[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

[Anonymous]

Its not a MCQ its just a part of chapter 2 page 86 2013 becker materials.

“A written assertion is generally obtained in examination and review engagements…”

I can't figure out what this written assertion actually is or why it is important to have, lol. I am assuming the written assertion is asserting all the fact & figures present to the accountant for review or examination? Its not a make or break question, just something I was curious about.

[Anonymous]

Its not a MCQ its just a part of chapter 2 page 86 2013 becker materials.

“A written assertion is generally obtained in examination and review engagements…”

I can't figure out what this written assertion actually is or why it is important to have, lol. I am assuming the written assertion is asserting all the fact & figures present to the accountant for review or examination? Its not a make or break question, just something I was curious about.

[kevinco]

I think that might be referring to the Management Rep letter which is management's written assertion on the financial statements. This is required to be obtained in audit and attest engagements ie, Reviews and Examinations. Not required for compilations.

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]

I think that might be referring to the Management Rep letter which is management's written assertion on the financial statements. This is required to be obtained in audit and attest engagements ie, Reviews and Examinations. Not required for compilations.

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.

[Qlad]

A research sim in Becker ch 3 asks…

While preparing Auditor's report, the audit assistant believes that report can never reference the findings of a specialist in the report. The audit manager disagrees. which citation supports audit manager.

The answer is AU-C 620.14…which says “The Auditor should not refer to the work of an Auditor's specialist in an Audit Report containing an unmodified opinion.”

First …i can't find any connection between the question and answer and secondly…

I don't understand why the answer is not “AU-336.16”

Please help!!!

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

[Qlad]

A research sim in Becker ch 3 asks…

While preparing Auditor's report, the audit assistant believes that report can never reference the findings of a specialist in the report. The audit manager disagrees. which citation supports audit manager.

The answer is AU-C 620.14…which says “The Auditor should not refer to the work of an Auditor's specialist in an Audit Report containing an unmodified opinion.”

First …i can't find any connection between the question and answer and secondly…

I don't understand why the answer is not “AU-336.16”

Please help!!!

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

[littlenumberrobot]

@Qlad – the issue is the wording “never” vs ” should not in certain circumstances”. The question is stating that the audit assistant believes it is NEVER appropriate to mention a specialist, when in fact it is, just not when the report is modified. So that answer supports the manager's opinion that saying “never” is incorrect.

AU-C are the new clarified standards. All answers in the research section will be these. I just took the AICPA practice exam last night and when the answer is for public entities, who still use AU, the answer is AU-C ###. A## (example AU-C580.A26) to refer to the original AU standards. I was surprised to see that as I thought it would be only AU-C type questions. I recommend taking the AICPA practice exam. It's 5 MCQ and 5 SIMS.

Hope this helps!!

CA CPA - All because of the journey listed below
-----------------------------------------------------------------------
FAR - 53('10), 8/25/12 79 PASSED!
REG - 66('11), 69('12), 12/06/12 77 PASSED!!
BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
AUD - 43('11), 66('12), 69('13), 74('13) 7/29/13 85 PASSED!!!!!

(Combinations of Roger, Yaeger, Wiley Book, Wiley TB, & NINJA Notes)

Ethics 90%

[littlenumberrobot]

@Qlad – the issue is the wording “never” vs ” should not in certain circumstances”. The question is stating that the audit assistant believes it is NEVER appropriate to mention a specialist, when in fact it is, just not when the report is modified. So that answer supports the manager's opinion that saying “never” is incorrect.

AU-C are the new clarified standards. All answers in the research section will be these. I just took the AICPA practice exam last night and when the answer is for public entities, who still use AU, the answer is AU-C ###. A## (example AU-C580.A26) to refer to the original AU standards. I was surprised to see that as I thought it would be only AU-C type questions. I recommend taking the AICPA practice exam. It's 5 MCQ and 5 SIMS.

Hope this helps!!

CA CPA - All because of the journey listed below
-----------------------------------------------------------------------
FAR - 53('10), 8/25/12 79 PASSED!
REG - 66('11), 69('12), 12/06/12 77 PASSED!!
BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
AUD - 43('11), 66('12), 69('13), 74('13) 7/29/13 85 PASSED!!!!!

(Combinations of Roger, Yaeger, Wiley Book, Wiley TB, & NINJA Notes)

Ethics 90%

[jdwalton19]

Quick question from the WTB that is driving me nuts as I keep getting it wrong.

An Auditor's test of controls for completeness for the revenue cycle usually include determining:

a) An invoice is prepared for each shipping document.

b) Each invoice is supported by a customer purchase order.

c) Each credit memo is properly approved.

d) Each receivable is collected subsequent to the year-end.

The answer is a), but to me it seems like that is testing for Existence of Invoices related to shipping docs…not Completeness in the revenue cycle.

What am I missing?

FAR - MAY - 84
AUD - AUG - 88
REG - AUG - 92
BEC - Dec - 82

KY Licensed!

Yaeger

[jdwalton19]

Quick question from the WTB that is driving me nuts as I keep getting it wrong.

An Auditor's test of controls for completeness for the revenue cycle usually include determining:

a) An invoice is prepared for each shipping document.

b) Each invoice is supported by a customer purchase order.

c) Each credit memo is properly approved.

d) Each receivable is collected subsequent to the year-end.

The answer is a), but to me it seems like that is testing for Existence of Invoices related to shipping docs…not Completeness in the revenue cycle.

What am I missing?

FAR - MAY - 84
AUD - AUG - 88
REG - AUG - 92
BEC - Dec - 82

KY Licensed!

Yaeger

[littlenumberrobot]

@jdwalton19 I think it is because they are testing completeness of a control, not an assertion. For a shipping document to be complete, it would need to be invoiced(maybe?). What does the answer explanation say? What question number is it? Maybe I can find a better explanation in the Wiley Book. That one is confusing to me as well, but I don't recall coming across it,

CA CPA - All because of the journey listed below
-----------------------------------------------------------------------
FAR - 53('10), 8/25/12 79 PASSED!
REG - 66('11), 69('12), 12/06/12 77 PASSED!!
BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
AUD - 43('11), 66('12), 69('13), 74('13) 7/29/13 85 PASSED!!!!!

(Combinations of Roger, Yaeger, Wiley Book, Wiley TB, & NINJA Notes)

Ethics 90%

[littlenumberrobot]

@jdwalton19 I think it is because they are testing completeness of a control, not an assertion. For a shipping document to be complete, it would need to be invoiced(maybe?). What does the answer explanation say? What question number is it? Maybe I can find a better explanation in the Wiley Book. That one is confusing to me as well, but I don't recall coming across it,

CA CPA - All because of the journey listed below
-----------------------------------------------------------------------
FAR - 53('10), 8/25/12 79 PASSED!
REG - 66('11), 69('12), 12/06/12 77 PASSED!!
BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
AUD - 43('11), 66('12), 69('13), 74('13) 7/29/13 85 PASSED!!!!!

(Combinations of Roger, Yaeger, Wiley Book, Wiley TB, & NINJA Notes)

Ethics 90%

[jdwalton19]

This is the explanation from the WTB:

This answer is correct because when there is a shipping document, this suggests that a sale occurred in the sense that goods have been shipped to a customer; accordingly and invoice should be prepared and recorded. A situation in which there is a shipping document and no invoice will ordinarily be one in which a sale has not been recorded.

The explanation above doesn't make sense when the information given by the book and WTB always refer to directional testing which indicates that Completeness is done from Source -> GL, and yet the above answer says that Completeness can be tested by going from GL -> Source?

Very confusing for me.

FAR - MAY - 84
AUD - AUG - 88
REG - AUG - 92
BEC - Dec - 82

KY Licensed!

Yaeger

[jdwalton19]

This is the explanation from the WTB:

This answer is correct because when there is a shipping document, this suggests that a sale occurred in the sense that goods have been shipped to a customer; accordingly and invoice should be prepared and recorded. A situation in which there is a shipping document and no invoice will ordinarily be one in which a sale has not been recorded.

The explanation above doesn't make sense when the information given by the book and WTB always refer to directional testing which indicates that Completeness is done from Source -> GL, and yet the above answer says that Completeness can be tested by going from GL -> Source?

Very confusing for me.

FAR - MAY - 84
AUD - AUG - 88
REG - AUG - 92
BEC - Dec - 82

KY Licensed!

Yaeger

[Anonymous]

@Littlenumberrobot… You brought up a good point for me to ask. I have not done the AICPA sample test yet. The research… Please explain further your previous post. In the Becker software most answers are AU-C something but there are areas of the code I cannot get in via the software such as AU-C XXX.AXX Those A I cannot access… it indicates to me wrong path.

Anyways, please clarify the above.. You are saying that for issuers the right answer is AU-C XXX.XX which refers to the old AU or do we need to look for the AU directly?

[Author]

Replies