[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

[Anonymous]

Can somebody explain to me why an auditor scanning the repairs and maintenance account for unusually large amounts is an analytical procedure instead of an inspection procedure?

[Anonymous]

Can somebody explain to me why an auditor scanning the repairs and maintenance account for unusually large amounts is an analytical procedure instead of an inspection procedure?

[thehip41]

@cpa

You are comparing the amount you SHOULD have with the amount you DO have. It's comparing the ending balances.

If the ending balance is too large, it will look large compared to the expected ending balance.

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[thehip41]

@cpa

You are comparing the amount you SHOULD have with the amount you DO have. It's comparing the ending balances.

If the ending balance is too large, it will look large compared to the expected ending balance.

FAR - 83
AUD - 73 92
BEC - 83
REG - 88

Licensed CPA in the state of Michigan

[10keyLeah]

I have another question…

Can anyone shed some light on why negative assurance (review) is not allowed? As an example, why can't a review be performed for prospective information? Another example, negative assurance is not allowed for an audit of interim financial statements?

Ninja Combo, Yaeger, Wiley -- Licensed CPA, May 2015

[10keyLeah]

I have another question…

Can anyone shed some light on why negative assurance (review) is not allowed? As an example, why can't a review be performed for prospective information? Another example, negative assurance is not allowed for an audit of interim financial statements?

Ninja Combo, Yaeger, Wiley -- Licensed CPA, May 2015

[Anonymous]

@CPA.hopeful.2013

I believe it is an analytical procedure because it is done in order to determine whether there has been proper capitalization of assets whereas an inspection is usually related to test of controls.

[Anonymous]

@CPA.hopeful.2013

I believe it is an analytical procedure because it is done in order to determine whether there has been proper capitalization of assets whereas an inspection is usually related to test of controls.

[LoxRican]

Can anyone tell me what the audit report headings are for public companies? I'm really not liking this Wiley book today?

Thanks a bunch!

Roberta

[LoxRican]

Can anyone tell me what the audit report headings are for public companies? I'm really not liking this Wiley book today?

Thanks a bunch!

Roberta

[Anonymous]

@LoxRican I believe it's “Independent Auditor's Report” for audits under PCAOB. Assuming the report is an Unmodified Opinion (clean report).

3 Other notes, for ISA standards below:

For ISAs' must included in their reference in the report that they “give a true and fair view”. While US GAAP does not require that.

ISAs also require the intro paragraph of the auditor's report to refer to the summary of significant accounting policies and other explanatory info, while GAAP does not.

ISAs' also require a statement in the Auditor's Responsibilities paragraph that the auditing standards require that the auditor comply with ethical requirements, while GAAP does not.

[Anonymous]

@LoxRican I believe it's “Independent Auditor's Report” for audits under PCAOB. Assuming the report is an Unmodified Opinion (clean report).

3 Other notes, for ISA standards below:

For ISAs' must included in their reference in the report that they “give a true and fair view”. While US GAAP does not require that.

ISAs also require the intro paragraph of the auditor's report to refer to the summary of significant accounting policies and other explanatory info, while GAAP does not.

ISAs' also require a statement in the Auditor's Responsibilities paragraph that the auditing standards require that the auditor comply with ethical requirements, while GAAP does not.

[LT-P]

Feeling a little better about AUD today (partly because I have a pumpkin spice latte) .. I realized I wasn't actually reading the material, just skimming for the MCQ answers. I got away with that for the other exams but that does NOT work for AUD, especially for Evidence/Transaction Cycles and Audit Sampling.

Happy studies everyone!

- passed all 4 exams on my first try using Becker!

Ethics: TBD

[LT-P]

Feeling a little better about AUD today (partly because I have a pumpkin spice latte) .. I realized I wasn't actually reading the material, just skimming for the MCQ answers. I got away with that for the other exams but that does NOT work for AUD, especially for Evidence/Transaction Cycles and Audit Sampling.

Happy studies everyone!

- passed all 4 exams on my first try using Becker!

Ethics: TBD

[barelystayingsane]

To add to what curious dude said, GAAS requires that you state that management is responsible for the design, implementation, and maintenance of internal controls, whereas ISAs use the verbiage “whatever management determines is necessary to keep the financial statements free of material misstatements” or something along those lines.

Also, curious dude, remember that GAAS, not GAAP, deal with standards, including report presentation.

[Author]

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