[jeff]

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

[Abdulmajid]

Hi guys,

while I am studying, I have written about 40 pages of notes and my own flash cards

I would like to know your advise of how I can get the high benefit from them

my Exam gonna be after 5 days

do you recommend to re-write the entire notes ?
or just read them again and again ??

[abig]

Dont understand this question from becker

According to AICPA Statements for Standards on Attestation Engagements, a public accounting firm should establish quality control policies to provide assurance about which of the followingmatters related to agreed-upon procedures engagements.

A – Public firm takes responsiblity for sufficiency of procedures
B – Practicioner sets criteria to be used in determining findings
C – Practioner is independent from client and other specific parties
D- Report is not restricted

The answer is C, Explantion: One of the condition policies that must exist in AUP attestation engagement nis that the practionier be indepdendent from client and other parties pertained to the engagement.

I thought independence isnt requiredin AUP?

I chose B

[wng1885]

Can you utlize a cycle count procedure to verify that inventory levels are stated correctly?

[Jmac645]

@abig AUP actually do require you to be independent. For some reason, halfway through my studying, I was under that impression as well. However, it is not the case. You do in fact need to be independent for AUP. You can see that in the SSAE section of your Becker book. It says what is required of the auditor in AUP reports.

[kelam81602]

I took my exam today. If I had to go back I would try and review specific reports. At least read through some examples. Such as audit report, compilation report, review reports and engagement letters. the MCQs were okay and the SIMS were tough but nothing I didn't expect.
Now the waiting game begins. Passed all the other. Nothing to do but wait and have a good summer. Good Luck everyone.

[dj]

Hey everyone,
Could someone please clarify. So, auditors are now responsible for reporting on the effectiveness of internal control when auditing a client’s financial statements but auditors are still not responsible for issuing an opinion on them? Has the unmodified audit report changed at all because of SAS 130? I tried to look at an example of real 10K since SAS 130 has been implemented but SAS 130 looks like it became effective on 12-15-2016 this standards is relatively new.

Excerpt from SAS 170

“The auditor will be required to examine and report directly on the effectiveness of internal control over financial reporting. There is no longer an option to examine and report on management’s assertion about the effectiveness of internal control over financial reporting”. (AICPA)

https://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/SAS_130_Summary.pdf

SAS 130 states that auditors are now responsible for reporting on a client’s internal control, but when I look at AU-C 705 of an example of a unmodified report in still states in the auditors responsibility paragraph that: “In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion.” (AICPA–AU-C 705)

https://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-C-00705.pdf

[pokerchick]

Would someone be able to explain to me the “summary of adjustments passed” concept.. or as Becker refers to it “SOAP”. I don't understand why SOAP relates to uncorrected misstatements. In my thought-process, if you make an adjustment, that would correct the misstatements for the year.
Thanks!

[Smith]

Hi guys! Can anyone explain to me when do you report on internal control over compliance and when on internal control over financial reporting? I just finished chapter 5 and got all confused with governmental audits.

[abig]

Basically you are never auditing IC over compliance. You are only auditng IC over financial reporting. A lot of the questions try to trick you and get you to choose that you are auditing IC over compliance because its natural to think so in a gov't audit,but that is not the case.

[Smith]

@abig Thanks!

[jeff]

Watch exam disclosure, please.

[maverick87]

@chasinCPA I am taking AUD May 25. Third attempt. First attempt was close, second attempt sucked as I was about to be in the middle of busy season (I kind of took a chance at it even though I know I did not study enough but passed BEC two weeks later haha). I've been studying around 4 weeks now. Will be a total of 5 weeks next week. I use Roger and have supplemented Ninja MCQ for the last week.

I read a chapter, watch some videos at 1.25x pace and write down a lot of notes to summarize the chapter. I would then do 60 MCQ for that chapter and move on to next chapter. Make a log of the mnemonics and ratios.
After I completed all chapters I read my notes over and just went to town on MCQ. I did some TBS here and there.
Once I finished all of Roger MCQ I got Ninja questions to get more new questions. I am trending 78%. 3 sections are giving me a hard time so I am focusing on them, just have to read the questions clearly. I plan on doing the Roger practice exam on Sunday to really give me a better idea. I have just been reading notes and doing 200 MCQ a day.

Recommendation for final review: Read a section of your notes daily, do as many MCQ as you can in one day. Take a practice exam or two at least 1-1.5 weeks out. Evaluate, rinse and repeat.

I feel much more prepared this time around than previous attempts. Good Luck.

[Jsn3004]

Before applying substantive tests to the details of asset accounts at an interim date, an auditor should assess:

A.
control risk below the maximum level.

B.
inherent risk at the maximum level.

C.
the difficulty in controlling the incremental audit risk.

D.
materiality for the accounts tested as insignificant.

Answer is C.
I understand why the answer is C, but can someone please explain why A wrong? I figured if you're going to perform substantive tests of details at an interim date, then the auditor would have assessed the risk of material misstatement below maximum which means control risk was assessed below the maximum level.

[Anthony]

@Jsn3004

It doesn't necessary mean that control risk is below then max to conduct testing at interim.

Think about it, RMM comprises of control risk and inherent risk. It's not required that control risk to below then max in order to conduct testing at interim. Inherent risk could have been below then max and control risk stayed the same to test at interim.

While A is a good answer, it is not the best.

[pcunniff]

This is my first post and I agree. The tricky part about audit IS CHOOSING THE BEST answer. They do a real good job of throwing 2 or 3 distracting answers. Overall, this process is a pain. I started studying back in October and I finished BEC and FAR. I took REG on 5/4 and quit my job to focus on AUD on 5/31. I hate that June is an off month and you have to wait until August 16th to figure out your scores. I almost want to ad hoc study audit in June and take it in July, but think cramming and enjoying my summer is the way to go.

Quick tip – for those who say you can't cram for a CPA exam – they are LYING TO YOU. I passed FAR in 19 days while working. You have to commit, you have to read your answers out loud in a quiet room, shut your phone off, and create your own flash cards.

Lastly, i failed BEC the first time around and passed the second time while passing far on the FIRST time. You just need to figure out a way that works best for you. Do you study well at night? Okay then, stop drinking and actually study. Are you a morning person? Instead of reading the wall street and dreaming about good jobs, focus on whats going to be on the test and study some pneumonics from Becker. You will pass.

AUD – in training (test on 5/31)
BEC – 79
FAR – 78
REG – tested on 5/4

[Author]

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