[Anonymous]

Which of the following levels would most likely address the risk of material misstatement by the auditor’s consideration of an entity’s control environment?

A.Financial statements

B.Disclosures

C.Classes of transactions

D.Specific account balances

ANSWER: In order to reduce audit risk to an acceptably low level, the auditor should determine overall responses to address risks of material misstatement at the financial statement level, not at the disclosure level, class of transactions level, or specific account balance level.

Audit procedures should address the assessed risks of material misstatement and emphasize to the audit team the need to maintain professional skepticism in gathering and evaluating audit evidence, assign more experienced staff or those with specialized skills such as specialists, provide more supervision, or incorporate additional elements of unpredictability in the selection of further audit procedures to be performed.

I'm tired of operating in fear and mediocrity. It's time to try. It's time to do. It's time to go.

[Anonymous]

all it's saying is that the auditors should take a top-down approach. look high level at the financials as a whole, to see if anything looks off or fishy, or find areas to focus in on. then, zone in from there.

[Anonymous]

From Wiley Module 3: Understanding Internal Control and Assessing Control Risk

“The controls generally most relevant to audits are those that pertain to the entity's objective of preparing financial statements for external purposes.”

And control environment is one of the five major components of internal control.

So I guess the point is that financial statement-level misstatements are the most important? Like duh?

[sacpa]

@calvinus: I just cannot help but notice your scores with 2 75s & a 78. To me, that indicates a clever & smart strategy to score 75 & some or maybe you did not get lot of questions that you studied for. For some reason, I think the first option applies.

Any suggestions, strategies & tips to share?

Good luck for BEC!

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Anonymous]

Thanks, I do have an unconventional approach (i.e. flashcards instead of MCQ's) that eventually resulted in multiple passes, but because the scores are so borderline I'll never really know what made the difference. Maybe God just had to do something after almost two years of hideous failure lol.

[sacpa]

@calvinus: Can you elaborate about your approach? Did you just use flashcards instead of doing hundreds, if not thousands of mcqs? Just want to know how flashcards are used most effectively. Do you think flashcards helped you with sims as well? Thanks in advance!

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Anonymous]

Yes, I did FAR, REG, and BEC without MCQ's, but otoh the flash cards were derived from MCQ's (and text), so maybe same difference.

Total cost about $100, and the best part is no studying required except flipping through the flash cards for about an hour a day.

[sacpa]

@calvinus: Thanks for responding! I have heard about people passing without doing the lessons & jumping straight to do mcqs. But this is the first time I heard of someone passing without studying & using only flashcards daily. I guess maybe the fact that the preparing flashcards from mcqs & text made the difference. Nevertheless, I am glad that it worked for you.

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Anonymous]

Yeah, not sure I'd recommend the DIY approach unless you're strongly self-motivated. Just wasted way too much time flailing around without any kind of plan or structure.

[sacpa]

@calvinus: I am just going to add flashcards along with mcqs, sims, audios & notes & not rely only on flashcards. This time around, I am determined to be really thorough with the concepts using all the above mentioned.

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Anonymous]

Good luck! And no need to go overboard – about 100 flashcards should be enough. I do wonder how that guy did who said he had over 1,000.

[sacpa]

@calvinus: 1,000 flashcards? Wow! Is that the total # for all 4 sections?

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Anonymous]

It was all for FAR (understandable?):

“I read/understood all 20 chapters, made flashcards (average 55 flashcards per chapter)”

[sacpa]

No kidding! Hope that helped him to pass. Btw, I love your signature.

I hope the OP is not offended that we have hijacked the post. Sorry, Born to win! That was not my intention.

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Anonymous]

It's from a beautiful old American hymn, if sadly incomprehensible to non-believers and probably many “Christians” today as well.

https://www.hymntime.com/tch/htm/i/l/e/ilefiawj.htm

[sacpa]

Beautiful! Thanks for letting me know, calvinus!

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Author]

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