[FK122]

Fellow CPAs, AUD is tomorrow. Feeling fairly confident, I think that’s because I’m coming off of FAR and AUD seems to tie in real nicely with FAR material. Quick question for you guys, the documents in the DRS Sims, are they meant to be read in any particular order based on the order in which they are listed? I just feel like when you get 8 docs, you don’t know the sequence in which they are to be analyzed. Any help would be awesome!!

[Recked]

Brief overview to see what the documents are, but I think the hunt and peck method works best for these types of SIMs.
It can take you 30 minutes to properly review all the docs, but most of the information is no necessary.
My method was to take a brief overview of the documents they offered, and then read the question carefully to see exactly what they were looking for as the answer, and then go find the information to obtain that specific answer. Don't get lost in the clutter.

[FK122]

Recked you're the man. I really appreciate you, you're continuing to post and support us fellow potential CPAs after you've already passed and received your license. Thanks again..

Since I've got your attention, got a quick scenario for you. As mentioned I'm coming off of FAR so I'm pretty comfortable with JE. In the scenario that Company A sells goods to Person B, terms are FOB Destination, sale occurs Dec 24, customer receives goods Jan 3, for YE Audit purposes, those goods are still a part of Inventory. Company A has booked the sale and the relief of inventory using the perpetual method (Dr Cash and COGS, Cr Sales Rev and Inv), would the adjustment needed to be made reverse the entire transaction? What is the proper way to go about this?

[FK122]

You can't book the sale without the appropriate COGS account being hit, so my logic is telling me that you'd back out the entire transaction until the goods are received by the customer.

[Recked]

Not my area of expertise but I say you technically own the COGS/Inventory, and you have the cash.
I'd reverse COGS & Inv. I would leave cash where it is if the goods are paid for, but Decrease sales and increase a liability.
If you receive the cash, but reverse the complete original entry, then you are misstating cash.

[FK122]

Recked thank you so much dude. I live in LA on the beach in Hermosa, if you're ever in the area this summer let me know, my number is 7169124839..

Awesome. Makes sense that you'd keep cash (or AR) where it is, reverse out the rev entry to unearned (liability) and then also reverse out the relief of inventory entry. Then once the goods are received, reverse out unearned with rev, and book the inventory entry. AWESOME!

Thanks again.

[cpaexhail69]

@Recked, hope you come back to this thread. I was hoping you could share a bit more about your study method. I saw in a couple of your previous posts that you had a very efficient study method, and your scores show it. I'm just hoping you can shed a bit more light on what your day-to-day was like and the method you used to retain and reinforce this stuff.

[Recked]

Farid, why do you have a buffalo area code if you're living on the west coast?
I am very jealous. I've been dying to see what California life is like. I hear from many people the weather is gorgeous year round.
I'd give just about anything to get away from these NorthEast winters.

My study method (except FAR) was to watch all of the videos as fast as possible and then immediately start on the MCQs.
Do MCQs in test mode in blocks of 10. Any more than 10 and I would forget the question trunk, and have to relearn the question to then learn why I got it right or wrong.
If you only do 10, you still remember the question, that way you can rapidly review, and still learn from each correct or incorrect answer.
Roger Videos and MCQs. If I completed all the Roger MCQs once, I would switch over to the Gleim TB and hammer more MCQs in study mode, where is shows you if you are correct immediately.
Every MCQ offers 4 learning opportunities.

[FK122]

@Recked — I am from Buffalo! Moved out here 2.5 years ago and went from 100 inches of snow annually to being 100 ft away from the Pacific Ocean. Plan a trip out this way, visit it and you will fall in love with it. Just trying to get this CPA wrapped up so I can hit the sand and dominate volleyball lmao!

[Recked]

Looking at airfare now. This will be on my to do list for sure.

[Author]

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