[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/

[JB]

B? I think the auditor should disclaim an opinion if he/she lacks independence?

[jmhohio]

@Reema-

from my understanding you aren't capable of issuing any audit opinion with a lack of independence unless there is some sort of requirement from a governing body, in which case disclaiming an opinion would be the answer.

Anyone feel free to correct me if I am wrong.

[SallyCPA]

@jmhohio is right. General rule is independence is required to issue an opinion. Audit is very tricky and asks questions in a very different way than any type of test I have seen.

[Kev]

Start d studying for AUD yesterday. Attempting to take it 1st week of December.

Best of luck to all!

[Reema]

Thanks for the explanations everyone.

I have one more question:-

When considering internal control, an auditor should be aware of the concept of reasonable assurance, which recognizes that:

A.
internal control policies and procedures may be ineffective due to mistakes in judgment and personal carelessness.

B.
adequate safeguards over access to assets and records should permit an entity to maintain proper accountability.

C.
establishing and maintaining internal control is an important responsibility of management.

Incorrect D.
the cost of an entity’s internal control should not exceed the benefits expected to be derived.

You answered D. The correct answer is A.

Why the answer is not D since reasonable assurance considers cost v benefit concept?

[SallyCPA]

@Reema I think in this case its more about which answer is more accurate or “correct”. Cost vs benefit is an important consideration in implementing IC but in terms of both reasonable assurance and IC together, we are more concerned about the inherent limitations of IC, such as human error, collusion, errors, mistakes or management override…Think about reasonable assurance together with IC and the cost vs benefit answer does not make as much sense…

Hope that helps a little!

[jeff]

Ask the NINJAs: Watching Videos vs Reading Book (with ninja goats)

Ask the NINJAs: CPA Review Videos vs Book

[Reema]

@ SallyCPA Thanks a lot. makes sense

[SallyCPA]

A CPA in public practice is required to comply with the provisions of the Statements on Standards for Attestation Engagements (SSAE) when:

testifying as an expert witness in accounting and auditing matters given stipulated facts.
compiling a client's financial projection that presents a hypothetical course of action.
A.
Both I and II

B.
I only

C.
II only

Incorrect D.
Neither I nor II

Can someone explain why compilations are SSAE? Becker states that all prospective compilation engagements are now covered under SSARS ……?

[Reema]

An auditor scans a client's investment records for the period just before and just after the year-end to determine that any transfers between categories of investments have been properly recorded. The primary purpose of this procedure is to obtain evidence about management's financial statement assertion of:

A.
rights and obligations.

Incorrect B.
classification and understandability.

C.
existence.

D.
valuation and allocation.

Why classification and understandability is not the correct answer?

[jeff]

Ask the NINJAs: How to Recover from a 36 on the CPA Exam

Ask the NINJAs: How to Recover from a 36 on the CPA Exam

Hi Everyone, testing on Monday – 1st Mock Exam BECKER 73% – weird that when I did a Mock exam with Gleim I got 76% before I started my study journey with Becker. Any tips, what do you all think?

[Maria]

Hi Everyone! I'm back with my “trying to get a CPA certification” journey. Is it possible for me? Graduated college 25 years ago. I tried taking CPA exams 8 years ago but got burnt out, and just forget all about it. I passed both REG & BEC, made a 74 in FAR and a 66 in AUD. That was 8 years ago. I see a lot has changed since then, and obviously my two passed sections are no longer valid.

This time around, I'm going to start with AUD – to which I considered my greatest enemy. Hopefully I can conquer the beast! I'll found out 2 days before Christmas :).

I'm using Wiley (Study Guide and MCQ Test Bank) and supplementing with Ninja Notes and Ninja MCQ. So far, I'm getting discouraging results :(. Averaging 74 in Wiley and Trending 72 with Ninja.

[Bourne]

When are you taking the exam? Those aren't bad results, you're only a couple percentage points off and it isn't the real exam. Anything can happen when it comes exam time. You can get easier MCQ's and do decent on sims compared to the review courses you're using. It's too hard to be certain about a pass or fail based on trending/averaging when it's that close. If you still have a couple days left of solid review, you're in good shape.

[Maria]

Thanks for the encouragement Bourne! I'm scheduled to test first week of December. I study full time (8-10 hours on weekends) and 2-3 hours daily at night after work.

[Author]

Replies