[jeff]

Welcome to the Q2 2016 CPA Exam Study Group for AUD.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[marqzho]

To provide assurance that each voucher is submitted and paid only once, an auditor most likely would examine a sample of paid vouchers and determine whether each voucher is

Ans:
a.
Supported by a vendor’s invoice.
b. <—Ans
Stamped “paid” by the check signer.
c.
Pre-numbered and accounted for.
d.
Approved for authorized purchases.

How stamped paid can assure voucher is paid only once? What if there is a duplicated invoice?

REG 90
FAR 95
AUD 98
BEC 84

[FAR_WARS]

“each voucher is submitted and paid only once,”

it is talking about the physical voucher, so the answer makes sense. However you raise a good point about preventing duplicates.

also note for AUD questions that “most likely” is not the same answer as “most effective”

FAR- 80
BEC- 75
AUD- 78
REG- ?

[marqzho]

FAR_WARS

Thanks! that makes sense

REG 90
FAR 95
AUD 98
BEC 84

[cdn]

Anyone has an idea how to study ratios and their effect? They drive me crazy

[pyacpa49]

@capri1032

As far as memorizing the formula itself, not sure if there is much choice than to just memorize. Maybe flash cards with the formula on one side and the ratio name on the other?

When it comes to the effect, I am guessing you mean the affect that adjusting JE would have on them? Its hard to explain exactly how I do these, and I am by no means perfect at these types of questions, but I write down the JE and look at the impact each account in the entry has on the ratio. Many times the question just says something like “inventory on consignment was excluded from inventory.” Well this means that you need to put inventory back into your records. The entry would be Dr. Inventory Cr. COGS.

If the Ratio is Inventory T.O., the increase in inventory decreases this ratio ( Inv. T.O = COGS/Avg. Inv.). If the denominator increases the ratio decreases. The COGS decreasing would also decrease the ratio b/c the numerator decreasing causes the ratio to decrease.

Really hard to explain my thought process in words, but this is sort of how I tackle these questions. Not sure if that helps..

[If I can, u can too!]

@capri1032 u gotta have the ratios memorized inside out, then apply those to problems. surprisingly, i didn't use AL when i passed Aud b/c i got so many analytical SIM questions. it was one of those weird ones. don't spend time memorizing them. record the formulas on your phone and re-listen dozen times on your way to work.

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[pyacpa49]

OK this is it, test is Monday. Any last minute advice for the test? Especially the sims. I'm worried that the sims I am seeing in my studying are not going to be anything like what I see on the test. Anything that I should study last minute? My trending score for MCQs is around 85%, but this is skewed a bit because I try to do them at work a lot and it is impossible to concentrate fully on the questions. The Sims are really what have me nervous now. Any tips/tricks/advice/words of encouragement/CPA Exam life hacks are greatly appreciated.

[cdn]

Thanks @hokinizeu & @pyacpa49.
I think this that one part of AUD that I just have to memorize.
And kind of understand how specific scenarios affect the ratios.
My other weak point are assertions and what procedures should auditor use to test them. Need to study them hard.

[If I can, u can too!]

@pyacpa49 do all MCQs and all SIMs. last 2 times i failed i only solved 1000 MCQs; only the time i passed i solved all questions at least once, was trending 100% (with overall average of 89%). listen to cram lectures (crams boosted my scores by 2% in my xp when i passed it). do the 2 aicpa released question sets to see where you stand. look through your notes. gl!!!

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[pyacpa49]

@hokinizeu

Thanks for the advice. I started with Wiley and went through all of their questions and just got Ninja. I've gotten about 50% of the way through the MCQs for Ninja. Going to do some full practice tests and get through as many MCQs as I can without burning myself out.

Thanks for reminding me about the AICPA released questions, I completely forgot about those. More worried about the Sims than anything really. How much time should I plan to leave myself do you think?

[mindtheGAAP24]

Hey everyone! I am taking audit on the 19th of April (8 more days!) and have a good idea on 65-70% of the material. My progress tests vary from 68-89% and I wanted to ask for your advice here.

From your experience, do you think learning about weaker topics would be better by solving more MCQ's (learning from explanation) or re-reading the book more (aka compromising on MCQ time)

I have already read my becker book almost twice, rewrote my notes, solved all HW MCQ's including optional questions.

I know everyone is different at learning things but I just feel confused and would appreciate any tips/advice 🙂

FAR: 50, 74
AUD: 4/19/16
BEC: 6/10/16
REG: 9/10/16

[If I can, u can too!]

@pyacpa49, u want to leave at least 1.5 hrs so u can search the AL in case. Read the mcq question twice if u aren't 100% clear on what is being asked.

MindtheGAAP, it depends how u learn the best. I learn more by solving questions but I feel reading the text filled in the gaps the questions didn't cover. When u r solving questions, I would read the explanation of the answer so u learn surrounding conceptions on the asked questions.

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[cdn]

Question: when do we provide positive assurance and when negative – what is the easy way to remember it? Thanks

[pyacpa49]

@Capri1032

Positive assurance is used any time you give an explicit opinion on your examination. For example, in an audit you express that your responsibility is to provide reasonable assurance. You would also express an opinion on the financial statements, or state outright that you are unable to express an opinion for any of a variety of reasons (i.e. scope limitation).

Negative assurance is used when an opinion is not expressed, but some assurance is still provided in an engagement. In this case you would advise in your report that “nothing came to your attention” indicating that the subject matter does not meet certain standards. An example of this is a review engagement. In the review report you explicitly advise that it is more limited in scope than is an audit. You would make no mention of reasonable assurance. In the end you would say nothing came to your attention…”

As far as easiest way to remember it I don't have anything clever to help really, sorry. Best I can give is Positive Assurance= Reasonable Assurance; Negative Assurance = Limited Assurance.

[TheHoundThatRides]

@capri1032

On top of what pyacpa49 said, positive assurance is generally used for large balances. If a company has only six accounts that are all large enough to be material, it's very important to have accurate information on whether those amounts are correct. You want to specifically hear back from the people you reach out to that these are correct to get more assurance that there are no material errors.

Negative assurance is generally used when a company has a large amount of small, recurring transactions. An auditor doesn't want to be troubled by taking the time to review every single confirmation that comes in for the various tiny balances. There is a bigger chance that the recipients will just toss the auditor's request out without confirming the amount is correct, but as accounts tend to be small, it won't be a crucial, material error. It's a calculated risk that takes into account cost/benefit.

BEC - 78 (August 2015)
FAR - 80 (November 2015)
AUD - 73, 67. (Ok I gotta confess I was even more lazy this time around)
REG - August 27th, 2016

[Author]

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