[jeff]

Post by Another71.

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

[rp 12]

Hello everyone,

Might be a silly question, but need help with a game plan.

Am scheduled to take my audit exam (attempt 2) on February 6, 2015. I will be purchasing NINJA MCQ's, and Sims package in couple of days… I have worked with Becker before (got 68) – so for this upcoming attempt – I have read the textbook by Becker, and solved MCQ's, and Sims once (used Becker).

My question is:

Beginning from January 3 to February 5 is it sufficient time to go over all the MCQ's and Sims from NINJA package? If so, what should I keep the target of solving XX number of MCQ's per day? Also, am unemployed now. I think I can go over once all the MCQ's and Sims. But I also want to set a realistic goal. Also, do you think I can review this twice before my exam?

Any help/suggestions greatly appreciated! Thank you in advance for your time and help!

"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

[Peterman25]

Here's a NINJA MCQ that I need some advice/assurance on…My concern is the answer explanation.

An auditor of a nonissuer should design tests of details to ensure that sufficient appropriate audit evidence supports which of the following?

A.

The planned level of control risk

B.

Management's assertions that internal controls exist and are operating efficiently

C.

The effectiveness of internal controls

D.

The planned level of assurance at the relevant assertion level

Correct Answer = D

I selected C and was given this explanation:

In a review engagement or compilation engagement, the accountant should accumulate evidence to obtain the relevant assertion level. The other answer choices are incorrect because in a review engagement or compilation engagement, the accountant does not contemplate obtaining an understanding of the entity's internal control.

If the only procedures performed in a review are inquiries and analysis and compilations only compile financial statements, how do you accumulate evidence to obtain the relevant assertion level? That sounds more like an audit. The original question references an audit and not a compilation or review so why is the explanation all about reviews and compilations? Am I over thinking this or missing something? To me, the explanation doesn't as to why I got it wrong doesn't relate to the original question.

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[mtwst113]

@Peterman 25 I think this question is simply designed to test whether or not you understand that internal control is not considered for non-issuers. It's just one of those questions where you can knock out three answer choices that all deal with the same concept.

BEC | √
AUD| √
FAR| Spring 2015

[GoVPI]

Anyone want to give me advice on using AL, I'm still just really nervous about it and doing a lot of research

In my becker review Im in a TBS on Internal Control and want to see if I'm using AL correctly since Im coming up with nothing.

Question is:

Which of the following procedures would most likely be used to test Pablo's controls surrounding cash disbursements?

Now when I go to the AL, I've been typing in internal control then search, all these links come up (100). Not clicking on anything I go back to the box and put in cash disbursements (Search within) nothing came up, cash, nothing came up, disbursement, nothing came up. Am i doing something wrong? I see so many people say “I found 3 TBS word for word in AL, I couldn't believe it!” and I can't even find one thing.

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[Mg621831]

can anyone tell me if audit 2015 updates are testable in Q1?

FAR - 77 (Nov 8 2014)
BEC - 76 (Nov 29 2014)
AUD - (Jan 6, 2015)
REG - (Feb 14 2015)

[GoVPI]

No they aren't until july

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[Anonymous]

Comparative financials…grrrr

[mtwst113]

@CPAin14 the AL given on the test contains more information than Becker provides, that is likely why you aren't finding answers in your search.

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

Hi everyone – haven't scheduled the test yet but planned my studies to test mid-Feb. READY to get this done!

[mtwst113]

I want to clarify my understanding about the concept of when an auditor has to restrict use of a report on internal control:

If an evaluation of internal control is performed as part of a separate engagement to examine internal control, use is not restricted. But, if internal control was evaluated as part of an audit, the auditor DOES restrict use of the report on internal control.

Both of those examples came from multiple choice questions about non-issuers. Would these same rules apply to an audit of an issuer?

BEC | √
AUD| √
FAR| Spring 2015

[jackaroe]

@Peterman25 – There is nothing about a ‘review' or a ‘compilation' in the question. All three wrong answers concern tests of control. No substantive tests are performed for either a review or a compilation.

AR 90.17 Analytical procedures may be performed at the financial statement level or

at the detailed account level.

AR 90.04 A review does not contemplate obtaining

an understanding of the entity's internal control; assessing fraud

risk; testing accounting records by obtaining sufficient appropri-

ate audit evidence through inspection, observation, confirmation,

or the examination of source documents (for example, cancelled

checks or bank images).

[uokoro]

mtwst113 -You are right, if an evaluation of internal control was performed as part of an audit, you can not give an opinion on the internal control because the purpose of the audit was to provide reasonable assurance on the financial statement. But if an evaluation of internal control was provided as part of a separate engagement then you can give an opinion but you still have to restrict the use of report to management.

Please feel free to let me know if am right or wrong

AUD - 83
FAR - 77
BEC - TBD
REG - TBD

This too shall Pass

[mtwst113]

I think that it would make sense to restrict the use of the evaluation of internal control as part of the financial statement audit, since (at least for issuers, not sure about non-issuers) you disclaim an opinion on internal controls even though they were considered. So if, for example, during a financial statement audit, you found some significant deficiencies in internal control, management and those charged with governance might have access to the full report on internal control, but it would not be appropriate for a general user to view.

BEC | √
AUD| √
FAR| Spring 2015

[uokoro]

mtwst113 – i agree with you, on the first point. That if the evaluation of internal control was part of the audit you disclaim an opinion. but if engaged to report on just internal control, you have to restrict the report to management use.

AUD - 83
FAR - 77
BEC - TBD
REG - TBD

This too shall Pass

[mtwst113]

uokoro – this is directly from Becker:

In an engagement related to a nonissuer, an auditor discovers several significant deficiencies in internal control, one of which is deemed to be a material weakness. Which of the following is true?

1) If internal control was evaluated as part of a separate engagement to examine internal control, the auditor must restrict use of the report on internal control.

2) If internal control was evaluated as part of a separate engagement to examine internal control, only the material weakness needs to be communicated to those charged with governance.

3) If internal control was evaluated as part of an audit, the auditor must restrict use of the report on internal control.

4) If internal control was evaluated as part of an audit, only the material weakness needs to be communicated to those charged with governance.

Choice “3” is correct. If internal control was evaluated as part of an audit, the auditor must restrict use of the report on internal control.

Choices “4” and “2” are incorrect. The auditor is required to communicate all significant deficiencies in internal control to those charged with governance, regardless of whether the evaluation was made as part of an audit or as part of a separate engagement to examine internal control.

Choice “1” is incorrect. If internal control was evaluated as part of a separate engagement to examine internal control, it is not necessary to restrict use of the report on internal control.

BEC | √
AUD| √
FAR| Spring 2015

[Author]

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