[jeff]

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

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

[Jsn3004]

I was hoping my first post in this group would actually be a challenging question, but here it goes.

Which of the following statements is correct concerning both an engagement to compile and an engagement to review a nonpublic entity's financial statements?

A.
The accountant does not contemplate obtaining an understanding of internal control.

B.
The accountant must be independent in fact and appearance.

C.
The accountant expresses no assurance on the financial statements.

D.
The accountant should obtain a written management representation letter.

Answer: A

I understand the answer is A but the explanation also stated
The accountant is required to obtain a written management representation letter for a review engagement, since the report will provide limited assurance
I could have sworn a Management representation letter was just for audits. I'm assuming the management representation letter is for audits AND reviews? I just remember before looking at definitions and it only mentioned audits.

[Anthony]

@Jsn3004 Correct. Management representation letter is required for audits and reviews. Think about it..why would we need to obtain a management representation letter if there is no assurance given?

[krstnam]

@69 again me too. Exam is on 5/30. First time on the AUD study group for me too 🙂

I'm worried because FAR killed me and I have no experience in audit – I didn't even take an audit course in college.

Good luck!

[studysled]

@Teal

my understanding is:

1) GAAS covers both Public and Non-Public audits
2) The PCAOB promulgates GAAS for Public specifically
3) The ASB (Auditing Standards Board, which is a Senior Technical Committee designated by the AICPA) promulgates GAAS for Non Public.
4) SSARS is for compilation and reviews of Non-Public specifically. Compilations and Reviews are not allowed for Public companies.
5) SSAE (Statements on Standards for Attestation Engagements) cover Attest engagements for Public (and I believe Non-Public as well in general, with SSARS obviously providing more specific guidance for Non-Public).

Hope that helps.

[Teal]

@studysled yes that helped a lot!! I wish there was just a skeletal outline before they jumped into chapters on one section….I do much better with the structure first and then adding details on. Thanks for your help!!

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

[Teal]

Also – just FYI – if anyone doesn't have the 2017 book – there is a new rule governing non-issuer audits and that is the clarity standards. It is basically just making GAAS easier to understand, but became effective mid-2016 and is being testing on the 2017 exam!

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

[el_890]

@Teal, is the major change that the clarity standards were simply merged with the AU standards? I'm trying to make sure I didn't miss anything big, I did go over the changes but now that my retake test is tomorrow I'm getting really nervous about things I could've overlooked.

[Teal]

@el_890 – yeah I don't really think it is that different. You will be fine, good luck!!

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

[kenckang]

taking this test on monday. i literally did every question both on wiley and ninja. sims included. still feel like its not enough. wish me luck.

[IwannabeaCPA2017]

Are you guys actually re-reading the text? I find the skills practice to be helpful and lot of material still fresh so I just jump into the MCQ. Have been getting 78-85% on the hw. I have little over 3 more weeks till exam and I'm behind by 2 chaps. Just started A2 when I should be on A4.

Im very nervous.. Just want this nightmare to be over with. Good luck to those sitting.

[el_890]

Hi everyone, I just got back from taking my test and wanted to give you guys some feedback. I definitely felt more confident with the Sims this time around, I used the gleim test bank this time and felt like those simulations were much more representative of what I saw as opposed to wiley which I used the first time.

[Anthony]

@El_890 What other study materials did you used? How were the sims with supporting docs/DRS?

[kelam81602]

I take the exam May 17th. It will be my 4th attempt at Audit. 58, 60 and 70. I have passed the three other exams. I'm concerned about the SIMS. I know that is what got me the last test. I'm planning on going over the SIMS next weekend and spending the entire weekend focused on them. Wish me luck.

[el_890]

I'm not sure how much I'm allowed to say about supporting docs but I didn't memorize any reports, I was familiar with the wording and that was enough. This time I used both the wiley textbook and gleim textbook that comes with the test bank and the ninja plus videos. I felt like the wiley textbook was more comprehensive for the multiple choice portion but gleim was easier to understand so I used that for a second read. I also felt like the videos helped a lot in explaining the material. The big thing I used this time was the gleim test bank, I went through all the simulations they offered, they have about 5 or 6 per section for 20 sections. I used wiley test bank the first time I took it and I felt like it didn't prepare me at all for the simulations, they were way too easy. You should also be comfortable doing journal entries, I was focused on audit and didn't review them and I should've, especially those that aren't everyday entries. I don't think the test really got harder, in fact in my case it was actually easier but I think because I felt much better prepared for the simulations with gleim. Now to keep my fingers crossed and wait until August. Hope this helps!

[jeff]

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

[Author]

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