[jeff]

Resources:

AUD 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

AUD Exam Experience: https://www.another71.com/cpa-exam-forum/topic/aud-exam-experience-official-thread

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

[neika822]

I had a productive Saturday, but a very unproductive Sunday. 🙁

I noticed how tricky Audit is. When I'm doing the MCQ's, a lot of times I feel like all the answers sound good, haha. I gotta just keep on practicing! About to start Chapter 4 today.

R - *77*(02/'13)-Becker & NINJA
A - 71('11); *87*(04/'13)-Becker & NINJA
F - *76*(08/'13)-Becker & NINJA - "server upgrade" survivor
B - 60('11); *82*(10/'13) -Becker & NINA

DONE, DONE, AND DONE.

CPA in Massachusetts; issued 01/24/14

[Shanta_J]

Hey Casey and Amordiva ……it was a little confusing at first.. but the way I made myself understand it is to think of it like this….

If there is an INCREASE in the risk of assessing control risk to low, then there is a DECREASE in the sample size…. If I am willing to accept a greater risk of assessing control risk to low (meaning that I think the controls are good, but really they are not), I can DECREASE my sample size.

So basically, its saying since I don’t mind having more risk (INCREASE in the risk of assessing control risk too low) … I will do less work (DECREASE the sample size).

Now on the flip side….

If there is an DECREASE in the risk of assessing control risk too low, then there is a INCREASE in the sample size… If I am NOT willing to accept a greater risk of assessing control risk too low, I need to do more, so I need to INCREASE the sample size.

So basically, its saying, since I want to make sure that controls are actually working right (DECREASE in the risk of assessing control risk too low), I’m going to need to do more work (INCREASE the sample size).

Does that make more sense?

REG*75* 02.27.13(1)
AUD*82* 04.15.13(1)
BEC 05.29.13
FAR 08.12.13

-Becker Self-Study-
*Through God all things are Possible*

[zahid1981]

I have finished reading chapter 1 and did the MCQ. Now i will finish up chapter with wiley test mcq. I see some of you are already way ahead of me. How many of you have ninja notes? do they really help? I am low on funds or else i will buy them.

[jamesb]

Significant Deficiencies and Material Weakness, that were previously communicated in writing, which has NOT been corrected, should be communicated again, in writing current audit.

AND

Becker Pg. A5-37 (last line of the paragraph) Deficiencies previously communicated in writing need not be repeated?

Can someone clarify the difference?

I am thinking first one refers to examination of I/C and second statement refers to Integrated Audit?

AUD: TBA-
FAR Done
BEC Done

Becker
NINJA for AUD

[Shanta_J]

Hey JamesB… I think page A5-36 number 1 helps explain that last sentence.

If they were previously communicated and not corrected… then we have to state it again.

If it was previously communicated and corrected… then we do NOT mention it again.

However, I think to answer your question …. letter “c” …. you can communicate significant matters earlier, during the course of the integrated audit, “BUT this does NOT negate the requirement for a written communication” (meaning that we can communicate the deficiencies earlier, but still have to follow the communication requirements)

and the requirement for a written communication is what I stated above:

previously communicated, not corrected= repeat

previously communicated, corrected= do NOT repeat.

So for that last sentence, it is for us to assume that the deficiency was corrected.

REG*75* 02.27.13(1)
AUD*82* 04.15.13(1)
BEC 05.29.13
FAR 08.12.13

-Becker Self-Study-
*Through God all things are Possible*

[Topsya]

@jamesb

This is what Wiley book says regarding significant deficiencies/material weaknesses communication:

Significant deficiencies and deficiencies (those that are not material weaknesses)—Communicate in writing to management and inform the audit committee when such a communication has been made.

(a) Significant deficiencies and deficiencies previously communicated to management in writing by the auditor, internal auditors, or others in the organization, need not be repeated to management.

(b) Significant deficiencies that are not corrected and were previously communicated to the audit committee should be recommunicated. The auditor may recommunicate them by referring to the prior communication.

Also, communication requrements in integrated audit (public companies) and in the examination of I/C (non-public) are pretty much the same. The difference is that when there was an adverse opinion expressed in the audit of I/C of public company, company is ordinarily “fixes” the problem and then auditors perform an engagement emphisizing the control over the material weakness which was previously existed to support the management's opinion that the weakness no longer exists. (this is PCAOB Standard 4)

Hope it helps

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[jamesb]

@Topsya..thanks for helping

AUD: TBA-
FAR Done
BEC Done

Becker
NINJA for AUD

[MintsRGood]

@Casey…GO GREEN GO WHITE!!!!!!!!!!!!! 🙂 Glad to see you are back on the Audit Wagon!!!! How is your prep going? Tax season+CPA prep has been quite possibly one of my worst ideas to date, but at least in a few weeks I won't have to think about Auditing anymore! I'm definitely looking forward 4/17/13!!! 😉

@NickT I was able to finish off module 3 and make it halfway through M4 this weekend! I'm hoping finish off module 4 no later than tomorrow night. Personally, I'm just glad to be done with Module 3! It was a tough one, but I really feel like the Wiley text helped me tighten up on the details of the various cycles and related control procedures! I'm going through the chapters, taking notes, and stopping to do the MCQS when prompted. It's taking longer this way but M3, M4, and M5 are topics I received “weaker” scores on my score report so I want to be very meticulous!

@Shanta and Topsya thanks for your helping in sorting out the communication requirements!!! I was having the same issues as JamesB!

Keep up the good work everyone and have a great week!!!!!!!!!!! 🙂

REG: 75 DONE 🙂
AUD: 61, 71, 68, 92 DONE 🙂
BEC: 76 DONE 🙂
FAR: 72, 74, 79 DONE 🙂
Licensed Michigan CPA 🙂
-Some people dream of success...others wake up and work hard for it!!!
-The cowards never start and the weak die along the way!
-You better work, b***h!
-Only those who dare to fail greatly can ever achieve greatly.-JFK

[NickT]

@mintsrgood nice, I do a little bit of the multiple choices, but not too much. I usually go through them in depth once i am finished the book and have created my “cheat sheet” (notes via word document). but let me know if you will be studying ,thoroughly, the typical substantive procedures for each of the outlined headings ex; inventory or receivables etc… there are a ton outlined in this chapter.

[MintsRGood]

@NickT I'm also doing a cheat sheet concept along with my notes. I'm turning the questions I answer incorrectly into a 1-2 sentence “fact nugget” and keeping a running list in a separate notebook. I'm using MCLKT's concept of 4 notebooks: 1st for my Wiley Module Notes, 2nd for MCQS/SIMS, 3rd for Fact Nuggets, 4th for Ninja Note recopies. Here is a link to her method:

https://www.another71.com/cpa-exam-forum/topic/aud-how-i-earned-24-additional-points

I'm up to question 98 out of 166 and up to the payables section of M4. I'm reading and taking notes on the substantive tests but I'm not memorizing ALL of the substantive tests listed for each accounts (way too many!!!) I'm using the memory aid for substantive tests from Ninja: TRACE to help keep things straight! T=Trace and Vouch R=Reconcile A=Analytical Procedures C=Confirm E=Examine…much cleaner than 15-20 tests for each individual account! 😉

REG: 75 DONE 🙂
AUD: 61, 71, 68, 92 DONE 🙂
BEC: 76 DONE 🙂
FAR: 72, 74, 79 DONE 🙂
Licensed Michigan CPA 🙂
-Some people dream of success...others wake up and work hard for it!!!
-The cowards never start and the weak die along the way!
-You better work, b***h!
-Only those who dare to fail greatly can ever achieve greatly.-JFK

[Anonymous]

Mints,

I'm 10 days away from my exam and I'm starting to feel uneasy. I've been pretty consistent with my studying, but the quality of the studying hasn't been good. I'm sure that I'll really buckle down once I'm 7 days out. Good luck to you!

[Journey to Fate]

Hey all! I've been a little MIA lately. Been on a good groove with studying and am doing many many MCs listening to ninja audio and rewriting ninja notes!

Mints how are u doing?

Question for everyone – how much time are we going to save for the sims? Any worries about JE's?

BEC- 67, 69

[Topsya]

@Journey to Fate

i am FREAKING OUT about JEs!!!!!!!!! This is my first exam so I havent taken FAR yet.. I reviewd some basic stuff from my intermediate accounting book… real basic…. hopefully that will be enough

I am going to target to leave something close to 2 hours for the SIMs (hopefully more but ill see how it goes. I def. do not want to cut on my MCQ performance)

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[jeff]

CPA Exam Section: Auditing & Attestation

CPA Review Topic: Internal Control

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

[Jimmy520]

I have no auditing experience and I am having a hard time figuring out what audit procedures should be done to test a specific assertion. Anyone got tips on mastering the audit procedures?

FAR-2/1/2013 Passed!!
AUD-4/5/2013
REG-5/31/2013
BEC-7/15/2013

[Author]

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