[HoldMyBeerCPA]

I recently accepted a position with a CPA firm for an audit role that will start on July 9. The only problem is that I was working (limited) in A/R, A/P, Reconciliations (limited), and XBRL filings for the past two years. So most of the theory from Financial, Intermediate, Managerial, Cost, and Government Accounting are just about out of my head (save for the rudimentary things). Also, I did not take an auditing course in undergrad though I will take one in the fall as I begin my journey for the MAcc and eventual CPA license (woooo)

As a first year audit associate at a relatively small cpa firm, what accounting topics should I focus on re-learning so I’m not way behind out of the gate? I have the Intermediate Accounting Book from Kieso (13th edition), a Cost Accounting Book, and a Government/Non-For-Profit accounting book.

Are there any other materials I should get to aid my re-learning?

Thanks.

-Shawn

"FACT": The odds of consecutively passing all four sections of the CPA exam on the first try: 7%.

Me: Hold my beer...

FAR (April 2017): 75+

BEC (May 2017): 75+

AUD (July 2017): 75+

REG (September 2017): 75+

Roger + Ninja Audio/MCQ/Notes (BEC & REG)

[Anonymous]

As a general rule, if you are at a small firm, your clients will typically be small and mid-sized clients as well. Many of them will not have experienced CFO's and Controllers.

So the first thing I would do (and you may already be) is to make sure you are solid on your basic, fundamental accounting. Recording depreciation, accrued payroll entries, reclassification entries in the P&L due to mis-postings, basic income tax accruals, etc. Just knowing what to look for when seeing a general ledger detail will help you tremendously.

As a first year audit associate, you'll probably be given the least risky areas of the audit to start, which means you will be auditing cash and fixed assets. You'll also help audit parts of accounts payable (search for unrecorded liabilities) and probably some analytical ratio items for G&A expenses. You'll also be responsible for the entire audits confirmation control and monitor which confirmations you have sent out for all sections, which you have received, etc.

You may already know this and I apologize if you do, but in case you don't, just a little background on the items you will be auditing. Auditing cash will consist of sending out confirmations to the bank, reviewing the clients bank reconciliations, and performing outstanding check testing (among other small items). Fixed assets are generally audited analytically with some substantive testing (you'll probably get a fixed asset addition listing and obtain the invoices relating to those additions). You'll also recalculate depreciation expense, etc. Regarding the search, your Senior on the job will more than likely take care of the sampling methodology regarding the searches selection process (i.e. which invoices your going to pick). So your job will basically be to take an invoice, review it, and determine two things. Is it properly included as of 12/31/XX or is it properly excluded as of 12/31/XX. If the answers are yes, your golden.

If you want to be pro-active, read up on sampling. Most firms have a program that will determine your sample once you input the appropriate information, but its crucial you understand how the sample is working and which method is most relevant (non-stat sample, stat sample)

Hope this helps.

[lakersfan24]

@Dalai That was some solid advice. I have to agree on all points and I want emphasize that point about understanding the journal entries that will need to be made on small clients. More often than not you will probably have to work on rolling retained earnings and book multiple entries during the course of the comp/review/audit.

[HoldMyBeerCPA]

Thanks for the insight so far guys. I was going to try and read the entire intermediate accounting book in three weeks before I started, but it seems as if I may be able to cut out a few chapters here and there for the short-term.

"FACT": The odds of consecutively passing all four sections of the CPA exam on the first try: 7%.

Me: Hold my beer...

FAR (April 2017): 75+

BEC (May 2017): 75+

AUD (July 2017): 75+

REG (September 2017): 75+

Roger + Ninja Audio/MCQ/Notes (BEC & REG)

[Author]

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