[NeedsA75]

For those of you studying for AUD, I thought we could have a thread where we asked each other questions that we are unsure of…I saw a similar thread for BEC and it really helped me in certain areas..

It goes like this: answer the most recent question in the thread, and then ask a question of your own. It doesn’t have to be a question right out of the study material, but can be more of a general question..

I’ll go first:

Q. How long does an auditor have to retain their working papers after the completion of an audit for issuers and non-issuers?

[RandomRandy]

@needsA75 Does becker have a comparison chart somewhere in the book?

FAR: 74 1/15/16, 72 7/2/16 -_-
BEC: TBD
REG: TBD
AUD: TBD

"Nothing is impossible to him who will try" - Andy Bernard

[NeedsA75]

I'm using the becker book (only) + Gleim + Ninja MCQ. Gleim is the only one that has a comparison chart that I can tell

[RandomRandy]

@needsA75 I remember that FAR study materials made a HUGE deal about knowing the difference, but for AUD its kind like “here is the difference…. take it or leave it”

FAR: 74 1/15/16, 72 7/2/16 -_-
BEC: TBD
REG: TBD
AUD: TBD

"Nothing is impossible to him who will try" - Andy Bernard

[Spartans92]

@Needs, I believe if it is inconsequential no need

BEC- PASS

[RandomRandy]

@spartans92 Im pretty sure you always have to report immaterial fraud to those in charge of governance. You don't have to report immaterial misstatements due to errors if they are considered inconsequential.

FAR: 74 1/15/16, 72 7/2/16 -_-
BEC: TBD
REG: TBD
AUD: TBD

"Nothing is impossible to him who will try" - Andy Bernard

[NeedsA75]

@Guitarman, I agree ISA vs GAAS is understated by Becker for AUD…not sure how much time I will spend on it..

@Spartans, I think you are right. I'm so worried about this exam I don't even know what to study any more. I'm kind of all over the place right now…I may just try and read through the material again..

[Anonymous]

Cool thread!

I'll join the party too.

I'll be doing progress test and putting some I get wrong or were tricky to me.

The documentation of the inquiry and analytical procedures on a review engagement should include all of the following except:

A.
additional procedures performed in response to significant unexpected differences arising from the analytical procedure and the results of such additional procedures.

B.
legal representation letter.

C.
communications regarding fraud or noncompliance with laws and regulations.

D.
management representation letter.

[Anonymous]

Wording on this one was weird.

When testing journal entries, the auditor should focus on journal entries:

made during the end of a reporting period, as fraudulent entries are made during that time.
made throughout the reporting period, as material misstatements are made during that time
A.
I only

B.
II only

C.
Both I and II

D.
Neither I nor II

[NeedsA75]

Here is what I found about immaterial fraud:

The auditor should refer the matter of an immaterial fraud to an appropriate level of management. The appropriate level of management is at least one level above the highest level involved. The auditor should also be satisfied that, in view of the organizational position of the likely perpetrator, the fraud has no implications for other aspects of the audit or that those implications have been adequately considered (AU-C 240).

Chrislo, are the answers C and C respectively? I agree, those questions are tricky..

[RandomRandy]

@needa75 How are you trending on M/C? I am doing progress tests of 30 and consistently getting between 75-85% which kind of makes me nervous because its right on the line.

FAR: 74 1/15/16, 72 7/2/16 -_-
BEC: TBD
REG: TBD
AUD: TBD

"Nothing is impossible to him who will try" - Andy Bernard

[NeedsA75]

Are progress tests the same thing as the adaptive learning mode? If so, I'm doing those in sets of 20 (sometimes 10) and my Avg score is 75% and Trend is 85%

[Anonymous]

It is actually B and C. I also answered C for the first one.

[NeedsA75]

Does it give an explanation why its C on the first one?

[mooseonloose]

I am confused regarding comparative reporting, supplementary information,integrated audit, and government audit. Can someone shed some light.

So comparative reporting is reporting in two different periods either on separate report of mentioning it on “other paragraph”

supplementary information is information required by GAAP, we also give our opinion on this either on separate report or in “other matter paragraph” if suplimentaty information is not required by GAAP but require by GASB then we apply limited procedure. We read the “other information” to see if there is any misstatements.

integrated audit is auditing both the financial statement and the effective of internal control. for issuers and Non issuers? whats the difference?

government auditing….well IDK shit about this.

My exam is Sunday and I am doomed

[Anonymous]

It just says:

“Communication with the entity's legal counsel is not a required procedure in a review engagement.

The accountant's documentation in a review engagement should include the following:

The engagement letter
The analytical procedures performed
The expectations when the expectations are not otherwise readily determinable from the documentation of the work performed, and factors considered in the development of those expectations
Results of the comparison of the expectations to the recorded amounts or ratios developed from recorded amounts
Management's responses to the accountant's inquiries regarding fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount
Any additional procedures performed in response to significant unexpected differences arising from the analytical procedure and the results of such additional procedures
The significant matters covered in the accountant's inquiry procedures and the responses thereto
Any findings that are significant
Unusual matters that the accountant considered during the performance of the review procedures, including their disposition
Communications, whether oral or written, to the appropriate level of management regarding fraud or noncompliance with laws and regulations that come to the accountant's attention
The representation letter”

Doesn't really explain why it's not included. Just that it isn't.

[Author]

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