My AUD Experience, plus what I regret & what I'm glad I did.

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  • #187185
    go2134
    Member

    Hey guys, I took my exam on Monday. I thought my MCQs were relatively easy, with only a few difficult ones peppered in the last testlet. That being said, there were questions that were NOT covered in Becker, but were covered in CPAExcel.

    The SIMS were extremely fair, but I struggled more so than I’d like to admit for 2 reasons. 1, I struggled with because I didn’t get a chance to study for the FAR question I got, but in all honesty it was very, very, fundamental FAR concepts (I think that’s about all I can say about that).

    My other downfall was not MASTERING navigating the AL. I got cocky and figured I wouldn’t have to practice much with it, but if I were better with it, I’m sure I could have found at least 3 of the Sims word-for-word; and that’s not counting the 2 research questions I got.

    What I wish I focused more on: I’m fairly strong with Relevant Assertions and Audit Procedures, but I would have focused a little more on which kinds of procedures go with Balances vs. Transactions, and how the exams prefer their answers. I grew very frustrated practicing Sims and yelling at my computer when they asked for Rights & Obligations of A/R and wanted me to say Confirmations instead of examining Agreements for Factored A/R, but that’s the way they want it.

    What I’m glad I did: I got to the testing center 45 minutes early and looked over all of my notes immediately before I went in, and during the 10 minutes I had to click “Agree” before starting the exam, I wrote down everything I could think of that I might forget.

    During the test, I’d be sure to highlight the key words in the question (e.g., review, audit, issuer, except for, etc.), it really helped jog my memory and kept me from making foolish mistakes.

    When it came to MCQs I got stuck on, I looked for key words in the answers to narrow them down (e.g., if a question was on Tests of Controls, eliminating any answers that say “Project an estimate”)

    My best advice is this, don’t make the mistake of “Learning the Questions”, when I was confused on something, I would use other sources to figure it out (CPAExcel is very dry, but it gives you clear-cut outlines of the standards). And don’t keep reading your notes over and over, keep practicing questions and you’ll be surprised when you teach yourself something but debating over answers.

    Any other questions, feel free to ask.

Viewing 15 replies - 1 through 15 (of 46 total)
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  • #582484
    Jspann225
    Member

    This is great. I will take this into consideration when taking my exam. I know i struggle to select procedures in the Becker Sims, because there is so much grey area and it sims so much is left up to interpretation. How would you have gotten better at selecting the audit procedures?

    FAR - 93 - 7/1/14
    AUD - 94 - 7/25/14
    REG - 92 - 8/30/14
    BEC - 89 - 10/6/14

    #582485
    go2134
    Member

    It's actually pretty simple, I just didn't take enough time to nail it in to my brain.

    Before I get into I'll share something I made up that helped me a TON:

    When you're considering Assets, you're usually testing for “OVE”rstatement:

    Overstatement, Vouch down for Existence. (After I remembered that, I never confused it with Tracing for Completeness)

    First things first, memorize FIVE CARROT CARS and learn which procedures are generally with each assertion, here's how I remembered it:

    (C) Completeness(cOAT): Observation, Analytical Procedures, Tracing

    (O) Cut-off: Cut-off procedures (Note: Cut-off also provides evidence for Completeness; this one will be confusing)

    (V) Valuation, Allocation, Accuracy (Val,All,Acc: IFRR): Inspection, Footing, Recalculation, Reconcile

    (E) Existence & Occurrence (e-i-o COV [cow]): Inspections, Confirmations, Observation, Vouching

    (R) Rights & Obligations: (RIO): Inspections

    (U) Understandability & Classification: (U C with uR 2 i's): Inquiries, Inspections, Representation Letter

    Then, note which FS Element you're testing for, Balances: you're probably going to involve the later portion of the Information System, the General Ledger & the Subsidiary Ledger or Journal are usually involved.

    Transactions & Events: That means they're going to involve when something happens, usually the Purchase/Sales Order and/or Invoice will be involved.

    Understandability & Classifications: You're testing to see if they're showing things properly, you'd find that information by looking at their written policies, and any agreements with vendors, customers, banks, etc.

    That's very basic stuff that helped me answer questions before even looking at answers. Other than that, keep going over those questions & simulations until you get the hang of it.

    If anyone wants more tips, I'd be glad to share.

    #582486
    Sarah1421
    Member

    Wow – thank you. This was a very helpful post.

    Sounds like I'm having a similar problem to you, Jspann225. I'm struggling a bit with memorizing what analytical procedures relate specifically to what assertion. I can identify the assertion alright… but I just went through a question in the Becker sims that I bombed (A4, Simulation 1, question 7).

    Any thoughts on how to memorize these concepts? Or if it's even necessary to have them completely down? Is the table on A4-18 enough… or should we really get A4, Appendix II committed to memory (please say no!!).

    They seem so obvious when I'm reading the text… then I'm asked a question (with a million possible solutions) and they all seem relevant.

    FAR - 90
    AUD - 91
    BEC - 86
    REG - 87

    #582487
    Sarah1421
    Member

    Thanks, go2134. I printed your answer… I may have some questions for you tomorrow when I really dive in. The way you put it together makes it seem possible to memorize…

    One thing that's irritating me for that Becker question I mentioned above was the inclusion of “review of subsequent events” for the procedure. Conceptually, I know when to do that… but it was annoying that they included it on Valuation, Allocation, and Accuracy, Rights/Obligations, and completeness. Sure, I get why… when I read the explanation. lol They all involve AR!

    But in all seriousness, I get why you'd review subsequent events in an AR related items. It just seems like every one of them could have also included “confirmation” for the same reason.

    FAR - 90
    AUD - 91
    BEC - 86
    REG - 87

    #582488
    go2134
    Member

    Memorize Appendix 2? Hell no, it's good to be familiar with, but you'd just be memorizing words rather than learning what's actually going on. The chart is good to memorize for narrowing down answers.

    Do you mean Audit Procedures or Analytical Procedures?

    About that sim:

    1) Inventory Increased significantly on the Balance Sheet from last year:

    – Year end Account Balance (CVRU).

    – It's an Asset, and since it increased by a lot, you're worried about OVErstatement: Existence & Occurrence (e-i-o COV)

    – Being that it's Inventory, what's the best way to test it exists? Observation of the Test Counts, Vouch from the Inventory Summary Schedule to the Vendor Invoice & Receiving Report, and Inspect the Documentation of Inventory.

    2) Allowance for Doubtful Accounts doesn't look accurate:

    – Valuation, Allocation, and Accuracy

    – How would you test it? It's only an estimate, so you can't tell right away. What you can do is 1, test for the Reasonableness of the estimate: Doubtful accounts should always be a % of A/R, look at their policies and Recalculate the estimate based on the A/R balance x policy per Allowance %. You can only test the Accuracy by reviewing Subsequent Events to see what they actually wrote-off.

    Talking yourself through the process like that makes things very simple. I'd strongly recommend talking yourself through the Internal Control Flowcharts, they make everything very easy to justify procedures.

    #582489
    go2134
    Member

    Here's more since I'm procrastinating from writing a paper:

    The Audit STRATEGY involves:

    (S) Scope of the Audit

    (T) Timing of the Audit

    (R) Required Communications & Reports

    (A) Assessment of Materiality &

    (T) Tolerable Misstatement

    (F) Factors that determine the Focus of the Audit

    Stupid Limerick I made up because I kept confusing myself about when you Obtain an Understanding:

    Plan, Understand, Assess,

    Respond by Designing Tests,

    Perform Further Procedures, and Adjust Risk as needed,

    and decide if more Evidence is best. (i.e. if you have Sufficient Appropriate Audit Evidence)

    Compilations & Reviews:

    Reviews have AIR: Analytical Procedures, Inquiries of Management, & Representation Letter

    Compilations don't have AIR: Analytical Procedures & Inquiries only

    #582490
    Sarah1421
    Member

    Oh god – I totally meant auditing procedures. I'm tired… I really appreciate your posts today. Your explanation was VERY timely for me…

    Thank you again for taking the time to share (and explain!). I swear, if I run into something throwing me off tomorrow, I'm posting it to this thread… and I'll cross my fingers that you'll be around!!

    FAR - 90
    AUD - 91
    BEC - 86
    REG - 87

    #582491
    Sarah1421
    Member

    LOL Your memory aids are better than Becker's! Seriously, thank you for sharing… I've been answering too many of these questions conceptually. Having some of these to fall back on will make me feel WAY better come exam day. And like I said – the timing is excellent. I've just started to work on memorization.

    Thanks again. And get to that paper!!

    FAR - 90
    AUD - 91
    BEC - 86
    REG - 87

    #582492
    NYCaccountant
    Participant

    I took my exam on Saturday! Not a good experience, but wishing for a 75.

    AUD - 99
    BEC - 84
    FAR - 93
    REG - 87
    NYC born and raised.

    FAR - 93
    REG - 87
    BEC - 84!!!!
    AUD - 99!!!!!! CPA exam complete.

    #582493
    vmedin2
    Member

    Just walked out of my test. First testlet was a joke, super easy. Second and third test were considerably more difficult, I only flagged one on the first but on the next two I had around 7 or 8 flagged. Sims were brutalas well, 2 far sims, I was able to use the AL to help find the right answers on quite a few though.

    #582494
    Sarah1421
    Member

    go2134 – you mentioned wishing you'd mastered navigating the AL. Any idea how to practice this? Becker doesn't release the entire AL in our sims, so my experience is limited there. Anyone have any thoughts?

    I've only had a couple in AUD or FAR that I got sick of looking for – otherwise, I THINK I'm fairly comfortable. I never considered using the AL for other questions before another71.com.

    FAR - 90
    AUD - 91
    BEC - 86
    REG - 87

    #582495
    go2134
    Member

    https://www.aicpa.org/BecomeACPA/CPAExam/ForCandidates/HowToPrepare/Pages/literature.aspx

    The AICPA provides a 6 month full access trial.

    Sign up for it and try attacking simulations solely through using the AL, or at least comparing your answers to the AL. Get practice with searching with keywords, and the search within function.

    #582496
    Sarah1421
    Member

    Amazing – thank you.

    FAR - 90
    AUD - 91
    BEC - 86
    REG - 87

    #582497
    go2134
    Member

    No problem, also when you go through the sims, ask yourself about the indirect results of the answers would be, like the accounts they effect, or the risks, effect on the sample size, etc.

    Anything else you're struggling with just let me know.

    #582498
    Jspann225
    Member

    This was awesome. I appreciate it.

    FAR - 93 - 7/1/14
    AUD - 94 - 7/25/14
    REG - 92 - 8/30/14
    BEC - 89 - 10/6/14

Viewing 15 replies - 1 through 15 (of 46 total)
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