AUD Study Group Q1 2017

CPA Exam Forum AUD AUD Review AUD Study Group Q1 2017

This topic contains 569 replies, has 84 voices, and was last updated by  briella021 1 month, 2 weeks ago.

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  • #1476457

    mooseonloose
    Participant

    Control environment is “tone at the top” Organizational structure is one of the principle of control environment.

    Organizational structure, ” Management establish an organizational structure, including reporting lines, authorities, and responsibilities, that is appropriate to the organization objectives.”

    If you have becker, check out BEC chapter one, page 13.


    BEC: April
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    FAR: Sept
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    #1476505

    zestes92
    Participant

    Took AUD for the 3rd and, hopefully last, time yesterday. Felt like I really nailed the MCQs this time and had at least 4 TBS I felt confident on though I find myself second guessing now whether or not I selected the correct standards on the research even though I got the right section and paragraph πŸ™ƒ.


    AUD: 69, 70,Β 86

    REG: 84

    FAR: 75

    BEC: 77

    #1476529

    mooseonloose
    Participant

    Good luck! I am taking mine in exactly three weeks. What did you differently this time around?


    BEC: April
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    #1476543

    zestes92
    Participant

    I spent a lot more time hammering MCQs in the Wiley test bank. I took diagnostic exams to determine what I couldn't remember and focused more time in those areas.


    AUD: 69, 70,Β 86

    REG: 84

    FAR: 75

    BEC: 77

    #1477173
    scared_cpa
    scared_cpa
    Participant

    Hey, guys! Can you all help clarify a few things I'm confused about right now to do with sampling?

    1. The tolerable rate is supposed to be HIGHER than the likely rate of deviation, correct?
    2. In determining the sample size, you need to know the tolerable rate of deviation, likely rate of deviation, and the risk of assessing control risk too low. Does this mean they don't consider the risk of assessing control risk too high, just too low only?
    3. What exactly does ‘risk of assessing control risk too low' even really mean? Does this mean that the auditor is putting too much faith in internal controls, thereby reducing substantive tests when the control risk is actually higher than they think it is? When this comes to rates of deviation, if risk of assessing control risk is too low, does that mean the auditor thinks the tolerable rate is higher than the likely rate of deviation when in all actuality, the likely rate of deviation is greater than the tolerable rate? And vice versa for if the risk of assessing control risk too high?

    This sampling stuff has really been more of a struggle to comprehend than most sections so far. I don't think it's what I'm actually learning that is difficult as much as the terminology is just confusing me because I don't really know what it means. Never taken an auditing class in my life and I am using Wiley CPAexcel.


    FAR -Β 67,Β 82 (Expires 07/31/18)
    AUD - 68, Retake Q2 2017
    REG - Q3
    BEC - Q3 or Q4

    Wiley CPAexcel + Ninja MCQ

    #1477636

    mooseonloose
    Participant

    @scared-cpa sampling is really confusing along with transaction cycles. I am confused as well.

    1) Uper deviation rate = sample deviation rate +allowance for sample risk (cushion) =upper deviation rate

    Tolerable deviation great than upper deviation=we can rely on
    Tolerable deviation less than upper deviation=do not rely on

    2) to determine sample size you need to know:
    1)Risk of assessing control risk too low. want less risk, increase sample size. want more risk, decrease sample size. (inverse relationship)
    2)tolerable deviation. want less deviation, increase sample size. want more deviation, decrease sample size (inverse relationship)
    3)expected deviation. less deviation, decrease sample size, more deviation, increase sample size (direct relationship.
    4)population size (not an issue)

    I think I saw a questions regarding assessing control risk high, i got it wrong. It suppose to be only low

    Bleh 3 more weeks left, i hope this stuff clicks.


    BEC: April
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    #1478236
    scared_cpa
    scared_cpa
    Participant

    Thank you, Moose!

    When do you have your exam? I notice you said 3 weeks from now…I'm taking AUD 03/08. May I ask what you're using to study with and how far through the material you are? I'm hoping I can compare where I am to you in how much I'm behind. I'm scheduled to be through all the material by the 3rd of MArch which doesn't leave much time for review but it doesn't seem like I can go much faster.


    FAR -Β 67,Β 82 (Expires 07/31/18)
    AUD - 68, Retake Q2 2017
    REG - Q3
    BEC - Q3 or Q4

    Wiley CPAexcel + Ninja MCQ

    #1478346

    mooseonloose
    Participant

    My exam is scheduled for March 5th. I just finished chapter 3 using only becker. I'll try finishing chapter 4 by friday, chapter 5 saturday, and 6 on sunday. How many hours to do you study per day? I can do about 4-5 hours a day.


    BEC: April
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    REG: July
    FAR: Sept
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    #1478368

    mooseonloose
    Participant

    Can someone please explain the concept behind kiting? I can't visualize how kiting works.


    BEC: April
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    REG: July
    FAR: Sept
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    #1478862

    mooseonloose
    Participant

    Standard auditing procedures – FIVE CARROTS
    F – Footing, crossfooting, recalculation – verify mathematical accuracy – Valuation & Allocation
    Subsequent events = investigate change in CAP/Stock records of YE
    Statement of Cash Flow = Reconcile amount with other F/S Accounts
    I – Inquiry – both internal and external
    V – Vouching – directional testing; auditor examines support for existence and occurrence assertions Authorization – (Vouch GL to Invoice)
    E – Examination/Inspection – provides evidence about the existence assertion – understand/classify)
    C – Confirmation – Type of inquiry obtained from third party – Existence/Occurrence/Cut-off rules)
    A – Analytical procedures – evaluate financial information through the study of data relationships
    R – Reperformance – auditor re-performs procedures or controls originally performed by the client
    R – Reconciliation – substantiates the existence and valuation of accounts
    O – Observation – auditor looks at a process or procedure performed by others (direct knowledge – exist/occurrence)
    T – Tracing – directional testing; examines support for the completeness assertions (Accuracy)-Invoice/fixed asset to G/L
    C- Cut-off Review – Y-E transaction review
    A – Auditor’s Related Account Stimulation – Loan/Interest –
    R – Representation Letter
    S – Subsequent events review – perform certain procedures after balance sheet date


    BEC: April
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    REG: July
    FAR: Sept
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    #1478947

    Spartans92
    Participant

    @moose, if I remember correctly Kiting occurs when you have 2 banks. For instance, I have bank accounting with Comerica and one with Chase. I write a check to Chase. Technically that check is in transit and should reduce my balance from Comerica after I cut the check. But instead of reducing my balance my check amount shows up in both banks. That is when Kiting happens, essentially overstating the cash balance. An audit procedure to detect this fraud is to look at cutoff statements. Hope that helps.


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line πŸ™

    #1478949

    Spartans92
    Participant

    Im currently working on Chapter 6.. Don't underestimate this. Not saying it is hard but its heavily covered. I scored in the 80's on Becker's HW but on my breakdown I got weaker both attempt so Idk what's wrong with me. Ch 6 could be done in 1 full day. 5 is also possible. 4 would be a killer to fit 1 day.. I would try to really understand the transaction cycles and all the assertions.


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line πŸ™

    #1479159

    mooseonloose
    Participant

    Thanks Spartan, I get it. I still don't know how it will work since it usually it takes couple of days for the check to clear.

    Transaction cycles are confusing. I worked in the AP, AR, purchasing, and receiving department and I find some of the example totally opposite of what I deal with. For assertions, I have memorize Five carrot cars and the cover u mnemonic, but still working on how its applied.


    BEC: April
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    REG: July
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    #1479168

    zestes92
    Participant

    The check will take a couple of days to clear the bank but on the books of the company writing the check the transfer should be near simultaneous I believe. Kiting is an overstatement of cash on the books of a company not necessarily within the bank statement.


    AUD: 69, 70,Β 86

    REG: 84

    FAR: 75

    BEC: 77

    #1479373

    evs212
    Participant

    Hi,

    The Ninjas sent us some free <3 Valentines Day MCQ <3 and I could use some help figuring out the below question:

    In making risk assessments, the auditor should identify and document the controls that are likely to prevent or detect and correct material misstatements in specific relevant assertions. Controls can either be directly or indirectly related to an assertion in which of the following ways?

    A. The more indirect the relationship, the less effective that control may be.
    B. The more indirect the relationship, the more effective that control may be.
    C. The more direct the relationship, the higher the overall control risk may be.
    D. The more direct the relationship, the lower the overall control risk may be

    The answer is A:

    In making risk assessments, the auditor should identify and document the controls that are likely to prevent or detect and correct material misstatements in specific relevant assertions. Controls can either be directly or indirectly related to an assertion. The more indirect the relationship, the less effective that control may be in preventing or detecting and correcting misstatements in that assertion.

    Why is C wrong?


    Audit: 67
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    REG: 75
    BEC: 76
    #1479549

    mooseonloose
    Participant

    @Zestes thanks for you input, it all makes sense now.


    BEC: April
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    #1479666
    Abdulmajid
    Abdulmajid
    Participant

    Hey there,

    I have a question

    if you did the video classes without reading any material
    after that you take a quiz on that chapter and get 50%

    do you think that is normal ? good ? bad score

    I really would take your feedbacks about that as I am going through quizzes after see videos for each chapter and my average is like 50%

    so off-course once I finish the material videos I will start reviewing and take my notes and hit a hundreds MCQ

    is that unusual mark ?!


    BEC - (33, 24, 65, 65) !!
    If the plan doesn’t work, change the plan, but never the goal
    AUD - 03/07/17
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    #1479667

    Spartans92
    Participant

    @evs, that question is just poorly worded imo. I still have trouble trying to understand what it is even saying. Is this from Gleim?


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line πŸ™

    #1479723

    mooseonloose
    Participant

    @abdulmajid Thats normal. Just make sure you understand why you got it wrong. I suggest you not rushing through the questions.


    BEC: April
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    #1479724

    mooseonloose
    Participant

    becker chapter 4 sims are out of this world. uhhhhh


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    #1479780

    mefzr
    Participant

    I have until November to finish all 4 parts. I have passed FAR and just took BEC. I have AUD in less than 3 weeks (March 8th). I am using Becker and I am currently in section 2. DO I have a chance? Or should I reschedule and take it in the beginning of April when the new test comes out?

    #1479817

    Spartans92
    Participant

    @moose, I know even though it is my 3rd time it was ver overwhelming I skipped Tab 3 and 4 after the first 2 SIMS tab. Honestly though I have yet to see something to that extent on the actual exam. Becker SIMS are tough imo. @mefzr. I would still try to take it this quarter because you have nothing to lose. IF you find yourself failing you can immediately retake it in April. Don't waste the window.

    I will have to go back to Ch 4 Sims this weekend. Ugh


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line πŸ™

    #1480014

    mooseonloose
    Participant

    @Spartan technically this is my third time too. I took this exam last year without studying assuming it will be a walk in the park, boy I was wrong. My score was 56 as expected. Then, I ended up studied for 14 days and retook it with completely skipping chapter 4. My first testlet was Medium, Flagged few. The second testlet was foreign to me, and third testlet was medium. 4 out of the 7 testlets were really simple, 2 were really hard, and the last one was DRS related to chapter 4 that I completely skipped (even though I had some time left). I assumed that DRS would be a pretest because it was so long with multiple tabs. I was really confident I would pass…BAAM a 67.
    I realized I can't half ass these exam, so, here I am studying every small detail and concept. Sims on chapter 4 are so discouraging.


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    #1480221

    evs212
    Participant

    @spartans,

    I have no clue where it's from. The Ninjas emailed it to us.


    Audit: 67
    FAR: 81
    REG: 75
    BEC: 76
    #1480308

    MJofCPAs
    Participant

    Starting to study for AUD for Q2 using Beckers new version online. Does anybody know if they still have the Ebook with all the notes already on it? I don't watch the lectures and just copy the notes onto my book. Thanks!


    Love the process, not the outcome!!!
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    #1491847

    mooseonloose
    Participant

    So management claims that their cash,asset, AR, Inventor..etc are:

    Complete
    CutOff
    Valuation, allocation, accuracy
    Existence
    Right and obligation
    Understanding and classification

    and we as auditor use substantive procedures aka test of details and analytical procedure to corroborate managements assertions.

    Substantive test are Five carrot cars mentioned above. am I correct?


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    #1491994

    Renu Motiani
    Participant

    @mooseonloose What is becker chapter 4? I am studying from wiley so little curious


    Try, Try, Try and leave the rest to God
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    #1492002

    mooseonloose
    Participant

    @motiani Transaction cycles and management assertions, I believe its one of the hardest chapters on becker.

    I am now on sampling, question 1-4 of becker is so confusing. Can someone please explain whats going on?


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    #1492630

    Spartans92
    Participant

    These Becker Transaction Cycle SIMS are so brutal. Im getting super nervous right now with few days left to review which I have yet to start.

    @moose, post some questions on here. Hope we can help clarify things for you. Which also gives us the opportunity to show we actually understand πŸ™‚


    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62 retake July 2017 (LAST ONE)

    3 down 1 more to go. BEC is on the Line πŸ™

    #1492767

    off_beat
    Participant

    Hey guys,

    I'm finally done going through at least once all MCQs… i didnt get a chance to really take notes and read the lectures because i of course procrastinated…I'm scheduled for 3/9,, which i dont want to really reschedule, although i dont feel confident enough that i know the material… can someone give me advice on how I should get through the next two weeks? My thought process was to get through all SIMS and just hammer out MCQs everyday til then…

    any ideas?

Viewing 30 posts - 421 through 450 (of 570 total)

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