[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for AUD. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your AUD exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

[Anonymous]

Hello Ninjas, I need some help on assertions. I struggle with questions like the following one. When I read this question, I feel like the answer should be Valuation & allocation, but it is Completeness. Do you all have any tips or hints on answering these? It's not just this question, I have the same issue with other, similar ones. Please help!

When testing investments in equity securities of publicly held entities, the auditor prepares a schedule of dividends received and compares it to dividend information available to the public. Which assertion is the auditor testing?

Completeness
Existence
Valuation and allocation
Rights and obligation

[CoachEmUp]

@bhuekels That's a tough one… it probably is really either valuation or completeness to be honest. Hopefully on the exam you'd see either completeness or valuation but not both. Where was this question from?

Also, to anyone who has taken the test… I'm assuming the assertions are one of the biggest things tested on MCQ's? I plan on spending a lot of time memorizing since we have the 5 old AICPA/PCAOB one's and then the 6 “new” AICPA assertions with 3 categories. It's all a bit much to be honest.

[Anonymous]

@CoachEmUp This question was on Roger. I took the test last November, and it is just one area that I've really struggled with. I feel that it's definitely important to have a good grasp of for the exam.

[CoachEmUp]

I'm curious as to how in the hell they'll come up with 8 simulations to test us in auditing. Out of the 8, two are research, one/two will be a DRS where we have to fill in/correct sentences, i can see a correspondence/contingency sim where we correct any misstatements from a client regarding contingencies.

But that leaves 3-4 SIMS where I'm not really sure how they can test us. Knowing one is a pretest means that's 2-3 I'm going in blind. Anyone else worried about this?

[mo3athn]

@bhuekels i think completeness is the right answer, because once you declare dividends then you should record it as a liability.. and completeness is for liabilities.

[dave]

Hi Guys! I have a simple question that I have trouble grasping the concept of:

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

a. Statement of Shareholder's Equity only
b. Balance Sheet only
c. Statement of Cash Flows only
d. Income Statement only

—–

The correct answer is B, balance sheet only. I guess I don't really understand what “an auditor who is unable to form an opinion” means. If the auditor cannot express an opinion on the opening bal of inventory, doesn't that imply something negative and shouldn't receive a clear unmodified opinion?

Thanks guys and good luck studying!

[CoachEmUp]

Worked on the Wiley lessons related to Sampling techniques and IT Controls. Holy smokes… some one give me 4 hours of my life back. Excruciatingly boring and worst of all I just don't see how outside of a MCQ or max two these will ever be tested.

[CoachEmUp]

@dave I had this question in my review a couple of days ago. The explanation is basically this: If the auditor can't rely on the beginning inventory number then we won't be able to compute an accurate COGS. If we can't compute that, then we can't sign off on the following financial statements: Income, Owner's Equity, or Cash Flows.

Because we can verify the ending inventory, the balance sheet (which is only listing that ending inventory number) we can sign off as unmodified.

[dave]

@CoachEmUp, ahh i see. COGS, that makes way more sense.

When i looked at this question I initially thought the balance sheet couldn't be unmodified, because a standard balance sheet should contain current year and prior year information (of which last year's ending bal. was questionable).

Thanks a bunch, I won't forget this question again!

[jtvande]

Anyone purchase the AUD NINJA notes?

I purchased the REG NINJA notes and REG MCQ. The MCQ really helped me and I will be purchasing again. The NINJA notes did not help me as much because the mnemonics and formulas where in a different order than the ROGER material. That confused me so I stopped looking at them. I thought Audit may be a little bit different situation.

Has anyone purchased the AUD NINJA notes? Worth it?

Thanks

[jwalk]

Hey, all. Looking for some advice here! So, I just took FAR a week and a half ago, (ugh). I have been studying for AUD this week and should have A3 done by Saturday. Then I will finish A4-6 next week. How is AUD? What is everyone's feeling about the actual exam in comparison to study material? I went ahead and scheduled my test for Sept 8th. So I am forcing myself to study and knock this one out. Please advise! Best of luck to everyone!

[nvm5223]

I just got out of AUD today. Not too bad. I used Becker and didn't really see anything that Becker didn't cover. I breezed through the MCQ and used the rest of my time on the SIMS. The sims weren't that bad but I'm really glad I took FAR before taking AUD though.

[justa75pls]

@nvm5223 Do you feel that Becker prepared you for the SIMS? Did you use any other review material?

[nvm5223]

@justa yeah this was my last section I took. I took all four sections during this Q2-Q3 span so I hvent gotten any scores back I'm still waiting for my BEC score I took April 10 smh lol. But yeah Becker did prepare me well IMO. I got some sims where the authoritative literature helped me but a good amount but some of my SIM questions were definitely on the FAR side. I was somewhat prepared for them because I took FAR recently on July 3. Also didn't use any other review material. Just Becker

[Anonymous]

It might sounds stupid, but I feel that a big thing for AUD is reading carefully. They try to trick you with how things are worded, be careful.

[Author]

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