[jeff]

Trying something new …

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

[redox1100]

hey –

For A4, becker gives an example substantive procedure for every relevant assertion in each respective cycle. Is this worth memorizing?

Thanks in advance

[mgoloubenko]

@Nimmle02, It all really depends. I passed FAR ( got mid 60's on the Becker final exam), passed BEC (got a 75 on the Becker exam), Failed Audit while I got an 80 on the final exam!

FAR 4/9/12- PASSED
BEC 7/13/12- PASSED
AUD 8/16/12- Ughhh 71, Rematch: 90!!!
REG-12/6/12 PASSED

USC MAcc- Fight on!

They say good things come to those who wait, but only those things that are left by those who hustle.

[sbarkerACPA]

Just checking in. I am officially in countdown mode. I done with reading material just re-working all MCQ on A4 to be exact…Not stressed YET just make sure I cover everything between now and Sunday!!! Test: 10/01/2012

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

[Shay]

@dhruv999..thanks. but isnt Inherent Risk and Detection Risk concepts in A3? A4 mostly translation cycles…

@Alpa…Sampling is more of memorization.

[Heidi-O]

Struggling through A3.

I find that using the note feature in Becker is helping (during MCQ)- if I get a question wrong or get one correct that I want to make sure I reinforce – I type it in the notes function and then save it so I can print it out later for review. So far, it's helping!

But gosh…. this material is taking f o r e v e r…. If only I wasn't detail oriented!!

It's nice to see others working through it too. Gives me hope!

FAR 79

AUD 10/24

FAR Aug 2012 79
AUD Oct 2012 84
REG Aug 2013 87
BEC Jan 2013 80

[Tootsie]

On to A5 tomorrow. Should be a breeze compared to A4. Is it Friday yet?

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

never, never, never give up

[Nevergiveup2012]

I am currently on A3. For those that have completed all sections, will the literature research be covered in the latter chapter? I am wondering how I can practice researching FASB literature?

Also, how much is International Standard of Auditing stuff actually on the actual test?

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

[FruitSnacksAreAwesome]

i don't think anyone said anything about this issue yet. According to Becker, the revised GAGAS/Yellow Book will start being tested on Q3 2012 and Becker did post an updated outline on GAGAS on its website for download as of 8/22.

I think there is a mistake on p.3 of that outline (IV. B.):

“Auditors should state whether the tests the auditor performed provide sufficient appropriate evidence to support an opinion on the effectiveness of internal control over compliance.”

I think original statement should be changed to:

“Auditors should state whether the tests the auditor performed provide sufficient appropriate evidence to support an opinion on the effectiveness of internal control over financial reporting and on compliance with provisions of laws, regulations, contracts, or grant agreements. “

Based on the revised GAGAS (Yellow Book) paragraph A.20:

“Auditors should also state in the reports whether the tests they performed provided sufficient, appropriate evidence to support opinions on the effectiveness of internal control and on compliance with provisions of laws, regulations, contracts, or grant agreements. “

I think Becker tried to simplify the language and substituted the word “on” with “over”, which changed the meaning substantially.

So what kind of internal control is GAO referring to? The internal control that GAO refers to is internal control over financial reporting based on the preceding paragraph A.19:

“When providing an opinion or a disclaimer on financial statements, auditors should also report on internal control over financial reporting and on compliance with provisions of laws, regulations, contracts, or grant agreements that have a material effect on the financial statements.”

But the true question is…is Becker really accurate in saying the new Yellow Book will be tested?

Per GAO website:

The effective date for financial audits and attestation engagements is for periods ending on or after December 15, 2012. The effective date for performance audits is for audits beginning on or after December 15, 2011. Early implementation is not permitted.

Becker speculates on A6-41 that new standards are tested 6 months after effective date and says that the revised Yellow Book is effective late 2011. Therefore, these standards will be tested on Q3 2012. But, as you can see above, standards effective on late 2011 is only performance audit standards. What becker covers in the updated outline is financial audit standards…which is effective for period ending on or after Dec 15, 2012. So an audit covering the period 12/15/2011 to 12/15/2012 will be subject to new standards. But using government year end 9/30, an audit covering the period 9/30/2011 to 9/30/2012 will not be subject to new standards.

I wonder what Jeff's opinion is on this one.

[Jpgrocho]

@Fruitsnacksareawesome

This is great information!! Thanks. I wonder how it will all pan out on my exam Oct 3rd!.

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]

Only completed 3.1 with MC's and scored an 82. I keep getting the easy MC's wrong.

Note to self: First you get permission from management to communicate with predecessor CPA THEN you accept engagement AND THEN you need to understand the entity and may review the predecessor CPA's documentation. I don't know why this was so hard for me to grasp. I missed at least 3 MC's based on that principle above. It's not that hard really, I'm just a tax accountant and auditing is way out of my norm.

Today my goal is to finish 3.2 with the MC's.

[NGUYEN]

I came accross this ethic question:

Becker & Smith, CPAs, and its client, Troper Lighting, are discussing a possible advisory

engagement in which the firm would review Troper's account receiveable (AIR) system

and recommend changes that would improve the company's collection process and speed

collections. Troper proposes to pay Becker & Smith a fee based on improved performance

in AIR collections. Would such an arrangement raise any ethical concerns?

A. No, but only if Troper is a publicly traded company subject to SEC and PCAOB

rules.

B. No, provided Becker & Smith documents the arrangement clearly in the engagement

letter.

C. Yes, but only if Becker & Smith was also Troper's auditor.

D. Yes, if Becker & Smith also performed a review engagement for Troper.

A contingence fee on an advisory engagement. Can any one help me pick the answer for this? Thank you in advance

FAR - 74;76
BEC - 70;80
REG - 66,67,66,85
AUD - 74,74 82 I am done!!!
AICPA Ethic: 95
Using Yearger for FAR & BEC; Rogers for AUD and REG and Ninja Notes

[nimmle02]

I haven't reviewed this section yet but I would assume the answer would be B. They are not doing an Audit or a Tax engagement. As long as it is disclosed it should be OK.

Don't take my word for it, I haven't looked at that chapter in about a week and am in the middle of cramming risk assessment.

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)

[Jpgrocho]

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

[NGUYEN]

@nimmle02

How about C? What your reasoning for not picking C?

FAR - 74;76
BEC - 70;80
REG - 66,67,66,85
AUD - 74,74 82 I am done!!!
AICPA Ethic: 95
Using Yearger for FAR & BEC; Rogers for AUD and REG and Ninja Notes

[Jpgrocho]

@NGUYEN

If you notice my blank post its because I deleted my response. Initially I had chosen choice “C”. But then I looked at choice “D”. I don't think it can be C because it says “ONLY IF” Becker and Smith was also Troper's auditor. The reason I don't think its choice C is because its not “ONLY IF” they perform an audit that would raise concern because a review I think would cause concern as well. (I believe you cannot accept a contingent fee for any client you perform an attest engagement for). I am going to have to be the odd ball and say choice D is correct (even though I like choice B). My reason for choosing choice D is because its not ruling out other attest engagements as choice C is doing. In other words….ALL attest engagements would raise concern…..NOT only an audit. I hope this makes sense.

This is only my opinion.

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

[Author]

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