[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. 🙂

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

[thehip41]

I've been getting 85% on all my 20MC sessions in the last week or so. I just want to take the test now. I'm ready.

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

Licensed CPA in the state of Michigan

[JamesBJames]

Tim Gearty's not teaching A4?

Has Christmas come early?

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!

[Gabe]

@James haha! Agree. I liked the new guy a lot more.

Also- here's a question:

Which of the following is not a specialist upon whose work an auditor may rely?

Actuary.

Appraiser.

Internal auditor.

Engineer.

The answer is C. Is this because an Internal Auditor is not considered a specialist? In other words, is this a game of semantics? (like most of the auditing questions tend to be)

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

[JamesBJames]

I think so, @gabequinn. I have in my notes that a specialist is a person or firm with special skills in a field OTHER THAN ACCOUNTING OR AUDITING.

The work of an internal auditor may aid the external auditor in obtaining an understanding of internal control, assessing risk, and performing substantive procedures, but he is not a specialist.

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!

[Gabe]

Thanks James! Enjoy A4 🙂

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

[Gabe]

@thehip are you doing any comprehensive exams? What do you think was the problem with the last time you took AUD?

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

[Qlad]

after finishing 5 chapters …i thought Gov. audit wud be a piece of cake…it's not

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

In its tests of controls over the Tarbet Township Housing Assistance Program, Black, CPA, has found that the clerk assigned to monitor and limit participation in the housing program to a target population of individuals meeting income criteria is routinely overruled by his supervisor in order to meet volume based level of effort requirements. Ineligible participants whose income exceeds program limits are routinely admitted to the program. Black would characterize this as a(n):

a.Inherent risk of noncompliance.

b.Deficiency in the operation of internal control.

c.Audit risk of noncompliance.

d.Deficiency in the design of internal control.

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[JamesBJames]

@Qlad

Haven't seen that question yet, but I'm pretty positive it's B.

Management override is an inherent limitation regarding internal controls. That gets rid of A and C, at least. We're looking for something related to internal controls.

Now, the gist of it, I think, is that a certain internal control might be designed well. It might be amazing at preventing errors from happening and detecting them if they happen to slip through the cracks, but the auditor certainly isn't going to rely on the control if management is overriding it and making the control next to worthless.

Is the control designed well? More than likely — nothing in the question states otherwise. Is it operating well? No. Management is preventing the control from operating according to its design by overriding it when they see fit.

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]

@gabe. I tried to smash auditing in at the end of a window, studied just under 3 weeks 🙂

I've studied almost 6 right now, and I have a week left.

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

Licensed CPA in the state of Michigan

[thehip41]

@Qlad

That's an inherent risk for internal control:

Inherent risks are:

“example of inherent risk is the override of internal controls by upper management. Many times internal controls exist, but are overridden by management. An owner of a company may request a blank check to take with him to make a payment. The organization may have a policy against this, but how can you tell the owner “no” when they insist on making a payment this way.”

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

Licensed CPA in the state of Michigan

[Qlad]

@james and hip…thanks a lot…i wish i cud get that “thought process” so clear and be able to evaluate every question this way…thanks for showing me how to relate the question to right option and how to slowly join the pieces of the puzzle… the answer is B

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[YORKER]

Hey guys just took my audit exam. Multiple choice questions were okay but the simulations were unbelievably difficult. Word of advise brush up on your FAR knowledge.

[NYCaccountant]

So Inherent risk to internal control are collusion, human error, faulty judgement by humans, cost restraints, management override, breakout in systems, and the fact we can't stop all fraud? The book does not specifically state these are inherent risks, but I'm assuming they all are?

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[klink24]

Is there any guidance about the percent of coverage for each area like there was for FAR? Guidance for FAR was 8-12% Government, 8-12% Non-Profit, etc. Just wondering if there's guidance like 8-12% Professional Code of Conduct, 8-12% Risk, etc.

FAR: 4/19/2014 - 85!
AUD: 5/27/2014 - 90!
REG: 7/18/2014 - 81!
BEC: 8/13/2014 - 84!

4 up, 4 down, in 4 months.

Licensed 9/22 in NC.

[Author]

Replies