Definitely know the cycles, the parts of them and the assertions that need to be tested with regards to each. This is a key part of the exam and the whole audit process.
So for example, know the revenue cycle, each steps, the accounts that are part of those steps and the tests you would perform on those accounts as well as the assertions.
As for my approach, it helped to be an auditor for work, because I was able to think about what we do as far as tests, but if you do not have that experience, definitely read the becker materials in detail and perhaps try to mock up an example of the testing so that you understand what you are doing and why. For example start with cash and identify the key financial statement assertions.
Completeness
To determine that all cash transactions and account balances are recorded.
Occurrence and cutoff
To determine that all cash transactions occurring during the period have been recordedand in the proper period.
Valuation, accuracy, and classifications
To determine that all cash and related accounts have been included in the financial statements at accurate amounts, classified properly.
Existence
To determine that all recorded cash accounts exist at the BS date.
Disclosure and Presentation
To determine that all components of the financial statements and other transactions and events are accurately classified.
As an example for existence you could use a bank supporting document to test that assertion, or for petty cash you would do a recount.
For disclosure you would look to restrictions on the cash or reasons why it would have to be reclassified instead of just being considered normal cash.
etc.
BEC 87 Feb 14
REG 84 Apr 14
FAR 82 Nov 14
AUD 86 Feb 15
.