Scores Came Out: I Just Got a 73% on Audit, Now What?
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 master. I remember when I failed audit for the third time with a 73%, I called my dad at 3am telling him that I wanted to quit. He responded by saying “well, I guess you could always go work in insurance or something.” Nothing against selling insurance, but I realized after that call that quitting was not an option. So, with that said, just know that plenty of people have been in your position before and this is certainly not uncommon. In terms of next steps related to audit, here are my thoughts:
The Devil is in the Details:
At a 73% you know audit, and you are probably thinking “I don’t even know what to study” because you have done everything already. Multiple times. So, now what is going to be important is that instead of relearning and redoing the same old questions, you must find little ways to fine tune your understanding of the miscellaneous concepts. For example, what to remember related to component auditors, predecessor auditors, single statement audits, subsequent events etc. This is what I mean when I say, “easy to learn hard to master”. Yes, the details in these smaller content areas only make up 2-3 points, but the reality is, they take just as much time to truly master.
In other words, the miscellaneous areas such as the ones mentioned only make up 15-20% of your Audit score, but its going to take you the same amount of time to really know that 15-20% as it will to get you to really know that first 80-85%, if that makes sense. Below are a couple of visuals of these “misc. topics I am talking about” know your mental maps for the misc. topics and you will pick up a few points:
Know the Transaction Cycles
Let’s be real, nobody gets a 73% because they MASTERED the transaction cycles, but still can’t understand the engagement letter, documentation, SSARS etc. Don’t just memorize the transaction cycles, understand the “why”. I know, the transaction cycles are EXTREMELY gross to learn. There is just so much information, and let’s be real, who knows wtf a remittance advice is. This is 2021 but the exam still tests this like we are auditing in 1985. That’s just how it goes though so we must know it!
What I would say here is don’t just try to memorize what tests would be performed on certain management assertions, first understand the documentation being tested. Right, sure, everybody knows that you’re going to perform a tracing test when testing for completeness, but ask yourself, “what am I tracing”? In other words, what documents are relevant to this test? Would tracing a purchase order be relevant to revenue? No, absolutely not. POs are relevant to expenditures (aka buying inventory). So, moral of the story, focus on the documentation that is being tested, not the test itself.
Also, when understanding internal controls, think about what documents are being generated by each department (e.g., shipping department = bill of lading, billing department = generates that invoice etc.) When studying for the transaction cycles (which is most heavily weighted), this is the part of the exam that is the audit itself so think about it intuitively. You’re playing detective here, if you’re testing for inventory balances, and you were at a warehouse, what documents would you look at to understand things like valuation, accuracy, completeness etc.
I know this is a lot and try not to feel overwhelmed. At the end of the day, you are 2 points away, not 20. You can and you will get this done!
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