[4dkids]

Hi Bunny! I am sitting Aud now but looks like we will be climbing that FAR mountain together. I hope to sit beginning of Feb as I cannot study through holidays.

[4dkids]

I believe I've figured it out. The info was found in comparing last years stock issue and APIC to the following year. ;0)

[4dkids]

My hope is that this is a simple answer and I am overlooking the obvious. How many stocks were issued at what price?
Common stock (.10 par) $15,000
APIC $110,000
I am to understand that it is 50,000 shares at .30 per. Please help me understand how I would discern this with the info given? Much thanks and many nummy holiday cookies wished upon you.

[4dkids]

@SallyCPA I am lacking in my tech savvy so I lost my response and this is second attempt. Most of the videos are quite long. I am including a couple links (if I can get them to post) to shorter overview vids that can, hopefully, pull things together for you. The first vid is a walkthrough example for inventory that can show how assertions relate to/are used for substantive testing.

This vid is overview of assertions between balance sheet vs income statement accounts.

Hope this is helpful.

[4dkids]

@SallyCPA I have actually watched/listened to her lectures on substantive testing of balance sheet accounts and substantive testing of income statement accounts which filled in some gaps for me, but that is 2+ hrs of lecture. I'd advise starting with her shorter overviews to see if that brings it together for you first. I am soooo not tech savvy but will attempt to link to a couple starter vids.

This vid is a walk through example for inventory but may show you points on how transaction cycles differ and how assertions relate to/are used for substantive testing.

[4dkids]

“Amandalovestoaudit” on youtube has some solid videos to bring the bigger picture together for audit. Just thought I'd pass it along as it was helpful for me. Her lectures are longer but she has some short & sweet vids also.

[4dkids]

@56_Moves. Much thanks for your response. It did help me realize that I needed to correct an association between materiality and RMMs.

[4dkids]

@cmckenzie Thank you for responding.

[4dkids]

I am using Gliem. It is true that there isn't time to do their whole system. I shoot for a 76-80 then move on but continue to do cumulative test. Their Sims fill in many gaps and teach me not to freak out no matter what is thrown at me. Just dig in and find out how the CPA gods want you to play each one. Still, just when I think I've got a handle on AUD, I make a 55% cumulative score. Sigh…

[4dkids]

Good evening fellow AUD warriors. Would someone kindly share where my understanding is lacking as I believe a decrease in misstatements means an increase in detection risk which would require LESS testing allowing for interim testing. Grateful for help.

Holding other planning considerations equal, a decrease in the amount of misstatements in a class of transactions that an auditor could tolerate most likely would cause the auditor to
A. Increase the assessed level of control risk for relevant financial statement assertions.
B. Apply the planned substantive procedures prior to the balance sheet date.
C. Perform the planned auditing procedures closer to the balance sheet date.
Answer (C) is correct.
A decrease in the acceptable level of detection risk or in the amount considered material will result in the auditor’s modifying the audit plan to obtain greater assurance from substantive testing by (1) selecting a more effective audit procedure, (2) applying procedures nearer to year-end, or (3) increasing the extent of particular tests. The reduction in materiality requires greater assurance from substantive testing.
D. Decrease the extent of auditing procedures to be applied to the class of transactions.

[Author]

Replies