[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/

[dab88]

@ckcpa18 and @Defo in my material the direct understanding needs to be between the lawyer and the auditor, Auditor goes through management and management relays the message to the lawyers.

If the question was worded differently the answer would be management and the auditor.

I have same question in my review material and the answer is the Auditor and Lawyer. My understanding is that the lawyer and Auditor need a direct understand so that the lawyer can answer the questions correctly.

I could be wrong I’m just going off the answer in my material.

[dab88]

Does anyone know why and auditor has to agree with the financial statements? Can some better explain this answer?

Which of the following is the auditor obligated to perform? I.Tests of controls when the auditor’s risk assessment includes expectations of the operating effectiveness of controls
II.Agreeing the financial statements, including their accompanying notes, to the underlying accounting records
III.Examining journal entries and other adjustments

I, II, and III
The auditor is required to perform all of the above procedures (AU-C 330.11, .21, .A5, and .A14). In addition, the auditor is also required to perform tests of controls when substantive procedures alone do not provide sufficient appropriate audit evidence at the relevant assertion level (for instance, in a highly automated environment with little or no manual intervention). See AU-C 520.A7–.A9.

[Defo]

dab88- I think you are misreading the statement. It states that the Auditor has to “agree” the financial statements WITH the underlying accounting records. Meaning the auditor needs to prove to themselves that the financial statements are supported by the underlying records and it all makes sense and is free from material error.

[SONA]

For 5 MM the dollar amount is right but if you see 10000 units – sold 5898 = 4102 remaining now they have 4098 so remaining count missing is 4.
For Hex bolts 561-3
A +B = 7975+1950 = 9925@12.89 = 127933.25 – 127288.75 = 644.50 or 645

I hope this helps. I did AICPA a week ago so I had this solution.

[SONA]

Can anyone help me answer this?

Rick Rolls is auditing a governmental agency, but is also employed by a governmental agency. Under which of the following situations, would Rick be considered free of organizational impairments to independence under the guidelines of the Government Accountability Office (GAO)?
Rick is a federal employee auditing a state government program
Rick is a legislative auditor assigned to audit a judicial branch program
The head of Rick's audit organization was elected by voters
All of the above

[Anonymous]

@SONA I would guess C, although I'm not extremely confident. I don't see how the head of the audit organization would have anything to do with his independence. What is correct here?

[tncpa2018]

D – All of the above.
Federal employees are not subject of State government, therefore independent with regards to the State government.
Legislative branch (headed by Congress) are separate from Judicial branch (Headed by Supreme court) are therefore independent of each other.
It seems in this situation, the audit committee are elected by voters (by electing the head) to do just that to audit their government – are therefore independent.

[SONA]

Yes the answer is D. I selected C.

[Bianca]

@vinti At this point, I am no longer listening to the lectures. I am just reading module by module and answering the multiple choice questions after I have read each module (without looking back at the book for answers).

[JSirro]

Does anyone have the Becker Audit Review book? How do you look up the extra questions in the bank? It seems like on the new website they have a new way of “numbering” questions

[SONA]

Anyone testing on 4th? 4 days to go, any tips?
I am scoring very Low on Ninja 3rd session, sampling is throwing me off.
My Average score 75%. Really worried and feeling less confident :(. I am supplementing with Roger and CPA review for free.

Any last minute tips will really be appreciated.

[kara]

As I’m preparing to take my exam today, I was reminded by my mom lol.

That pass or fail, we should all be proud of ourselves for attempting to take this monster. Half of the people in our industry don’t attempt because it scares them, has a family, or what ever excuse they come up with!

So no matter what go into that test proud and leave proud knowing you gave it your all. If you do fail you get to take it again!!!!

Good luck everyone!!!

[Defo]

Sona,

I am testing on the 4th also. Good luck!!!

I like to switch up my study method the last few days before the test. So instead of answering endless MCQ, I plan on revisiting the text and creating as many flashcards as I can get through.

Other things you may not be trying:
Take the AICPA sample test
For MCQ make sure you are not only understanding the correct answer, but also understanding why the other 3 choices are wrong. This tactic made good sense to me for FAR and BEC, but is even more useful for AUD concepts.
Try not to stress. 75% is a good grasp of the material. Just keep plugging away at the weak points and prepare the best you can!

[SONA]

Thanks Guys…………

I reset my Ninja Data today so all I am doing is new questions and troubled questions quiz every time. I know I don't have enough time to finish them all, but I thought this might be better idea.

[dave]

Hi Guys!

Could someone help explain to be the concept of Control Risk and the effects on testing. (i.e. When CR is low and when CR is high, more substantive testing, test of details and test of controls?)

This is so confusing, thanks!!

[Author]

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