Does the audit team assess the efficiency of internal controls?
The audit team will obviously assess internal controls, but do they care about whether the internal controls help the business run efficiently? For purposes of the audit, the answer is likely “No”. However, the external audit team could provide some value to the company and offer suggestions on how they could add some efficiency to […]More
Why is a noncompete agreement an intangible asset?
A noncompete agreement is a type of clause that restricts one party from starting or competing in a business that is similar to another party. For example, if Maria sells Bob her Jet Ski business, Bob may force Maria to sign a noncompete agreement that would prevent Maria from starting a Jet Ski business for […]More
Is Tracing Always The Default Test for Management’s Completeness Assertion?
When I say completeness you say what?! Trac… Oof! We actually wouldn’t ideally be tracing when testing for management’s completeness assertion for account payable balances. Tracing is a better test applied when testing for management’s overstatement of something in their financial statements (e.g., revenue, cash etc.) When testing for completeness on accounts payable, while technically […]More
July 2021 Changes to The CPA Exam: Everything You Need to Know
Change is right around the corner! The talk of the (CPA) town is that changes are upon us and they are coming quickly. While this is not an overhaul in the way that CPA evolution will be in 2024, there are changes that are being made to all four sections (FAR, REG, AUD, and BEC) […]More
Are you looking for a CPA review course?
Universal CPA Review is the only CPA review course that has explanation videos for every single multiple choice question. These videos focus on helping identify the big picture and developing a systematic approach to tackling the concept. Our content creators are masters of their craft. They know what it takes to pass the exam and […]More
How is audit risk impacted with changes in the assessment of inherent risk, control risk, and detection risk?
Audit risk is the combination of inherent risk, control risk, and detection risk. Remember, the audit team will “assess” inherent risk and control risk. Based on the assessment, then audit team will set detection risk, which ultimately impacts the amount of substantive procedures that must be performed. So in the visual below, you can see […]More
Scores Came Out: I Just Got a 73% on Audit, Now What?
Yesterday morning a student interested in trying Universal CPA Review reached out and expressed concern with the fact that they just took audit for the fourth time and scored a 73%. Audit is a lot of candidate’s “kryptonite” and the reason is because it is sort of like skiing. Easy to learn, extremely hard to […]More
Does Universal CPA offer any exclusive discounts?
Yes, Universal CPA Review has exclusive discounts with partners that are linked below: https://www.test-guide.com/best-cpa-review-courses.htmlMore