[jeff]

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

[Jsn3004]

How did you guys feel about the simulations on the exam in comparison to practice SIMS from something like Ninja or CPAExcel?

I know the exam is supposed to be very difficult, but before I found simulations alot harder on the actual exam in comparison to my review courses which obviously makes me very worried.

[Menage DA NINJAAAAA]

Hello all! I'm taking Auditing tomorrow 5/25/2017. So nervous!

So far

BEC- 77
AUD- 5/25/17
Reg- 07/15/17
Far- 12/01/17

[Menage DA NINJAAAAA]

@chasincpa how was your exam? What was the hard part about it? How were the simulations.

Hope you killed it

[distracted]

I am taking it tomorrow too and very very nervous too. Any last minute advice from people who have already taken the test is really appreciated.

[pcunniff]

On the bubble. Took my practice exam today and got a 60. Not sure what to do as my test is in a week. I feel like if i really commit – i can do it. However, if I push it back in a less stressed manner – i could kill it in July. Problem is the summer distractions. Decisions decisions. Any advice? This will be my last exam assuming i passed REG on 5/4.

UGHHHHHH

[abig]

For the person who asked about confirms, it was what to do with negative confirms based on the responses, send a second request, review cash receipts. this type of stuff.

It was tricky cus it in the negative confirm that if you dont respond it will be received that the value is correct, but the response was not signed either. So I said send a 2nd confirm instead of it being not an exception and no further steps

[Scared-cpa]

Guys, I have answered all the questions in Ninja MCQ and have 329 that have not been answered correctly. My average is 77 and trending is 79.17%. I'm really freaking out since I feel like my trending should be higher right now and my exam is Saturday. Any advice? HALP!

[Jsn3004]

@scared_cpa I feel like i'm the one who wants to ask you advice since you already took it. I just hope the sims aren't brutal. My biggest fear is have reasonable sims while reviewing and get blindsided on the exam. I've heard mixed reviews so far.

[Smith]

I've been through all sims in Beckers and Ninja. @abig @drumstick any advice?

[pcunniff]

@abig – gotcha. Well, I'm sure you got it right because the risk of material misstatement is assessed as low due to the auditor obtaining sufficient audit evidence and a very low exception rate is expected (confirms your response).

However, I'm confused about the response not being signed. I've never seen it where the external party would have to sign it because negative confirms are simply stating in dummy terms “if you provide a response back, what we are confirming is incorrect.” If they came back with a response that is partially misleading – i would think the follow up response is appropriate.

Moral of the story – No news is GOOD NEWS.

Lastly, If they come back and reply that it is incorrect – an exception exists

[Operation_CPA]

Attempt 2: Can someone confirm my understanding of these relationships to sample size?

Incorrect Acceptance = Inverse
Incorrect Rejection = direct

Risk of assessing CR too low = Inverse
Risk of assessing CR too high = Direct

I would really appreciate the help, thanks!

[pcunniff]

Which of the following fraudulent activities could most likely be perpetrated due to the lack of effective internal controls in the revenue cycle?

a) Fictitious transactions may be recorded that cause an understatement of revenues and an overstatement of receivables.
b) Claims received from customers for goods returned may be intentionally recorded in other customers' accounts.
c) Authorization of credit memos by personnel who receive cash may permit the misappropriation of cash.
d) The failure to prepare shipping documents may cause an overstatement of inventory balances.

The answer is C. I understand that this takes place in A/R or Collections for credit memos. Now I am confused because who authorizes credit memos? Why would this be the reason for perpetration due to lack of effective internal controls?

[pcunniff]

@operation_cpa

I think you are thinking of this incorrectly. The risk of incorrect acceptance and incorrect rejection relate to controls. This relates to the fact that if you assess control risk too high – you have the greater odds of an incorrect rejection. Further, the auditor is rejecting and saying the financials can be materially misstated due to the fact that CONTROLS ARE NOT OPERATING EFFECTIVELY or CORRECTLY when they in fact ARE. There is no actual misstatement when the auditor says there is.

Incorrect acceptance is saying “yeah this control test is fine, when the financials are ACTUALLY POTENTIALLY MATERIALLY MISSTATED because the control is a piece of crap and not operating effectively”. Further, Incorrect acceptance is assessing control risk as too low.

Make sense?

[Operation_CPA]

@pcunniff

Yes that makes sense, thank you. For some reason I thought that those different elements had some sort of relationship to sample size, but I simply cannot remember where I saw it in my Becker materials. If I find it I will be sure to post here.

[monicasanta]

Hi everyone!HELP please!

For GAGAS and Single Audit- When we talk about Federal Financial Assistance, can we assume it's Single Audit, or we can only assume it's GAAS and GAGAS?

“Expansion of reports to include representations regarding whether federal financial assistance has been administered in accordance with laws and regulations is a characteristic of a GAAS and GAGAS audit”.Is it also a characteristic of Single Audit?

Please help. thanks !!!

[Author]

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