[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. 🙂

[Priscilla]

Ninja's –

Is it true that ratio formulas can be found in the AL? If so, can anyone please guide me… Thanks

Priscilla

AUD - Done
REG - Done
BEC - Done
FAR - August 2015

[MrCPA2B]

Can anyone who works full time help me design a study strategy if i want to take the exam the first week in july?

AUD- FEB 2014
BEC- APR 2014
FAR- MAY 2014
REG- AUG 2014

Using Wiley CPA Exam Review and Ninja Notes
May the "Force" be with me!

[SoFlaAuditor]

I work full time and for all three exams that I've studied for (just finished AUD material), I've done 2 chapters per week and left myself about 1.5 to 2 weeks for review. I've never used Wiley but I assume it must be the same amount of material. I feel like if you started now you would have to go at a pace of about 1 chapter per week, which is very doable.

The only downfall to that plan is that you risk forgetting some material from the beginning chapters when you stretch it out that much.

REG - 83
BEC - 81
AUD - 73, 92
FAR - 90

Done!

[JamesBJames]

Just opened up my AUD book after taking FAR on Thursday. Academically, audit has always been one of my weak areas so I'm admittedly a little nervous going into this section… but at least the book is only half the size of FAR. I'm hoping Becker will help me understand the concepts a little better than I did in college.

My plan is to devote 3 days to each topic, studying around 5 hours a day. That leaves a full week for final review.

The real question is, do I check my FAR results when they're released on May 23rd, or do I wait until after I take AUD on May 29th?

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

Feel free to add me on LinkedIn by clicking my username!

[thehip41]

@mrp

You have 8 weeks before you take auditing. That is more than enough time. Just study 15 hours a week for 8 weeks, that's 120 hours.

15 hours a week is really easy to hit.

Just study 45 minutes before work, 30 minutes at lunch, and like 1 after work. Do that during the week. 4 * 2.25hr = 9 hours.

That leaves 6 hours between Friday/Sat/Sun. Just take Friday off and study 3/3 on Sat/Sun.

If you are getting closer and you realize you need to study more, bump it to 20 hours a week. All you need to do is add .5 hour each week night and 3 extra hours on the weekend.

Or study 5 hours on sat, 5 hours on sunday, and then study 5-6 hours the rest of the week if work is tough.

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[zieba]

Hi new warriors and all those who continue to fight the good fight!

I'm back to reclaim AUD from the hands of expiry on May 26th. Have finished lectures, did Becker MCQ's and now hitting WTB over and over. Ninja audio in the car all day everyday… status: veteran.

Will be checking in to answer questions and fully take the plunge in the week leading up to the exam.

AUD - 75*, 88 done 5/14! (*exp)
BEC - 74 , 77
REG - 65 , 76 (10 point combooo!!)
FAR - 69 , 75

Dr: perseverance
Dr: intelligence
Dr: luck
. Cr: . advisory score

[Anonymous]

Can someone explain this question/answer. Thanks!

In performing tests of controls, the auditor will normally find that:

(A) The level of risk is directly proportionate to the rate of error.

(B) The rate of deviations in the sample exceeds the rate of error in the accounting records.

(C) The rate of error in the sample exceeds the rate of deviations.

(D) All unexamined items result in errors in the accounting records.

Answer: (B) This answer is correct because the existence of a deviation from a control activity may or may not indicate that an error exists in the accounting records. For example, an invoice which has not been footed to test mathematical accuracy may still be correctly totaled and properly recorded in the accounting records.

[zieba]

BFF,

It's elementary and I'm sure it will stick with you: deviation from control activity does not always = error in accounting records. Why?

an IC check may reveal that an invoice copy is missing from records. someting wasn't filed properly. in this case a subsequent test will reveal the sales accountings are fine. The deviation from control did not cause the accountings to be mistated.

another IC check may reveal another instance of a missing invoice. here however, a followup reveals a deeper and bigger scheme of stealing and covering up in F/S

in both instances IC deviated from standard… however, only one of these two instances resulted in te F/S being misstated.

not all IC deviatons are the same… some are less serious than others, and not all will lead to serious F/S misstatements.

IC deviation > rate of error

AUD - 75*, 88 done 5/14! (*exp)
BEC - 74 , 77
REG - 65 , 76 (10 point combooo!!)
FAR - 69 , 75

Dr: perseverance
Dr: intelligence
Dr: luck
. Cr: . advisory score

[thehip41]

Cliff notes version:

Just because there is a deviation doesn't mean there is a material misstatement

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[riceperson]

Alright starting audit again after taking a much needed two week break. New plan, ten weeks to master and pass!

FAR 69, 83
AUD 85
BEC 80
REG 82
FINISHED

[Gabe]

Great explanation Zieba and thehip41!

I'll be sure to drop in with questions when needed. Ready to attack AUD at the end of May!

CPA, CFE
CISA- Experience will be completed by August 2016

[JamesBJames]

Going through Becker A1 at the moment and am a little confused about when emphasis-of-matter paragraphs are required. I'm getting tripped up on this question:

An auditor most likely would express an unmodified opinion and would not add explanatory language to the report if the auditor:

a.Wishes to emphasize that the entity had significant transactions with related parties.

b.Concurs with the entity's change in its method of computing depreciation.

c.Discovers that supplementary information required by FASB has been omitted.

d.Believes that there is a probable likelihood of a material loss resulting from an uncertainty that is sufficiently supported and disclosed.

The answer is “d”.

I know emphasis-of-matter paragraphs are absolutely required for issues involving going concern, consistency (change in principles / restatement, e.g.), changes in opinion, and special purpose frameworks. This gets rid of “b” because it's a change in principle.

I know “c” is incorrect because omission of RSI generally isn't material enough to change the opinion but must be emphasized when omitted.

I know “a” is incorrect, although this is technically at the auditor's discretion. If the related-party transactions are significant, then an emphasis-of-matter paragraph is likely going to be added.

Why is “d” incorrect, though? Becker says on A1-24, “An auditor can use an emphasis-of-matter paragraph when referring to any matter that is appropriately presented or disclosed in the financial statements and […] fundamental to the users' understanding,” and it lists important contingencies from litigation as an example. Is there something really obvious I'm overlooking?

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

Feel free to add me on LinkedIn by clicking my username!

[oblio]

@James,

Without referring to notes or text, it appears the phrase “most likely” in the question makes the difference. In the Becker paragraph you refer to it says “An auditor can …”. The word “can” is weak compared to “must” or “should.” Of the choices given, d is the best, not ideal, answer. Just my take on it, again I emphasize no referral to notes or text on my part.

[thehip41]

@James

Welcome to AUD 🙂

This is the key:

“An auditor most likely would express an unmodified opinion and would not add explanatory language to the report if the auditor:

MOST LIKELY – not add.

so basically, which example would you LEAST likely use an emphasis paragraph. It doesn't say “which one would you NOT use an emphasis paragraph”

So out of the 4, it's the least likely of the four to have an EoM paragraph because the other four all WILL have them.

Yay AUD

kmn

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[Gabe]

Can anyone shed some light on this:

Which of the following factors is most relevant when an auditor considers the client's organizational structure in the context of control risk?

a.The organization's recruiting and hiring practices.

b.The suitability of the client's lines of reporting.

c.Physical proximity of the accounting function to upper management.

d.Management's attitude toward information processing and accounting departments.

I chose D as management's attitude is important in the organizational structure (though less so towards acct depts). The correct answer is B. I think the verbage is throwing me off- what do they mean by “line of reporting?”

CPA, CFE
CISA- Experience will be completed by August 2016

[Author]

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