[jeff]

Trying something new …

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

[Jpgrocho]

Question:

Per my Becker 2012 study question responses ( CPA01504 LW Nov 94#4 to be specific) states that compilations are NOT attestation engagements. However, SSARS 19 states the following: (Effective December 15, 2010)

“The new standard goes on to define compilations and reviews in terms very similar

to those we have been used to in the past, though detailing a bit more the

limitations. The standard does tell us that a compilation is not an assurance

engagement, but it is an attest engagement.”

I guess my question would be do the words “attest” and “attestation” carry the same meaning? If so, are compilations considered to be attestation engagements? Also, in my CPE about 2 weeks ago, the guy also told me that compilations were attest engagements. In MY world, compilations are NOT attest engagements (as so per Becker as well). Any ideas where I am going wrong on this?

10/03/12 AUD- 91!!!
12-07-12 BEC- 75!!! (Half way)
01/18/13 REG - 68, 78.
02/28/13 FAR -68, 65 11/6/13 PLEASE!!!!
Using Becker Self Study 2012

[Jpgrocho]

Also, I inquired to Becker and received a response this morning stating that Compilations are not attestation engagements. I don't think I believe him. I just want to know which answer to select for exam purposes.

10/03/12 AUD- 91!!!
12-07-12 BEC- 75!!! (Half way)
01/18/13 REG - 68, 78.
02/28/13 FAR -68, 65 11/6/13 PLEASE!!!!
Using Becker Self Study 2012

[Sonyafm]

@JPgrocho, That is a great question. Short answer first: “Attest Engaments” and “Attestation Services” are quiet different. As you pointed out Attest and Attestation come from the source though one is a verb and the other a noun. For me the key words are “Engagement” and “Services”. “Attest Engagements” and “Attestation Services”. The first one should use SSARS. And the second one should use SSAE. At this point those two words Engagement and Services get mixed up. But keep in mind that a compilation is an engagement to put together F.S. and an Attestation Services provides “assurance” to specific items, such as Agreed upon procedures, Prospective FS, Pro Forma, Internal Control, Compliance and MD&A.

Also in MCQ that you refer to:

CPA01504 LW Nov 94#4 to be specific) states that compilations are NOT attestation engagements. That is a great example on how careful we need to read each word on the MCQ. Compilations are Attest Engagements, Not Attestation Services.

On the Becker 2012 Auditing book look on page A2-17 first paragraph on Compilations “The CPA does not perform any audit or review procedures. Although a compilation is not an assurance engagement, it is an attest engagement” and SSARS (Statement on Standards for Accounting and Review Services)

[Jpgrocho]

@Sony,

I am changing your name to “Auditmachine”!!!! Thank you so much. Your explanation is very helpful!!. I will be re-taking audit next week and didn't want to get confused if I saw a similar question. In the past I scored stronger on compilations and reviews but that doesn't mean anything! ha. Thank you again….So much!

10/03/12 AUD- 91!!!
12-07-12 BEC- 75!!! (Half way)
01/18/13 REG - 68, 78.
02/28/13 FAR -68, 65 11/6/13 PLEASE!!!!
Using Becker Self Study 2012

[Anonymous]

I officially started re-studying Sunday. I finished 1.5 chapters. Today my goal is to finish chapter 2 along with the Becker MC's,

I also decided that I was going to go ahead and order Roger CRAM. I need help on SIMS since that was what I scored a weaker on but if I can manage to improve my scores on MC's I think that can also help me bump it up to a 75.

[Anonymous]

Hello All,

I am studying for audit and have been bascially through all the chapters the one part I am struggling with consistently is the supplementary information just can't get a grasp of how it fits in and what we do with it in regards to the audit. If anyone has any suggestions or insight any help would be great!

-PS I have been using Becker

[Tootsie]

A4 sims tonight, review of A1 – A4, then on to last chapter A5! Yeah!

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

never, never, never give up

[Jsmi77y]

Random thing that I just came across but it helped me quite a bit – ie, detection risk. It really confused me calling it detection risk. I call it detection probability, because it refers to the probability something will be detected. It makes it more clear to me at least, hope this helps someone else as well.

Because when I say it like this “when DR is high you'll need to perform less sub tests” but when u say “high risk” it seems like the opposite. If I say “the probability that you'll detect misstatements is high” then it's obvious you have to perform less work.

Why does this profession insist on using terminology that is far too complicated? #lehmansterms #plzkthx

That said, hope this made sense haha.

REG - 68 | 71 | 88 | 86
FAR - 72 | 74 | 79
AUD - 66 | 70 | 77
BEC - 62 | 74 | 80

Guess that means I'm a soon-to-be CPA!

[Sonyafm]

@DC52

Supplementary Information: I believe the most important points about this subject is on page A1-52 Points A and B., Page A1-53 points E and F. and page A1-54 points B and C

Then mark the question that are related to that subject and see if you can see a constant subject. In my opinion the most common answer is that the auditor needs to review the suplementary report or information to make sure that is fairly stated, in all material respects, in relation to the financial statements as a whole. And obtain written representation from management regarding the information.

[Anonymous]

Like many others here, I am also retaking the AUD section. I retake it on November 2nd. I just started my studying again this past weekend. I like the idea of a study group and look forward to us all passing this thing soon!

[Anonymous]

@Shay: A4 is the major part, and try to understand how the inherent risk, detection, and control risk works. I messed up on most of the sims because i didnot understand the concept.

Aud: 60, October-8,2012

Reg: Nov 2012

Fin: Feb 2012

BEC: April 2012

[Future_CPA_in_Process]

Hey Everyone,

I am really struggling with understanding the A4 section regarding the transaction cycles, management's assertions and knowing what assertion is being proved by doing the following procedures. I've read some of the posts regarding this section and those were super helpful. I am needing some advice on how to make this information make sense in my head. Any advice on how to make this information put into terms that are in more “laymen” terms and/or concepts.

I am new to the community and I've taken the exam three times, AUD once and BEC twice, and haven't passed a single one. I will say that when I took the BEC sections, I didn't study near what I should have. But I will say that when I took AUD in May of 2012, I studied everyday (and I do mean EVERY DAY) from Apr. 30 thru May 28 when I took the exam. I would study an average of 4 hours in the evenings (after working an 8 hour day) and then average 6-8 hours each day on the weekends. I realized that I should have allowed myself more time to prepare, however, life was not going to allow me any more time than that. I really don't want to fail this exam again because I need that boost of confidence in passing a part to keep myself going. I'm really afraid that if I fail AUD again, I may not have what it takes to keep putting myself through the risk of failing again. I've never been a quitter and I don't intend to start now, hence why I became a member on here. Every time I've felt discouraged, I come to this website and read about how others are struggling with this exam and it makes me feel like I'm not alone. I love how everyone on this site is so willing to help each other out with topics/concepts that they don't understand. So I'm hoping that I will receive a good response or two in regards to the management assertions and study habits. I am scheduled to take the exam on October 18th. So any advice that someone has regarding what it takes to pass a section (perferrably the AUD section) would be very much appreciated.

On my way to my CPA!

[Anonymous]

Finished A2 last night with the corresponding Becker MCs. Tonight I will move on to A3 although I do not plan on getting far since this is where things start to get confusing for me. I want to take my time reviewing these next few chapters to make sure I understand everything.

[M]

Finished reviewing A1-A4,

Completed everything in A5 accept audit sampling! Omg sampling is driving me crazy! what %of the exam is sampling? Goal today is to really get sampling. Listen to the lecture. Listen to ninja audio take notes do mc's. 1st time mc's I did close to 50%. I struggled with transaction cycles but still managed to do over 75%.

What's the best way to tackle sampling?

“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

[nimmle02]

What is acceptable for Becker progress tests and still passing the exam? For other sections I was getting anywhere from 60s (for BEC) and 70s 80s (FAR and REG)….however, audit is so wordy I'm not sure what the norm is.

REG - 5/21/2012 - 85
FAR - 7/24/2012 - 86
BEC - 8/27/2012 - 85
AUD - 10/5/2012 - 72....rematch 1/3/13 (waiting)

[Author]

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