February 28, 2020 at 3:32 pm #2949188CJParticipant
Does anyone have any tips for studying for audit? This will be my final exam in an over 2 year journey. I need to pass Audit this quarter or my Reg score expires. I am finding that a lot of the answers on the audit MCQs sound the same, and I just attempted the AICPA practice test and had a lot of difficult with the MCQs. Currently using Becker to do mcq and writing notes on what I get wrong. I only have one week until my exam so any tips to get me over the 75 will be appreciated!!March 2, 2020 at 9:55 am #2951537monikerncParticipant
Audit is a word challenge. You have to understand exactly what the question is asking. It is very specific. Know whether the question is about a non-issuer (AICPA Standards) or issuer (PCAOB) – most will be non-issuer but not all. Know the process for Audit. Know the letters for Audit, Review and Compilation, by section, and word for word. I read the standards and found knowing what standards exist very helpful, and makes the SIMs much easier. Read the directions on the SIMs. It was my worst exam experience and highest grade. Knowing FAR will help because audit is about verifying that reporting is done to FASB standards. Take the time to know the Gov/Non-profit questions in the mcq’s – you will be asked and these are easy points because they are more general questions.March 2, 2020 at 11:20 am #2951639jombeParticipant
AUD is where knowing exactly why you got a question wrong becomes extremely important. As you are doing MCQs, unless you know exactly why the correct answer you chose was correct, please make sure you read through the explanation to gain complete understanding of why the answer was correct and why the other choices weren't.March 2, 2020 at 12:57 pm #2951762fsugirl2005Participant
I know I did well on the multiple choice on the test but it took A LOT of practice and patience. What finally got it for me was knowing what the words in the question mean. For example, if you see a question that mentions a compilation just know that for a compilation: independence is not required, there is no opinion given, there are no analytical procedures, etc. Basically, it's not an audit, total opposite.
Another example is, “What is an auditor’s primary method to corroborate information on litigation, claims, and assessments?” A rule of thumb to remember is that the best evidence is outside evidence from an independent party outside of the client. So when there may be potential litigation, the best person would be a lawyer right? So, your best method to corroborate litigation, claims, and assessments would be to get a letter of inquiry from the attorney.
It takes a lot of practice to get this study method down and it won't work for everyone but it sure as heck worked for me. It's basically all about the vocabulary and knowing the definitions.