AUD Study Group – Q2 2018 - Page 26

@kg79, I will start on it tomorrow. Will tell you after one week how useful I think it is.

@Allsheneeded: Hats off to you! I can relate to the challenges due to personal factors. All the best for AUD & BEC!

@AF I am also taking audit on 6/5. This is the last one, few more weeks to go and hopefully done.

@AF: I planning to take AUD around June 7th or 8th. Due to a crazy personal schedule, I do not schedule way ahead & have to take a chance of keeping up the pace with no set date. I also use Gleim. famh & allsheneeded chime in whenever they can in this thread. Otherwise, I feel like I am talking to myself. But it looks like the thread was very active during the beginning of the window when lot of people took AUD. All the best for AUD!

@Sne58: It's good that there are some who is taking it end of window. It must be great being on the home stretch. Best of luck for AUD!

@rahee: What I understand:
Why it's not B:
1. Predecessor's working papers are his/her property & need not be provided to client or others unless required by Statute, Regulation or Contract.
2. Predecessor's audit documentation is made available before engagement acceptance.
3. If predecessor does not respond to inquiries & if client refuses to give permission, then there is scope limitation.

Why it's not D:
The fact that management investigated key employees before hiring them indicates that they are focusing on human resources element of quality control so that commitment to ethical principles are maintained by the employees who will take up significant positions. Also, the tone at the top is essential for a firm to promote an internal culture which insists on quality control while performing the engagement. Hence the need to investigate them whether they will maintain the tone at the top. The fact to look for in D is that the investigation was done before hiring key employees NOT after hiring them which indicates that there was lack of management integrity.

Hope this helps.

@allsheneedwassome….thanks for that info. great job on staying consistent. i have been going to a local library in evenings that seems to help but totally messes up kids night routine as everything around the house is waiting on me to get done. its super exhausting! so no such thing as light reading before sleeping exists for me. i crash in a few minutes after going to bed! lol summer is coming so kids schedule would be a little lax so I am trying to modify my schedule to wake up in the mornings and hit the books at 5 ideally but for some reason, its not happening. i think it goes back to sleeping early in order to wake up early.

@rahee, use process of elimination with these type of questions. it helps a ton. i agree with @sacpa explanations! i finished becker finally. hitting review phase. how far along are you now?

@gryfi, for your first question, i can't recall the exact ruling but its quite similar to the AICPA ruling regarding fraud and noncompliance that the audit is conducted only to obtain reasonable assurance so if you are not aware of anything then its not your responsibility but if you do come to know of something like fraud or some sort of non compliance then you are suppose to ascertain it. to conclude, a report is required for internal control over financial reporting and compliance in all cases under GAGAS. However, in instances where there is internal control deficiencies (significant or material weakness), fraud, or noncompliance that have material impact on financial statements, more rules apply and here is what you will need to read…too time consuming for me to summarize all that hehe
https://www.gao.gov/assets/590/587281.pdf —go in and read the small paragraph on reporting deficiencies pg 101 🙂

for your second question, what were the answer explanations? choice A is incorrect because if you are reducing materiality to lower levels, you will need to collect more evidence and increase “NET” of your audit procedures. you would least likely be interested in smaller errors because they will be immaterial to your financial statements. as an auditor, you would want to find larger errors as they would likely results in material misstatements to financial statements if left undetected. hopefully, it makes sense? i would encourage you to draw a graph and plot points on it and that should help a lot IMO. it's hard to explain these kind of concepts just by writing it out.

Hi,

I have scheduled my Audit exam for 5/29. I have been hammering away at the MCQs with Gleim. I wanted to know what would be a good score as I am nervous about the range I am in. I generally score between 45-65% on the 20 mcq testlets that gleim recommends. Is this a good score range? Can anyone please help with suggestions? Thanks!

Rahee: sorry for the delay. I have been MIA on all social sites. Lol.
The answer to these questions is always “C” type answers. If they do not allow u access to files or people will mean limited scope. All else can b overcome.
Mgt investigated key employees. This decreases chances of fraud with them.