AUD Study Group April May 2017 - Page 13

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  • #1533570
    ThomasHallberg
    Participant

    Haha I love the material. I can see why ya'll hate it haha.

    #1533795
    Teal
    Participant

    Hi! I have a question…in one of the videos it said that vouching was the best way to discover unrecorded liabilities, but since vouching goes from F/S to original documents, this really confuses me. Wouldn't an unrecorded liability best be found through tracing? Because if you were going from the documents to the F/S you'd find that the liability wasn't recorded. Can anyone shed some light on this??

    FAR (66,68) Aug 26
    REG (66) July 25
    AUD (66) December 1st
    BEC - October 3rd

    #1533879
    Anonymous
    Inactive

    Hello all suffering from studying audit!

    Quick question or really just some input. I have been doing the practice sims on Wiley and they seem much easier than the SIMS on the practice exam the AICPA website. Do the exam questions more closely resemble to wiley sim questions or the AICPA practice exam SIMS?

    Thank you!

    #1534308
    jeff
    Keymaster

    Test Your Might:

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

    #1534410
    mooseonloose
    Participant

    A

    #1534777
    ayyemmtea
    Participant

    AUD is my last exam. I am fortunate to have passed the other 3 on the first try. I have followed the same study schedule for the other 3, so I'm cautious to change… but also, this is killing me slowly.

    1) Start 4-5 weeks out by listening to all of the Becker Lectures. Follow along and write/highlight with them. I don't necessarily focus every second of it… but I get through it and hope that just by listening and following along, I'll get enough of it. I go from lecture to lecture and don't stop for MCQ (unless it's with the lecture)

    2) Start Becker MCQ by chapter. Basically I go through all of the questions once.

    3) Go to Ninja MCQ. I just keep on answering questions until I realize any glaringly bad areas. For the bad sections, I have gone back to Becker because I liked the online book and the fact that they have so many similar questions in a row. (Ex. They just change one number or ask for the next step… for 10-12 questions in a row)

    4) I usually finish with jumping from Ninja MCQ to Becker Progress Exams.

    5) I also listened to Ninja Audio in my free time (while driving, long walks, etc).

    I usually take 1-3 hours on the weekdays and try for at least one 8 hour day on the weekends. Then I take a full week of PTO before the exam to study 24/7.

    During my last section (REG), I realized that my way isn't the most time efficient way of doing things because I just wasn't focusing enough (at all) on the lectures as I went through (I even basically 100% skipped the last section of the last group of lectures)… but it worked for BEC and FAR, so I didn't want to change things up.

    Now I am just chomping at the bit. I can barely get through A2 of Audit. I'm a relatively superstitious (a little sticious, if you will), so I don't want to change things up when I'm so close… but it's also just so painful getting through the lectures this time around. (Not to mention the Becker website is killing my eyes and the lack of outlines, practice tests, and online book is terrible)

    I dunno… I just wanted to vent. My exam is scheduled for the 24th. I may reschedule if something later comes up, as that's what I usually do. The amount of fees I have for rescheduling 5-30 days and less than 5 days is crazy. oops =/

    Right now, I am just really beating myself for not finishing it all before this point. But I'm also trying to remember that if I took any of the sections at a different time/place/date, I may have received a different test or received a different curve (because who honestly knows how they grade/decide anyway)

    Anyone in a similar boat or have any suggestions?

    #1534780
    huskyy123
    Participant

    A – great segregation of duties

    @Teal – To answer your question, you cannot trace from something that does not exist (unrecorded). This would not help you out. By vouching we can start from the F/S as you mentioned and work our way down and find the missing recorded payable in a journal entry or never find the invoice. That way vouching would help us find unrecorded liabilities.

    #1534831
    saraw
    Participant

    I made up a really stupid/helpful way to remember if you should issue a disclaimer or adverse opinion on F/S. I appreciate everyone posting their tips they come up with so thought I would share mine!

    GAAS – QD – I remember this like a “cutie has a good ass” (so embarrassing, but works every time!)
    GAAP – QA

    #1534840
    mardybum13
    Participant

    This exam has a habit of testing fine details, so I'm going to be pedantic. If they say that an external accountant audited/reviewed a component in, say Brazil… but this component is not significant. You decide (for some reason) it may not be prudent to take responsibility for their work. Would you still give reference to them in the report?

    #1534996
    kenckang
    Participant

    @mardybum13 I dont think you would reference an insignificant foreign subsidiary in a consolidated audit report. what value would it add to an auditor report to mention a division of responsibility (or acceptance of responsibility) for a foreign subsidiary whose assets and revenues only consist of less than 1% of consolidated totals? im talking hypothetically here.

    #1535001
    Zyx
    Participant

    I am having problems with this question;
    If a client will not permit inquiry of outside legal counsel, the auditor's report ordinarily will contain:

    A.an adverse opinion.

    B.a disclaimer of opinion.

    C.an unmodified opinion with a separate emphasis-of-matter paragraph.

    D.a qualified opinion.

    The right answer is clearly either b or d. The correct answer is b. The question does not mention about pervasive at all. What chances of issuing disclaimer vs qualified in a situation like this? I find this exam is pretty dumb and so subjective.Does anyone have a good explanation for this? Thanks in advance!

    REG: 77 x2
    BEC: 81 x3
    FAR: 68 retake 10/1
    AUD: 8/27

    #1535026
    kenckang
    Participant

    @zyx11 the way someone else here explained it is this: a disclaimer of opinion due to a scope limitation is more severe than qualified opinion due to a scope limitation. the difference is how the scope limitation was brought about. if the scope limitation was a direct effect of the client's management denying you access then it is a disclaimer of opinion. if the scope limitation was due to something else beyond the client's control such as – a material foreign subsidiary's financials are not available yet, then it is a qualified opinion due to scope limitation. it makes intuitive sense as well because if the client willfully denied you access to information that you needed, then its best to put a disclaimer of opinion because you dont know what else the client is trying to hide.

    #1535392
    Teal
    Participant

    Hi everyone! Can anyone help me with this? I have gotten conflicting info. Related to reporting, with a GAAP issue and it is a pervasive (very material – usually client imposed) issue, we would disclaim an opinion. However, I have heard that for international standards, you must withdraw from the audit if you are able. Is this also the case for US standards (i.e. must withdraw)? I heard it both ways. Thanks for the help!

    FAR (66,68) Aug 26
    REG (66) July 25
    AUD (66) December 1st
    BEC - October 3rd

    #1535700
    julyaf1207
    Participant

    Does anyone have an opinion… Is it worth my time to memorize financial ratios? I'd rather spend time with MC questions and simulations

    #1535716
    kenckang
    Participant

    @julyaf1207 the general answer to these sorts of questions is Yes, know the financial ratios. know everything because anything can be on the test.

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