[jeff]

Welcome to the Q2 2017 CPA Exam Study Group for AUD. 🙂

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

[mardybum13]

I should've explained it better. Whats the course of action in each of these – get management to disclose in the financial statements? get them to accrue for the liability/loss? update the audit report?

a) A contingency about a pending litigation was disclosed in the financial statements at year end. The litigation was not accrued for since it was estimated that losing the case would be unlikely. The litigation has now resolved and the company is liable for $5000. The resolution occurred before the date the audit report was issued but this information has come to light after the audit report was issued.

b) A contingency about a pending litigation was not disclosed in the financial statements. The litigation has now resolved and the company is liable for $3000. The resolution occurred after the date of the audit report.

I'm pretty sure the first step in both is to determine if anyone will be relying on the financial statements first.

Your post is quite helpful in understanding the other scenarios which I hadn't thought of yet, j3cpa. In part a) though, its actually a contingency that was resolved before the audit report date.

[Apii]

@julyaf1207
Thanks for sharing your views and thanks for the tip….

[Shan]

Management refuses to furnish auditors with a management representation letter. Qualified or disclaimer?

[Apii]

@rob
If management refuses to furnish management representation letter then auditor has to provide disclaimer of opinion report or withdraw from the engagement.
MR letter is mandatory for a unmodified opinion.

[Fine]

Does any one know how to erase the MCQs that have been taken already. Like I wanna erase the graph and wanna repeat the entire MCQs with new percentage.

[Anonymous]

For the following MCQ, is not it that the treasurer is going to have authorization and custody of the bearer bond at the same time? Why it is ok under this situation?

A company holds bearer bonds as a short‐term investment. Responsibility for custody of these bonds and submission of coupons for periodic interest collections probably should be delegated to the

Chief Accountant.

Internal Auditor.

Cashier.

Treasurer.
The treasurer authorizes such transactions.

[Teal]

I know this is going to sound dumb, but I seriously cannot figure it out. If GAAS only covers audits for Public Companies and SSARS governs review and compilation services for non-public entities, what governs review & compilation services for public entities?? I swear I am just missing something completely obvious, but can't seem to pick it out of the book…

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

[Teal]

oh and audit of a non-issuer is now the clarity standards.

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

[Teal]

whoops think I just found it – SSAEs?

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

[Shan]

Did the exam today…the sims were brutal! The SIMs appeared 2-3-3…after the first sim testlet…I took the the 15min break to cry. I got 3 DRS…the resources tabs were loaded!!! So much info to review and so many things to respond to. The whole time…I'm like WTH!!! If you did FAR before …it might help! Do not wanna disclose too much. I don't see how practising Sims helped me.The MCQs were OK. Those Sims 🙁

[69again]

Hi,
I am new here. May 31 st is my test date.

[69again]

hi

[el_890]

@Rob, hopefully you did well enough to pass with the MCQs. What did you use to study for the Sims?

[el_890]

Does anyone have any suggestions on where I can get either a good explanation or some practice on analyzing changes in ratios from one year to the next? I'm still not comfortable with this topic and I didn't have too many examples in my gleim or wiley books. Thanks in advance!

[Shan]

@el_890 Ninja and Wiley.

[Author]

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