[funtiks]

I picked a topic I consider my weak point and created a random question which is similar to Becker/Willey WC’s.Example question:

“ABC firm hired a new accountant and you have to explain to him what master budget is and what are the processes of budgeting”

My quick 15 min answer:

“I understand that a new accountant of ABC firm is interested in learning about the master budget. This memorandum will explain and analyze the components of the master budget and the processes involved in developing a master budget.

Master budget contains ABC firms summary of individual budgets such as production budget, financial budget and direct material budget.

The first step in budgeting process is to develop a sales budget followed by production budget which consists of income statement and supporting documents. Next in the process is development of a financial budget which consists of balance sheet budget, cash flow budget and capital budget. Finally, you must develop an expenditures budget which includes direct material budgets, direct labor budget and actual overhead budgets.

I hope my explanation covered all points of the budgeting process. Feel free to contact me any time if you have any other inquires.”

I understand that I’m not completely correct with regard to content, but what about the structure?

how many points would you give me for this out of 15?

any critique is welcome and appreciated

English is not my native language and writing has never been my strong point, so I will take any help or suggestion I can get on how to improve.

thank you

FAR - 76*, 73, 85
BEC - 69, 72, 78*, 80
AUD - 72, 71, 90
REG - 71, 74, 85

AFTER 3 YEARS I'M DONE!!!

[teeteenounouche]

funtiks, it looks great but you should elaborate more. It seems too short. Also, put a blank line between paragraphs.

I can't remember where I got this from but I saved it:

1. Intro paragraph – State the purpose of the letter/memo to discuss the current issue; restate the problem; state that you will discuss the answers to the issue

3 meat paragraphs – topic resolution; topic resolution; topic resolution

Conclusion paragraph – restate the problem high level; state that you hope your evaluation with the issue was helpful for the reader to expand their understanding of the topic; state that you would be happy to assist them should they need further clarification.

Sign, Your Name

Below is an example from the AICPA released questions for 2013:

To: Management of Purft, Inc.

Re: Segregation of duties—accountant

The following memorandum has been prepared in response to your request that I discuss the internal control issues related to the tasks assigned to the staff accountant in his job description.

The control weaknesses are significant.

Internal controls rely heavily on segregation of incompatible duties that could potentially allow an employee to process a transaction from beginning to end without any effective oversight. Segregation of duties helps prevent fraud by requiring that multiple parties collude in order to process transactions either incorrectly (commit errors) or fraudulently (commit irregularities).

Generally speaking, transaction authorization should be segregated from transaction recordkeeping. And the underlying custody of assets associated with authorization and record keeping should be segregated from both.

In multiple instances, the job description of the staff accountant combines incompatible functions. For example, the endorsement, coding, and recording of checks received for deposit should not be combined with accounts receivable subledger reconciliations. The opportunity for misapplication of receipts to incorrect accounts increases as one person handles the custody (coding) and record keeping (recoding and reconciliation) of this end of the revenue cycle. In addition, the custody of accounts payable checks mailed to vendors should not be combined with the record-keeping function associated with reconciliation of accounts payable and various asset (fixed asset and investment) subsidiaries. Falsified transactions could go undetected for significant periods if checks are handled inappropriately and no adjustment is made to the underlying accounting records.

The discussion above is not exhaustive; however, the job description of the staff accountant includes a number of incompatible duties that compromise and weaken internal controls. I would be delighted to meet with you further and discuss options to separate duties more effectively among members of your finance group.

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[teeteenounouche]

funtiks, it looks great but you should elaborate more. It seems too short. Also, put a blank line between paragraphs.

I can't remember where I got this from but I saved it:

1. Intro paragraph – State the purpose of the letter/memo to discuss the current issue; restate the problem; state that you will discuss the answers to the issue

3 meat paragraphs – topic resolution; topic resolution; topic resolution

Conclusion paragraph – restate the problem high level; state that you hope your evaluation with the issue was helpful for the reader to expand their understanding of the topic; state that you would be happy to assist them should they need further clarification.

Sign, Your Name

Below is an example from the AICPA released questions for 2013:

To: Management of Purft, Inc.

Re: Segregation of duties—accountant

The following memorandum has been prepared in response to your request that I discuss the internal control issues related to the tasks assigned to the staff accountant in his job description.

The control weaknesses are significant.

Internal controls rely heavily on segregation of incompatible duties that could potentially allow an employee to process a transaction from beginning to end without any effective oversight. Segregation of duties helps prevent fraud by requiring that multiple parties collude in order to process transactions either incorrectly (commit errors) or fraudulently (commit irregularities).

Generally speaking, transaction authorization should be segregated from transaction recordkeeping. And the underlying custody of assets associated with authorization and record keeping should be segregated from both.

In multiple instances, the job description of the staff accountant combines incompatible functions. For example, the endorsement, coding, and recording of checks received for deposit should not be combined with accounts receivable subledger reconciliations. The opportunity for misapplication of receipts to incorrect accounts increases as one person handles the custody (coding) and record keeping (recoding and reconciliation) of this end of the revenue cycle. In addition, the custody of accounts payable checks mailed to vendors should not be combined with the record-keeping function associated with reconciliation of accounts payable and various asset (fixed asset and investment) subsidiaries. Falsified transactions could go undetected for significant periods if checks are handled inappropriately and no adjustment is made to the underlying accounting records.

The discussion above is not exhaustive; however, the job description of the staff accountant includes a number of incompatible duties that compromise and weaken internal controls. I would be delighted to meet with you further and discuss options to separate duties more effectively among members of your finance group.

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[Anonymous]

@teeteenounouche Thank you thank I forgot that C stands Custody in ARC I have been racking my brain looking at all my notes for the past 15 minutes. I struggle with with BEC it has turned into the Beast!! I feel stupid because everyone says its easy. With 4 weeks to study for my retake I need to get my ducks in order.

Also thanks for the format.

[Anonymous]

@teeteenounouche Thank you thank I forgot that C stands Custody in ARC I have been racking my brain looking at all my notes for the past 15 minutes. I struggle with with BEC it has turned into the Beast!! I feel stupid because everyone says its easy. With 4 weeks to study for my retake I need to get my ducks in order.

Also thanks for the format.

[runnerup]

I hate writing and only scored “comparable” on my WC portion, so feel free to disregard my input!

Good: You have an appropriate intro, middle, and end. It is on topic and relevant.

Could work on: punctuation and you're missing some “the” (sorry, that thought is written awkwardly).

For example, in the second paragraph: “Master budget contains ABC firms summary…” should be “The master budget contains ABC firm's summary…”

I didn't write much more than you did on my WCs. I think I had a 2 paragraph “middle” section. I also forgot to sign them.

REG 10/12/13 - 94
FAR 10/17/13 - 93
AUD 11/11/13 - 92
BEC 11/20/13 - 87
ethics 11/27/13 - 92%

[runnerup]

I hate writing and only scored “comparable” on my WC portion, so feel free to disregard my input!

Good: You have an appropriate intro, middle, and end. It is on topic and relevant.

Could work on: punctuation and you're missing some “the” (sorry, that thought is written awkwardly).

For example, in the second paragraph: “Master budget contains ABC firms summary…” should be “The master budget contains ABC firm's summary…”

I didn't write much more than you did on my WCs. I think I had a 2 paragraph “middle” section. I also forgot to sign them.

REG 10/12/13 - 94
FAR 10/17/13 - 93
AUD 11/11/13 - 92
BEC 11/20/13 - 87
ethics 11/27/13 - 92%

[Gatorbates]

Don't feel stupid. For me, BEC was the beast too. Each person is different and has their own strengths and weaknesses. BEC was my weakness hands down.

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Gatorbates]

Don't feel stupid. For me, BEC was the beast too. Each person is different and has their own strengths and weaknesses. BEC was my weakness hands down.

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Author]

Replies