Auditing Peoria Spring 2012

I plan on staying current with auditing by maybe every once in a while glancing at the tumblr.  I found interest in this class and maybe take an upper level auditing class.  Before taking this class auditing seemed to overwhelming and I'm glad I toke a course to help me better understand things like auditing procedures and the different rules.  This picture shows our class launching off into space teaching aliens about auditing.  

I plan on staying current by reading different blogs about accounting. I feel this is a great way to stay current because they are able to be updated daily. It would so convenient to just check the blog once a day during my lunch break at work. I also like how you are able to post many different ways in a blog. You don't always have to read texts to gain information. You are able to watch videos, post different pictures, and even post chats. This gives you more variety in staying current rather than just reading paragraph after paragraph. Another way I plan to stay current is by reading different accounting journals. I probably would not check these daily as they are usually updated monthly. This is a great way to read more in depth about the different changes coming along. This would be how I plan on staying current in the accounting world.

This picture doesn't relate entirely to staying current but it was too funny not to post.  Anyhow, I plan to use a variety of texts, media, and of course updated accounting literature to stay current.  I also intend to maximize the availability of current CPA courses, CFE courses, and other auditing and accounting courses.  I may also continue my education after I get my bachelors degree.  

Additionally, I expect that maintaining forty hours per year in CPE should help with staying current.

I will probably look through a few blogs that I find are trustworthy and I enjoy reading as well as subscribing to a few newsletters to have important information and updates emailed to me.  I will definitely check in on a regular basis with a few of the rule making bodies’ websites, such as the AICPA, since they usually have a place for new rules, laws, or other important information.  Like in any other profession you will always need to learn new things, so I may take a few courses or workshops over the years.  If there is anything I am still unsure of, there are many people I can ask for help or advice, and answers can easily be found through Google.  That is how I plan to stay current.

I plan to stay current by taking advantage of the many free sites that offer such as  CPA Review for Free.  I also plan on getting Roger CPA review course after I'm done with college.  On the Roger CPA website it has a blog that you can follow the tells you about the changes in the CPA exam. By examining the changes in the CPA exam I can stay current with the ever-changing accounting environment. The site also has a newsletter that is sent via email every month.   I also plan on taking continuing education courses after I become a CPA.  

This is not an all-encompassing list, but it’s a start to a lifelong learning attitude.

Blogs have been a great way for me to stay current, reflect, and retrieve data.   It is a challenge to stay current in accounting, in any specialty.   I look forward to seeing what the Peoria audit class will contribute in their final posts to this team class blog, about their plans to create and sustain a Personal Learning Network of their own to go beyond the course.

Here is a live link to downloadable software used to calculate the statistical sampling for test of controls last updated April of 2011. This is an Excel-based software program that aids an auditor in achieving greater efficiency when performing standard sampling. Performing such calculations by hand maybe too time consuming. Today's day and age we have the luxury of having computers to do it for us, so finding inexpensive software to perform our audit work is a must.

This link goes to an aritlce about the recently revisedAICPA Audit Guide on Audit Sampling.  The articles has frequently asked questions which include major topics covered, materiality, walkthroughs, sample sizes, and whether statistical sampling is required. 

This photo explains how the Census Bureau used statistical sampling for unemployment in the 1930s.  The Census Bureau used a process called decennial census in the 1940s which was an extended questionnaire without increasing cost or respondent burden for the respondent.  Census Bureau now conducts over 200 economic and demographic surveys a year to provide a national figure.  I think it is important to keep stats up to date and accurate every year so no faulty information is being exploited to the people. 

This is a great picture using sampling in a substantive test.  A population of $800,000 is used with a sample of 32 to achieve a sampling interval.  The data in this statistical sample is cumulative totals, target totals, and balances.  Just one of the many ways statistical sampling can be used in auditing.  

This is a table that shows what the size of a statistical sample should be to obtain the desired level of certainty when testing controls.  It also shows when a sample size is too large to be cost-effective for most audits and approximately how many errors are expected.  This is a good chart to give auditors some idea to what the size of the statistical sample needs to be and how many errors will occur when doing a statistical sample.

The article also touches briefly on flawed samples, specifically the Literary Digestpoll which predicted the easy victory of Alf Landon (who?) over Franklin D. Roosevelt in the 1936 Presidential Election.

This is a great article from The CPA Journal describing statistical sampling. The article first describes how statistical sampling came about. It then goes into detail describing the difference between non-statistical sampling and statistical sampling. It describes when an auditor should use statistical sampling and what risks are associated with it. Lastly, the article provides many different examples about when this process was used.