so much better… and I assure you it's not because I memorized them or really learned anything the first time through the course. So anyway, if anyone is doing Becker self-study and looking for a better way to get the job done, NOTE-TAKING has helped me tremendously.

This post may seem stupid or totally obvious to some of you… But hopefully it will reach someone going through the Becker-prescribed routine. Coloring a page in highlighters just doesn't do it for me.

Well back to the grind… I have a deadline to meet tonight! Good luck, my fellow CPA slaves!

p.s. not 100% hating on Becker… I passed the other three tests with it. Only hating on it for my weakest subject.

FAR - 79
AUD - 73, 85
REG - 88
BEC - 80

Becker Self Study, Becker Flashcards, and Some Wiley TB
TX Candidate

[TinyBear]

BECKER SELF STUDY – WHAT'S WORKING FOR ME

Hey everyone. I took auditing back in July and failed with a stupid 73. Due to current financial constraints and pure stubbornness, I am reusing the same Becker materials to completely go through the auditing course again. I will tell you, auditing is my weak point and I hate it… so it sucks that I'm here doing all this again. But I digress.

I've been creeping on this forum for a while to see what works best for everyone. The first time through Becker Audit, I did all the mindless highlighting and little note-taking… Sorry, but who decided that was a good way to learn? With audit round 2, I am going through all the videos… but I have not touched my book. I am simply listening to Tim Gearty and taking notes that I think will help me. It requires pausing the videos at times, so it's definitely taking longer. But I'm finding that I'm actually learning and retaining the information WAY MORE than I did the first time through the course. The first times through the homeworks are turning out so much better… and I assure you it's not because I memorized them or really learned anything the first time through the course. So anyway, if anyone is doing Becker self-study and looking for a better way to get the job done, NOTE-TAKING has helped me tremendously.

This post may seem stupid or totally obvious to some of you… But hopefully it will reach someone going through the Becker-prescribed routine. Coloring a page in highlighters just doesn't do it for me.

Well back to the grind… I have a deadline to meet tonight! Good luck, my fellow CPA slaves!

p.s. not 100% hating on Becker… I passed the other three tests with it. Only hating on it for my weakest subject.

FAR - 79
AUD - 73, 85
REG - 88
BEC - 80

Becker Self Study, Becker Flashcards, and Some Wiley TB
TX Candidate

[Jsingh23]

Hey guys…confused with this question…definitely thought it was C…When we are tracing we are testing for completeness right? I understand that cut off procedures ensure that inventory is properly recorded in the correct period..but how does that also satisfy the completion assertion…

Which of the following procedures would be most appropriate for testing the completeness assertion as it applies to inventory?

a. Scanning perpetual inventory, production, and purchasing records.

b. Examining paid vendor invoices.

c. Tracing inventory items from the tag listing back to the physical inventory quantities.

d. Performing cutoff procedures for shipping and receiving.

Explanation

Choice “d” is correct.

AUDIT-89
BEC-83
REG-78
FAR- April 19

[Jsingh23]

Hey guys…confused with this question…definitely thought it was C…When we are tracing we are testing for completeness right? I understand that cut off procedures ensure that inventory is properly recorded in the correct period..but how does that also satisfy the completion assertion…

Which of the following procedures would be most appropriate for testing the completeness assertion as it applies to inventory?

a. Scanning perpetual inventory, production, and purchasing records.

b. Examining paid vendor invoices.

c. Tracing inventory items from the tag listing back to the physical inventory quantities.

d. Performing cutoff procedures for shipping and receiving.

Explanation

Choice “d” is correct.

AUDIT-89
BEC-83
REG-78
FAR- April 19

[barelystayingsane]

I remember one of the explanations to a Becker question stating something along the lines of “vouching and tracing are sometimes used interchangeably,” which really ticked me off. I don't know about that. I guess, moral of the story is read the whole question instead of looking for keywords. I also got this question wrong way back when.

Anyway, for letter c, you are not moving from the tag listing to management's inventory report as we drew in that diagram for Becker. Rather, we are moving from the tag listing to the ACTUAL inventory, NOT management's report on its count. Thus, checking to see if a tag listing was included in the actual inventory would be a test of existence. Does this tag actually exist in the physical inventory?

Now, let's say that you have some inventory being delivered to you that's FOB shipping point but has not yet arrived at the end of the year. That means that title passes to us, so it's technically our inventory even if it's not in our hands yet. We would need to perform cutoff procedures to make sure that our year-end inventory balance is complete (i.e., that it included those goods still in transit).

[barelystayingsane]

I remember one of the explanations to a Becker question stating something along the lines of “vouching and tracing are sometimes used interchangeably,” which really ticked me off. I don't know about that. I guess, moral of the story is read the whole question instead of looking for keywords. I also got this question wrong way back when.

Anyway, for letter c, you are not moving from the tag listing to management's inventory report as we drew in that diagram for Becker. Rather, we are moving from the tag listing to the ACTUAL inventory, NOT management's report on its count. Thus, checking to see if a tag listing was included in the actual inventory would be a test of existence. Does this tag actually exist in the physical inventory?

Now, let's say that you have some inventory being delivered to you that's FOB shipping point but has not yet arrived at the end of the year. That means that title passes to us, so it's technically our inventory even if it's not in our hands yet. We would need to perform cutoff procedures to make sure that our year-end inventory balance is complete (i.e., that it included those goods still in transit).

[Anonymous]

I just took two quizzes on Planning Engagement and Materiality/Risk and my biggest frustration is when I see the correct answer to one I got wrong and realize I KNEW the answer. Why the heck did I choose an incorrect answer??? I can't imagine how many times I did that on the actual test. Really lowers the confidence level.

[Anonymous]

I just took two quizzes on Planning Engagement and Materiality/Risk and my biggest frustration is when I see the correct answer to one I got wrong and realize I KNEW the answer. Why the heck did I choose an incorrect answer??? I can't imagine how many times I did that on the actual test. Really lowers the confidence level.

[Anonymous]

Totally understand your situation, CPAMommyof3. I think I may have done the same thing in my most recent test. We do not get much feedback from NASBA for evaluating our exam performances, so my best guess at an explanation is that my test anxiety prompts me to grab the first answer that looks appropriate. I am trying to teach myself to read the questions twice and more slowly.

[Anonymous]

Totally understand your situation, CPAMommyof3. I think I may have done the same thing in my most recent test. We do not get much feedback from NASBA for evaluating our exam performances, so my best guess at an explanation is that my test anxiety prompts me to grab the first answer that looks appropriate. I am trying to teach myself to read the questions twice and more slowly.

[Anonymous]

Thanks Acolyte. I think you're absolutely right. I allow the answers to confuse me and pick the first acceptable answer, not the best answer. I need to go more slowly as well.

One thing I consistently miss is that “Supervising the audit staff” is part of Due Professional Care (General Standard) and I naturally want to place it with Planning and Supervision in the Standards of Fieldwork. It's those types of things that make more sense in other categories that trip me up every time.

[Anonymous]

Thanks Acolyte. I think you're absolutely right. I allow the answers to confuse me and pick the first acceptable answer, not the best answer. I need to go more slowly as well.

One thing I consistently miss is that “Supervising the audit staff” is part of Due Professional Care (General Standard) and I naturally want to place it with Planning and Supervision in the Standards of Fieldwork. It's those types of things that make more sense in other categories that trip me up every time.

[Author]

Replies