[Anonymous]

I recently failed FAR and AUD pretty miserably. Friends and Blogs have told me to eliminate the immediate wrong answers and narrow it down to 2 possible answers and go with the “best answer” instead of correct? what does that mean?

[Anonymous]

not a perfect example but I hope it makes the point

2+2=

a. 3

b. approximately four

c. a number greater than 3.5

d. 4

correct answer: d

I feel like this type of questions only really shows up on AUD

[Anonymous]

what your saying is that there will always be a one dummy answer, two almost correct answer and one correct answer?

[Anonymous]

no. I am saying 2+2 = 4

4 is the most precise and best answer

[Anonymous]

how about this example, If an auditor were to trace the inventory cycle to determine if there were obsolete or damaged goods and slow moving items. Which financial assertion would the auditor perform?

A.Completeness

B.Existence

C. Valuation and Allocation

D.Understandability

Shouldn't the answer be C? since when you trace for inventory cycle you are generally more relevant with existence instead of completeness.

[rzrbkfaith]

In AUD the best choice situations usually come in the form of order of audit procedures. Do you asses internal control first or do substantive testing? Both have to be done, but you would assess controls first to determine the extent of substantive testing. It's questions like that where you need to know not necessarily what the procedures are, but also the order they are performed in. Hope this helps! Good luck!

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[June2016]

This is what makes CPA exams so hard, the questions try to trick you this way. It is not always the case but sometimes you get a question and more than 1 choice looks like the correct answer. If you see a question like that and you are sure that there is more than 1 correct answer, as Darcer said you choose the more precise one.. the one that is the most important answer.

I always get mad at these type of questions it is so frustrating. For example if it is asking for a definition of something, 1st possible answer is the definition and the 2nd possible answer is maybe a characteristic or some minor aspect of the term. Choose the 1st answer.. the more important aspect of the term.

[Anonymous]

here's an example- on the BEC exam, I had a question regarding _______ and was asked the effect on the financial statements. The only financial statement _______ affects is the balance sheet (as part of denT, wink wink). Three choices hit the income statement, one choice hit the balance sheet. However, the effect on the balance sheet was opposite of what the choice was. Yet, because I knew _____ affected the balance sheet, and not income statement, the BEST answer was the one dealing with the balance sheet, even though it was wrong.

[Anonymous]

@rzrbkfaith I do understand IC and Substantive testing must be done and IC comes before Substantive testing to determine the extent of the test. So would the answer to my example be A. Completeness? Because the whole primary purpose of observation of inventory is to establish the existence of it, which inventory observation is a substantive procedure or do i have this all backwards?

[Anonymous]

@Damien, the answer to your question is C. Obsolete/slow-moving items would suggest items cannot sell, therefore, should be written off.

[rzrbkfaith]

@Damien – No, your answer is C because obsolete and slow moving inventory has to do with the valuation of the inventory. Obsolete and slow moving inventory decrease the value of inventory on hand. Don't let the term “trace” throw you off. They like to do that. Obsolete and slow moving inventory will (almost) ALWAYS relate to valuation.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Anonymous]

Okay, understood. I Knew it was C the whole time but after your reply made me think otherwise. Like I said, I understand the order of the procedures and the concept not sure why i score so low…

[Monkey Wrench]

I think the best way to describe it would be something of a process and it asks about the end of the process or something like that, and it gives all 4 answers of the process and you pick the 3rd, which is kinda correct in the sense of it is part of the process, but it is not the best or correct answer.

[David]

I always described it to others as reading comprehension being very important on AUD. A lot of those questions can be read in more than one way, and the way that you interpret the questions will determine the correct answer. So if you read it the way they want you to, no problem, you're good. But if you read it in a perfectly acceptable way, but it is not how they meant it, you'll get the ‘incorrect' answer.

IMHO, they are trying to be very tricky with how they write the question. They want the club to be exclusive and will make it excruciating to get in. They aren't really testing your knowledge of accounting in some cases, just trying to be tricky.

AUD-74,75(8/13)
REG-76(5/13)
BEC-77(12/13)
FAR-69(didn't study),73,84(9/14)

[rnguyen7]

I initially thought that answer was A as well because the Key word was “trace' but now I can see why it would be C because of the words Obsolete.

I have the same problem and I don't know how to overcome this. All my multiple choice comes down to two answers.

[Author]

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