[jeff]

Trying something new …

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

[Heidi-O]

@Shay

The question is set up with the answer in it and it is a little confusing at first. Maybe I can help. The company names that we sent confirmation letters to, are listed in the column on the left (on page 52). We have to read the confirmation letters that they sent us (which begin on page 55) and then decide what action or inaction we should do (actions are on page 53).

The answers are already listed next to the company names in the test bank – so you may want to cover those up. Essentially, it will be a drop box choice option.

The flow chart process would be – Chip Corporation. Read Letter on Page 55. Decide from list of possible options on page 53. Put it next to the company's name on page 52.

Is that what you were looking for?

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[M]

@ sonya thank you for your input. i'll really have to understand and memorize ratios. even throughly going thru the sims may help.

and keep studying. people in your life will always need you. taking a break will make the info fly straight out of your brain! i took a break of more then 12yrs and was an at home mom. when i decided to go back last year i had to start from debits and credits!! the accounting language itself is hard to understand for me now! but what i have now on my side is time, since i dont work. i dont know how people do this and work full time!!!

“If you dont have time to do it right, when will you have time to do it over?"
FAR - 64, 81... exp 11/30/13
AUD - 54, 67 Retake Jan
BEC - Feb 28th
REG - TBD

[Heidi-O]

@Shay

More detail:

The Company that we are auditing ran an aged A/R trial balance for us. This Aged A/R shows us the name of the customer, and how much they owe us. These reports will show across the top the amount of days past due and the amount.

…………………………………………………The Company

…………………………………………….Aged Receivable Report

…………………………………………………as of Dec 31, Yr2

Customer………………….30days……………60days………..90days……….120+ days…..Total Due

Chip Co……………….$12,000.00………$65,000.00……$18,000.00………….0.00……..$95,000.00

Smith Co………………………0.00………………0.00…….$10,000.00…..$5,000.00……..$15,000.00

Tombs…………………..$6,000.00……….$2,000.00……………..0.00………….0.00………$8,000.00

(Sorry for all the dots, it was the only way I could get it to line up)

We, the auditors, will then pull some of the names (our sample group) and send out letters to them, asking them to please confirm that their balance owed to The Co we are auditing on Dec 31, 2012 (in this case). So we would send a letter to Chip stating that as of Dec 31, Yr 2 The Co. records show that you owe $95,000.00. Please send us confirmation that this balance is correct according to your records.

Chip Co replied that this was NOT correct, that according to their records they only owed The Co. $92,000.00 because The Co. does not have recorded a payment that was sent to them by Chip. Chip states that they sent payment of $3,000.00 on Dec 24 of Year 2.

We talk to the controller of The Co and they state “Yes, we got their payment on Dec 28 but it wasn't processed until January 4th”.

This means that cash is understated by $3,000, A/R is overstated by $3,000. Therefore we choose “Exception Noted. Propose adjustment and request that the controller post it to the accounting records.”

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[Shay]

@Heidi-O..My question was related to the answers. I know, problems starts from pg 55 to 60. I am more concern about answers on pg 61.

[silliepanda]

OK. So I took BEC today and am now moving forward to AUD. I take it in like 50 days so any tips as to which topics anyone found most difficult? Thanks!!!

BEC - TOO MANY FAILS TO LIST! July 2015 I WILL GET IT!
AUD - AUG 2015- NEVER PASSED!
FAR - LOST CREDIT
REG - PASSED

[Shay]

@Heidi-O..never mind my previous post, you probably posted it before my post. Let me review your post to see, if helps. thanks

@Sonyafm..for question CPA-03129- why isnt the answer C..Trace=from source doc to accounting record?

[L-Rawrrr-K]

I took AUD last evening in Brooklyn. It amazes me how varied the questions can be from exam to exam. The multiple choice questions were significantly more challenging than the AUD exam I took in August, and I found the simulations to be easier than ever. I had time to research most of my answer choices.

Now the month long wait for my score starts! Good Luck to everyone!

BEC - 44, 50, 57, 60, 65, 74, 71, 78; PASSED 8/6/2012
AUD - 47, 71, 78 (expired 12/31/2012),70, 79; PASSED 10/1/2012
REG - 65, 65, 69, 70, 72, 65, 81; PASSED 5/29/2012
FAR - 46, 63, 58, 72, 72, 75; PASSED 7/2/2012

[Shay]

There is no reading on Journal entries in AUD, but SIMs in Becker has some entries. I know these are just basic, but I am having trouble with A4 SIM 4.3.2?

[Sonyafm]

@ Shay,

The key words on that question are “Overstatement of Sales”, Becker emphasis that risk of Revenue Overstatement and Understatement of Expenses or Costs. When your concern is Overstatement of Revenue you go from GL to the source document to validated the existance of the revenue. The word “Trace” in this question adds confusion to the reader to think that it's going to be Document to GL (c) but is not because they was to detect overstatement is from GL or accounting record to Source Document.

C would be correct if the question was about Understatement of Expenses.

I hope I answered your question

[Shay]

@Sonyafm..k thanks

what about my other question regarding journal entries?

[Sonyafm]

@Shay

Sorry I missed your question. You are so right! I don't recall reading about journal entries in Becker program. I guess I didn't notice that until then because I have plenty of experience in that area. I am the accounting manager for trading company, so I see and review Journal entries like that one daily. I think the basic here is to know the Balance sheet and Income statements accounts. How to increase or decrease each type of general ledger account. For that section I recommend to go over the SIMs. Know how to record an expense accrual, adjust AR, Inventory, Sales, etc…

[Shay]

@Sonyafm..I understand the T – accounts and debit/credit increase.

A4 SIM 3.3. if you look at the solution. # 1 “The increase in AR will increase net receivables by more than the increase in daily net sales ….etc”

what does this means? didnt Sales and AR = $100

[Sonyafm]

@ Shay

I see how the term credit sales can be confusing. Think about Credit Sales = Credit to AR. Which is Dr. Cash Cr. AR when cash is collected.

It means that the customer have not pay for the billing of the $100; therefore, you have still have $100 in your AR aging as of Dec. 31st.

Does this help?

[Shay]

I guess I am not that good with ratios or journal entries. how much are these really important for the exam. I am started to think these are not that important….Got exam in 2wks…done with everything.

[foreseeableCPA]

Got my exam on saturday.. I didnt do to well on Becker's practice final exam. But I always get 80-90% on my progress tests. I felt that the questions on the Becker final exam were way specific. I am now freaked out..

CPA - Class of 2013
CIA - Class of 2016

[Author]

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