"Audit Evidence" Like You've Never Seen It Before!
137,575
Published 2016-04-13
Tune in to learn:
• Where obtaining evidence fits into the overall flow of the audit
• The 4 levels of Audit Evidence
• Different types of substantive testing
• Helpful mnemonics for organizing and understanding information about Audit Evidence
Connect with us:
Website: accounting.uworld.com/cpa-review/
Blog: accounting.uworld.com/blog/cpa-review/
Twitter: twitter.com/UWorldRogerCPA
Facebook: www.facebook.com/UWorldRogerCPAReview
Instagram: www.instagram.com/uworldrogercpareview/
Pinterest: www.pinterest.com/uworldrogercpareview/
LinkedIn: www.linkedin.com/company/uworld-roger-cpa-review
Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: accounting.uworld.com/cpa-review/partner/universit…
Transcript Sneak Peek:
Welcome, welcome to the next section called Audit Evidence, Audit Evidence. Now, this is an important area because as we look at the audit, and at least here the steps in the audit process, let's come on over here.
We've talked about preparing for the audit, so that's getting ready, we talked about that in the first section. We're getting ready for the audit, we have to decide, are we gonna take the job? Do they have integrity? Am I properly trained? Am I proficient? Am I independent, clear mental attitude? Can I act with skill? Can I act with due diligence? Am I, as I said, independent?
Then we said, okay, let's go up to obtaining and understanding. This was internal control, obtaining and understanding in internal control, assessing RMM, performing T of C, that was very heavily tested, that talks about understanding internal control, so we need to understand the design, document it, assess Control Risk, reassess, do your T of C, reassess, and then draw conclusions, document it.
We talked about internal control reports, different types, if it was in conjunction with the financial statement audit where you not give an opinion, versus statements on stance for attestation engagements where you're giving an opinion, versus PCOB audit where you're giving an opinion on both the internal control and the financial statements.
So we've gone through all that, we decided, "Hey, if reliance is high, great, I'll do less Substantive Testing, relia--" And we've been talking about that since day one, remember day one when you still cared about this exam? Are you excited about being a CPA?
We said, "Hey, if reliance is high that means Control Risk is low, or RMM is low, that means we're willing to let our acceptable level of Detection Risk go up, that means we'll do less Substantive Testing. Vice versa, if reliance is low Control Risk is high, Detection Risk's low, that means we're gonna do more Substantive."
Well, since day one we've been saying, reliance inverse relationship, if this goes up this goes down, if this goes down this goes up. So we've talked about reliance, that your T of C, that your ARCC and your RIIO, what are we testing for? Authorization, recording, custody, comparison.
All Comments (21)
-
This dude is a beast.
-
I wish all teachers were as fun and make accounting as easy as you did 😢 congratulations for a job well done!! Continue teaching, you’re doing an excellent job at it!
-
This is top-notch, he knows what he is talking about to such a degree where he simplifies everything, is concise, fast, and uses intonation with such coherence. Thank you.
-
ACCA student member here. I have already passed my audit papers, but I wish I had come across your videos earlier :)
-
I am taking auditing class in my school right now and this really helped me understand the whole process so much better. Thank you!
-
Auditing is the CPA topic that I absolutely dread: uninteresting teachers who didn't know their material made it a subject that I learned only for a test and forgot everything soon after. But you, sir, have won me over: I'm retaining the information and am genuinely enjoying learning with you as my teacher. Thank you for your enthusiasm, passion, and competency, and finally, for offering these free videos for those who can't afford the full course. Thank you!
-
Amazing, you made Auditing you look simple and very interesting which most Teachers struggle to do in the UK cheers.
-
Hello, its my mom. I love you too! Hahah this is awesome, thanks!
-
Dude, you are a legend. Loved the video! This is relevant to ACCA's Advanced Audit and Assurance as well. Thanks a lot mate!
-
Big ups to you sir. You've explained a technical subject thoroughly & made it very easy to understand. Your style of teaching is refreshing.
-
Amazing. I have been struggling with audit. Read a review from someone online that Roger s the only one who is able to keep his audiences engage throughout the lectures. I have to say they are right. Love the way that you explain the materials. Translate audit from conceptual to applied concepts. I'm able to finally connect the dots after your short video. Thank you. Audit evidence finally make sense to me. I'm definitely going to purchase full Roger review course.
-
I don't understand why you ain't have more views. I'm from South Africa, and I'm writing an Audit exam today. This is a great way to wrap up preparations. Awesome video! Great entertainment here and there!
-
All the way from South Africa studying Bcom Law with tax and auditing. This is helping me lot. Thank you keep it up
-
I have a mid term tomorrow, and this video helped me learn for that mid term far better than the actual lectures I got in my classes. I thank you from the bottom of my unaudited heart for this reason.
-
haha you are so funny and make this boring subject amazingly chill and easy to understand! thanks man
-
Way to go Roger, Audit Evidence made simple, now have it at my finger tips. I can't thank you enough, thank you.
-
unbelievable, I am a student studying financial reporting and auditing in Hong Kong. your videos are very helpful
-
Oh my gosh youre such a wonderful teacher!! When I listen to lectures Im just all pokerface and sometimes I just daydream because I'm really sorry I cant help it, its boring. But you! oh my gosh I actually listened to you from start to finish and I was smiling and laughing, and most importantly you made me understood it! Thank you so much youre a Legend!!
-
Auditing Theory is one of the reasons why I get low results in Auditing during CPA board. I just dont get the idea or rather why the auditor should do this and that and etc. and the professors way of teachings are just unorganized and they can't make it easier for us for short, they make it looks like it's difficult to understand unlike how you teach it through this video. Now my grey areas about Auditing (theories) were lessened. You helped me a lot! Thank you from the Philippines 🙌
-
Your videos make things so much easier! You made most of my undergraduate courses much easier and exciting. Thanks.
