How to learn the auditing standards EASILY! 4 top tips!

Summary

In this educational video, Amanda, an experienced auditing lecturer, offers four top tips to demystify the auditing standards for students and professionals. She emphasizes understanding the structure of standards, focusing on objectives, definitions, and requirements, and utilizing explanatory material. Amanda also encourages leveraging existing resources, such as videos and professional guides, and practicing retrieval through note-taking and applying audit concepts to real-life scenarios. Additionally, she provides a template to aid in summarizing and understanding the complexities of audit standards.

Takeaways

• 📚 Amanda, an experienced auditing educator, introduces a video aimed at demystifying auditing standards for students and professionals.
• 🌐 The video is applicable globally, as it addresses auditing standards from various jurisdictions, including Australia, the US, and international standards (ISAs).
• 🔑 Amanda emphasizes the importance of understanding the structure of auditing standards, which typically include objectives, definitions, and requirements.
• 📖 The video suggests starting with the objective of a standard to grasp its purpose and then moving on to definitions for clarity on key terms.
• 📝 Requirements are the explicit rules auditors must follow, and Amanda advises not to skip the explanatory material that provides context and examples.
• 💡 Utilize existing resources like Amanda's videos, professional accounting firm materials, and public accounting association resources to aid understanding.
• 📈 Amanda recommends retrieval practice, which involves actively recalling information, as a study technique to reinforce learning and prepare for exams.
• 📊 Creating concept maps can help visualize connections between audit concepts, aiding in the understanding and application of auditing standards.
• 🔍 The video encourages applying audit concepts to everyday scenarios to practice and reinforce learning, fostering a deeper understanding of the material.
• 🎓 Amanda provides a bonus resource, a word document template, to help summarize and analyze auditing standards, focusing on key points and professional judgments.

Q & A

What is the main focus of Amanda's video?

The main focus of Amanda's video is to help audit students and professionals unlock the secrets to learning auditing standards easily, by providing tips and strategies to understand and navigate through the standards.

Why does Amanda prescribe auditing standards instead of a textbook in her course?

Amanda prescribes auditing standards instead of a textbook because they are the foundation of auditing and provide the most current and authoritative guidance for auditors, which is essential for students to understand and apply in practice.

What are the four top tips Amanda shares to understand auditing standards?

Amanda shares four top tips: 1) Unlocking the structure of the audit standards, 2) Understanding the importance of definitions, 3) Utilizing explanatory and application material, 4) Taking advantage of existing resources and practicing retrieval.

How does Amanda suggest students approach the 'requirements' section of the auditing standards?

Amanda suggests that students should read the requirements carefully, as they are the explicit rules auditors must follow. She also recommends looking at the explanatory and application material after the requirements for additional context and understanding.

What does Amanda mean by 'unlocking the structure of the audit standards'?

Amanda refers to understanding the standard layout which typically includes the objective, definitions, and requirements. By understanding this structure, students can more easily find what they need and read the information without getting overwhelmed.

Why are the definitions in auditing standards important according to Amanda?

Definitions are important because they provide clarity on key audit terms and concepts, which is crucial for students who are new to auditing or need a refresher on specific audit processes.

What role does explanatory and application material play in understanding auditing standards?

Explanatory and application material provides context and examples to the main standard, helping students understand how to apply the requirements in practice, which can be particularly helpful for those who find the requirements section challenging.

How does Amanda recommend leveraging existing resources to learn auditing standards?

Amanda suggests using resources such as her own videos, materials from public accounting firms, and professional associations to gain different perspectives and explanations of the auditing standards.

What is retrieval practice and why is it important for learning auditing standards?

Retrieval practice is the act of actively recalling information from memory, which is important for learning because it helps solidify understanding and prepares students for exams where they need to retrieve and apply knowledge.

What bonus resource does Amanda provide to help understand auditing standards?

Amanda provides a word document template in the video description to help summarize and analyze auditing standards, which includes fields for standard number, name, summary, key points, and areas where professional judgment is required.

Outlines

00:00

📚 Introduction to Auditing Standards

The video begins with the host, Amanda, addressing her audience, which includes both regular subscribers and newcomers. Amanda, an experienced auditing lecturer at a major Australian university, emphasizes the importance of auditing standards as the foundation of auditing. She shares her approach to teaching auditing, which involves using the auditing standards themselves rather than a textbook. Amanda highlights that the auditing standards, whether Australian, international (ISAS), or US (SAS), share a similar structure, making her tips universally applicable. She introduces four top tips to help viewers understand and navigate auditing standards more effectively.

05:02

🔍 Unlocking the Structure of Audit Standards

Amanda's first tip focuses on understanding the structure of auditing standards. She explains that regardless of the jurisdiction, standards have a consistent layout, starting with the objective, followed by definitions, and then requirements. The objective section clarifies the purpose of the standard, while definitions provide clarity on key terms. Amanda stresses the importance of the requirements section, which outlines the explicit rules auditors must follow. She also advises looking at the explanatory and application material for further context and understanding, which is often overlooked by students due to its length but is crucial for comprehending the requirements.

10:04

📈 Utilizing Resources for Audit Standard Learning

In her second tip, Amanda encourages viewers to leverage existing resources to aid in understanding auditing standards. She mentions her own comprehensive video series explaining Australian auditing standards in detail and suggests looking for similar materials from professional accounting bodies and major accounting firms. Amanda emphasizes the value of videos for visual learners and the importance of finding resources that cater to individual learning styles. She also introduces the concept of retrieval practice, which involves actively recalling information to strengthen memory and understanding. This practice can be done through note-taking, creating quizzes, and using concept maps to link audit concepts together.

💡 Applying Audit Standards in Daily Life

Amanda's third tip is about applying the auditing standards to real-life scenarios as a way to practice retrieval and deepen understanding. She suggests thinking about inherent risks, controls, and evidence in everyday situations, like dining at a restaurant, to see auditing concepts in action. As a bonus, Amanda provides a link to a word document template in the video description to help viewers summarize and analyze auditing standards. The template includes sections for standard details, summaries, and considerations of professional judgments. Amanda concludes by inviting viewers to share their own tips for learning auditing standards and encourages engagement with the audit community on her YouTube channel.

Keywords

💡Auditing Standards

Auditing Standards are the guidelines and rules that govern the conduct of an audit. They ensure that audits are performed with integrity and in a manner that provides a reasonable basis for expressing an opinion on financial statements. In the video, Amanda emphasizes the importance of understanding these standards as the foundation of auditing. She suggests that students should familiarize themselves with the structure of these standards, regardless of the jurisdiction, to navigate them effectively.

💡Objective

The 'objective' in auditing standards refers to the purpose or goal of a particular standard. It outlines what the standard aims to achieve. Amanda mentions that every standard starts with an objective, which is crucial for understanding why the standard exists and what it is trying to help auditors understand. This is foundational for students to grasp the intent behind the standards.

💡Definitions

Definitions in auditing standards are critical for clarifying terms and concepts that are specific to the auditing process. Amanda points out that these definitions are not centralized but are instead spread throughout the individual standards. For students new to auditing, understanding these definitions is essential for grasping the nuances of audit processes and reports.

💡Requirements

Requirements in auditing standards are the explicit rules that auditors must follow. They dictate the steps auditors should take during an audit. Amanda explains that these requirements can be daunting due to their technical language, but they are essential for conducting an audit correctly. She advises students to pay close attention to these sections to understand the mandatory actions for auditors.

💡Explanatory Material

Explanatory material in auditing standards provides context and examples to clarify the requirements. Amanda suggests that students should not skip over this part, as it can help demystify the technical language found in the requirements. This material is crucial for understanding how to apply the standards in real-world auditing scenarios.

💡Resources

Resources mentioned in the video refer to the various study materials and guides available to help students understand auditing standards. Amanda encourages students to leverage her videos, materials from professional accounting bodies, and resources from major accounting firms to gain a deeper understanding of the standards. These resources can offer different perspectives and make learning more engaging.

💡Retrieval Practice

Retrieval practice is a learning technique where students actively recall information from memory to reinforce learning. Amanda suggests that students should not only absorb information but also practice retrieving it, as this is a key skill needed for exams. This can be done through note-taking, creating quizzes, or using concept maps to link audit concepts together.

💡Concept Map

A concept map is a visual tool used to organize and represent knowledge. It helps in understanding the relationships between different concepts. Amanda recommends using concept maps to link audit concepts and enhance memory retrieval, which is essential for exam performance and applying audit standards in practice.

💡Professional Judgment

Professional judgment is the ability of an auditor to make informed decisions based on their expertise and the information available. Amanda highlights that audit standards often require auditors to exercise professional judgment, which involves making decisions without explicit rules. Understanding where and how professional judgment is applied is crucial for students to grasp the complexities of auditing.

💡Template

A template in this context refers to a structured document or guide that Amanda has developed to help students understand and summarize auditing standards. The template includes fields for standard number, name, and a section for summarizing the standard and identifying areas where professional judgment is required. This tool is meant to aid students in organizing their study of auditing standards.

Highlights

Unlocking the secrets to learning auditing standards easily is the focus of today's video.

Amanda, with over a decade of teaching auditing, shares her expertise on understanding audit standards.

The importance of audit standards as the foundation of auditing is emphasized.

Amanda's course uses auditing standards instead of a textbook, highlighting their practical application.

Audit standards globally share a similar structure, making the learning process applicable across jurisdictions.

Tip one: Understanding the structure of audit standards is crucial for easy navigation.

The objective section of standards outlines their purpose and what they aim to achieve.

Definitions in audit standards are vital for clarity, especially for new learners.

Requirements are the explicit rules auditors must follow, detailed step by step.

Explanatory and application material provides context and examples for better understanding.

Leveraging existing resources like Amanda's videos can aid in the comprehension of audit standards.

Retrieval practice is essential for learning, involving actively recalling information.

Note-taking in one's own words aids in better information retention for exams.

Concept mapping is a recommended method for visualizing and linking audit concepts.

Applying audit standards to everyday scenarios can enhance practical understanding.

A bonus resource, a word document template, is provided to help understand audit standards.

The template includes sections for summarizing standards and identifying areas requiring professional judgment.

Encouragement for community sharing of learning methods to enhance collective understanding.

Amanda's channel and website offer a comprehensive study guide for auditing.

Transcripts

what's up audit fans have you ever

opened the auditing standards or opened

the pdf and just become

completely overwhelmed and bamboozled

well today's video

is for you today we're going to look at

how you

can unlock the secrets to learn auditing

standards easily

let's get into it

back to my regular subscribers hello to

all those people who are always

commenting on my new videos

and sharing their knowledge with our

little audit community here

i really value your contribution so

welcome back

to anybody who's new hi my name is

amanda i do love to audit

and i've been teaching auditing at a

major australian university for over

a decade now it doesn't seem like that

long and i've been in higher education

for

almost two decades and i really love

sharing what i know about audit and how

to unlock

insights to help students so today we're

looking at the audit standards and

they're really really important because

they're the foundation of auditing

in my particular course i don't actually

prescribe a textbook i prescribe the

auditing standards

and we use those as our foundation now

no matter where you are

whether you're here in australia where i

am

and you have the australian auditing

standards whether you're using

the international versions issued by the

international

assurance and audit standards board so

you're looking at the um

isas or even if you're in the us

and you're using the uss their standards

on auditing

this process is going to be useful no

matter what jurisdiction

and what standards you have because the

standards while not all totally aligned

across the entire globe

have a fairly similar structure and

layout

so today i'm going to share with you

four top tips that i have

to help unlock the secrets of

understanding

what is going on in these standards and

how we can take advantage of that for

our learning

to make the whole process easier so tip

number one

is going to be about unlocking the

structure of the audit standards

no matter where in the world you're

studying audit

the standards are usually structured the

same whether you're here in australia

whether you're using the international

auditing standards the isas

whether you're using the us standards

the sas

they have a similar layout and once you

can get into the groove

and unlock the secrets of that layout it

makes it really easy

to actually find what you need and read

the information

without getting overwhelmed by all these

unfamiliar words

so we always start out with the

objective now certainly at the front of

the standard there's a whole lot of

legal information about

scope and date of application etc but

for a student who's learning the

standard obviously you need to make sure

you have the most current standard so

always look at the

list and make sure it's the most current

one but you always start with the

objective

the objective is what is the purpose of

this standard why do we have it

what is it trying to help us understand

the second part is going to be the

definitions if you're new to audit or

you're just learning about this process

or you need a refresher

then the definitions are really critical

because they'll tell you exactly what

an engagement letter is or what inherent

risk is or what the population

of something is so the definitions are

really critical

and the thing is they're spread all

throughout the individual standards

there's not

one central glossary for the audit

standard so you're going to need to find

it in the definition

section of each standard now the third

part of the audit standards that i

always like to look at is the

requirements

remember the requirements are the bits

that you have to follow

these are the explicit rules set out for

auditors the auditors

shall gather sufficient and appropriate

evidence to be able to render their

audit opinion the auditor

shall provide an opinion on um

you know the financial statements and

whether they're free from material

misstatement

the auditor should set a level of

materiality so the requirements tell us

step by step what we should be doing and

they usually are in that

process of at the start of the audit in

the middle of the audit at the end of

the audit so the requirements are really

clear

but a key issue when i'm talking with

students and people online

is that they look at the requirements

and go i don't understand this language

what does some of this mean

because they are the requirements

they're not written with a lot of

extra explanatory material they're just

exactly what the auditor should do

according to the standard

so my second tip and one that uh

students often

don't do people studying auditing don't

do

is look at the explanatory and

application material

that's after the requirements and people

will often go

well there's three pages of requirements

but 20 pages

of explanatory material i don't want to

read more

and often people will just stick with

the requirements and be confused

but here's where the application and

explanatory material is really important

the application and explanatory material

actually provides context

to the main standard so a standard might

have a sentence and you go

i don't understand what that sentence

means then you can go to the explanatory

material often there will be a cross

reference so it'll say look at paragraph

a 25 or a3 and those a paragraphs

indicate

application and explanatory paragraph

material

that's where they say in a situation

here's an example

here is how we apply that in some more

depth so if you're stuck after reading

the requirements

definitely definitely look at the

explanatory material

because it provides a lot of insights

you might need

to have potentially both you know

bookmark or something on the pdf so that

you can flip

from the requirements to the explanatory

material and almost read them side by

side

my third tip is to take advantage of

existing

resources now of course i have an entire

set

where i've gone through almost every

single auditing standard in the

australian versions anyway

line by line to explain exactly what is

happening and what the words mean

so i've gone through the objective the

definition

and the requirement i don't go through

the explanatory material because it's

just too long it wouldn't actually fit

in a video

but leverage off the resources that i've

already built

and that are available to you absolutely

free

you could also look for materials from

any of the public accounting firms the

major professional associations so in

the us for example the aicpa has a lot

of great stuff on various auditing

standards

um in australia the auditing standards

board

the big four audit firms and other

professional accounting firms

will often put out their own explainer

videos about what an auditing standard

means

especially in a specific jurisdiction so

do some youtube searching there

and start creating some playlists of

perhaps my videos

some from a professional body and also

from um

the major accounting firms just to

gather that resource

i'll often often a lot of my students

find it easier to actually

watch me explaining the standards than

reading the standards themselves

so a video is a good way to start if

you're that type of visual learner

but of course remember do what works for

you if you can read the standards

and you're understanding it you're

seeing the picture of what the standards

are trying to put together

then that is absolutely fantastic if

you're more of a visual learner

and you prefer watching somebody else

explain then definitely check out videos

and other resources

my fourth and final tip on how to learn

the auditing standards easily

is retrieval practice and what does that

mean well

in education we know that students take

information in as you're learning

something you know you're reading about

stuff you're watching videos

you're taking notes okay it's important

to take notes it's important to get that

information and put it into

your own words so don't copy my words

take what you're understanding

and write it down in your own words

because then it'll be easier for you to

replicate and reference in the exam

that's really important so retrieval

practice

means not just absorbing information but

practicing

pulling that information out of your

brain because that's exactly what you

have to do in an exam

an exam is not about putting information

in

a really key stumbling block i guess i

see with students

who are not doing so well at university

is that they're often focused on putting

information

in so reading reading reading but

perhaps not doing

practice so it could be that you could

work with some friends to create some

quizzes

for yourself so create some um questions

where you could test

each other so writing notes can be

really useful and a great form of

retrieval

not necessarily just like copying what

i'm saying or what somebody else is

saying and transcribing but taking it

and putting it into your own words

another way to practice retrieval is

something called

a concept map so you might take some

ideas related to

assertions and try and draw in a bit of

a spider diagram

how many things could be related to

assertions oh what's related to evidence

i'm going to need to think about

materiality i'm going to need to think

about procedures

i know that for example for the

existence assertion

and the occurrence assertion i'm going

to need to do more vouching

for the accuracy valuation and

allocation assertion i'm probably going

to need to do some recalculation

so the more that you can try and link

your audit concepts together

to draw a concept map of what the audit

standard is all about or what the

standards in general are all about

then the better your brain is at

retrieving

that information from inside your memory

because remember

in the exam retrieval is what you need

to do and application is what you need

to do

the other way that you can try and

practice retrieval

is try apply the standards in something

that you see in everyday life

you go into a restaurant you think oh

what are the inherent risks

do i identify any controls what sort of

evidence could i use here a receipt

what sort of documentation do the

waiters or waitresses or the servers use

some sort of electronic recording system

so think about immersing yourself i

talked to my students about

being in the matrix of audit if you

haven't seen the movie

um it's the matrix is the movie there

but you know

looking at the world through that audit

lens will help you apply the auditing

standards

now as a bonus what i'm also going to

provide to you

in the description is a link to

a word document file that i've developed

to help people

understand the audit standards so you

know it has some basic fields like

what is the standard number what is the

standard name

asking you whether it's a standard about

planning about gathering evidence or

about reporting

in the end it asks you to summarize the

standards

if you could give a two or three

sentence summary

of that standard and then some more

detail

a common mistake that students make is

that they often just copy

out the entire standard that just that

to me

doesn't make much sense if it helps you

to remember that's great

but you know summarize um you know the

five main things that you need to do or

the three main things the key points

that you need to consider of what the

auditor has to do in response to that

standard

now of course some standards are bigger

than others asa 315

isa 315 is a massive standard and

there's much more to think about in that

one

than there would be in uh for example

asa 701

which is a bit more contained about key

audit matters

but um the other part that i think is

really useful for people learning

auditing and studying auditing

is a section where i ask you about the

judgments remember audit is all about

professional judgment

there are no rules that say this is

exactly what you have to do or this is

exactly what you have to do

it gives you choices that say it says as

the auditor you have to do this

it's not an easy decision you have to

make a professional judgment where

there's perhaps no right answer

and you have to take in all of the

information that you have access to

so in my template for you there's also a

section

to get you to think about where does the

auditor have to make judgments

where is it that they have to use their

professional decision making

and that'll help you understand where

the complexity in that audit standard

lies

and where you need to focus on

understanding the scenario the situation

and what sort of information the auditor

needs to be able to make those decisions

now of course these are my top tips

the ones that i've developed over a

decade of teaching auditing and helping

students on how to learn the auditing

standards

in a way that's easy and useful to their

studies

if you have a great way that you've used

to learn the auditing standards i'd love

for you to share it with our audit

community in the comments

we're all in this social distance

learning together and learning online

together

one of the best things about youtube is

the little community that seems to have

popped up around my channel

where people share their experiences and

the knowledge

so that we can all improve together

so i want to thank you for watching this

video if you thought it was useful

obviously i'd always love a thumbs up

consider subscribing and there are

always plenty more videos coming out on

my channel

as well as on my free audit study guide

on the amandaloves2audit.com website

where you'll find all of my videos

laid out really nicely in a sort of

study format that'll help with most

university and professional level

courses thanks for watching

stay safe stay well and i'll see you

next time