Audit and Attestation Exam

The auditing and attestation section has been the hardest section for me without a doubt.  I know that most CPA candidates have their nemesis section, well this is definitely mine.  The first time I took this section was on October 17, 2009 and received a score of a 55, my lowest first attempt score for a section.   My next two attempts were back to back 66’s.  The same score back to back, really, does this really happen to people?  Well as I struggled with the thought of back to back scores on a section, I asked my twitter friends if this was at all possible and I quickly learned I am not alone in this struggle.  I will not let this section stop me from becoming a CPA, I have been making a SLOW progressive climb uphill and will continue until I reach the 75.  

Why The Struggle?

I think all CPA candidates would love to have an answer to that question.  Unfortunately, there isn’t a quick fix solution for everyone.  We all learn in different ways, have different life, college, and career experiences.  So in trying to figure out why I am struggling with this section I think it boils down to two things: experience and learning style.  I have never conducted an audit where I begin with the planning stage, testing transactions, review of results, and then assisting in writing of the audit comment.  I worked with a public firm for six months of my entire working career.  While working for the public firm I was working on contract with the State of New Mexico’s Statewide Book to Bank Reconciliation.  I took an auditing class during my undergraduate years, sometime in 2001.  I remember really enjoying this class, but I can’t remember what it was I learned.  The knowledge is somewhere in my brain but I think that sector has been overwritten by other things I have learned through the last 10 years.  Through my current working experience I am trying to relate what I am learning to my daily work.  This is where the learning style comes in.  Auditing is very conceptual in nature.  I am a puzzle, formula kind of girl.  Give me a formula or problem to figure out and I can mind map it and work to solve the problem.  But give me conceptual information to learn and apply and my brain seems to have a much harder time comprehending, analyzing and retaining.  This is where I realized that I needed to start linking what I am learning to my work.

Real Life Experience

During my work day I am doing internal auditing work for all State of New Mexico agencies.  I have been preparing the Statewide Book to Bank Reconciliation for the State since the end of Fiscal Year 2007 (July 2007).  The first six months I was working for the public accounting firm but when I found out they had a position being posted, I applied and was offered the job. In the beginning I had a huge learning curve to hurdle over, but as time progressed my knowledge has increased.  I am not only learning about accounting transactions, auditing, but also about an ERP accounting system that is huge. So what is it that I do exactly you ask?

At the close of each month I extract, via query (which some I have created), all state agency data beginning with the bank statements from the fiscal agent bank.  I then download the agencies register transactions, journal transactions, and general ledger transactions.  I then trace, by bank statement and agency, the data from the bank statements, through the register, journal and finally the general ledger.  I am testing for completeness of the transactions, to ensure that all transactions at the bank have been timely and accurately recorded. As a result of this I am also reviewing transactions that the agencies entered that do not have support in the bank statement.  Although I am primarily concerned with cash transactions, my work is starting to sound like auditing.

The audit begins with the planning stage, analyzing current and historic data to determine the areas of concern for an auditor.  Once these areas of concern are identified a testing strategy must be put in place.  Testing the correct data to support the conclusion is important.  Once the fieldwork has been completed a final review is conducted to ensure that the information gathered will support the opinion being expressed.  Of course, this isn’t the only piece of audit work that the exam tests you on.  There is still internal controls, professional responsibilities, governmental audits, reviews, compiliations, and special reports.

Study Plan Overview

This last attempt at audit I remained with Becker CPA review and supplemented with Gleim.  I have attached my audit study outline using Becker.  I break each chapter down by topic, the time needed for each section of the DVD, number of multiple choice questions (MCQ’s) for each section, the score I got on each section and the date I attempted the section. As I watched each section of the material I checked it off on my study outline. I also read each chapter from beginning to end, making note cards of anything I felt needed more reinforcement.  If during the first attempt at the MCQ by section, I received below a 75, the section is marked for further review.  Once I completed every chapter I attempted a cumulative MCQ testlet that consisted of 100 questions.  The next review consisted of answering a 30 question quiz from each chapter.  I also reviewed multiple task based simulations.

Gleim study was next.  Gleim breaks out their study material into 20 chapters.  Through the course of my study I had been listening to the study units from their CD. I took the time to convert the CD into mp3 tracks so I could load on my ipod and listen to it where ever I went.  During my workday the study units were playing, I even went so far as to listen to the study units while I was sleeping.  With this extra added review of Gleim throughout my studying I was able to go straight into their MCQ bank and work more questions.  I answered a 20 question set for each of their study units.  If I received less than a 75 on any section, it was also marked for later review.

Final Review

The last week of studying for audit consisted of reading, memorizing note cards, and answering as many multiple choice questions as humanly possible. I started with the sections that I had received less than a 75, then began incorporating questions from all other sections.  I also took one of Beckers final exams, these are extremely tough.  The final exams are made to mirror the actual exam, which is a great way to mentally prepare you for exam day.  The MCQ’s are broken into three testlets and has a testlet with the task based simulations. 

The Wait

When I left Prometric I was frustrated, the task based simulations were torturous.  Since that is the last piece completed during the exam I always leave feeling defeated because they usually are so hard.  So as has become tradition the last couple of testing windows, I gather my things from the locker, quickly make my way to the parking lot and begin to scream.  Once I am at my truck I’m done with the screaming and the crying begins.  I then usually power up my phone and send a tweet to all my #twudygroup friends, followed by a call to my husband.  By then I have regained my composure and realized that the toughness of the simulations is a good thing, the test didn’t dummy them down.  Then the long wait begins.  There is nothing more I can do for now.  I have given it my all, realized that I needed to incorporate the knowledge that I have gained into my daily work for the information to ‘stick’ and have the confidence in my abilities to become a CPA.

Photo by: Ivan M. on Flickr