[jeff]

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

[NYCaccountant]

Ummm I'm torn on this one. Usually voluntary documents included with other audited financials have to be read to check for consistency with the financials, so does this mean the Auditors have a limited responsibility for the other information? I'm not necessarily sure how the additional information would affect the opinion, because the opinion just references the audited financials, if the extra info is inconsistent, we include an other matter paragraph explaining this. Am I even thinking the correct way here? lol

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Anonymous]

The word ‘precludes' always throws me off, till I replace it with ‘does not include'. And that is how I arrived at D, the auditor does not refer to the other info in his opinion – normally. If there is an inconsistency, the mention is regarding the difference in the FS. Also, the other three options are wrong in that, the auditor does have to look at the other info, not just the audited FS, but he does not have to apply audit procedures and he does not have to report on the other info.

Waiting for iddyrashy to confirm answer. 🙂

[iddyrashy]

The correct answer is C. I know auditor is responsible to review other information and make sure they're consistency with audited report. At first I chose A and I was surprised.

The auditor is responsible for all information included in the report, if the information is not consistency with FS then the auditor can request either the information to be modified or removed or the auditor can add disclaimer paragraph on the report.

When an auditor submits a document that contains information in addition to audited financial statements to a client or to others, his responsibility is not limited to the audited financial statements, but rather includes reporting on all the information included in the document. AU-C 725.A5 states, “Although an auditor has no obligation to apply auditing procedures to supplementary information presented outside the basic financial statements, the auditor may choose to modify or redirect certain of the procedures to be applied in the audit of the basic financial statements so that the auditor may express an opinion on the supplementary information….”

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[Anonymous]

Isn't there a difference between ‘other information' and ‘supplementary financial information'? Becker talks about these two things as separate things. The question talks about ‘other information', which I take to mean not ‘supplementary financial information'? Or am I wrong?

[iddyrashy]

Alpha, there is a difference but the application of limited auditing procedure between the two is almost the same. Other information can be management risk analysis report while supplementary financial information can be different ratios that are driven from financial statement. So, there main difference is one use financial data and another doesn't.

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[Anonymous]

I guess I need to read up on this a little more…

[NYCaccountant]

disclaimer of opinion? Not an other matter paragraph? Def would not affect the opinion of the financials, but you should state if the supplementary information is not consistent with the financials as a whole.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[iddyrashy]

@NYCaccountant disclaimer statement for the meaning that we were not applying any audit procedure on the other information.

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[NYCaccountant]

Got you! Thanks @Iddy

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Qlad]

yup iddy…ur explanation clears the doubt about one question in becker that asks an auditor may give what opinion if there is a substantial going concern and the auditor agrees with the disclosure…the answer is unmodified or disclaimer…that's how i remembered that disclaimer bcoz “we are not applying any procedure”…and that cud be done.

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

[NYCaccountant]

How important is the wording of the reports? Should I spend a day rewriting them? I'm no expert with this stuff, but I've been able to get by with making great reasoning guesses when it comes to wording. I usually eliminate answers and figure out the correct one that way.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[zieba]

With the usual caveat of no two tests being alike, the MCQ format does not lend itself to detailed testing of entire reports. Like you, I've been able to have the correct answer float to the top.

The only “cornerstones” here are which paragraphs are changed in departures from GAAP and GAAS.

Lets go!!! You guys ready to knock this out?!? July is the month! Lets goo!!! I got one more spot on the other side… no notes, no stress, who is going to reach for it first?

AUD - 75*, 88 done 5/14! (*exp)
BEC - 74 , 77
REG - 65 , 76 (10 point combooo!!)
FAR - 69 , 75

Dr: perseverance
Dr: intelligence
Dr: luck
. Cr: . advisory score

[NYCaccountant]

@zieba Thanks. I think it's probably 3-4 of us where this is potentially our last exam. No stress, no notes sounds so good! lol.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[iddyrashy]

@NYCaccountant I don't think you need to memorize report, but I think it's important to have a general understand, for instance in OCBOA report the auditor refer footnotes for accounting method in the paragraph after opinion. I don't think it possible to memorize the whole laundry of reports.

This CPA thing is a nightmare. I cant wait to reclaim my life back.

AUD 89 (07/06/14)
REG 83 (08/27/2015)
FAR 78 (04/27/2015)
BEC 75 (11/13/2015)

TEXAS 2016

[mjp44]

Can anyone provide a brief rundown of the stages of the audit? Ie, planning, review, risk assessment, etc

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[Author]

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