[goodluck2everyone]

the way I understand it, the test of controls comes after we have determined audit risk (rmm + detection risk)

I also understand that an increase/decrease in control risk will result in a decrease/increase in detection risk respectively, which will increase/decrease the amount of substantive tests respectively

but does this also mean that an increase/decrease in substantive tests will result in a decrease/increase in test of controls? (respectively)

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[Anonymous]

From what I remember in auditing (test and real life) before the audit, if you decide you want to place more reliance on the controls of the account, then you do more testing of the controls. If the testing of controls shows you are able to put reliance that the controls are working correctly, you are able to do less substantive testing. Because you should do control testing first, it can't really be affected by the substantive testing but substantive testing can be affected by the amount of control testing. I hope this makes sense.

[See Pee A]

Your least desired answer, it depends.

If it's a public/issuer entity, you have to perform TOC anyway for the purpose of testing operating effectiveness of controls.

If it's a nonpublic/nonissuer entity, you do NOT necessarily have to perform TOC. You only do them to the extent that you are relying on controls for an audit of financial statements OR as an attest engagement if you are attesting as to the operating effectiveness of controls.

Sidenote: you ALWAYS have to get an understanding of controls, even if you ultimately decide not to rely on them for the audit.

No idea why I remember this crap, but I do. Lol. Good luck!

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

[goodluck2everyone]

what point of the process do we do control testing? Is control risk a result of the control testing?

thank you

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[goodluck2everyone]

so TOC is done as part of the “understanding the entiy/client” step?

and we assess control risk using this understanding?

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[mla1169]

Control risk is established before tests of controls are performed. Control risk has an inverse relationship to tests of controls meaning the higher the acceptable control risk the lower the test of controls performed. The lower the acceptable control risk, more tests of controls are perfomed.

And TOC is done after the understanding the entity/client step.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[goodluck2everyone]

so when is control risk assessed?

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[See Pee A]

All risks are assessed during the preliminary stages of the audit. The assessment can change later if new info is found that warrants inc/dec assessed risks. The very very first step is understanding controls. You have to understand controls regardless of what you're doing and even if you don't perform TOC.

Don't take this the wrong way, but if you're struggling with these topics in AUD on the audit process, then you have a long way to go. You are more than welcome to bash Becker, the CPA, or anything else if you want and I could care less, but it seems you're blaming the wrong person for your failure. I used only Becker and did well (see below) and haven't taken an accounting class since Fall 2010. Take a closer look at your review process and your study methods. Scores in the 60s indicate more than a review course style that isn't the best for you.

Read through the sections in Becker carefully and pay close attention while working MC's in the homework. Especially in AUD, changing one word (such as “before” or “after”) in the question prompt can change your answer. Read very very carefully. Doing this will probably serve you well on your REG retake as well. Good luck!

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

[goodluck2everyone]

thanks for the lecture See Pee A

Im going to print it out and tape it on my ceiling so I can read it before crying myself to sleep every night. How did I ever allow myself to disappoint you 🙁

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[mla1169]

Try the paid content on cpareviewforfree.com (I think it was like $15). One of the dozen or so powerpoint presentations is a walkthrough of all the steps in order of an audit. It really helped me to get the order of the steps straight.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

Yeah, I know, can you believe the gall of some people, good luck? Nice scores, btw, you must be one smart cookie.

[See Pee A]

@Goodluck2everyone: my only point is that asking specific questions will get you specific answers, but will do little to further your knowledge and understanding to the point it needs to be at to nail MC and sims on exam day. My suggestion is to go beyond specific questions/answers and to really understanding when and why things are done (in addition to specific questions). Judging by your scores, you have tried to apply memorization to the CPA, and it hasn't really worked out for you. I'm only trying to help, but if you don't want my advice then ignore it. It's up to you. Good luck.

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

[See Pee A]

@baseballcpa: lol

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

[Minimorty]

😉

[goodluck2everyone]

@baseball

what a clever, witty, and informative response. Why are you even bothering with the CPA? You should be a stand-up comedian

By the way, how many hours did you study for reg again? Was it 300 or 400? Congrats on your barely passing score

edit: I dont consider it self-study if you purchase a whole review program and have access to lectures. Paying $4000 and having the information spoon-fed to you by an instructor is in NO WAY a form of “self” study but to each his own. Like I said, guys like you and Mini need lectures and hundreds of study hours for these exams. Other people will scrap by with much less and pass at their own pace. I'd rather be part of the second group 🙂

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[Anonymous]

@goodluck–Hey thanks for noticing that my real passion in life is comedy. It was my contingency plan in case I was a massive CPA failure like yourself. Much to my chagrin, I'm an intelligent person who is capable of passing the exam. Alas, it will have to remain my hobby for now…perhaps when I get tired of being successful, I'll make it a more active pursuit. I'm glad you noticed the efficiency with which I dispatched the exams one by one…Reg was my crowning achievement, so-to-speak…I was able to optimize my study processes to accommodate the other areas of my life and still achieve a passing score (something you have yet to experience in that section). To your final point, I had the luxury of being “spoon fed” the material because I was sought after by a public accounting firm who offered to pay for the materials; the additional five grand they gave me just to pass the exams was pretty nice as well. But I don't need to continue highlighting the blaring discrepancies between someone like myself and a future Wendy's manager like yourself, your spectacular failures speak volumes to that area. Besides, as you so eloquently put it, “you will ‘scrap' by” one way or another, I'm sure. However, if I were you, I wouldn't put all my eggs in the CPA basket…you may want to practice your ability to re-stock napkins and ask “do you want fries with that?”, simultaneously.

[Author]

Replies