[jeff]

Welcome to the AUD CPA Exam study group for October, November, and December 2018 exams. 🙂

Please introduce yourself & when you’re taking your exam (approximate timeframe).

AUD Study Group Links and Resources:

1. NINJA Monthly – Full AUD Course for $67/mo
2. How to Study for AUD with NINJA Only
3. How to Pass AUD in 20 Days
4. How to Retake AUD After Failing
5. Video: Study Advice for AUD
6. CPA Reviewed Podcast
7. CPA Exam Score Release Dates
8. NINJA MCQ Trending vs Actual AUD Scores
9. I Passed the CPA Exam!
10. I Passed AUD!
11. NINJA AUD SIMS List by Topic
12. Free CPA Review: AUD

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[Globetrotter]

Fionnepham,
Here is what I think.
When we are talking about prospective financials, we are talking about things that have not happened yet. Hence, the assumptions. For example, management assumes that the sales will be $100m or interest rate will be 10%. This is for the future.
Assertions are things that as management claims have happened for the historical financials. For example, Completeness of payables in historical financials.

AUD - 94
BEC - 87
FAR - 87
REG - 87

BEC - 87 (03/2019)

AUD - 94 (11/2018)

REG - 87 (06/2019)

FAR - 87 (08/2018)

[fionnepham]

@globetrotter ahh that makes sense, thanks!

[fionnepham]

When perpetual inventory records are maintained in quantities and in dollars, and internal control over inventory is weak, the auditor would probably

A) Want the client to schedule the physical inventory count at the end of the year.
B) Insist that the client perform physical counts of inventory items several times during the year.
C) Increase the extent of tests for unrecorded liabilities at the end of the year.
D) Have to disclaim an opinion on the income statement for that year.

Correct answer is A but I chose B.
This Answer is Incorrect
This answer is incorrect because, for the auditor's purposes, an accurate count at the beginning and at the end of the year is essential.

Does anyone get why B is wrong? Wouldn't you want to count the inventory more often if control over it is poor to reduce any problems with the records?

[Globetrotter]

I remember this question. I answered it just like you did. And my reasoning was like yours.
And then I got to thinking.

Inventory is the Balance Sheet account, so what matters is that number on the last day of the year. Just a snapshot.
Since, the controls are week, we cannot count inventory on October 31st and project our conclusion to December 31st.
I suppose if we dealt with expenses, we could have analyzed them several times throughout the year.

It's probably, a week answer to your question. But this is how I convinced myself that A is correct. 🙂

AUD - 94
BEC - 87
FAR - 87
REG - 87

BEC - 87 (03/2019)

AUD - 94 (11/2018)

REG - 87 (06/2019)

FAR - 87 (08/2018)

[fionnepham]

@globetrotter ah, I see now. Is this usually the answer for these types of questions? I've seen a bunch of questions that ask about timing with regards to level of risks but I never understood the answers/ forgot what they are at this moment. I do see that the answers to questions are usually the same regardless if the questions are slightly different

[Globetrotter]

Fionnepham,
I think one of the points I learned from studying is that when you assess Control Risk as High, you want to do your substantive testing at the Balance Sheet Date (and a lot of it. 🙂 )
Still, to me, Auditing seems to be highly subjective. I would even say that for the way my mind works, it is more difficult than FAR.

AUD - 94
BEC - 87
FAR - 87
REG - 87

BEC - 87 (03/2019)

AUD - 94 (11/2018)

REG - 87 (06/2019)

FAR - 87 (08/2018)

[Butterfly]

My name is Jean Jeffrey and I am taking Auditing and Attestation for the 3rd time on October 6, 2018. Any tips would be helpful especially as it relates to simulations involving financial ratios.

AUD - 59
BEC - 66
FAR - NINJA in Training
REG - 39

Jean Ellen Jeffrey

[cottonkandi]

@Butterfly – When I practice I usually have all of the financial ratios in front of me. I practice as much MCQ's possible, until I don't need the financial ratios for reference anymore. Then I move on to SIMs to practice. These exams are all about practice and focusing on your weak areas.

BEC: 75!

FAR: 84!

AUD: 81!

REG: 79!

[Courtney]

I recently passed all four parts of the CPA Exam.

[Butterfly]

Okay here is another question if anyone can help with a short answer. When do we use each of the types of estimation? What are the advantages of each? As well as any tips on advantages/disadvantages of the sampling methods? I am taking the exam in 6 days and have most of it down if I can just stop second guessing myself on practice quizzes/exams.

Thanks to Cottonkandi for helping with the ratio.

AUD - 59
BEC - 66
FAR - NINJA in Training
REG - 39

Jean Ellen Jeffrey

[Butterfly]

General question this time as I took the Auditing exam yesterday and didn't see as many mathematical computation questions as I expected, should I draw any inference from this or not?

AUD - 59
BEC - 66
FAR - NINJA in Training
REG - 39

Jean Ellen Jeffrey

[cottonkandi]

@Butterfly – Audit really isn't math heavy with an exception of calculating audit risks, materiality, sampling, and financial ratios, the test is mostly concept driven.

BEC: 75!

FAR: 84!

AUD: 81!

REG: 79!

[YouCanDoIt]

Hey all, I was trying to study what should be REPORTED TO THOSE CHARGED WITH GOVERNANCE, but I took some points on it, and I am unclear on the parts with (?) next to it, any clarification would be super helpful, thanks!

– Planning matters, such as, methods used to account for significant unusual transactions
– Indications of fraud (if it involves senior management OR its material–so, trivial stuff doesn't matter)
– Significant difficulties encountered during audit (? like what…with management?)
-Disagreements with management (does this mean, accounting estimates, accounting principles)
-Uncorrected misstatements
-Management's consultation with other accountants (why would this be reported?)
-***what about an issue we have with management, but it is corrected?****

AUD - 77
BEC - 79
FAR - 75
REG - 80

Won't know until you try.

FAR: 76
REG: Currently studying
AUD:
BEC:

[JMG]

Hey group,

1. Approx exam date: 11/28 (4th time taking it)
2. Topic you're most-comfortable within this exam section: Professional responsibilities
3. Topic you're weakest in / worries you the most: Testing completeness/existence assertions

Hoping to turn things around with this exam, took some time off from studying after losing REG over the summer. Sims are always kicking my butt on AUD, anyone got any tips to study better for these?

Your fail scores are like battle scars, so wear them proudly!

REG - 76 (expired 7/31/18)

BEC - 69, 72, 80

AUD - 62, 70, 74

FAR - 50, 60

[YouCanDoIt]

Hey all, I don't even know if anyone checks this. I did figure out my above question and if anyone else is struggling with it, I can post a better summary of my above points.

BUT, I did have another question:

SSARS: Used for NON-ISSUERS to: (1) prepare, (2) compile , (3) Review
So, what would ISSUERS use to do the above. I know they are not REQUIRED to do the above , but for whatever reason, if they do, what standards would they use?
Also, for the Review, I put them in 2 categories:
a) Interim-Review –> Issuers (PCAOB??), Non-Issuers (SAS )
b) Unaudited Fs Review –> Issuers (???) , Non-Issuers (SSARS)

THANKS!!

AUD - 77
BEC - 79
FAR - 75
REG - 80

Won't know until you try.

FAR: 76
REG: Currently studying
AUD:
BEC:

[Author]

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