[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for AUD.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

[GiniC]

@mycpastudy –

@forem004 just took AUD on Monday after working in auditing for five years. She may be in occasionally the next few days, but you may get some insight looking back for her previous posts.

[Ny1105]

Thanks @Ginic

Yea, that is true. However, I think in most of these questions they are asking for the assessment of RMM (Increase/decrease).

Another problem I saw was if for example, CR went up, DR would obviously drop down, but if AR was also in the question would AR go down to.

So basically, because of a increase in CR, both DR and AR would decrease.. Or would it just be CR and DR in inverse answers……

I searched a lot on this forum and they have so many different responses to this type of question.

[GiniC]

@Ny1105 – as I understand the intent, you're trying to keep AR at the level you originally set as acceptable. They may be testing whether you understand that the point is to keep the left side of the equation the same, so the two terms on the right have to move in opposite directions. In your example that includes AR, if circumstances raised your assessment of CR and you compensate by lowering DR, then AR shouldn't change.

At least that's how my audit instructor used to pose questions on the audit risk model.

[Ny1105]

thanks mate for the info.

Few more hours until my exam! Goodluck with yours!

[GiniC]

OK, everyone who is going to test in Q4 has done it by now. See you all in the Score Release Agony forum! (I created it yesterday)

I hope you all did well!

[pharaoh]

Took what they call the exam today!! It was a slapping machine. Testlets Medium-BRUTAL-Hard/WTH and most Sims were ok but there was one that i had no idea what i am doing. Overall very disappointed that after all of this time spent, I might not pass

FAR 8/2016
AUD 1/2017
REG TBD
BEC TBD

[GiniC]

Hang in there @Pharaoh! Sending you all the good vibes I can afford! May be both be done with this one…

[jeff]

Test Your Might – 6 Winners will be drawn: https://www.another71.com/cpa-exam-forum/topic/test-your-might-bec-mcq-6-winners/

[Rhunter]

Greetings,

Need help understanding something AUD related.

Question:
In confirming a client's accounts receivable in prior years, an auditor discovered many differences between recorded account balances and confirmation replies. These differences were resolved and were not misstatements. In defining the sampling unit for the current year's audit, the auditor most likely would choose:

A. customers with credit balances.

B. small account balances.

C. individual overdue balances.

D. individual invoices. (correct)

Explanation:
These differences were resolved and were not misstatements; the auditor's professional judgment indicates that a different attribute, such as individual invoices, rather than accounts receivable balances, should be chosen to avoid the resolved differences experienced in the prior years' audits.

My confusion:
I don't understand what the explanation means by avoiding the prior years' resolved differences. Does this mean that the auditor doesn't want to give the client the opportunity to amend their misstatements once again in the current audit by chooseing a different sampling unit? Is my interpretation of this correct?

Thanks in advance.

[Forem004]

It's not that the auditor doesn't want to give them the chance to amend, the auditor just doesn't want the issue at all. When there are problems with an audit procedure, it should be changed for the following year.

@mycpastudy, I did not shed any time off my studying for this section. If anything, I did more because I was concerned my knowledge would make me over confident. I would not have even considered shedding time if I had taken this exam four years ago. I'm glad I did not, because I'm not that confident in my score. If a topic could be deemed a rare audit occurrence, it was on my exam. I am praying for a 75!

[Rhunter]

Thanks for the reply Forem004.

[Forem004]

The website holds true to its name…another 71! 🙁

[Anonymous]

I am sorry to hear that, Forem004. You'll get it next month.

[ahsq]

@Pharaoh

and yet you got 93! I failed AUD with a 74, do you mind sharing some of your best study techniques for audit? specially the transaction cycle?

[pharaoh]

@ahsq Sorry to hear about your 74, hang in there.

I still don't know exactly how I got that score. First thing I told my wife after the exam that I am not sure what should had I studied to be able to answer the questions? And I told everyone that I am going to schedule a re-take, that's how bad I felt about it.

Generally, I watch Roger lectures and highlight in the book, after each chapter I would do some MCQ and would make notes of what I got wrong or wasn't sure when i answered. After I finish all Roger MCQ, i switch to Ninja MCQ. I always do “New Questions” and take notes of wrong ones. At the end, I go through all the “Missed Questions”. With AUD, I hit the review stage 2 weeks before the exam so I did reset my score and started from the beginning an did around 600 MCQ.
In the last week, I was mixing between Ninja and Roger's Sims and MCQs, went through my notes, all kind of reports, letters and would go back to the book on the weak areas.

For the cycles, I summarized the steps in my notes, for example in the revenue cycle i put
1- Sales Order received from customer
2- Credit Check – Credit Dept – Authorization – Helps in AR Valuation
and so on

Hope this helps. Good Luck

FAR 8/2016
AUD 1/2017
REG TBD
BEC TBD

[Author]

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