[jeff]

Welcome to the Q4 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/

[SallyCPA]

@4dkids which videos do you feel were the most helpful? I am struggling with assertions/aduit procedures and IC related to transaction cycles and segregation of duties…

[4dkids]

@SallyCPA I have actually watched/listened to her lectures on substantive testing of balance sheet accounts and substantive testing of income statement accounts which filled in some gaps for me, but that is 2+ hrs of lecture. I'd advise starting with her shorter overviews to see if that brings it together for you first. I am soooo not tech savvy but will attempt to link to a couple starter vids.

This vid is a walk through example for inventory but may show you points on how transaction cycles differ and how assertions relate to/are used for substantive testing.

[Defo]

Im scheduled for December 4th and I am starting AUD today. Good luck everyone.

[4dkids]

@SallyCPA I am lacking in my tech savvy so I lost my response and this is second attempt. Most of the videos are quite long. I am including a couple links (if I can get them to post) to shorter overview vids that can, hopefully, pull things together for you. The first vid is a walkthrough example for inventory that can show how assertions relate to/are used for substantive testing.

This vid is overview of assertions between balance sheet vs income statement accounts.

Hope this is helpful.

[56_Moves]

Question for those who are in auditing. How many clients do you audit in one year?

Thanks for any and all reply's.

[Yo831CA]

With respect to the expression of an opinion regarding whether a client
maintained effective internal control over financial reporting:
1. The auditor of a nonissuer may express an opinion as a result of
an attest engagement.
2. The auditor of a non issuer may express an opinion as a result of
a financial statement audit.
3. The auditor of a non issuer must express an opinion in every
financial statement audit.
4. The auditor of a non issuer must express an opinion whenever
significant deficiencies or material weaknesses are noted.

I guess 2 & 4 are right!! what do you think?

[56_Moves]

@Yo831CA – The auditor of a nonissuer is not allowed to express an opinion on internal control unless he/she is engaged to do so. Since a financial statement audit is not an audit of whether the client maintained internal control over financial reporting, I think 1 is correct.

[kdcpa]

Please explain this question.

Auditors sometimes use a comparison of ratios as audit evidence. For example, an unexplained decrease in the ratio of gross profit to sales suggests which of the following possibilities?
A. Unrecorded purchases.
B. Unrecorded sales.
C. Merchandise purchases being charged to selling and general expense.
D. Fictitious sales.

Answer (B) is correct.
Fraud or error that decreases gross profit relative to sales (or increases sales relative to gross profit) causes the ratio to decline. Unrecorded sales cause inventory to decrease and cost of sales to increase with no increase in sales, thereby decreasing gross profit relative to sales and lowering the ratio.

[bobby]

Currently working on sampling and I'm getting the risk of incorrect acception and incorrect rejection confused with each other.

Any of you guys have a good way to remember the difference?

[Andria – Another71]

REG Test Your Might! Post your answer in the Facebook thread for a chance to win a NINJA Sniper Package of your choice (Book, Notes, Audio, Videos, MCQ/SIMS, Audio, & Flashcards – $197 Value).

One winner will be randomly chosen on Friday. HIYA!

Exam Oct.30 wrapping up A4, I'm gonna challenge myself to finish all of A5 tomorrow – Becker says 15 hours of study, we'll see. That way Sat-Sun I can focus on A6, Mock exam sunday night and week after final review! I'll have 4 days of full time final review!

[MattLorenz]

Took my first Becker mock exam today, got an 82% but I know that if I get complacent with that, I probably won't pass. Any advice on the best way to study over the next 4 days? My exam is scheduled for the 25th. I plan on taking my 2nd mock exam on Monday and was going to review the mock exam answers and do progress tests to try and grasp material better, probably review a couple portions of the book for areas I was weak on like issuing comparative reports when a new auditor is involved.

[Q]

How to prepare for this exam, I have 2 weeks to review for audit. Any tips…

[CanPassAttitude]

@Althaea I have been using NINJA Notes and Audio, and Wiley MCQs and SIMS. Just took AUD yesterday. Feel ok about it. Got a 72 last time so hoping I get a passing score December 19. Good luck to you.

[hopingtogetFAR]

Can someone give me the answer you think it should be? I don't understand/agree with Becker's.

Which of the following procedures would be most appropriate for testing completeness assertion as it applies to inventory?
A. Performing cutoff procedures for shipping and receiving.
B. Tracing inventory items from the tag listing back to the physical inventory quantities.
C. Scanning perpetual inventory, production, and purchasing records.
D. Examining paid vendor invoices.

[Author]

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