AUD Study Group – Q1 2018 - Page 17

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  • December 11, 2017 at 10:59 am #1676695
    jeff
    Keymaster

    Welcome to the Q1 2018 CPA Exam Study Group for AUD. 🙂

    Introduce yourselves and let your fellow NINJAs know when you plan to take your exam.

    The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

Viewing 15 replies - 241 through 255 (of 317 total)
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  • February 4, 2018 at 1:39 pm #1706838
    Roseann
    Participant

    Good luck Caitlin. I just retook AUD on 2/03 (and took BEC for first time on 1/29).
    Fingers crossed.

    February 4, 2018 at 8:05 pm #1707022
    Accounting123
    Participant

    @roseann how was the exam when you just retook it? Any advice/ anything you did differently this time versus last time?

    February 5, 2018 at 12:11 am #1707117
    jiji
    Participant

    Can someone please explain this question to me.
    Which of the following would be a consideration in planning a sample for a test of subsequent cash receipts?
    a) Preliminary judgments about materiality levels.
    b) The amount of bad debt write-offs in the prior year.
    c) The size of the intercompany receivable balance.
    d) The auditor's allowable risk of assessing control risk is too low.

    Correct answer is A but I don't understand why

    February 5, 2018 at 12:25 am #1707124
    jiji
    Participant

    On receiving a client's bank cut-off statement, an auditor most likely would trace
    a) Prior-year checks listed in the cut-off statement to the year-end outstanding checklist.
    b) Deposits in transit listed in the cut-off statement to the year-end bank reconciliation.
    c) Checks dated after year end listed in the cut-off statement to the year-end outstanding checklist.
    d) Deposits recorded in the cash receipts journal after year end to the cut-off statement.
    Correct answer is A I thought it should be C

    February 5, 2018 at 1:11 am #1707135
    Liiyum
    Participant

    @jiji

    For audit, I found that process of elimination is the best way to answer multiple choice for audit. For your question, the question is asking for Cash Receipts. So answer B is wrong because bad debts is more related to accounts receivable, not the cash receipts itself, answer C is wrong because of the same reason, answer D is wrong because this is a substantive test which would not include include assessing the control risk too low. That leaves us with answer A and that is right because you would take PRELIMINARY materiality into consideration. This is because a lower materiality level would require a larger sample size because you would want to greater assurance.

    February 5, 2018 at 11:49 am #1707252
    Anonymous
    Inactive

    @Roseann my fingers are crossed for you! Your so close, I've only begun. I'm taking BEC on 3/10 and FAR on 6/9 (retake, failed Q2-2017)

    February 5, 2018 at 1:17 pm #1707363
    jiji
    Participant

    @lithium thank you for answering my question. Can you plz explain to me the second question?

    February 5, 2018 at 1:23 pm #1707369
    jiji
    Participant

    Can someone please help me answer this question

    In confirming a client's accounts receivable in prior years, an auditor found that there were many differences between the recorded account balances and the confirmation replies. These differences, which were not misstatements, required substantial time to resolve. In defining the sampling unit for the current year's audit, the auditor most likely would choose
    a) Individual overdue balances.

    b) Individual invoices.

    c) Small account balances.

    d) Large account balances.

    The answer is B…I don't understand what is meant by sampling unit

    February 6, 2018 at 9:51 am #1708191
    leah
    Participant

    Why do the audit materials make such a big deal of distinguishing “electronic” evidence, from “written.” Isn't everything that is written these days, also electronic, because it originated from a computer or database? Or are they basically saying if it is a hard copy that is “written,” but if it only exists electronically then it is “electronic.” The language seems so outdated.

    February 6, 2018 at 1:53 pm #1708576
    Zunnie
    Participant

    Red Barron Trucking discloses in the notes to the financial statements certain lease obligations. Sally Smith, CPA, believes that the failure to capitalize these leases is departure from GAAP.
    1. Unmodified
    2. “Except for” qualified
    3. Adverse
    4. Disclaimer

    Select those which can be used as opinion type. You can choose up to TWO opinion types.
    (this is a sim problem)

    So the answer is 2 and 3 ( I'm ok with that). I just wonder if the effect is immaterial (even though departure from GAAP), then “unmodified” opinion is also correct?
    For this simulation, if they let me choose up to 3 opinion types, can I choose 1, 2, and 3?

    Thanks

    February 6, 2018 at 2:06 pm #1708590
    J King
    Participant

    @zunnie, yup I'd answer 2 and 3 too. Qualified except for, depending on materiality but since it is a departure from GAAP, issuing adverse opinion stands out more likely. If they asked you to choose 3 answers, there is no way it can be unmodified though.

    February 6, 2018 at 3:56 pm #1708638
    Indy500
    Participant

    OMG…..I just got my grade for AUD….and I failed horribly ….a 57%….like I just did not study. I am down but I have not reached for a drink as yet. But just trying to think about how to start studying again:(…..should I do the lectures all over ……I mean where do I start?…..I really thought I understood things. :(…….I am going to try to retake it in April. My becker rights don't expire until 8/18. So I will go back at it again.

    Does anyone have any suggestions. I really need to win 1 for the team atleast. So I can know I can do this. this is tough.

    February 6, 2018 at 3:57 pm #1708639
    Indy500
    Participant

    OMG…..I just got my grade for AUD….and I failed horribly ….a 57%….like I just did not study. I am down but I have not reached for a drink as yet. But just trying to think about how to start studying again:(…..should I do the lectures all over ……I mean where do I start?…..I really thought I understood things. :(…….I am going to try to retake it in April. My becker rights don't expire until 8/18. So I will go back at it again.

    Does anyone have any suggestions.

    February 6, 2018 at 4:08 pm #1708642
    J King
    Participant

    @indy500, sorry to hear that. I got a 65 on FAR so I feel your pain, and what's even worse is I spent more than 450 hours on studying, until I realized I wasn't studying efficiently (hence my signature) 😛

    Was AUD your first test?

    It's important to re-evaluate from failure. I'd say scores below 70 would mean starting from scratch. After I sit for AUD this weekend, I will get right back to FAR, go over the blueprints, do AICPA sample tests, and dedicate the hours efficiently by reading explanations carefully. I'd recommend doing the same, as the blueprints guide you what questions will be likely to be tested.

    Keep your head held high, stay positive!

    February 6, 2018 at 4:13 pm #1708651
    Indy500
    Participant

    no J…..I started my journey in 2014 when I took the becker course and I took reg aud and bec…..but i had no business taking those exams at that pace. so now I am doing it at my pace.

    I have not used the AICPA sample tests. I may need to get the website to get that information from you.

    I will start all over…but just rethink how i am doing things.

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