[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/

[Defo]

I took AUD yesterday. I have now sat for 3 of the 4 and this one was the most pleased I've felt walking out of the testing center yet. The nature of AUD questions made it easier to pace the MCQ and I was able to leave myself nearly 3 hours for the SIMS. I didn't encounter anything that seemed unfair or overly difficult. Hopefully this translates to a pass.

If I had it to do over I would have spent more time learning to search the AUD authoritative literature. I spent a lot of test time trying to confirm my sim answers, but would get anxious that I was wasting too much time with it. If you are extremely efficient/effective with searching I would think its a sure way to ace the sims.

[JJK94]

Hi guys,
i have failed the first time i wrote and nts expired.how to apply for re exam???my state is newyork…please help meee

[JJK94]

Hi guys,
i have failed the first time i wrote and nts expired.how to apply for re exam???my state is newyork…please help meee

[Recked]

Not sure if this is serious or not… but go here.
It's the same process as when you originally applied, assuming that was after 2009.

https://cpacentral.nasba.org/

[Recked]

Anyone using Roger, were the SIMS in the course useful at all?
Debating whether they are worth a quick review just to see the overall appearance, or if I should base my assumptions off the AICPA sample exam.
I know from FAR that most of the drop down type SIMs no longer apply to this new exam format, so I don't want to waste my time doing glorified MCQ's.

[kara]

I just took my exam last week, and I said I'll be surprised if I don't pass. I knew the majority of the questions on the first testlet, and the second testlet got way harder (good thing), and then a lot of the simulations where stuff I do in every day life, I got to research questions (I don't know if that is standard or not). I also go long and big simulations which is good because more chances of partial credit. I used Becker, didn't complete all of the simulations, but completed both practice tests and all lectures.

Advice to others, just study study those multiple choice questions and know the basics of risks!!!

Stay calm and relaxed, and you'll do fine!!!!

Now to see if I can squeeze REG in before busy season!

[Anonymous]

@ReckedRacing I use Roger, and I really don't think the TSB on there are extremely helpful. Some are OK, and at least they get you thinking info a way other than MCQ, but I didn't study them to closely. I do recommend checking out the AICPA practice questions though.

[Anonymous]

Dear all,

Could someone explain to me the following:

Becker in A6 has a sample engagement letter for review under SSARS.

The EL states in the Section “Our Responsibilities” that the objective of the engagement is to prepare the financial statements in accordance with accounting principles generally accepted in the United States of America based on information provided by you (the client) and obtain limited assurance etc.

Then in the Section “Your Responsibility” (client’s) it also indicates preparation and presentation of financial statements in accordance with accounting principles generally accepted in the United States of America.

So ultimately whose responsibility is that – accountant's or client's? Why such language is used?

Thanks!

[Recked]

It sounds to me like that EL is a mix between FS Prep services under SSARS, and Review services.
The engagement letter in a Review should state that the auditor's objective is limited assurance.

The objective in a FS prep engagement would be to prepare the FS in accordance…

You might want to check AL for a sample of letters if possible?

[Recked]

On further review. That example EL appears to be for both preparation and review of the FS.
That example is included in the AL.
AR-C 90 Exhibit A.

https://library.aicpa.org/content/link/ps/arc_90_exhibit_a

You have requested that we prepare the financial statements of ABC Company, which comprise the balance sheet as of December 31, 20XX, and the related statements of income, changes in stockholders’ equity, and cash flows for the year then ended, and the related notes to the financial statements and perform a review engagement with respect to those financial statements. We are pleased to confirm our acceptance and understanding of this engagement by means of this letter.

Our Responsibilities
The objective of our engagement is to
a. prepare financial statements in accordance with accounting principles generally accepted in the United States of America based on information provided by you and
b. obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements in order for the statements to be in accordance with accounting principles generally accepted in the United States of America.

The letter goes on to state Mgt's Resp and does again mention preparation and fair presentation…

[Anonymous]

ReckedRacing, thanks for looking into this. I am not an auditor, so I assume this is normal and will take this as normal for the purposes of AUD exam. Good luck to everyone!

[Recked]

I am also not an auditor.
I would take the above as most likely not normal for exam purposes.
I think the exam focuses mostly on single types of engagements, so you should remember that the financials are the responsibility of Management.
Just don't fall into the trap thinking that the auditor is responsible for the preparation of FS under ALL reviews.
As you work through lots of MCQ's you will start to see the trends and patterns.

[Operation_CPA]

Hello AUD study group! I just have 2 quick questions. I appreciate any help.

(1). What standards apply to the engagement below?

…..Compilation of Prospective F/S –> SSAE (I think this is actually changing to SSARS but is not testable yet?)

(2). Is this accurate? Changes to form and Content of Auditors Report:

…..Intro – Disclaimer
…..MR – Never changes
…..AR – Qualified / Adverse / Disclaimer
…..Opinion – Qualified / Adverse / Disclaimer

[Bianca]

I had the same question as above regarding a compilation of prospective FS.

In the Becker book, it says that a compilation of prospective financial statements are now covered under SSARS, but later on the book reads that although a compilation is covered under SSARS, it is still considered an attest engagement because a report is issued.

Please correct me if I am wrong.

Thanks!

[Recked]

Prep, Comp, and Review are all under SSARS
AR-C60 is general rules that apply to the below 3
AR-C70 = Prep of FS
AR-C80 = Comp
AR-C90 = Review

SSAE covers 3 types of engagements.
Examination – Review – Agreed Upon Procedures.
“The AICPA uses the term attestation to refer to any engagement in which the accountant expresses a written conclusion about the reliability of a written assertion by another party.”

What were the other 3 options on the Comp of Prospective FS question?
If both SSARS and SSAE are on there I would get that one wrong.

[Author]

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