[jeff]

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[mo_duban]

Hi Guys

I got tired of seeing repeat Becker questions and was to cheap to buy Wiley so i stumbled upon freecpa questions. They have some old questions that are questionable offcourse i.e pre clarity questions that I know are just wrong. However they have this question which is practically new that I think is wrong

Financial statements prepared under accounting standards promulgated by the FASB contain a material departure from U.S. GAAP, but due to unusual circumstances, the statements would otherwise be misleading. Which of the following opinions is least likely to be rendered?

A Unmodified.

B Qualified.

C Adverse.

D Adverse or qualified.

Their answer is A but I thought you could issue an unmodified opinion you just have to explain in the Emphasis of Matter paragraph. Below is their explanation

Material departures from U.S. GAAP are no longer acceptable in any circumstances under the guidelines of the FASB. (Such departures are still allowed under GASB and FASAB to be included in an unmodified opinion with an explanatory paragraph if the auditor believes that the departure is justified.)

So my question is IS THIS TRUE??

BEC - 69 (Feb)13 -7/20 85
AUD - Dec-13 ( Failed), Feb-14
FAR- TBD
REG - TBD

[mo_duban]

Hi Guys

I got tired of seeing repeat Becker questions and was to cheap to buy Wiley so i stumbled upon freecpa questions. They have some old questions that are questionable offcourse i.e pre clarity questions that I know are just wrong. However they have this question which is practically new that I think is wrong

Financial statements prepared under accounting standards promulgated by the FASB contain a material departure from U.S. GAAP, but due to unusual circumstances, the statements would otherwise be misleading. Which of the following opinions is least likely to be rendered?

A Unmodified.

B Qualified.

C Adverse.

D Adverse or qualified.

Their answer is A but I thought you could issue an unmodified opinion you just have to explain in the Emphasis of Matter paragraph. Below is their explanation

Material departures from U.S. GAAP are no longer acceptable in any circumstances under the guidelines of the FASB. (Such departures are still allowed under GASB and FASAB to be included in an unmodified opinion with an explanatory paragraph if the auditor believes that the departure is justified.)

So my question is IS THIS TRUE??

BEC - 69 (Feb)13 -7/20 85
AUD - Dec-13 ( Failed), Feb-14
FAR- TBD
REG - TBD

[mo_duban]

@ ZXIAO/or any one that knows the answer to this .. I have an additional question according to PCAOB standards an audit of financial statement and internal control over financial statement has to be(mandatory) an integrated/combined audit right? and for a nonissuer you can do the audits separate or together its not mandatory?? or will the nonissuer rule apply to the issuer.

I went searching and this is what i found

Integrating the Audits

6. The audit of internal control over financial reporting should be integrated with the audit of the financial statements. The objectives of the audits are not identical, however, and the auditor must plan and perform the work to achieve the objectives of both audits.

source (https://pcaobus.org/standards/auditing/pages/auditing_standard_5.aspx)

FreeCpa grated be wrong they said that the audit could be done together / could be done separately. So I am now officially confused. I really should have stuck to my repeat Becker questions.

BEC - 69 (Feb)13 -7/20 85
AUD - Dec-13 ( Failed), Feb-14
FAR- TBD
REG - TBD

[mo_duban]

@ ZXIAO/or any one that knows the answer to this .. I have an additional question according to PCAOB standards an audit of financial statement and internal control over financial statement has to be(mandatory) an integrated/combined audit right? and for a nonissuer you can do the audits separate or together its not mandatory?? or will the nonissuer rule apply to the issuer.

I went searching and this is what i found

Integrating the Audits

6. The audit of internal control over financial reporting should be integrated with the audit of the financial statements. The objectives of the audits are not identical, however, and the auditor must plan and perform the work to achieve the objectives of both audits.

source (https://pcaobus.org/standards/auditing/pages/auditing_standard_5.aspx)

FreeCpa grated be wrong they said that the audit could be done together / could be done separately. So I am now officially confused. I really should have stuck to my repeat Becker questions.

BEC - 69 (Feb)13 -7/20 85
AUD - Dec-13 ( Failed), Feb-14
FAR- TBD
REG - TBD

[zxiao]

@mo_duban

To answer your first question, the auditor should issue an unmodified report. However, if the auditor wants to emphasis this matter to the reader of the FS, an emphasis paragraph could be added. Also, I believe that an emphasis paragraph should be added when there is a lack of consistency exist in the FS and the auditor concur with the change. In your example, there's no lack of consistency.

For you second question, it's acceptable to issue either a combined or separate reports for integrated reports on issuers and nonissuers. If separate reports are issued, each report should contain an explanatory paragraph making reference to the other report and indicating the nature of the opinion issued.

Hope this helps.

I Can Do This!!!!!

BEC: 89
AUD: 99
REG: 93
FAR: 8/2/2014

[zxiao]

@mo_duban

To answer your first question, the auditor should issue an unmodified report. However, if the auditor wants to emphasis this matter to the reader of the FS, an emphasis paragraph could be added. Also, I believe that an emphasis paragraph should be added when there is a lack of consistency exist in the FS and the auditor concur with the change. In your example, there's no lack of consistency.

For you second question, it's acceptable to issue either a combined or separate reports for integrated reports on issuers and nonissuers. If separate reports are issued, each report should contain an explanatory paragraph making reference to the other report and indicating the nature of the opinion issued.

Hope this helps.

I Can Do This!!!!!

BEC: 89
AUD: 99
REG: 93
FAR: 8/2/2014

[Anonymous]

I am confused about integrated audits of financial statements and internal controls for issuers. Are integrated audits required for issuers? I thought the audit of financial statements was not to express an opinion on internal controls, as stated in the audit report, but just to notice any problems leading to material misstatement. But then there is the integrated report. Does this take the place of the standard audit reporting?

[Anonymous]

I am confused about integrated audits of financial statements and internal controls for issuers. Are integrated audits required for issuers? I thought the audit of financial statements was not to express an opinion on internal controls, as stated in the audit report, but just to notice any problems leading to material misstatement. But then there is the integrated report. Does this take the place of the standard audit reporting?

[mo_duban]

@zxiao so freecpa answer was wrong. I completely agree with you per your response.

Well @ done2014 Integrated audits are required for issuers however they can issue their reports seperatly/combined for FS and IC over FS and as zxiao mentioned if they issue their report separately they need to make reference to it in the FS audit report.

BEC - 69 (Feb)13 -7/20 85
AUD - Dec-13 ( Failed), Feb-14
FAR- TBD
REG - TBD

[mo_duban]

@zxiao so freecpa answer was wrong. I completely agree with you per your response.

Well @ done2014 Integrated audits are required for issuers however they can issue their reports seperatly/combined for FS and IC over FS and as zxiao mentioned if they issue their report separately they need to make reference to it in the FS audit report.

BEC - 69 (Feb)13 -7/20 85
AUD - Dec-13 ( Failed), Feb-14
FAR- TBD
REG - TBD

[Julia_anika]

Hi everyone!!!

I'm struggling with research questions.. I find answers pretty quickly, but I can't figure out how to enter my answers correctly. Sometimes it should be a paragraph number, sometimes it should be something like “A5″… sometimes it's even worse… the correct answer has A27-A30 reference at the end, but the correct answer is “A28-A29”..

I'm totally confused. Maybe it's just WTB.. maybe it's me… I don't want to lose points on that..

Please HELP!!! Are there certain rules on how to enter answers for research questions?

NYC, NY
FAR - 82 Jan 2014
AUD - 86 Apr 2014
BEC - 77 Aug 2014
REG - 79 Nov 2014

[Julia_anika]

Hi everyone!!!

I'm struggling with research questions.. I find answers pretty quickly, but I can't figure out how to enter my answers correctly. Sometimes it should be a paragraph number, sometimes it should be something like “A5″… sometimes it's even worse… the correct answer has A27-A30 reference at the end, but the correct answer is “A28-A29”..

I'm totally confused. Maybe it's just WTB.. maybe it's me… I don't want to lose points on that..

Please HELP!!! Are there certain rules on how to enter answers for research questions?

NYC, NY
FAR - 82 Jan 2014
AUD - 86 Apr 2014
BEC - 77 Aug 2014
REG - 79 Nov 2014

[Teleka]

Julia_anika – I'm having the same issue. I hope someone can help clarify this. I have noticed that I only encounter this with the WTB. But I also think Becker's research questions are more difficult to find.

FAR: Jan 2013 76
BEC: Nov 2013 81
AUD: Feb 2014 71 May 2014 87!!!!!!!!!!!!!
REG: July 2014

[Teleka]

Julia_anika – I'm having the same issue. I hope someone can help clarify this. I have noticed that I only encounter this with the WTB. But I also think Becker's research questions are more difficult to find.

FAR: Jan 2013 76
BEC: Nov 2013 81
AUD: Feb 2014 71 May 2014 87!!!!!!!!!!!!!
REG: July 2014

[zxiao]

I just finished rereading the whole book and redid all the homework MCQs. Tomorrow I'll read my notes and skim the book one more time, and if I still have four hours, I will take final test 1.

I'm not planning to buy WTB for auditing since I don't really have time to practice new questions. I think I'm just going to focus on Becker book and the software for the rest of days.

Good luck to everybody!

I Can Do This!!!!!

BEC: 89
AUD: 99
REG: 93
FAR: 8/2/2014

[Author]

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