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AUD Surgent CORE Supplemental Course
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1. Welcome to Farhat Lectures -
2. How to Use This Course & Resources
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3. Choosing the Right CPA Discipline
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4. CPA Exam Study Tips & Common Questions
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🚀Introduce Yourself1 Topic
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🚨🚨🚨2026 AICPA Released Questions1 Topic
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1 ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1A – ETHICS, INDEPENDENCE & PROFESSIONAL RESPONSIBILITIES📖Importance Of Ethical Conduct For The Accounting Profession2 Topics|2 Quizzes
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📖Content Of The AICPA Code Of Professional Conduct2 Topics|2 Quizzes
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📖AICPA Independence Rules & Interpretations2 Topics|2 Quizzes
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📖Other AICPA Rules Of Conduct2 Topics|2 Quizzes
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📖AICPA Framework: Threats & Safeguards3 Topics|1 Quiz
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1ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1A2 – REQUIREMENTS OF THE SEC & PCAOB📖Sarbanes-Oxley Effect On Auditors & Corporations5 Topics|1 Quiz
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📖PCAOB SOX Independence Requirements3 Topics|2 Quizzes
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🎯Comprehensive Test: Ethics-AICPA Code of Professional Conduct, PCAOB and SOX + AICPA3 Quizzes
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🚨🚨HOW TO SOLVE SIMULATIONS (TUTORIAL + VIDEO EXAMPLES)✅ FAR CPA Exam Simulation Tutorial + 2024 and 2025 AICPA Video Questions13 Topics|2 Quizzes
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🎥Understand the 4 Types of Simulations
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✏️+🎥AICPA AUD 2024 MCQs Part 1🟢
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✏️+🎥AICPA AUD 2024 MCQs Part 2🟢
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🎥AUD AICPA 2024: Simulations # 1 Internal Control Activity
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🎥AICPA AUD 2024: Simulation # 2 Auditor Expectations
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🎥# 1 AUD Video Simulation
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🎥# 2 AUD Video Simulation
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🎥# 3 AUD Video Simulation
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🎥# 4 AUD Video Simulation
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🎥# 5 AUD Video Simulation
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AICPA 2025 AUD MCQS Video Solution
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2025 AICPA Simulation AUD: Depreciation Expense
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2025 AICPA Simulation AUD: Fraud Risk Factors Related to Sales
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🎥Understand the 4 Types of Simulations
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1 ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1A3 – REQUIREMENTS OF THE GAO & DOL📖GAGAS Conceptual Framework For Independence2 Topics|1 Quiz
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📖Department Of Labor Ethics Standards2 Topics
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1 ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1B – PROFESSIONAL SKEPTICISM & PROFESSIONAL JUDGEMENT📖Objective Of An Audit & Management Responsibilities2 Topics|2 Quizzes
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📖Professional Judgement & Professional Skepticism In Auditing4 Topics|2 Quizzes
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🎯AICPA Questions: Due Professional Care- Professional Judgement & Professional Skepticism1 Quiz
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1 ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1C – NATURE & SCOPE📖Auditing Standards & Guidelines2 Topics|2 Quizzes
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📖Governments Audits2 Topics|2 Quizzes
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🎯Comprehensive Test: Single Audit and Governmental Auditing + AICPA Questions1 Quiz
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1 ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1D – TERMS OF ENGAGEMENT📖Accepting A Client & Performing Initial Audit Planning4 Topics|2 Quizzes
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📖ERISA Plan Financial Statement Audit2 Topics
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1 ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1E – REQUIREMENTS FOR ENGAGEMENT DOCUMENTATION📖Audit Documentation3 Topics|2 Quizzes
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1 ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1F – COMMUNICATION WITH MANAGEMENT & THOSE CHARGED WITH GOVERNANCE📖Communication With Those Charged With Governance8 Topics|2 Quizzes
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✏️+🎥Communication with Those Charged with Governance🟢
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🎙️Communication with Those Charged with Governance
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✏️+🎥Control deficiencies Significant Deficiencies and Material Weakness🟢
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🎙️Control deficiencies Significant Deficiencies and Material Weakness
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✏️+🎥Communication of Control Deficiency significant deficiency and material weakness🟢
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🎙️Communication of Control Deficiency significant deficiency and material weakness
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✏️+🎥Auditor’s Communication with Corporate Governance and Management🟢
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🎙️Auditor’s Communication with Corporate Governance and Management
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✏️+🎥Communication with Those Charged with Governance🟢
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🎯Comprehensive Test: Communication with those charged with governance + Audit Committee2 Quizzes
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1 ETHICS, PROFESSIONAL RESPONSIBILITIES, & GENERAL PRINCIPLES 1G – AUDIT & ASSURANCE QUALITY📖Introduction To Quality Management2 Topics
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📖Elements Of Standard Quality Management4 Topics
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📖Findings & Deficiencies2 Topics
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📖Quality Control Elements For Issuers4 Topics
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📖Engagement Quality For Non Issuers2 Topics
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📖Engagement Quality Review4 Topics
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📖System Of Quality Management (SQM)2 Topics
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🎯Comprehensive Test: Audit Documentation & Quality Control + AICPA Questions2 Quizzes
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2 ASSESSING RISK & DEVELOPIND A PLANNED RESPONSE : 2A – 2B : PLANNING AN ENGAGEMENT, UNDERSTANDING AN ENTITY & ITS ENVIRONMENT📖Introduction To Audit Planninng2 Topics
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📖Understand The Client’s Business & Industry2 Topics|2 Quizzes
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📖Overall Audit Strategy3 Topics|1 Quiz
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📖Management Assertions4 Topics|2 Quizzes
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📖Business Cycles2 Topics|1 Quiz
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📖Law Of Demand & Supply4 Topics|2 Quizzes
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📖Price Elasticity Of Demand & Supply4 Topics|1 Quiz
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📖Cross Elasticity & Income Elasticity Of Demand4 Topics|1 Quiz
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📖The 5 Types Of Audit Tests2 Topics|2 Quizzes
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📖Audit Tests Selection2 Topics|2 Quizzes
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📖Evidence Mix For An Audit2 Topics|2 Quizzes
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🎯Comprehensive Test: Understanding the Entity and Its Environment4 Quizzes
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💡2C – Understanding an Entity’s Control Environment and Business Processes, Including IT Systems : 2C1 COSO Internal Control – Integrated Framework13 Topics|4 Quizzes
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✏️+🎥Internal Control Objectives🟢
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🎙️Internal Control Objectives
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✏️+🎥Internal Control: Control Environment🟢
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🎙️Internal Control: Control Environment
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✏️+🎥Internal Control: Risk Assessment – COSO Framework🟢
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🎙️Internal Control: Risk Assessment – COSO Framework
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✏️+🎥Internal Control: Control Activities – COSO Framework🟢
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🎙️Internal Control: Control Activities – COSO Framework
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✏️+🎥Example: Internal Control – Control Activities🟢
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✏️+🎥Internal Control: Information and Communication🟢
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🎙️Internal Control: Information and Communication
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✏️+🎥Internal Control: Monitoring🟢
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🎙️Internal Control: Monitoring
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✏️+🎥Internal Control Objectives🟢
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🎯Comprehensive Test: COSO Internal Control Framework1 Quiz
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2C – UNDERSTANDING AN ENTITY'S CONTROL ENVIRONEMTN & BUSINESS PROCESSES, INCLUDING IT SYSTEMS: 2C2 – CONTROL ENVIRONMENT, IT GENERAL CONTROLS, & ENTITY-LEVEL CONTROLS📖IT Controls10 Topics|2 Quizzes
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✏️+🎥Internal Control: Information Technology🟢
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🎙️Internal Control: Information Technology
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✏️+🎥General Controls: Internal control IT Audit🟢
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🎙️General Controls: Internal control IT Audit
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✏️+🎥Input Controls🟢
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🎙️Input Controls
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✏️+🎥Processing controls🟢
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🎙️Processing controls
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✏️+🎥Output Controls🟢
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🎙️Output Controls
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✏️+🎥Internal Control: Information Technology🟢
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2C – UNDERSTANDING AN ENTITY'S CONTROL ENVIRONMENT & BUSINESS PROCESSES, INCLUDING IT SYSTEMS : 2C3 – BUSINESS PROCESSES & THE DESIGN OF INTERNAL CONTROLS, INCLUDING IT SYSTEMS📖Understanding & Documenting Internal Control2 Topics|2 Quizzes
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📖Limitations Of Internal Control2 Topics|1 Quiz
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🎯Comprehensive Test: Information Technology + AICPA Questions1 Quiz
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2C – UNDERSTANDING AN ENTITY'S CONTROL ENVIRONMENT & BUSINESS PROCESSES, INCLUDING IT SYSTEMS :📖Internal Control At Service Organizaitons2 Topics|2 Quizzes
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2D – MATERIALITY📖Materiality Concept In Auditing2 Topics
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📖Preliminary Judgement About Materiality2 Topics|2 Quizzes
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📖Performance Materiality Or Tolerable Misstatement2 Topics|2 Quizzes
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📖Materiality To Evaluate Audit Evidence2 Topics|2 Quizzes
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2E – ASSESSING & RESPONDING TO RISKS OF MATERIAL MISSTATEMENT, WETHER TO FRAUD OR ERROR📖Risk Assessment6 Topics
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📖Inherent Risk2 Topics|2 Quizzes
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📖Relationship Of Risk To Audit Evidence2 Topics|2 Quizzes
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📖Engagement Risk Assessing Acceptable Audit Risk2 Topics|2 Quizzes
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📖Relationship Of Risk & Materiality To Audit Evidence2 Topics|2 Quizzes
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📖Audit Risk Examples & Questions3 Topics|2 Quizzes
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📖Fraud Auditing2 Topics|1 Quiz
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📖Fraud Triangle2 Topics|2 Quizzes
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📖Auditor Responsibility For Errors & Frauds2 Topics
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📖Assessing & Documentation Risk Of Fraud2 Topics|2 Quizzes
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📖Corporate Governance & Other Factors That Reduce Fraud Risk2 Topics|2 Quizzes
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📖Responses To Identified Fraud Risk2 Topics|2 Quizzes
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📖Fraud Risk Area Sales & Account Receivable2 Topics|2 Quizzes
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📖Specific Fraud Risk Area Inventory- Accounts Payable- Payroll2 Topics|1 Quiz
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📖Fraud Discovery, Auditor’s Role & Interviewing Techniques2 Topics|2 Quizzes
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📖Assessing & Identifying The Risk Of Material Misstatement RMM2 Topics|2 Quizzes
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📖Responding To The Risk Of Material Misstatement RMM2 Topics|1 Quiz
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📖Internal Control Testing As A Response To Risk Of Material Misstatement RMM3 Topics|2 Quizzes
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📖Responding To Risk Of Material Misstatement Substantive Testing2 Topics|1 Quiz
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🎯Comprehensive Test: Risk Assessment and Fraud Auditing + AIPCA Questions3 Quizzes
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2F – PLANNING FOR & USING THE WORK OF OTHERS📖Internal Auditors2 Topics|2 Quizzes
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📖Specialists2 Topics|1 Quiz
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🎯AICPA Questions: Using Work of others (Internal auditor, Component Auditor, Specialist)1 Quiz
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2G – SPECIFIC AREAS OF ENGAGEMENT RISK : COMPLIANCE WITH LAWS & REGULATIONS, INCLUDING ACCOUNTING ESTIMATES, RELATED PARTIES📖Compliance With Laws & Regulations4 Topics|2 Quizzes
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📖Accounting Estimates2 Topics
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📖Auditing Related Party transactions2 Topics|1 Quiz
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🎯Comprehensive Test: Auditing Related Party Transactions + AICPA Questions1 Quiz
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💡3 Performing Further Procedures and Obtaining Evidence : 3A3: Data Analytics9 Topics|2 Quizzes
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✏️+🎥The types of Data and the 4 Vs. + PPT slides🟢
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🎙️The types of Data and the 4 Vs.
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✏️+🎥Data Visualization + PPT slides🟢
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✏️+🎥The 4 Types of Data Analytics: Descriptive, Diagnostics, Predictive & Prescriptive🟢
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🎙️The 4 Types of Data Analytics: Descriptive, Diagnostics, Predictive & Prescriptive
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✏️+🎥The 5 Steps of Audit Data Analytics (ADA)🟢
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🎙️The 5 Steps of Audit Data Analytics (ADA)
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✏️+🎥Audit Data Analytics (ADA): Risk Assessment🟢
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🎙️Audit Data Analytics (ADA): Risk Assessment
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✏️+🎥The types of Data and the 4 Vs. + PPT slides🟢
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3 – PERFORMING FURTHER PROCEDURES & OBTAINING EVIDENCE : 3B : SUFFICIENT APPROPRIATE EVIDENCE📖Sufficient Appropriate Evidence2 Topics|2 Quizzes
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📖Types Of Audit Evidence6 Topics
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📖Reliability Of Audit Evidence5 Topics|2 Quizzes
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📖Audit Evidence Procedures3 Topics|2 Quizzes
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🎯AICPA Questions: Audit Evidence1 Quiz
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3 – PERFORMING PROCEDURES & OBTAINING EVIDENCE : 3C : SAMPLING TECHNIQUES📖Sampling & Non-Sampling Risk2 Topics|2 Quizzes
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📖Statistical & Non-Statistical Sampling – Probabilistic Selection2 Topics|2 Quizzes
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📖Attribute Sampling4 Topics|2 Quizzes
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📖Test Of Details Of Balances – Non-Statistical Sampling2 Topics
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📖Monetary Unit Sampling (MUS) Probability Proportional To Size (PPS)6 Topics|2 Quizzes
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✏️+🎥Monetary Unit Sampling(MUS) Probability Proportional to Size (PPS)🟢
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🎙️Monetary Unit Sampling(MUS) Probability Proportional to Size (PPS)
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✏️+🎥MUS and PPS: Compute the Sample Size🟢
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🎙️MUS and PPS: Compute the Sample Size
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✏️+🎥MUS and PPS: Compute the Upper Misstatement Bound🟢
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✏️+🎥Exercise: MUS and PPS- Upper Misstatement Bound🟢
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✏️+🎥Monetary Unit Sampling(MUS) Probability Proportional to Size (PPS)🟢
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📖Variable Sampling6 Topics|4 Quizzes
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✏️+🎥Variable sampling for auditing🟢
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🎙️Variable sampling for auditing
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✏️+🎥Variable Sampling – Mean Per Unit, Ratio & Difference Estimation🟢
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🎙️Variable Sampling – Mean Per Unit, Ratio & Difference Estimation
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✏️+🎥CPA Exam Questions: Audit Sampling Substantive Test of Details🟢
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✏️+🎥CPA Exam Questions solved: Stratified Sampling | Tolerable & Expected Misstatement🟢
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✏️+🎥Variable sampling for auditing🟢
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🎯Comprehensive Test: Sampling + AICPA Questions1 Quiz
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3D – SPECIFIC PROCEDURES TO OBTAIN SUFFICIENT APPROPRIATE EVIDENCE : 3D1 : TEST OF CONTROLS & TEST OF DETAILS📖Introduction To Sales Cycle3 Topics|2 Quizzes
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📖Internal Control Over Sales2 Topics|2 Quizzes
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📖Substantive Testing Of Sales3 Topics|2 Quizzes
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📖Auditing Sales Returns, Allowances, Write Off Of Uncollectible2 Topics|2 Quizzes
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📖Analytical Procedures For Sales & Cash Collection3 Topics|2 Quizzes
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📖Accounts Receivable: Test Of Details Of Balances2 Topics|2 Quizzes
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📖Accounts Receivable Confirmation2 Topics|2 Quizzes
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📖Auditing Cash Collection4 Topics|2 Quizzes
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📖Introduction To Acquisition & Payment Cycle2 Topics|2 Quizzes
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📖Internal Controls Over Acquisition & Payment Cycle2 Topics|1 Quiz
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📖Analytical Procedures For Acquisition & Payment2 Topics
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📖Accounts Payable Testing5 Topics|2 Quizzes
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📖Auditing Purchase Transactions & Cash Disbursments7 Topics|2 Quizzes
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📖Analytical Procedures For Acquisition & Payment
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📖Accrued Expenses & Accrued Liabilities4 Topics|3 Quizzes
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📖Accrued Prepaid Expenses2 Topics|2 Quizzes
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📖Auditing Property, Plant & Equipment4 Topics|2 Quizzes
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📖Auditing Capital Acquisition & Repayment Cycle2 Topics|2 Quizzes
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📖Auditing Notes Payable7 Topics|2 Quizzes
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🎥+✏️Audit of Notes Payable – Internal Control🟢
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🎙️Audit of Notes Payable – Internal Control
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🎥+✏️Substantive Analytical Procedures for Notes Payable 🟢
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🎙️Substantive Analytical Procedures for Notes Payable
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🎥+✏️ Notes Payable: Auditing Transactions and Related Balance Accounts 🟢
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🎙️Notes Payable: Auditing Transactions and Related Balance Accounts
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✏️+🎥Example: Auditing Notes Payable🟢
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🎥+✏️Audit of Notes Payable – Internal Control🟢
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📖Auditing Owner’s Equity7 Topics|3 Quizzes
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🎥+✏️Auditing Owner’s Equity – Internal Control🟢
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🎙️Auditing Owner’s Equity – Internal Control
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🎥+✏️Auditing of Capital Stock and Paid in Capital 🟢
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🎙️Auditing of Capital Stock and Paid in Capital
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🎥+✏️Auditing of Dividends and Retained Earnings 🟢
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🎙️Auditing of Dividends and Retained Earnings
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✏️+🎥Example: Auditing Owner’s Equity🟢
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🎥+✏️Auditing Owner’s Equity – Internal Control🟢
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📖Introduction To Auditing Payroll & Personnel Cycle2 Topics|2 Quizzes
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📖Payroll & Personnel Cycle Audit: Tests Of Control & Substantive Tests2 Topics|2 Quizzes
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📖Auditing Payroll: Analytical Procedures & Tests Of Details Of Balances3 Topics|2 Quizzes
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📖Understanding The Cash Cycle2 Topics|2 Quizzes
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📖Cash Audit: Bank Confirmation, Reconciliation, Cutoff Statement3 Topics|2 Quizzes
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📖Auditing Cash: Fraud Oriented Procedures3 Topics|2 Quizzes
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🎯Comprehensive Test: Understanding and Testing of Internal Control + AICPA Questions1 Quiz
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3D – SPECIFIC PROCEDURES TO OBTAIN SUFFICIENT APPROPRIATE EVIDENCE : 3D2 : ANALYTICAL PROCEDURES📖Analytical Procedures6 Topics|2 Quizzes
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📖Financial Ratios For Auditing Purposes3 Topics|2 Quizzes
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🎯Comprehensive Test: Analytical Procedures + AICPA Questions1 Quiz
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🎯AICPA Questions: Transactions Cycles1 Quiz
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3 – PERFORMING FURTHER PROCEDURES & OBTAINING EVIDENCE : 3E2 : INVESTMENTS IN SECURITIES📖Investment Cycle4 Topics|2 Quizzes
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3 – PERFORMING FURTHER PROCEDURES & OBTAINING EVIDENCE : 3E3 : INVENTORY & INVENTORY HELD BY OTHERS📖Introduction To Auditing Inventory & Warehousing Cycle2 Topics|2 Quizzes
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📖Five Parts Audit Of Inventory & Warehousing Cycle2 Topics|2 Quizzes
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📖Physical Observation Of Inventory2 Topics|2 Quizzes
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📖Audit Of Pricing & Compilation Of Inventory (Price Test)3 Topics
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📖Substantive Analytical Procedures For Inventory, Warehousing Cycle2 Topics|2 Quizzes
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📖Inventory Cycle Internal Controls & Audit Objectives5 Topics|2 Quizzes
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3 – PERFORMING FURTHER PROCEDURES & OBTAINING EVIDENCE : 3E6 : LITIGAGTION, CLAIMS, & ASSESSMENTS📖Contingent Liabilities & Letters2 Topics|2 Quizzes
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3 – PERFORMING FURTHER PROCEDURES & OBTAINING EVIDENCE : 3E5 : AN ENTITY'S ABILITY TO CONTINUE AS A GOING CONCERN📖Final Analytical Procedures & Going Concern4 Topics|2 Quizzes
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3 – PERFORMING FURTHER PROCEDURES & OBTAINING EVIDENCE : 3F ; MISSTATEMENTS & INTERNAL CONTROL DEFICIENCIES📖Evaluating Misstatements Found During The Audit4 Topics|2 Quizzes
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3 – PERFORMING FURTHER PROCEDURES & OBTAINING EVIDENCE : 3G : WRITTEN REPRESENTATIONS📖Management Representation Letter2 Topics|2 Quizzes
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🎯AICPA Questions: Representation Letter + Evaluation of Audit Findings2 Quizzes
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3 – PERFORMING FURTHER PROCEDURES & OBTAINING EVIDENCE : 3H : SUBSEQUENT EVENTS & SUBSEQUENTLY DISCOVERED FACTS📖Completing The Audit: Subsequent Events & Discovery Of Facts4 Topics|2 Quizzes
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🎯Comprehensive Test: Subsequent Events + AICPA Questions1 Quiz
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4 – FORMING CONCLUSIONS & REPORTING 4A: REPORTS ON AUDIT ENGAGEMENT📖Forming An Audit Opinion4 Topics|1 Quiz
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📖Conditions For Unmodified Opinion2 Topics|2 Quizzes
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📖Format Of Standard Unmodified Opinion: Non-Issuers (AICPA)2 Topics|2 Quizzes
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📖Format Of Standard Unqualified Opinion Report: Issuers (PCAOB)4 Topics|2 Quizzes
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📖Modified Opinions Due To The Financial Statement Issues4 Topics|2 Quizzes
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📖Modified Opinions Due To Audit Issues4 Topics|3 Quizzes
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📖Emphasis-Of-Matter, Other-Matter, & Explanatory Paragraphs4 Topics|2 Quizzes
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📖Integrated Audit Procedures10 Topics|2 Quizzes
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✏️+🎥Introduction to Integrated Audit🟢
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🎙️Introduction to Integrated Audit
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✏️+🎥Integrated Audit: Auditor’s responsibility🟢
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🎙️Integrated Audit: Auditor’s responsibility
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✏️+🎥Top Down Approach🟢
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🎙️Top Down Approach
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✏️+🎥Test design and operating effectiveness of ICFR🟢
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🎙️Test design and operating effectiveness of ICFR
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✏️+🎥Control Deficiencies in an Integrated Audit🟢
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🎙️Control Deficiencies
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✏️+🎥Introduction to Integrated Audit🟢
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📖Communication & Reporting In An Integrated Audit6 Topics|2 Quizzes
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✏️+🎥Nonissuer Report on Internal Control Over Financial Reporting🟢
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🎙️Nonissuer Report on Internal Control Over Financial Reporting
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✏️+🎥Issuer Report on Internal Control Over Financial Reporting🟢
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🎙️Issuer Report on Internal Control Over Financial Reporting
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✏️+🎥Reasons Modify ICFR Report🟢
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🎙️Reasons Modify ICFR Report
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✏️+🎥Nonissuer Report on Internal Control Over Financial Reporting🟢
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📖Reporting With Different Opinion & Other Auditors4 Topics|1 Quiz
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🎯Comprehensive Test: Audit Reports + AICPA Questions3 Quizzes
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4B – REPORTS ON ATTESTATION ENGAGEMENTS 4B1 – EXAMINATION OR REVIEW ENGAGEMENTS📖Introduction To Standards For Attestation Engagements (SSAE)2 Topics|1 Quiz
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📖Examination, Review, & Agreed Upon Procedures Engagements12 Topics|2 Quizzes
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🎥+✏️Examination Engagement🟢
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🎙️Examination Engagement
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🎥+✏️Examination Engagement Report🟢
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🎙️Examination Engagement Report
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🎥+✏️Review Engagement🟢
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🎙️Review Engagement
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🎥+✏️Review Engagement Report🟢
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🎙️Review Engagement Report
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🎙️Agreed Upon Procedures Report
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🎥+✏️Agreed Upon Procedures🟢
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🎙️Agreed Upon Procedures
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🎥+✏️Agreed Upon Procedures Report🟢
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🎥+✏️Examination Engagement🟢
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📖Prospective & Pro Forma Financial Information8 Topics|2 Quizzes
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📖Compliance & MD&A Attestation Engagements6 Topics
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🎯Comprehensive Test: Attestation Engagements SSAE + AICPA Questions1 Quiz
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🎯AICPA Questions: Reporting on Controls at a Service Organization1 Quiz
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4C – ACCOUNTING & REVIEW SERVICE ENGAGEMENTS : 4C1 – PREPARATION ENGAGEMENTS📖Preparation & Compilation Engagements Under SSARS10 Topics|2 Quizzes
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🎥+✏️Introduction to Preparation Engagement🟢
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🎙️Introduction to Preparation Engagement
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🎥+✏️Preparation Engagement: Performance Requirement and Documentation🟢
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🎙️Preparation Engagement: Performance Requirement and Documentation
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🎥+✏️Compilation of Financial Statements🟢
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🎙️Compilation of Financial Statements
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🎥+✏️Requirements for Financial Statement Compilation 🟢
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🎙️Requirements for Financial Statement Compilation
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✏️+🎥Compilation Reports🟢
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🎙️Compilation Reports
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🎥+✏️Introduction to Preparation Engagement🟢
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4C – ACCOUNTING & REVIEW SERVICE ENGAGEMENTS : 4C3 : REVIEW ENGAGEMENTS📖Review Engagement Under SSARS18 Topics|2 Quizzes
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🎥+✏️Introduction to Review Engagement: Engagement Letter🟢
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🎙️Introduction to Review Engagement: Engagement Letter
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🎥+✏️Understanding the Business in a Review Engagement🟢
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🎙️Understanding the Business in a Review Engagement
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🎥+✏️Inquiries and Analytical Procedures in a Review Engagement🟢
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🎙️Inquiries and Analytical Procedures in a Review Engagement
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🎥+✏️Representation Letter for a FS Review🟢
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🎥+✏️Evaluating Evidence in review engagement🟢
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🎙️Evaluating Evidence in review engagement
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🎥+✏️Communicating the results Unqualified Conclusion🟢
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🎙️Communicating the results Unqualified Conclusion
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🎙️Modified Conclusion Qualified Conclusion Adverse Conclusion
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🎥+✏️Emphasis of Matter or Other Matter Paragraphs in a Review Engagement🟢
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🎙️Emphasis of Matter or Other Matter Paragraphs in a Review Engagement
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🎥+✏️Reporting on Comparative Financial Statements🟢
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🎙️Reporting on Comparative Financial Statements
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✏️+🎥Example Compilation and Review Engagement🟢
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🎥+✏️Introduction to Review Engagement: Engagement Letter🟢
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🎯Comprehensive Test: Reviews and Compilations1 Quiz
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4 – ACCOUNTING & REVIEW SERVICE ENGAGEMENTS : 4D : REPORTING ON COMPLIANCE📖Reporting On Compliance4 Topics|2 Quizzes
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4E – OTHER REPORTING CONSIDERATIONS : 4E2 & E4 : OTHER INFORMATION IN DOCUMENTS WITH AUDITED STATEMENTS & SUPPLEMENTARY INFORMATION📖Other Information & Supplementary Information6 Topics|1 Quiz
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4E – OTHER REPORTING CONSIDERATIONS : 4E3 – REVIEW OF INTERIM FINANCIAL INFORMATION📖Interim Financial Reporting8 Topics|2 Quizzes
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🎥+✏️Introduction to Interim Financial Reporting (IFR)🟢
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🎙️Introduction to Interim Financial Reporting (IFR)
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🎥+✏️Interim Financial Reporting Engagement Letter🟢
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🎙️Interim Financial Reporting Engagement Letter
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🎥+✏️Interim Financial Reporting Inquiries and Analytical Procedures🟢
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🎙️Interim Financial Reporting Inquiries and Analytical Procedures
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🎥+✏️IFR Representation Letter & Evaluating and Communicating Results🟢
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🎙️IFR Representation Letter & Evaluating and Communicating Results
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🎥+✏️Introduction to Interim Financial Reporting (IFR)🟢
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4E – OTHER REPORTING CONSIDERATIONS : E46 : SPECIAL PURPOSE & OTHER COUNTRY FRAMEWORKS📖Special Purpose & Other Country Frameworks3 Topics|2 Quizzes
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🎯Comprehensive Test: Other Information, SI, and RSI1 Quiz
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💡1 Ethics, Professional Responsibilities, and General Principles 1A2 – Requirements of the SEC and PCAOB1 Topic
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💡4C Accounting and Review Service Engagements 4C3 – Review Engagements1 Topic
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According to the text in Arens, Cut-off is a transaction related assertion where the test is to see if the transaction are recorded on the correct dates for the duration being audited. Would someone please verify if the answer to this question is correct, in that, cut-off is indeed a Account Balance related assertion?
I’ve asked few friends in the industry who’re designated accountants and they also agree. Please check this answer, thank you.
Like Angad Bir, I too am very confused about Question 12. Why are transactions near the balance sheet date not concerned with the cutoff balance-related audit objective? It would seem highly pertinent to cutoff to determine if transactions were recorded in the correct period. The explanation even says that “cutoff is a transaction-related audit objective.” Thank you.
Hello Davis,
Under auditing standards, “cutoff” is specifically classified as a transaction-related audit objective, not a balance-related objective. Here’s why clearly explained:
– Transaction-related objectives deal with ensuring transactions (like sales and purchases) are properly recorded in the correct accounting period. “Cutoff” specifically relates to verifying transactions close to the balance sheet date to ensure they aren’t improperly shifted between periods.
– Balance-related objectives focus on verifying the fair presentation of account balances at a specific date (such as existence, completeness, valuation, and rights).
The confusion arises because transactions near the balance sheet date affect account balances, but the auditing standards explicitly categorize “cutoff” as transaction-related because the auditor’s primary focus is on ensuring transactions themselves are correctly recorded in the proper period. For example, you cannot verify that an accounts receivable balance is recorded in the correct period unless you verify that the sales transactions themselves, which created the accounts receivable, were recorded on the correct dates. Thus, even though account balances like accounts receivable are ultimately impacted by cutoff procedures, auditors approach cutoff as a transaction-related objective, ensuring that transactions such as sales and purchases near year-end are recorded in the proper accounting periods.
Thus, the original question and explanation provided were correct as per standard auditing terminology.
I hope this clears up the confusion!