[jeff]

Trying something new …

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Nevergiveup2012]

Thanks @SbarkerACPA for the explanation.

If the Auditor finds a material weakness in the company's internal control over financial reporting and issues an adverse opinion, does it mean that the auditor automatically should issue an adverse opinion on the financial statement as well?

Usually the control deficiencies exist in the company's control doesn't translate to a misstatement in the financial statement. But, because material weakness is a severe control deficiencies, does it enough to warrant an adverse opinion on their Financial Statements?

BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!

[sbarkerACPA]

@nevergiveup. Are you talking about a Government audit?

A regular GAAS audit, you don't change your opinion based on the assessment or findings of internal controls. An adverse opinion is warranted in the event of very material inadequate disclosures, unjustified non-GAAP changes, unreasonable accounting estimates, and unjustified departure from GAAP.

There are steps you take to inform those CWG, audit committee, and mngt..

Hope this helps

BEC: 74;81
AUD: 77
REG: 71; 80
FAR: 78
License for CPA----APPROVED
CPA Class of 2013

[Soon2BCPA127]

@SbarkerACPA – thank you. Are you using Becker material? I have taken Audit before i got a 65. i'm hoping second time is a charm. I'm going to get SIMS from the website you've mentioned. i have never had wiley material – not sure if that'll help.

[sbarkerACPA]

@soon2bcpa yes I am using Becker.

BEC: 74;81
AUD: 77
REG: 71; 80
FAR: 78
License for CPA----APPROVED
CPA Class of 2013

[M]

Question:

An entity issues FS that present financial position and results of operations but omits the related statement of CF. Mgmt discloses in the notes to the FS that it doesn not believe in the statement of CF to be a useful FS.

Answer: an “except for” qualified opinion

Why?

its a GAAP violation.

one of the other choices which i picked was

either an “except for” qualified opinion or an adverse opinion.

“If you dont have time to do it right, when will you have time to do it over?"
FAR - 64, 81... exp 11/30/13
AUD - 54, 67 Retake Jan
BEC - Feb 28th
REG - TBD

[M]

question 2:

Entity is a defendant in a lawsuit, outcome of litigation can not be reasonably estimated by management. Auditor believes there is a reasonable possibility of a significantly material loss. lawsuit is adequately disclosed.

answer: Standard report with modification.

shouldnt there be an explanatory ph following opinion?

“If you dont have time to do it right, when will you have time to do it over?"
FAR - 64, 81... exp 11/30/13
AUD - 54, 67 Retake Jan
BEC - Feb 28th
REG - TBD

[sbarkerACPA]

@Alpa no clue about your first question bc that would have been my answer also. For question #2, if management decide litigation is probable & cannot estimate and auditors agree and it is fully disclosed in the notes, it doesn't require explanatory paragraph. If you are using becker look at A1 page 18.

BEC: 74;81
AUD: 77
REG: 71; 80
FAR: 78
License for CPA----APPROVED
CPA Class of 2013

[M]

@sbarkerACPA thank you for the clerification and reference to the page #.

the other question is one of the supplementary question in becker A1 towards the end. i believe there has to an error on becker side. there's no explanation to the wrong answer. only that the other choice was right..

“If you dont have time to do it right, when will you have time to do it over?"
FAR - 64, 81... exp 11/30/13
AUD - 54, 67 Retake Jan
BEC - Feb 28th
REG - TBD

[Tootsie]

@Alpa, https://www.another71.com/cpa-exam-forum/topic/qualified-or-adverse-opinion

Also, according to PCAOB: If a company issues financial statements that purport to present financial position and results of operations but omits the related statement of cash flows, the auditor will normally conclude that the omission requires qualification of his opinion.

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[Anonymous]

Taking the exam November 30. Want to join in on the study session. Where are you guys at on things?

[Soon2BCPA127]

I have decided to postpone my exam for another week so i can go through Transactional cycles and ratios. When i go through questions – i understand what they're asking and the answer in my head should be but somehow when i'm reading the answers, none of the answers make sense. Anyway – would you guys know more of an effective way to remember transactional cycle? My last exam some of the sims were to do an AJEs or JEs or make one of the financial statements. I have no skills/experience on those criteria. Would you guys any suggestions on how to brush up those skills?

[M]

@tootsie. thank you so much for the clerification and the link! 🙂

lesson learned. don't ever doubt becker! find out why your understanding of the material is flawed! lol

“If you dont have time to do it right, when will you have time to do it over?"
FAR - 64, 81... exp 11/30/13
AUD - 54, 67 Retake Jan
BEC - Feb 28th
REG - TBD

[sbarkerACPA]

@ALPA Also read the AICPA released question. #6 gives a really good explanation.

Created with Compare Ninja

BEC: 74;81
AUD: 77
REG: 71; 80
FAR: 78
License for CPA----APPROVED
CPA Class of 2013

[M]

@sbarker thank you. i'll also go over the rest of the questions.

i just took a practice test of 90 mc's from wiley, and made 67% i have 2 days left. test thursday eve. dont know what to do.

where should i really be to go in and kick ass.

“If you dont have time to do it right, when will you have time to do it over?"
FAR - 64, 81... exp 11/30/13
AUD - 54, 67 Retake Jan
BEC - Feb 28th
REG - TBD

[Anonymous]

Hi everyone!

I have a question about the internal auditors role in the audit: Are internal auditors allowed to help the independent auditor with both test of controls and substantive tests or, can they only help with the latter test?

[Author]

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