[jeff]

Post by Another71.

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AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[mtwst113]

It is because the predecessor auditor still has responsibility to make sure their opinion is still accurate, so they are required to obtain representations from the client and the successor auditor that they haven't learned of anything that would effect their old opinion.

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

that's a bummer

[jstay]

this exam is a bummer

[rp 12]

I have little trouble understanding this MCQ from A6 (Govt. Auditing). Can someone help me clarify the rationale?

I think it is option C, but the solution from Becker shows option A is the correct answer. The explanation is “mgmt letter will include identification of mgmt's interpretation of compliance requirements that are subject to different interpretations”

Management's written representation to the auditor in connection with a governmental audit would most likely include:

a. Identification of management's interpretation of compliance requirements that are subject to different interpretations.

b. Negative assurance that the government has complied with compliance requirements.

c. Representation that all known noncompliance had been reported or negative assurance that other noncompliance likely does not exist.

d. A statement that management had identified and disclosed all material government programs to the auditor.

Thanks in advance or your help!

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

AUD - 67, 62, 77 (lost credit), TBA

FAR - 53, 48, 58, 62, XX

BEC - 53, XX

 

"Success in life comes when you simply refuse to give up, with goals so strong that obstacles, failure, and loss act only as motivation"

AUD: 68, 62, 77✔ (expires 10/31/16)
FAR: 53, 48, XX (retake 6/16)
REG:
BEC: 53

[jstay]

rp12, first reason through answers. C has the word “ALL” and so does D. these are most likely not write because no one, even mgmt., cant be sure that they complied with everything. its inherent risk that employees may not comply.

The letter would include mgmts interpretation. “we believe we have complied with X because it says blah blah blah”

[rp 12]

@jstay – Thanks!

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

AUD - 67, 62, 77 (lost credit), TBA

FAR - 53, 48, 58, 62, XX

BEC - 53, XX

 

"Success in life comes when you simply refuse to give up, with goals so strong that obstacles, failure, and loss act only as motivation"

AUD: 68, 62, 77✔ (expires 10/31/16)
FAR: 53, 48, XX (retake 6/16)
REG:
BEC: 53

[rp 12]

@jstay – Thanks!

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

AUD - 67, 62, 77 (lost credit), TBA

FAR - 53, 48, 58, 62, XX

BEC - 53, XX

 

"Success in life comes when you simply refuse to give up, with goals so strong that obstacles, failure, and loss act only as motivation"

AUD: 68, 62, 77✔ (expires 10/31/16)
FAR: 53, 48, XX (retake 6/16)
REG:
BEC: 53

[Anonymous]

Jstay,

Not in relation with this question, but I noticed that you dismiss anything with word “all” too fast. It would probably be wrong for them to say that they disclosed all noncompliances, but they must disclose all known noncompliances. Just saying

[jstay]

that's true. it does say all “known” so yeah that would make sense that if they know it they should disclose it but the second part to C says likely noncompliance does not exist–they cant know that for sure. I learned that such assertions of “all” and “never” should most likely be eliminated or atleast looked at thoroughly–though its not a guarantee. BEC had a lot of questions like that so its kind of a habit

[Q3] AUD Study Group 2014

go like 3 quarters down that page to a post by zeiba–its a long paragraph about how he passed AUD

[Anonymous]

Thanks, this is useful!

[jstay]

yeah ill honestly probably read that whole thread. a lot of people passed from it. After today I have 21 days of non stop auditing questions until the test on 1/15

[pengzars]

Hey guys,

Holding other planning considerations equal, a decrease in the amount of misstatements in a class of transactions that an auditor could tolerate most likely would cause the auditor to:

A. apply the planned substantive tests prior to the balance sheet date.

B. perform the planned auditing procedures closer to the balance sheet date.

C. increase the assessed level of control risk for relevant financial statement assertions.

D. decrease the extent of auditing procedures to be applied to the class of transactions.

answer is B, explain: When an auditor lowers the amount of tolerable misstatement, a more careful audit is planned to detect small misstatements. Of the items listed above, only “perform the planned auditing procedures closer to the balance sheet date” results in a more careful audit. The other choices result in a less careful audit.

I am wondering why C is incorrect?

BEC--83
REG--83
FIN--77
AUD--68-74-Q1/2015
MAY THE FORCE BE WITH US!!!

[jstay]

pengzars, I would say C is wrong because if CR is increased then Detection risk is decreased..which may result in a misstatements not being detected

not sure…just my thought on it

[Anonymous]

Probably because “holding other planning considerations equal”, RMM would be one of them, right? There must be some other reason why auditor increased tolerable rate

[jstay]

can someone please explain tolerable rate?

[Author]

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