[Anonymous]

Hello all. I have watched the lecture on Becker A4 – Audit Evidence, and I just completed the MCQs after reviewing the textbook and Ninja Notes twice, and I am considering this the first time I have “hit a wall” in the study process. I think that my difficulty lies in the fact that I cannot figure out the “big picture” of the transaction cycles and I cannot figure out what material is essential to memorize relating to this topic. I just got ripped apart on the MCQs for “Audit Procedures By Transaction Cycle” and I am struggling to find a way to “master” this material. I am already over my budgeted time for A4 and I am wondering if anybody has any advice for coping with this awful topic. Thank you in advance!

[marwan]

Okay , To master this area you need to understand how every transaction cycle happens and then you will find it easy to know what the auditor has to do.

For example, The revenue cycle:

1-Sales department prepares sales order and send it to credit department for approval.

2-Credit department approves sales order and send it to shipping, billing , and accounting department.

3-shipping department prepares a bill of lading and sent to customer.

4-The billing department prepares sales invoice and send it to customer.

5-The accounting department records sales in the sales journal.

So, if the auditor wants to test (completeness) TRACE : he will start withe sales order and find whether it has been approved and then test shipping documents compared to sales invoice etc… till the sales journal.

If, the auditor wants to test (existence) VOUCH : he will start with the sales journal back to the sales invoice compared to the shipping documents and the sales order.

Hope it helps and good luck

AUD - 71
FAR - 54
REG - N/A
BEC - N/A

[Anonymous]

@marwan Yes, this actually does help a whole lot. I like the way you simplified the Revenue Cycle in bullet points, and I am going to do the same thing for the other cycles to better understand the idea of each one. The book throws so much extra junk at you and I think that we are better off filtering it out and focusing on the big ideas until we go through practice questions to see how it actually applies.

I see that you are taking the exam in just over a week.. Good luck, and I hope that you crush it and get back at it for consuming our lives!!

[Author]

Replies