[jeff]

Trying something new …

[redox1100]

i got this question in my materials which said, “an auditor observes the mailing of monthly statements to a client's customers and reviews evidence of follow-up on errors reported by the customers. This test of controls most likely is performed to support management's financial statement assertions of

….and the options of and/or/neither 1) understandably + classification and 2) existence

i have a question pertaining to this- the question says we are performing a test of internal control to support management's financial assertion. Now from my understanding i thought the purpose of test of controls was to test operating effectiveness and test of details were to test managements assertions in order to prevent material misstatement. According to this question there seems to be some overlap (that test of controls can sometimes test managements assertions).

In regards to answering the question i would believe observing statements sent to customers and following up on errors would support the existence assertion because we are testing if something actually exists in the f/s. If we as auditors observe statements regarding receivables, this would in fact provide evidence for existence. If you could please respond to my concern, i would greatly appreciate it. Thanks in advance.

[redox1100]

I actually just thought about what I posted and I think I have better understanding now. As auditors, if we can rely on internal control, we can perform tests on the internal control system to support management’s assertions. However, if internal control is weak, we must rely more heavily on substantive procedures to provide reasonable assurance that the f/s are free of material misstatements. Therefore, the question above presumes that internal control is strong and our tests on internal control and therefore support managements assertions. Any comments would be greatly appreciated in regards to this topic.

[TXNYC]

Repost

FAR - 79 (5/2011) expires 11/30/2012
BEC - 81 (7/2011)
REG - 76 (8/2011)
AUD - 69,70,70,86(10/2012) Finally got the AUD credit before FAR expires.

[TXNYC]

From Wiley TestBank,

Monthly statements are mailed to all customer with outstanding balance can find possible error & fraud:

1, Invoices for goods sold are posted to incorrect customer accounts;

2, Customers check are misappropriated before being forwarded to the cashier for deposit

3, customers' checks are credited to incorrect customer account….

FAR - 79 (5/2011) expires 11/30/2012
BEC - 81 (7/2011)
REG - 76 (8/2011)
AUD - 69,70,70,86(10/2012) Finally got the AUD credit before FAR expires.

[Shay]

Which of the following cash transfers results in a misstatement of cash at December 31, 20X1? Bank Transfer Schedule

Disbursement date Receipt date

Transfers

per books per banks per books per bank

a. 12/31/X1 01/05/X2 12131/X1 01/04/X2

b. 01/04/X2 01/11/X2 01/04/X2 01/04/X2

C. 12/31/X1 01/04/X2 12/31/X1 12/31/X1

d. 01/04/X2 01/05/X2 12/31/X1 01/04/X2

Choice “d” is correct. Since the disbursement was not recorded until January 20X2 while the receipt was recorded in December 20X1, cash will be overstated at December 31, 20X1.

Choices “a” and “c” are incorrect. Both the disbursement and the receipt are recorded in 20X1, so there will be no misstatement of cash at December 31, 20X1.

Choice “b” is incorrect. Both the disbursement and the receipt are recorded in 20X2, so there will be no misstatement of cash at December 31, 20X1.

help?

[Anonymous]

AUD re:re:re take10/22/12: Third time may be the charm

I am scheduled to take AUD on 10/22. This time the NNJA WAY! I am starting A1 today and re-writing the ninja notes. AND, going to do non-stop MCQ. Today’s challenge is to finish at least 50 mcqs.

[Jpgrocho]

@Shay

I can try….here it goes. The first thing I would do is eliminate choices A,B,and C because if you notice….per books…everything is recorded in the same period for those choices so there would be no misstatement. As for choice D, The disbursement should have been recorded in the same period that transfer was received by the other account which in this case is 20X1. Since the transfer out (disbursement) per books was not recorded until subsequent year, the books at year end are showing that money still in the account (that is has not been transferred out yet making the account look like the money is still in the account when its not) overstating the account.

10/03/12 AUD- 91!!!
12-07-12 BEC- 75!!! (Half way)
01/18/13 REG - 68, 78.
02/28/13 FAR -68, 65 11/6/13 PLEASE!!!!
Using Becker Self Study 2012

[Shay]

@Jpgrocho..when you say “per books” balance, are you looking under “disbursement” column or “receipt “

thanks

[M]

I'm schedualed to take the audit exam on saturday oct 6th. i just took 90mc test on wiley. got to 1st 2 sims and freaked out! one was about ratios and another was about transactions per bank and book. am even afraid to attempt!

i did 64% on mc's. should i take it on saturday? and if i reschedual where do i start my review. i'm so overwhelmed. and i dont want to take it to fail. i want to be 100% prepared.

:(:(:(

“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

[sbarkerACPA]

@Shay the question is asking which scenario shows the money being in both accounts at the same time for the purpose of showing more money than we really have on 12/31/XX.

Answer D shows that the transfer was in the both accounts. Per books on 12/31 we received 10k but the 10k was not disbursed/showed posted until 01/04.

BEC: 74;81
AUD: 77
REG: 71; 80
FAR: 78
License for CPA----APPROVED
CPA Class of 2013

[Shay]

@sbarkerACPA..Oh ok, we look at “per books” balances under “disbursement” and “receipt”. I was looking at “per banks” since definition of kiting or lapping, says, “bank balance in Bank A, and bank balance in Bank B etc….

thanks

[mrwills12]

Hi all,

I read on the AUD exam experience that candidates use the Auth Lit while working through their AUD simulations. I was just wondering how candidates are doing this and if it is worth the time on Exam day. I seem to never be able to find any help from it. Any ideas on my search techniques or comments? Thanks in advance

FAR - 88 (Jul 2012)
AUD - 85 (Oct 2012)
BEC - 82 (Nov 2012)
REG - 92 (Jan 2013) DONE!

Using Becker Self Study 2012

[silliepanda]

Ok so exam is closer to end of November so I have plenty of time. I started watching Becker lecture 1, but it seems like all I am doing is highlight or underline this underline that. How is everyone doing notes from this or should I use Ninja Notes?? Any advice is appreciated. Tonight I am finishing lecture 1 and hopefully doing notes so feedback please 🙂 🙂 🙂 Also, does anyone find watching all videos at once helps? Or by lecture. I know the Ninja way…just would like to hear from some people who actually do it that way.

Thanks and happy studies!

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

[Jpgrocho]

@Mrwills.

I just took the exam Wednesday, YES!!!! It is def. worth the time. Especially if you are not familiar with the simulation or just don't flat out know the answer. I am 100% sure I got three may four of my simulations right by using the literature tab. I was able to find my answers verbatim in the literature guide. I think it depends on the type of simulation you get as to how helpful the literature guide is. For example, I would think that the literature guide would be more helpful for sims on types of reports rather than sims on ratios. I used the search function and searched for key words. Then I would use the “search within” function hoping to narrow down my search. Its real comforting when you find your answer!

10/03/12 AUD- 91!!!
12-07-12 BEC- 75!!! (Half way)
01/18/13 REG - 68, 78.
02/28/13 FAR -68, 65 11/6/13 PLEASE!!!!
Using Becker Self Study 2012

[silliepanda]

My plan today is to watch 2 hours of A2 before work then when I get home finish the lecture, finish my chapter 1 notes and mcqs. Hope this goes well!! Good luck all!

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

[Author]

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