Vouch down from the journal/ledger to source docs to test for existence and it's useful for testing for over statements related to the revenue process.
Trace up from the source docs to journal/ledger to test for completeness and it's useful for testing for understatement a related to expenses.
Know ARC. Gotta keep em separated!
Emphasize the EMCCCS at the party. Acronym I made up for what is required for emphasis of matter paragraphs immediately following the opinion paragraph.
E-emphasis
M-matter
C- concern (going)
C- change in accounting principal
C- change in opinion
S- special purpose framework
TEVUECO ABREC PDCURV acronym for assertions related to Transactions, Account balances and Presentation. It's weird but I works for me. I just say it out. Tev-u-co; Ab-vrec; P-D-Curv
T-transaction
E- events
V- Valuation
U- unstandability and classification
E- existence
C- completeness
O- cutOff
A- Account
B- Balance
V- Valuation
R- rights
E- existence
C- completeness
P- presentation
D- disclosure
C- Completeness
U- understandability and classification
R- Rights and obligations
V- valuation and allocation
Know the unmodified opinion. Know that Gaap is referred to in the opinion paragraph and Gaas is referred to in the scope paragraph. gaaP- oPinion. gaaS- Scope. Public companies audits are conducted in accordance with PCAOB rather than GAAP (nonpublic companies) in the management responsibilities paragraph.
Know that GAAP is disclosure and materially issues and GAAS is insufficient evidence and scope limitations.
Emphasis of matter and other matter paragraphs are not used in GAAS qualifications or disclaimers.
Management paragraphs is never modified.
GAAP qualifications and adverse require adjustment to scope, basis for opinion paragraph preceding the opinion paragraph and the opinion paragraph. Qualified=except for. Adverse=because of
Disclaimer of opinion is the only issue that calls for modification of the intro paragraph.
If you can get those down you'll be ready for most reporting questions.
Know the review and compilation section. SSARS is tested a good bit.
Audit sampling!!!!!!! Know difference between attribute and variable$ ($ubstantive) testing. Focus in on relationship if sample size to the different steps of each. Know what they are used to test for.
That's all I got for ya. I'm taking the exam in the morning too and this was a good regurgitation of my notes!!! 🙂
This is my 4th time taking it so I feel comfortable. Getting ready to pack it up and get some TV/couch time in to relax the mind.
Good luck and I hope this helps!!!! Even my stupid mnemonics, but they work for me.
F AR - 76
B EC - 82
A UD - 77 (lost credit)/Retake 2/25
R EG - 80
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