Chapter 2 - Audit of Historical Financial Statements (Overview, Acceptance of Client, and Audit Planning)
Before starting Chapter 2 of the Audit BOOST program, we would like to discuss a few items:
There are typically questions/issues that arise at this point of your studying that may be bothering you. The attached file addresses these questions: (1) Topic #1: I speak a lot to myself while studying. Is this okay? (2) Topic #2: Moving like a turtle!, (3) Topic #3: Are you studying in a good physical place?, and (4) Topic #4: Is talking with your friends who are also taking the CPA Exam helping or hurting your mind set? WE HOPE YOU FIND THE FOLLOWING FILE HELPFUL!
Issues that may be bothering you - BOOST Chapter 2
Chapters 2 to 4 of the Audit section of BOOST CPA Review discuss the audit of historical financial statements. As you work through these chapters, it is important to keep in mind where you are in the audit process and understand logically the overall thought process of an audit of historical financial statements. We will emphasize these points throughout the videos in Chapters 2 to 4 of the Audit Section of BOOST CPA Review.
The videos and outlines for Chapter 2 are fairly long given the amount of material covered in these sections and the importance of this material. Just take it step-by-step!
Please don't rush through this material and take your time to understand it. Remember, an additional week of study (if needed) will be well worth it if the additional time is the difference between passing and failing the audit section of the CPA exam! Also, it is significantly more effective and efficient to address weaknesses in a specific topic when working on that topic rather than waiting until final review to address those weaknesses.
Also, when you are close to completing Chapter 2 of BOOST, you should take a practice test (with only multiple choice) for the content noted on page one or two of the document with content comparisons of BOOST and Becker, Roger, and Wiley CPAexcel. This practice test will help you determine how much of the Chapter 1 BOOST information you have retained and how well you have integrated the various topics in Chapter 1. You should review your notes (which are a subsection of the BOOST outlines) periodically during the week to keep this information fresh in your mind.
Good luck as you begin your studies of Chapter 2! Some of the page numbers in the videos are not the same as the page numbers in the BOOST textbook. Please use the page numbers in the BOOST textbook.
Remember, please contact BOOST CPA Review by email if you have any questions as you work through Chapter 2.
AFTER WATCHING EACH VIDEO BELOW, please complete the appropriate multiple choice and simulations related to each of these videos. Please refer to the document with content comparisons of BOOST and Becker, Roger, or Wiley CPAexcel to determine which multiple choice and simulations to complete.
Here are the 12 videos for Chapter 2 for the Audit section of BOOST CPA Review:
When collecting sufficient appropriate audit evidence, an auditor should also consider potential biases. Please download the following short outline and focus on identifying the different types of biases. Supplement for Unit 2-2
NOTE: There is no video for Unit 2-7 of BOOST because it has been eliminated based on the changes to the audit section of the CPA exam effective on July 1, 2021!
You were asked in the introduction material to delete the material on pages 42 to 43 of the Audit BOOST textbook related to the use of data analytics and other advanced technologies. The following material (which is discussed in the following Unit 2-8 video) replaces the material on pages 42 to 43. Please download/print this material before listening to the Unit 2-8 audit video:
Revised audit data analytics for unit 2-8 of AUD BOOST-6-7-2021.pdf
Overall, Chapter 2 of BOOST CPA Review does not provide a complete and integrated discussion of how a client's information system (i.e., information technology environment) impacts the audit of historical financial statements. Please download/print the following outline and listen to the following video for a better understanding of these important concepts.