[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

[scarletknight91]

@ragepsn idk I was asking the person who posted that what chapter that was from haha. I dont know if by program they mean the audit or they mean the planning of the audit. if its planning, my gut tells me that there needs to be an engagement letter thats signed so each party knows their respective responsibilities and no one points fingers. consideration of IC (my gut tells me) is never “completed” per se until you sign off on the auditors report since your understanding of the IC can change throguhout the audit based on new info you werent privy to in the planning stages.. then youd reassess the CR and RMM and maybe change your DR and the NET of the audit

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[scarletknight91]

BEACPA.. ive taken reg and far and now im on audit and each time i change my routine up. this time around for audit, I'm reading the sections in depth, watching the video and then doing the mc questions. at times ill mix it up and watch the lecture first and then read and then mc.. whatever helps you to not spin your wheels in the muddy waters of auditing

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[smsingla]

@ragepsn29

Yes, Answer (a) is correct because the consideration of internal control helps the auditor to assess control risk and to plan the audit: accordingly, the audit program is not generally finalized prior to the consideration of internal control. Answer (b) is incorrect because, while generally desirable, engagement letters are not required on audits. Answer (c) is incorrect because reportable conditions may be communicated at various times subsequent to finalization of the audit program. Answer (d) is incorrect because audit programs are often finalized prior to the performance of the search for unrecorded liabilities.

My question is that why answer is not B. I thought engagement letter are required on audits

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[smsingla]

@scarletknight91 I am not using Becker but in Wiley this question is from module 2, Engagement Planning and Assessing Risk

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[scarletknight91]

@smsingla i looked back into my notes from becker and it says that engagement letters are required for public companies, but nonissuers can have something that is an “… other suitable form of written agreement,” (A3-6)

I still think that “A” is worded oddly for that question

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[Quinacridone]

Ayafzel, you are correct – if you decrease the acceptable level of risk, then you would have to have a larger sample. Now go a step further:

So if the cost and effort involved for having a 1000 unit sample vs a 500 unit sample, then the auditor would not be so hesitant to work with a larger sample. For example, if I am working with a sample where I can largely rely on testing procedures done on an excel worksheet (i.e. recompilations), then it isn't a problem to apply a formula to all the sample no matter how large it is.

Does that make sense?

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[BEACPA]

Scarletknight91

Thank you for your response. I'll give that a try. FAR was my first exam and even though it was far more material then AUD, I feel as if AUD is more confusing. Its not as logical as FAR. You described it well, when you said “muddy waters” of AUD. They are muddy.

Seems to require a lot of memorization as oppose to FAR being more about understanding. It can be discouraging at times. Thanks again for the support. I wish you the very best on this exam.

Cheers…

FAR - 2/28/14 PASS Praise be to God!
AUD - 7/5/14 PASS Praise be to God!
BEC - 11/29/14PASS Praise be to God!
REG - 2/28/14 PASS Praise be to God!

[Quinacridone]

BEACPA, another suggestion I have for topics that are very confusing: read the book before the lecture and try your hand at a few MCQs. Then go back and do the lecture. Thing may click better and it won't all feel like just memorizing, rather some of it might start to make sense.

Now that I've been through all of the chapters, I'm going back and going through some of the previous chapters. I'm amazed at how much more I'm picking up that I missed the first time through. Keep pressing forward. The reviews in the end is where all the material comes together.

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[yourmomsaCPA]

Hey guys. How's everyone doing on practice exams? I take the test Weds (yikes!) and have literally done every single question in the Wiley book, did Yaeger review (meh) and CRAM, gone over all NINJA flashcards, and now I'm tacking the WTB in practice mode and scoring a solid 80-90% each time. I mean, at this point, I guess I'm pretty comfortable with the material. I have a road trip this weekend so I'll be listening to NINJA Notes. Here at work, we go live with a new ERP system Monday and I'm the project lead (FML) so I'm not sure what I can do Monday and Tuesday. I guess I'm nervous because going into FAR, I didn't feel confident AT ALL (the review and CRAM were way better for FAR IMO) and did okay and now that I feel decently comfortable, I think the rug will be pulled out from under me!

FAR - 87 2/18/14
AUD - 84 4/2/14
REG - 87 7/23/14
BEC - 78 8/26/14

I'm finally an *official* CPA - TX

[Quinacridone]

YourmomsaCPA – It sounds like you are in excellent shape for the test!

I'm feeling a little bit like you: FAR was so tremendously hard (thank you, God, for a pass!) that I just don't know what to expect for this next test (after FAR, I cried in my car on the 3 hour trip home – so sure I had failed). Hoping the best for you! It would be awesome for all of us to pass this thing the first time around!

I just hate that we have to wait until May to find out the results. It sounds like you have a firm grasp on the nature of the material so I believe you will do awesome!

Today I'm going to conquer financial ratios whether I like it or not. I have the day off and that little section is what I'm going to drill on. I'm not sure if I need to know these ratios for my next test or not (BEC). I would hate to NOT be prepared on these things and then they show up as a Sim.

I'm LOVING the AICPA's AL!!! It is so much easier to study from then the Becker version. I wish that would be the format on the test, but unfortunately, I already know that the AL during the test is set up like Beckers. I have not been able to figure out how to just get it to open up like a book so I could just read as opposed to performing keyword searches for topics. Any help on that?

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[yourmomsaCPA]

Good luck on the ratios. I haven't ran into many ratio questions studying which leads me to believe it will more than likely pop up in SIM form. The good thing about FAR is the probability of a weaker area being tested enough to affect a score is pretty low — with auditing, definitely not the case!

FAR - 87 2/18/14
AUD - 84 4/2/14
REG - 87 7/23/14
BEC - 78 8/26/14

I'm finally an *official* CPA - TX

[NotTooLate]

Could someone please help me to understand this question?

MCQ in professional responsibility:

Under the independence standards of the GAO for performing audits in accordance with GAGAS, which of the following are overreaching principles for determining whether a nonaudit service impairs independence?

I. Auditors must not perform nonaudit services that involve performing management functions or making management decisions.

II. Auditors must not audit their own work or provide nonaudit services in situations in which the nonaudit services are significant or material to the subject matter of the audit.

III. Auditors must not perform nonaudit services which require independence.

The answer is I and II. But I don't understand. I think I and II are the principles, they are not overreaching. “Overreaching”, in my understanding, is if the principle is 2, you hit 3, that's overreaching. Since GAGAS audit needs to follow AICPA rules, and these principles are in the AICPA rule. Why does it say “overreaching”?

It will be really appreciated if I can get some help, it bothers me a while. Thanks a lot!

AUD:5/30/2013 (74, so close!) 5/2014 (90 first pass!)
REG: 2/27/2015 (85)
FAR: 8/2011(64) 4/2012(74) 8/31/2015 (80 finally!)
BEC: 11/24/2015 Let's do this!

[ragepsn29]

Ninjas, I have a question.

For issuer companies, we still use unqualified and qualified reports. we only use unmodified and modified for non-issuer companies. Is my understanding correct?

Thank you.

AUD - 65, 72, 70, 74, 81
FAR - 66, 71, 76
REG - 69
BEC - 80

[yourmomsaCPA]

Yes, ragepsn29!

FAR - 87 2/18/14
AUD - 84 4/2/14
REG - 87 7/23/14
BEC - 78 8/26/14

I'm finally an *official* CPA - TX

[Quinacridone]

YourmomsaCPA is right. To back it up, here's the authoritative literature on it:

Per AU-C 700.19, Forming an Opinion and Reporting on Financial Statements (AU is the SASs, the “C” indicates effective for audits after 12/15/2012)…”The auditor should express an unmodified opinion when the auditor concludes that the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework”.

So definitely, for non-issuers, it is unmodified, and the modified opinions are qualified, adverse, or disclaimer of opinion. (See AU-C 705.17).

Now for the PCAOB/Issuers: When I go to the PCAOB website to look up their guidance on audit reports, the website states that AU 508 was adopted into the PCAOB (not an AU-C, which are supposedly the replacements for the AU standards). The AU standards were effective through 2013. So I don't think the PCAOB has kept current with the clarified SASs at the AICPA.

My gut tells me that due to the ambiguity, the unmodified/unqualified won't be tested. If a test question came up though, based on the current guidance, I'll be saying unmodified for the non-issuer and unqualified for the issuer.

(in the Beckers lecture (a-12), Gearty said that unqualified is an “old school” term, which has been replaced by unmodified, but the PCAOB website does not back him up, just the AICPA does).

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[Author]

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