[Anonymous]

Ok so I understand the inverse relationship between RMM and DR. My question is since you do more substantive tests if DR is low. Does that mean planning to do more substantive tests in this years audit raises DR? If not, what does doing more substantive tests do to your audit risk equation.

Thanks in advance!

[taxman89]

at the risk of pissing off jeff…..just came across this part in his ninja notes

Auditor CAN control DR

§ Do more testing at year-end

§ Increase substantive testing

o Less Acceptable DR = Run More Substantive Tests

o More Acceptable DR = Run Less Substantive Tests

o More Substantive Tests = Less Audit Risk

§ Detection Risk decreases

§ (↓AR = IR x CR x ↓DR)

o Less Substantive Tests = More Audit Risk

§ Detection Risk increases

§ (↑AR = IR x CR x ↑DR)

its only one page and no one can say it better than jeff (if i suck up maybe he wont mind that i posted 1/2 a page of his notes:D)

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[jeff]

ha – it's all good. I give away a whole chapter of each section anyway (the real version doesn't have the weird squiggly things).

[jeff]

ha – it's all good. I give away a whole chapter of each section anyway (the real version doesn't have the weird squiggly things).

[jeff]

Study Monk – I saw that your exam is tomorrow and that you're not solid on Audit Sampling…some BLITZ videos to help cram:

[jeff]

Study Monk – I saw that your exam is tomorrow and that you're not solid on Audit Sampling…some BLITZ videos to help cram:

[Anonymous]

@Jeff as usual very generous 🙂 U rock!!

[Anonymous]

@Jeff as usual very generous 🙂 U rock!!

[Study Monk]

Thanks Jeff, I really appreciate it!

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

Thanks Jeff, I really appreciate it!

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Author]

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