AUD Study Group – Q1 2018 - Page 13

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  • January 17, 2018 at 7:17 am #1694074
    famh110
    Participant

    thank you so much for the explanations sona and j king! i completely forgot about that one. audit evidence and the assertions, the cycles etc are all tough to grasp. i certainly need lots of practice in those areas myself.

    btw, the AICPA prof literature gives you access to whole lots of other resources that are mentioned in our txtbooks like AT-C, AR-C, ET, SQCS, and many others. Now navigating it is another story and the one that i need to learn so will see how that goes but i just wanted to provide this update.

    sona, your exam is so close. All the best to you!! thanks for sharing your experiences. i think i am going to spend some extra $$ and just get ninja too. you sound very convincing 🙂

    January 17, 2018 at 9:56 am #1694170
    itooshallpass
    Participant

    The usefulness of the standard bank confirmation request may be limited because the bank employee who completes the form may:

    A. Not believe that the bank is obligated to verify confidential information to a third party.

    B. Sign and return the form without inspecting the accuracy of the client's bank reconciliation.

    C. Not have access to the client's cutoff bank statement.

    Correct D. Be unaware of all the financial relationships that the bank has with the client.

    I understand why D is correct, but couldn't B also be correct? Is that just a secondary concern that would exist with any confirmation or outside evidence?

    EDIT: never mind, I just got it. B is wrong because the confirmation has nothing to do with the RECONCILIATION. Duh!

    January 17, 2018 at 10:34 am #1694189
    SONA
    Participant

    When should the auditor's report be dated?

    A.
    The date that substantially all fieldwork is completed

    B.
    The date the auditor grants the entity permission to use the auditor's report in connection with the financial statement

    C.
    The date of all significant subsequent events coming to the attention of the auditor

    Correct D.
    No earlier than the date on which the auditor has obtained sufficient appropriate audit evidence

    The auditor's report is no longer dated as of the last date of fieldwork. Instead, AU-C 230.A2 explains that the auditor's report should not be dated earlier than the date on which the auditor has obtained sufficient appropriate audit evidence to support the opinion. Among other things, sufficient appropriate audit evidence includes evidence that the audit documentation has been reviewed and that the entity's financial statements, including disclosures, have been prepared and that management has asserted that it has taken responsibility for them. This will ordinarily result in a report date that is close to the date the auditor grants the entity permission to use the auditor's report in connection with the financial statements (report release date). AU-C 560 specifies situations when certain subsequent events will affect the date of the auditor's report.

    January 17, 2018 at 10:37 am #1694192
    SONA
    Participant

    Thanks. All of you have good luck for the exam. 🙂

    “READ THE QUESTION CAREFULLY” I am going to write this on my laminated paper before starting the exam. Key to answer correct.

    January 17, 2018 at 11:29 am #1694215
    J King
    Participant

    @famh110, I found couple of links from AICPA that lead to some pronouncements I was looking for on ProfLit, and I decided to settle with them for now. In Audit Evidence, I guess you have to be familiar with the management assertions and how to perform test of details in different accounts (my basic FAR knowledge sometimes gives me light bulbs here!)



    @sona    , good luck on your test on Friday! Would love to read about your experience taking on AUD!

    January 17, 2018 at 12:02 pm #1694225
    SONA
    Participant

    Thanks. Sure i would share my experience with the exam, without violating the exam disclosure.

    I will be giving FAR next, would like some experience and strategy for FAR from who have given FAR.

    January 17, 2018 at 3:01 pm #1694291
    famh110
    Participant

    @j king. thats good that you have taken FAR recently. it helps with understanding auditing and thats what most people recommend. my FAR expired a few years back so i am planning on taking it last this time around.



    @sona    …writing that down will serve you well! i do it even when i am doing homework..its so easy to miss points by not reading the question carefully. perfect example was that risk assessment procedure question you asked a couple of days back..lol. that was a tricky one!

    January 17, 2018 at 4:11 pm #1694308
    itooshallpass
    Participant

    What is this? I have never come across Uniform Guidance rules.

    The schedule of findings and questioned costs, included in an auditor's report under the Uniform Guidance rules for nonprofit organizations expending federal awards, would include all of the following, except:

    A.
    significant deficiencies.

    B.
    material noncompliance with the provisions of laws, regulations, contracts, or grant agreements.

    C.
    known questioned costs when likely questioned costs are greater than $10,000 for a type of compliance requirement for a major program.

    D. CORRECT
    a disclaimer of opinion about whether all questioned costs have been reported.

    January 17, 2018 at 4:54 pm #1694336
    SONA
    Participant

    Hey I still have confusion about it. It did not clear the cloud yet.

    January 17, 2018 at 4:56 pm #1694338
    SONA
    Participant

    Yes, becker has taught about it. Questioned cost is, if it is over $10,000. Auditor has to report.

    I think it is under SAA? Single audit act.

    January 17, 2018 at 6:49 pm #1694387
    Jason
    Participant

    doh, 3rd try was tomorrow. My brain is gonna melt haha Not the email i wanted to see: Please be informed that due to inclement weather in the immediate area, and for the safety of candidates and test center employees, the testing center will be closed on January 18th, 2018. guess I needed another week to review more MCQ's..

    January 17, 2018 at 7:04 pm #1694392
    famh110
    Participant

    I haven't learned about it just yet but you are right it is covered under the Single Audit Act (Becker A5 Module 8) and appears confusing.

    I think answer is D. Single Audits require that f/s are audited, the Uniform Grant Guidance requires the use of both GAAS and GAGAS, five reports are issued and Schedule of Findings and Questioned Costs in one of them. As the name of the schedule indicates ..”schedule of findings and questioned costs for federal awards” will exactly provide just that…the findings and the cost for the how the federal money was expended. the opinion regardless of what it was, was already given in the auditor's report, this is just another schedule that is required.

    Not sure if i explained this clearly…

    January 17, 2018 at 7:10 pm #1694399
    famh110
    Participant

    @jason…the more you practice the luckier you will get! always look at the bright side! 🙂

    January 18, 2018 at 9:13 am #1694539
    itooshallpass
    Participant

    Thank you @famh110!

    January 18, 2018 at 2:57 pm #1694664
    kimphan
    Participant

    Hello,

    What does objectivity really mean? Objectivity is reflected by the organizational level to which the interna auditor reports.

    Which of the following factors most likely would assist an independent auditor in assessing the objectivity of the internal auditor?
    Answer: the organizational status of the director of internal audit.

    I don't get this. Please advise.

    Kim

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