CPA Exam-Audit Statistical Sampling-The Basics, by Darius Clark скачать в хорошем качестве

CPA Exam-Audit Statistical Sampling-The Basics, by Darius Clark

The CPA Audit Exam blueprint from the AICPA requires a candidate to be familiar with statistical sampling. Key concepts include how to determine sample size, how to interpret sample results and how to project sample results on to the population in order to determine whether the control is reliable or whether the financial statement account balance is fairly presented on the income statement or balance sheet. Terminology is important such as sampling for attributes, sampling for variables, testing controls, substantive tests, expected error rate, tolerable error rate, margin of error, sampling risk, precision, upper deviation rate, risk of assessing control risk too high and too low, risk of incorrect acceptance and risk of incorrect rejection, attribute sampling, variable sampling, PPS sampling, mean per unit estimation sampling, ratio estimation sampling, standard deviation, sampling interval, confidence, stratification, and more. This FREE You Tube video on statistical sampling covers only the basic concepts. For a complete statistical sampling overview for the CPA Exam, go to CPAexamTutoring.com and get on i-75. You can get the i-75 skinny bundle or the complete Audit Bundle and be ready to pass the CPA Exam before your date with Prometric. Make sure NASBA has evaluated your accounting credits and college transcripts. Other CPA Audit Exam topics to know before your NTS includes Audit Adjusting Entries. If you get an Audit Simulation with Adjusting Journal Entries, most likely, you will have a situation regarding expenses incurred at year end but not yet paid, accrued liabilities. The auditor is always concerned that the company is purposely not recording the expense at year end to maximize reported net income. The Adjusting journal entry should be a debit to an expense, say interest expense, and a credit to a current liability, interest payable.. Payroll expense would also be a possible Adjusting journal entry at year end for the same reason. The exam would expect that you would know to Debit wages expense, credit wages payable for the amount incurred since the last time employees were paid, up to December 31. Contingent liabilities would also be tested in an Adjusting journal entry simulation like this. The Audit exam would be testing your ability to know when contingent losses need to be booked and when they only have to be disclosed with a footnote. While all of the above involve accrued liabilities, an Adjusting journal entriy simulations could also test you on pre-mature revenue recognition. If the company recorded the sale, make sure the item was shipped out by year end if the terms were FOB Shipping Point, or received by year end, if FOB Destination. Otherwise you would have to Debit Sales, Credit A/R. and also Debit Inventory and credit COGS. There could be other Adjusting journal entry Simulations like this too such as cash collected in advance earlier in the year and some of it is earned at year end. They could also mix in something about prepaid expenses that were erroneously charged to expense when paid, but should have been set up as prepaid insurance, and at year end, needs to be adjusted. Other audit concepts that can be tested in multiple choice or task based simulation with exhibits include assertions, analytical procedures, transaction cycles, two directional testing. Be sure to know terms such as existence, completeness, valuation, rights and obligations, completeness.