[jeff]

AUD Resources:

Free AUD Notes & Audio – https://www.another71.com/cpa-exam-study-plan

AUD 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

AUD Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[Qlad]

@mia and amordiva….thank you…so this is what i got…

EOMP / OMP …any F/S matter even when unmdfd report …They never appear before Opinion

BFOpinion para…only when modified report…it always appears before opinion…

hope i am right now and did not get confused.

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@mia and amordiva….thank you…so this is what i got…

EOMP / OMP …any F/S matter even when unmdfd report …They never appear before Opinion

BFOpinion para…only when modified report…it always appears before opinion…

hope i am right now and did not get confused.

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[kevinco]

EOM generally comes after the opinion paragraph, the trick I used to remember is that whenever you are including an extra paragraph before the opinion paragraph it will be because there will be some modification of the standard opinion, ie qualified.

Boise State Alumni

05/08/13 FAR Passed - 80
07/09/13 AUD Passed - 96
10/10/13 REG Passed - 75
11/07/13 BEC 77!!! I am DONE!!!!!!!!
12/13/2013 Received my CPA license on my son's 6th birthday in the mail! My son is always a blessing!!

BS - Environmental Science
BBA - Accountancy

Becker Lectures and MCQs. Click on my avatar for my LinkedIn page.

[kevinco]

EOM generally comes after the opinion paragraph, the trick I used to remember is that whenever you are including an extra paragraph before the opinion paragraph it will be because there will be some modification of the standard opinion, ie qualified.

Boise State Alumni

05/08/13 FAR Passed - 80
07/09/13 AUD Passed - 96
10/10/13 REG Passed - 75
11/07/13 BEC 77!!! I am DONE!!!!!!!!
12/13/2013 Received my CPA license on my son's 6th birthday in the mail! My son is always a blessing!!

BS - Environmental Science
BBA - Accountancy

Becker Lectures and MCQs. Click on my avatar for my LinkedIn page.

[Amay]

Can someone please help me with this question? Another poster asked in main forum but have not gotten any responses…

If the auditor is unable to form an opinion on a new clients' opening inventory balances, the auditor will issue an opinion on the closing balance sheet only and will issue a disclaimer of opinion on the statement of incomes, retained earning and cash flows.

Can anyone explain to me why auditor issues an opinion on closing balance sheet ONLY? If anyone is also using Becker book can you please tell me which page I can refer to?

Thanks!

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Can someone please help me with this question? Another poster asked in main forum but have not gotten any responses…

If the auditor is unable to form an opinion on a new clients' opening inventory balances, the auditor will issue an opinion on the closing balance sheet only and will issue a disclaimer of opinion on the statement of incomes, retained earning and cash flows.

Can anyone explain to me why auditor issues an opinion on closing balance sheet ONLY? If anyone is also using Becker book can you please tell me which page I can refer to?

Thanks!

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

I guess the key word is OPENING balances and all the other statements have opening balances flowing through? Not too sure…

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

I guess the key word is OPENING balances and all the other statements have opening balances flowing through? Not too sure…

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Mia]

+1 on Yama's question. I have no idea why the auditor can express an unqualified opinion on the BS.

Here's the complete question:

An auditor who is unable to form an opinion on a new client's opening inventory balances may issue an unqualified opinion on the current years:

a. Income statement only.

b. Statement of cash flows only.

c. Balance sheet only.

d. Statement of shareholders' equity only.

Solution:

Choice “c” is correct. If the auditor is unable to form an opinion on a new client's opening inventory balances, the auditor will issue an opinion on the closing balance sheet only and will issue a disclaimer of opinion on the statements of income, retained earnings and cash flows.

Choices “a”, “b”, and “d” are incorrect. The auditor should issue a disclaimer of opinion on these financial statements if the auditor is unable to form an opinion regarding opening inventory balances.

BEC 82 Nov 2012 | REG 80 Feb 2013 | FAR 76!!! Apr 2013 | AUD 69 May 2013 | AUD 83!!! Aug 2013

Done!! Thanks Jeff & A71 friends!

Ad maiorem Dei gloriam - For the greater glory of God!

[Mia]

+1 on Yama's question. I have no idea why the auditor can express an unqualified opinion on the BS.

Here's the complete question:

An auditor who is unable to form an opinion on a new client's opening inventory balances may issue an unqualified opinion on the current years:

a. Income statement only.

b. Statement of cash flows only.

c. Balance sheet only.

d. Statement of shareholders' equity only.

Solution:

Choice “c” is correct. If the auditor is unable to form an opinion on a new client's opening inventory balances, the auditor will issue an opinion on the closing balance sheet only and will issue a disclaimer of opinion on the statements of income, retained earnings and cash flows.

Choices “a”, “b”, and “d” are incorrect. The auditor should issue a disclaimer of opinion on these financial statements if the auditor is unable to form an opinion regarding opening inventory balances.

BEC 82 Nov 2012 | REG 80 Feb 2013 | FAR 76!!! Apr 2013 | AUD 69 May 2013 | AUD 83!!! Aug 2013

Done!! Thanks Jeff & A71 friends!

Ad maiorem Dei gloriam - For the greater glory of God!

[Anonymous]

This was discussed a little further up in this thread. But the reason an auditor can express an opinion on the Balance Sheet is the Balance Sheet is as of a single date (i.e. Dec 31, 2012) therefore, the auditor, would have have been engaged at this point, is able to perform inventory counts, receivables confirmations etc AS OF that date. Because there is no beginning inventory balance however, there is no way for the auditor to confirm the COGS since you need beg inventory balances to compute and that's why they'd disclaim an opinion on the Income Statement.

To put another way, the auditors don't care about the balance of BS items at any point during the year except for the date of the year-end.

[Anonymous]

This was discussed a little further up in this thread. But the reason an auditor can express an opinion on the Balance Sheet is the Balance Sheet is as of a single date (i.e. Dec 31, 2012) therefore, the auditor, would have have been engaged at this point, is able to perform inventory counts, receivables confirmations etc AS OF that date. Because there is no beginning inventory balance however, there is no way for the auditor to confirm the COGS since you need beg inventory balances to compute and that's why they'd disclaim an opinion on the Income Statement.

To put another way, the auditors don't care about the balance of BS items at any point during the year except for the date of the year-end.

[Anonymous]

I was going to post with DC said, but he already said it. 😛 Statement of Shareholder's Equity is also affected by income statement items, and a cash flow statement either starts with Net Income or reconciles to it (if I'm remembering my FAR correctly…), so if the beginning inventory was wrong and as such COGS and Net Income were wrong, then at least part of the Statement of Cash Flows would be incorrect, too.

—

Also, officially joining those studying in this window. Started my study yesterday, but today is close. 😉 Test date is Aug 14, but Auditing is the accounting subject that I felt like I understood best in college, so I'm pretty optimistic for this one. 🙂 Just as long as my college course is somewhat similar…hoping it wasn't just a simplistic class. 😐

[Anonymous]

I was going to post with DC said, but he already said it. 😛 Statement of Shareholder's Equity is also affected by income statement items, and a cash flow statement either starts with Net Income or reconciles to it (if I'm remembering my FAR correctly…), so if the beginning inventory was wrong and as such COGS and Net Income were wrong, then at least part of the Statement of Cash Flows would be incorrect, too.

—

Also, officially joining those studying in this window. Started my study yesterday, but today is close. 😉 Test date is Aug 14, but Auditing is the accounting subject that I felt like I understood best in college, so I'm pretty optimistic for this one. 🙂 Just as long as my college course is somewhat similar…hoping it wasn't just a simplistic class. 😐

[jeff]

This week's Free AUD video: Auditing & IT

https://www.another71.com/ninja-blitz/

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

[Author]

Replies