[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

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

[lvr21]

@riceperson

Enjoy your time off… relax and try not to worry about the test!!!

{R: PASSED!! (I passed one!)}
{B: PASSED!! (Halfway there!)}
{F: PASSED!! (1 left!!!)}
{A: PASSED(I am done!!)}

[Gian]

hey guys.. taking aud tomorrow morning. who's taking at the same date?

AUD - 69, 80
FAR - 71, rematch 01/19/2015
BEC - 01/12/15
REG - 02/23/15

If life knocks you down, try to land on your back, cause if you can look up, You can get up! No matter how bad it is or how bad it gets, I'M GOING TO MAKE IT.

[Hunnsterr]

@riceperson

I'm sure you did well. It won't be a long wait for the results. Scores come out 1st week of august

Did you see qs right off the NINJA MCQs?

And how many FAR sims did you get?

BEC - 88
REG - 72, 78
FAR - 75
AUD - 64, 64, 3rd attempt!!!

"A day of worry is more exhausting than a day of work" - John Lubbock

[Hunnsterr]

Anyone here good at Govt Auditing??

I understand that GAS requires

(i) an opinion on compliance with laws and regulation

(ii) an opinion on internal control over fin reporting

But I am confused as to whether there is a POSITIVE or NEGATIVE assurance reported in the above 2 cases

Could someone please help me out

BEC - 88
REG - 72, 78
FAR - 75
AUD - 64, 64, 3rd attempt!!!

"A day of worry is more exhausting than a day of work" - John Lubbock

[willpassby2014]

As the acceptable level of detection risk decreases, the assurance directly provided from

Substantive procedures should increase.

Substantive procedures should decrease.

Tests of controls should increase.

Tests of controls should decrease.

I thought the answer was Test of Controls should increase. What am i missing

BEC Passed
FAR Passed
AUD Passed
REG Passed

[thechapman]

@willpassby2014 – I would think it's “As the acceptable level of detection risk decreases, the assurance directly provided from substantive procedures should increase”. To decrease detection risk, you must increase the amount of audit procedures performed. Inherent risk and control risk exist independent of the audit, therefore, we cannot control inherent risk and control risk. We set audit risk, have no control over the level of inherent and control risk, and adjust our level of detection risk to obtain the set level of audit risk (balance the equation).

Assessing control risk just shows us the likelihood that an entity's internal controls will NOT prevent or detect & correct a material misstatement that occurs. Although we can assess the level of control risk, we cannot change it via an increase in audit procedures. Hope this helps.

Passed - 2014

[Hunnsterr]

@willpassby2014

The correct answer is: “Substantive procedures should increase”

The level of DR is based on the assessment of control risk (CR). Not the other way around. Altering the DR would have an effect on the substantive tests. However, altering the CR would have an affect on the DR. Here's an example:

Auditor concludes that there is a material weakness in the entity's Internal controls.

Hence, INCREASE in CR,

leads to a LOWER acceptable DR,

causing extensive substantial testing

BEC - 88
REG - 72, 78
FAR - 75
AUD - 64, 64, 3rd attempt!!!

"A day of worry is more exhausting than a day of work" - John Lubbock

[Hunnsterr]

Govt Auding anyone? This chapter is killing me!

What kind of assurance does an auditor provide in a report when reporting under GAS + GAGAS?

BEC - 88
REG - 72, 78
FAR - 75
AUD - 64, 64, 3rd attempt!!!

"A day of worry is more exhausting than a day of work" - John Lubbock

[willpassby2014]

Chapman and Hunnsterr. Thank you so much. I understood the concept now. Thanks.

Detection Risk comprises of Test of details Risk and Substantive analytical procedure risk. DR=TD X AP. So increasing TD or Increasing AP (SUBSTANTIVE Test) would Decrease DR. It has a inverse relationship. Thanks guys. I am giving my test on 26th…Just halfway through

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

the internal control transaction cycles section of CPAexcel is killing me. chapters are incredibly light and very vague. literally one page of very general information. questions are extremely specific, asking about functions of employees in departments and documents and duties and procedures…what is the best internal control to prevent this from happening, which of the following controls would prevent that from happening, those types of questions. the book and lecture don't really elaborate on any of those things, I feel like it assumes you have intimate knowledge of a lot of this stuff.

I just don't really understand them, and worse, I don't understand how to understand them. reading answer explanations isn't really doing it for me. I never had trouble like this with FAR or any of AUD before this point. I don't know how to learn this stuff (my $1200 review course certainly isn't helping) or approach these questions.

[Hunnsterr]

@dragnets

Been there. I keep avoiding picking up Internal Controls while doing WTB practice qs, since i know those cycle qs will definitely bring my score down. (i know – procrastination)

Best way to deal with them: Draw out a chart of each of the cycles. Note down the the designations of the personnel that appear at each stage of the cycle. Then note down the responsibilities of each of these personnel. Finally note down what management assertion an auditor will check for each personnel's responsibility at each stage, and HOW the auditor will check such mgmt assertion (Re-performance, observation, inspection or inquiry)

BEC - 88
REG - 72, 78
FAR - 75
AUD - 64, 64, 3rd attempt!!!

"A day of worry is more exhausting than a day of work" - John Lubbock

[Hunnsterr]

@mjp44:

Going back to your qs on PCAOB for review and compilations. I'm not sure I'm correct, but I doubt that PCAOB will allow an issuer to perform a compilation. No independence is required for compilation, while independence is a necessary standard for PCAOB. PCAOB mandates a quarterly review, which is like an updating of the year ending audit (so that takes care of Review in PCAOB). But I can't recall any statement for compilation in PCAOB.

BEC - 88
REG - 72, 78
FAR - 75
AUD - 64, 64, 3rd attempt!!!

"A day of worry is more exhausting than a day of work" - John Lubbock

[Gian]

fellow cpa reviewees:

gross profit divided by sales is gross profit ratio: if there is an increase in sales, will it increases gross profit ratio?

AUD - 69, 80
FAR - 71, rematch 01/19/2015
BEC - 01/12/15
REG - 02/23/15

If life knocks you down, try to land on your back, cause if you can look up, You can get up! No matter how bad it is or how bad it gets, I'M GOING TO MAKE IT.

[thelonewolf527]

Since Sales are increasing but COGS is remaining the same, the Gross Profit Ratio will go up.

AUD - 08/04/14 - 83
FAR - 11/29/14 - 80
REG - 02/26/15 - 89
BEC - 05/30/15 - 86

DONE!

[CJar]

Hi Everyone, I took the BEC yesterday and started to study AUD to day. Using Yager CPA Review materials and will purchase the Ninja test bank once I finish the video's. If all goes well hope to take the test near the end of August.

[Author]

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