[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/

[Recked]

Just finished FAR on Nov 9th.
Throwing a hail mary with AUD on 12/7 before the window closes.
Considering it a practice run to get a feel for the questions and SIMS.

Currently watching all the lectures to try and get an overall view of the topics.
Once the lectures are done I'll do as many MCQs as time allows.

[Anonymous]

These are the explanation from my review material (not Wiley)

The auditor and the client’s management.
This answer is correct.
The letter of inquiry is prepared by management and sent by the auditor to the entity’s legal counsel. Among other things, the letter requests a statement about the nature of, and reasons for, any limitation on legal counsel’s response. Legal counsel may limit the response to matters to which (s)he has given substantive attention in the form of legal consultation or representation. Furthermore, legal counsel’s response may be limited to those matters that are considered individually or collectively material to the financial statements, such as when the entity and the auditor have agreed on materiality limits, and management has stated the limits in the letter of inquiry (AU-C 501). NOTE: According to the American Bar Association’s statement of policy, the lawyer may wish to reach an understanding with the auditor about the test of materiality. However, the lawyer need not do so if (s)he assumes responsibility for the criteria.

Legal counsel and the auditor.
This answer is incorrect.
Legal counsel does not determine the content of the letter of inquiry.

Below is the paragraph in AU-C 501
.A56 The legal counsel appropriately may limit the response to matters to which the legal counsel has given substantive attention in the form of legal consultation or representation. Also, the legal counsel's response may be limited to matters that are considered individually or collectively material to the financial statements, such as when the entity and auditor have reached an understanding on the limits of materiality for this purpose and management has communicated such understanding to the legal counsel. Such limitations are not limitations on the scope of the audit.

The steps are 1) auditor and entity determine the materiality (reach an understanding); 2) the entity communicates the understanding reached by auditor and entity to the legal counsel; 3) then a letter of inquiry is drawn and the legal counsel respond to the letter.

[Operation_CPA]

I am in the midst of studying the financial ratios module within Becker Chapter 3 and have always found it difficult to address potential reasons why a particular ratio went up/down. Does anyone know of any supplemental material that showcases scenarios/explanations discussing why a ratio may be fluctuating and what it means overall? I know the “skills practice” has some work in this area, but more of a comprehensive guide (in my opinion) would help tremendously.

Any advice is appreciated as well.

Thanks!

[Bianca]

@vinti sorry for the late response I just saw this…

I am more then half way through A4 in Becker and am a bit nervous I will not have enough time to really understand all the concepts needed to pass by December 7th. With that being said I have eliminated watching the Becker lectures because I feel they are a waste of time. In my opinion, you grasp more of the concept by reading the material rather then someone summing in up verbally. After I would spend about 30 minutes watching a lecture I would find myself going back and reading the whole lecture anyways so I cut out the lectures for now. After studying for BEC, FAR, & now AUD I think that READING THE TEXTBOOK IS IMPERATIVE, especially for Audit. I also have AUD ninja mcqs which I found to be very helpful for previous sections. I haven't done a lot of ninja mcq's yet only because I would rather learn of the information before I actually “test” myself on it.

As far as the new audit reports go, Becker says to study the old information if testing before Jan. 1 2018. Which is V3.1 Becker textbook.

[Andria – Another71]

Test Your Might: FAR – NINJA MCQ

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(ish). HIYA!

[rwglapalma]

Happy Thanksgiving everyone! I'm trying to get some MCQ done this morning (8:40 am in CA) before the festivities begin and to all the other ninja mcq users, do a lot of the questions seem like repeats? I used Roger as my primary study material and am supplementing with ninja to hammer out mcqs. I only select new questions but it seems like I've seen a few sets of repeats, am I trippin or does anyone else notice that for AUD?

[Farhan125]

@rwglapalma your are correct, mcq's are repeating.

[Anonymous]

@rwglapalma Roger has some questions that are repeated. I usually do sets of 30 questions and have gotten the same question twice in the same set of questions.

[Jen-J]

Ugh, got a notice for jury duty the same day I'm scheduled to take AUD. I can't move the exam earlier (I'm on the first day of Q1 as it is). I'm hoping to get the jury duty postponed, because I would prefer not to reschedule the exam, but I have to wait until Monday to call. At least I'm still more than 30 days out if I can't get the postponement.

[Recked]

The courts are usually pretty good about postponing jury duty.
I received a notice once during tax season, and while I am not technically self employed, my compensation is dependent on my billings so I was able to be removed and have not been called back since.
As they say, the jury is made up of people too dim to get out of it, which is pretty scary if you are ever on the wrong end of the legal system.

Almost through all the video lectures, should finish today. 11 days to hammer MCQ's for my hail mary.
I am not sure it if even worth the time to do the SIMS as it seems the drop down boxes and similar type “simple” sims no longer appear on these exams.

[SONA]

Can anyone help me with this question?

Cox Company is being audited by Brown & Yellow CPAs. This public accounting firm has offices in five locations but this audit is primarily performed out of the Baltimore office. Smith is a partner in this firm and works out of the Baltimore office but does not participate in the Cox Company audit. Jones is also a partner in this firm but works out of the Philadelphia office and does not participate in the Cox Company audit. The CPA firm is now trying to determine who in the firm qualifies as a covered member of this engagement so audit independence rules can be verified. Which of the following is true?

Smith and Jones are both covered members for this audit engagement.

Smith is a covered member but Jones is not

Jones is a covered member but Smith is not

Neither Smith nor Jones is a covered member

[Recked]

Independence refers to covered members, including the partner and his immediate family. Also included is a partner or partner equivalent working out of the SAME OFFICE in which the lead engagement partner for the attest engagement practices.
I think Smith is covered, but Jones is not.
Topic 1.200 if you have access to the AL.

[SONA]

Thanks.

[samantha09]

Hi guys! Can anyone help me with the inventory reconciliation sim from the AICPA practice exam?

For Widgets 5mm – I understand why it is 0, but then why is the explanation errors in the count if there were no errors in the dollar amount?

Hex bolts – I see via the flowchart that there are returns not processed, but don't understand how they got the 645.

If someone could help me out with my questions or provide a really good explanation or approach to this problem I would really appreciate it!

[Vinti]

@Bianca How are you doing MCQs? I mean with the chapter or separately? I have done few MCQs of A1-A3. But I am still working with lectures. Probably will start MCQs after lectures over.

[Author]

Replies