[jeff]

Post by Another71.

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

[mtwst113]

I would say that tracing is more of an inspection test than a reperformance test. The auditor is inspecting whether the transaction was subject to the relevant controls.

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

Did you read au-c 610.13?

I think the answer given is wrong, it should be C

[mtwst113]

I have no read AU-C 610.13. But, even if the reference to tracing is not in the same context as you seen in this question, I wouldn't interpret that as precluding C from being correct.

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

No, of course not, invalid reference was just an indirect proof of my point

[Anonymous]

Here's a head's up:

Tracing and Vouching. As horribly annoying as it is, the AICPA will use these words interchangeably on the exam. By all means, learn the definitions (and directions) of both, but don't be surprised if the exam uses one of the terms in place of the other.

[willpassby2014]

which one is a better answer A or B? i THOUGHT A but answered B

Spinner, CPA, had audited Lasco Corp.'s financial statements for the past several years. Prior to the current year's engagement, a disagreement arose that caused Lasco to change auditing firms. Lasco has demanded that Spinner provide Lasco with Spinner's working papers so that Lasco may show them to prospective auditors to help them prepare their bids for Lasco's audit engagement. Spinner refused and Lasco commenced litigation. Under the ethical standards of the profession, will Spinner be successful in refusing to turn over the working papers?

A.

Yes, because Spinner is the owner of the working papers

Incorrect B.

Yes, because Lasco is required to direct prospective auditors to contact Spinner to make arrangements to view the working papers in Spinner's office

C.

No, because Lasco has a legitimate business reason for demanding that Spinner surrender the working papers

D.

No, because it was Lasco's financial statements that were audited

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

Yes, because successor should make an inquiry of predecessor's working papers with client's permission.

If client gets the working papers directly from predecessor, they could forge them etc.

[Anonymous]

Wait, B is incorrect?

[jstay]

Its A, working papers are the auditors and dont need to be turned over

[Anonymous]

I am way off

[willpassby2014]

Yeah B is incorrect. I know Working papers are auditors property but they have to turn it over to successor if requested. i am confused little bit on this answer

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

I guess it doesn't necessarily have to be in Spinner's office. And Lasco is probably not really “required” to direct prospective auditors when I think about it

[jstay]

well, lasco isnt the successor auditor- they are the corp who was audited. if the successor auditor came and asked for the documents they should be turned over

[nickolasadamczyk]

Has anyone purchased the new AUD Book from NINJA? I'm interested, I have the NINJA MCQ's and Wiley MCQ's (and Wiley's Book)… just not sure if I need NINJA's AUD Book or not…

BEC - 75
AUD -
REG - 11/2015
FAR - 10/2015

[mtwst113]

Can anyone put into their own words the the definitions for risk of incorrect rejection and risk of incorrect acceptance?

BEC | √
AUD| √
FAR| Spring 2015

[Author]

Replies