[PrestigeWorldwide]

I’m taking Audit for the second time on Monday (failed with a 64 in August, 2010) and I’m confident in all areas except one….audit evidence (specifically, the procedures by transaction cycle). I know this is a huge portion of the exam and will be the difference for me. I know the assertions, but only have 6 months auditing experience and I find I’m not familiar with all the procedures in the questions. I’m consistently getting only 50-65% of MCQ correct in Becker. Any suggestions on how to study this area during my last couple days?

[ONmyWaytoAcpa]

As a fellow auditor, I wanted to let you know if you focus on 1.) who has the AUTHORITY over the transactions (who can initiation the transaction like order/purchasing or credit departments), 2.) who has the CUSTODY of the assets from the transaction (mailroom over the mail, warehouse over inventory, or cashier over checks), and 3.) who maintains the RECORDKEEPING of the transaction (which is usually accouting departments like a/p, a/r, or billing). If you approach any transaction cycle question with this approach it will help you assess the question better. Just try to remember what role each department plays in the transaction cycle AUTHORITY, CUSTODY or RECORDKEEPING. I hope this helps!! 🙂

[Author]

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