[jeff]

NINJA Study Notes, Flashcards, and Audio: https://www.another71.com/products-page/

Wiley Software: https://www.another71.com/wiley-cpa-software/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

Some Golden rules , I learnt about supplement inf through practice:

1) Auditor should perform limited procedure on supplement inf.

2) make sure they are consistent with F/S (In material and in fact).

3) if not consistent, a). consult management to correct, b) if its not corrected then issue an unqualified report with an explanatory paragraph. c) if misleading then withold the usage of report.

Good luck for your exam. I am taking Audit exam on 7/5/12. If possible , do share your Audit paper experience…

[hawkmante]

my understanding with out looking and checking my info….. If the supplementary info is not required but the client has it for the financials the auditor needs to make sure that the supplementary information is 1. fairly stated as to the presentation in respect to the financials taken as a whole, and 2. to obtain reasonable assurance that the supplementary info is fairly stated in all material aspects in relation to the financial statements taken as a whole.

BEC - 81 11/30/11 Praise God
FAR - 84 7/11/11
AUD -70,64,72, IM DONE!! 90 7/5/12
REG - 84 10/07/11

[Anonymous]

Thank you Lisa for your suggestion.

[hawkmante]

what kind of scores do you guys get on cpareviewforfree.com.. just curious to gage my self. I too am taking the exam next week…. again…

BEC - 81 11/30/11 Praise God
FAR - 84 7/11/11
AUD -70,64,72, IM DONE!! 90 7/5/12
REG - 84 10/07/11

[NYC1221]

Thanks! I just took a 20 question test on cpareviewforfree.com and got an 80…

[momto5]

Can anyone help with a question about risk of incorrect acceptance?

A Becker question CPA-02581 discusses a case in which the “specified risk of incorrect acceptance” is higher than in another case, and it asks whether the sample size would be larger, smaller, or the same.

I thought if the risk of incorrect acceptance was higher, that would mean we need to do a larger sample size. But the answer says that “the higher risk of incorrect acceptance results in a decrease in sample size”. Does that mean that we would be setting the risk of incorrect acceptance high, meaning we can tolerate more risk then? Maybe I am confusing a risk being high with “setting” a risk high. Is that what “specified” risk means – what we set it at?

FAR - 92 (4/27/12)
AUD - 96 (7/17/12)
BEC - 92 (8/30/12)
REG - 91 (11/12/12)

[NYC1221]

Yeah I think you're right in that since we are setting risk of incorrect acceptance high, we can tolerate more risk and therefore that will result in a decrease in sample size.

So risk of incorrect acceptance is the risk that we will accept something as right when it's actually wrong, so if we increase that risk that ultimately means that our sample size is smaller/more chance of us accepting something as wrong. Haha that's how I understand it, not sure if that cleared anything up though!

[Anonymous]

risk of incorrect acceptance in auditor report —> deviation risk is less then tolerable risk.

but in reality—-> deviation risk is more then tolerable risk.

So auditor assumed that deviation risk is low . since standard deviation risk has direct relation with sample size .

Low deviation risk = small sample size

HIgh deviation risk =large sample size

if there are higher chances of “incorrect acceptance” then CPA would select small sample size. :-

[stokey45]

Nam

That question is confusing to me. I understand your explanation, but my first response to that question would have been “how would I correct the situation so that I would have a lower risk of incorrect acceptance.” When I think it is asking since this situation has occurred what sample size was used. A smaller sample size was used therefore there the auditor took more risk of an incorrect acceptance.

Weird wording…

[Anonymous]

[stokey45]

I am struggling thru AUD MCQ for chapter 4. I have been doing sooooo well so far (chapters 1-3) and when I look at the question with the correct answer explanation, most of the time I am saying “I knew that.” Ugh!

Regardless, I am taking notes on the questions I get wrong. I will review, review and review. I am trying to tell myself when I get a question wrong it is a great opportunity to learn the correct answer before I actually take the test. Trying to think positive!!

[Anonymous]

When are you taking the exam? Have you tried Wiley test bank? . Somehow I am able to grasp the concept better after practicing multiple choice question in wiley testbank

I hate chapter 5 in Becker(Govt auditing, sampling) Any suggestion?

[hawkmante]

try to come to the conclusion if the auditor is setting the risk or not. In an environment where controls are lacking, no segregation of duties, controls are in place but they are not being used…etc. then they control risk is obviously high, detection risk is low, and substantive testing (variable testing, testing for details.. why so many names?? lol) will be higher. but when the auditor has to use his/her own judgment than its the amount of risk that he/she will accept. So the risk of incorrect acceptance/rejection is that amount of risk that he can accept. If the auditor moved the risk from 5% to 1% than the auditor would accept a lower amount of risk = more testing. if it moved from 5% to 10% than he will be able to accept more risk = lower amounts of substantive test.. N.E.T would decrease.

BEC - 81 11/30/11 Praise God
FAR - 84 7/11/11
AUD -70,64,72, IM DONE!! 90 7/5/12
REG - 84 10/07/11

[stokey45]

Nam

I am trying a new way to study and I have not gotten to Becker chapter 5 yet. What I did was listen to all of the videos first and then took notes. Actually, I read and recopied the Ninja notes. Then I went to the Becker software and started doing multiple choice questions. This is different for me because I was used to reading the material and doing the MCQ's right away. I did much better that way but I was not retaining the information for the test. I am now on chapter 4 and can see this is an area where I am deficient. I am actually quite frustrated at the moment. It seems like I am missing something. I will keep going but this one chapter is giving me so much trouble. When I get to chapter 5 if I find anything that has helped me grasp the MCQ for that chapter I will be happy to relay that information to you.

I might need to try the Wiley test bank for a better understanding of the test of controls and procedures by transaction cycle. I have taken the test 3x (65/74/72) you would think I would have the information down pat by now but unfortunately I do not. Oh my! Back to the books I go.

~Stokey45

[hawkmante]

@stokey45 ..A 4… evidence is terrible.. you have to take your time to make sure you really are following each process.

@nam .. until I memorized beckers MCQ for Gov't auditing I was having trouble with it. my suggestion is to create FC from the book or notes and just continue to review those until they come natural.

BEC - 81 11/30/11 Praise God
FAR - 84 7/11/11
AUD -70,64,72, IM DONE!! 90 7/5/12
REG - 84 10/07/11

[Author]

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