[jeff]

Trying something new …

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

[sbarkerACPA]

@soon2bcpa I am sorry but I can't help on that one.

Can someone help! What is the difference in a review and an examination? It is confusing me on the prospective financial forecast/projection.

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

[Anonymous]

@ sbarkerACPA

This is my understanding( and please correct me if I'm wrong) of the difference between an examination and a review:

An examination covers both public and non-public entities and gives a reasonable assurance that the financial statements are free of material misstatements. A review covers Non-public entities only and gives only limited/negative assurance about the financial statements.

An examination involves Test of Controls( Reperformance, Inspection, Inquiry and Observation) and Substantive tests which includes Analytical Procedures. A review on the other hand only involves Inquiry and Analytical Procedures.

Both an examination and review includes obtaining an understanding of the client,. Both require a management representation letter and an engagement letter.

As far as prospective information is concerned, I understand that forecast is a general use statement while a projection is a limited/restricted use statement.

[Rukus]

@Soon2BCPA127 I am not 100% clear on that answer either, but I answered it correctly by eliminating the others.

B, I think is incorrect because the investor is using the equity method and cash dividends received don't affect income, only reduce the investment

C, again the equity method investments would not be affected by unrealized gains or losses

D, a stock price increase in the investee doesn't affect the investors return on equity investments

That was the only way I came up with A. Sorry, for not answering your question. Did the answer explanation in the book/software not help any?

FAR - 81 (8/31/12)
AUD - 93 (10/19/12)
BEC - 79 (11/27/12)
REG - 92 (2/8/13) DONE! All 1st attempt!

[Soon2BCPA127]

@tjones – thank for you helping.. i did not understand Becker's explanation thoroughly and i'm not good with auditing investment and their analytical procedures. I just needed some insights outside of Becker to see if it better helps me understand. but i guess i'll just read thru the book hopefully that helps me understand.

thank u once again

[M]

AUD at 5 tonight! lets show AUD who's the boss!

reading this thread for the explanations is a great review on some of the topics we all struggle with.

thanks for the questions and answers.

best of luck!

“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]

@silliepanda: where are you? Howz audit prepration going in? I am kind of behind the schedule but I'm taking my time to understand the subject matter.

Todays plan – fisinhs chapter 2 ..

Good Luck to all of us..

[ColoradoCPA]

Could please somebody clarify? I was sure that the answer is 5 years. Is it a mistake in the answer of the question? Or am I wrong? Thank you!

Rules issued under the Sarbanes-Oxley Act of 2002 restrict former members of an audit engagement

team from accepting employment as a chief executive, chief financial or chief accounting officer, or

controller of an audit client that files reports with the Securities and Exchange Commission. How many

annual audit period(s) must be completed before such employment can be accepted?

a. One.

b. Two.

c. Three.

d. Five.

Solution:

Choice “a” is correct. To impose a disincentive to fraud, an audit team member may not accept

employment as a chief executive, chief financial or chief accounting officer, or controller of an audit client

that files reports with the Securities and Exchange Commission for one year.

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[Anonymous]

Cool off period to accept employment is 1 yr only not 5 yrs.

Audit partner Rotation – 5 yrs

Other then audit partner rotation – 2 years.

[ColoradoCPA]

Thank you! I undrestand now.

FAR 81 ✓
AUD 97 ✓
BEC 75 ✓
REG 84 ✓

[Tootsie]

4 days left until I beat up this monster.

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

never, never, never give up

[sbarkerACPA]

I take my exam on 17th, which leaves me 5 days remaining to finish review. Ready or not I am coming!!

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

[Soon2BCPA127]

HI All – can someone help clarify difference between Attest Engagement and Attestation engagements? I thought they were the same thing and have same rules but I ‘m wrong. I thought Attest engagement is review/compilation/agreed upon procedures. Attestation is actually conducting these attest engagement? am i making sense?

[love2passcpa]

Hi All:

I hope all you guys and gals are doing good in your studies. I am studying “GOVERNMENT AUDITNiG” in Becker. There is a lot of information, in your opinion how much time should I spend on this topic. NINJA NOTES only covers it in half a page. I thank you all in helping me.

Take care

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REG PASSED
AUD PASSED

[Soon2BCPA127]

@love2passcpa – i think as long as u're comfortable with concepts like how governmental auditing is different from GAAS auditing and other different requirements along with Single Audit Act – that should be cover all for Governmental accounting.

[love2passcpa]

Thank u Soon2BCPA127, any body else have any suggestions.

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[Author]

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