[Penguin Lord]

Hey all,

I’m going through A4 (with Becker software) right now, and particularly the section on Transaction Cycles is just so insanely difficult for me to wrap my head around. It just seems like such a specific level of application down to the exact documents auditors must compare in order to accomplish very specific audit assertions and objectives…

The 2 hour lecture was very challenging to follow, and now going through the (119!) MCQ feels like I’m sorta blindly guessing at these vague answers that all seem equally random.

Anybody have any tips/suggestions for how you managed to successfully grasp this knowledge and apply it to the test?

AUD - 73
BEC - 83
FAR - 70
REG - 63

“If you can meet with Triumph and Disaster, and treat those two impostors just the same…” - Rudyard Kipling

[Anonymous]

That chapter kicked my ass too. Personally, I found chapter 4 for Audit to be harder than any of the chapters for FAR – although many will disagree. Just keep grinding through it and try to get an Overall understanding. Goodluck.

[Anonymous]

Look at it from the big picture..You're getting bogged down in the weeds instead of seeing the forest for trees.

All the transaction cycles are doing is tests of details on each specific assertion whether at the financial statement, account or disclosure level.

COVERU is the acronym from the book. I'm going from memory as I don't have my book in front of me.

Completeness
O- Cutoff
Valuation, Allocation and Accuracy
Existence and Occurence
Rights and Obligations
Understanding and classification

Some dont apply at the transaction level, only at the account level.

Dont quote me, but the assertions at the transaction level is COVEU..

Remember individual transactions make up certain accounts. Accounts make up the financials..Atleast that is how I make sense of it..

Hope that helps a little. First time I looked at it, I felt overwhelmed but as an auditor you are wanting to find evidence corrobating the particular assertions..Cheers!

[Author]

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