[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/

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

[Anonymous]

Would the fact that B states “…has little susceptibillity…” little being the keyword, rule it out?

I originally went with C, which I'm assuming is the correct answer. I haven't made it to this section of my review yet but would assume it is the better of the options to “concentrate” on.

[Dantrick]

Oh yeah “little”, thanks. I seriously just read over words, it's horrible. I need to slow down when I read. It is hard to multi task and study. It will be a miracle if I pass. I am really learning “how” to take AUD. Which is super important. I have learned to read slowly, answer the question before looking at the answers, and tell myself why each answer is wrong. C is correct.

[Anonymous]

Practice, practice, practice. I'm going to be doing as many MCQ's as possible between now and my test date, (2/27), I have a lot of time (hopefully). I've been struggling with the research simulations for audit, much harder than FAR research simulations. If anyone has a secret code to working AUD research simulations feel free to share.

[Martin]

The answer is D. I was confused about free of conflicts of interest when performing cause on a compilation you dont need to be independent.

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[jeff]

Here is the link to the NINJA MCQ AUD questions with answers:

https://www.another71.com/cpa-exam-forum/topic/test-your-might-aud-ninja-mcq-giveaway-x-3

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

[Anonymous]

@Martin – Yeah, my first quick read through I was thinking “independence” in my head rather than the stated conflict of interest and originally answered incorrectly and edited my response. Attention to detail is a must, going to have to force myself to slow down on MCQs on the exam.

[Anonymous]

2. Which of the following disclosures should prospective financial statements include?

A. Summary of significant accounting policies

B. Summary of significant assumptions

C. Both summary of significant accounting policies and summary of significant assumptions

D. Neither summary of significant accounting policies nor summary of significant assumptions

This is a question from the give-away contest this week. When the answers were revealed I believe Jeff originally released the answer as “B”, however in one of the threads he changed his answer to say the correct answer was “C” (which is what shows as the correct answer in the Ninja MCQ.

Anybody have any information as to why the correct answer would be C instead of B? I was able to find support for B on google, but could not find anything for A or C… I'd really like some clarification on this if anyone can find definitive information, other than “more disclosures the better.”

[LKD CPA]

AT Section 301.12 states below that a compilation involves “reading the prospective financial statements with their summaries of significant assumptions and accounting polices.” So, I read that as both are included. Here is a copy and paste from the research/authoritative literature:

Compilation of Prospective Financial Statements —

.12 A compilation of prospective financial statements is a professional service that involves the following:

a. Assembling, to the extent necessary, the prospective financial statements based on the responsible party's assumptions

b. Performing the required compilation procedures,fn 5 including reading the prospective financial statements with their summaries of significant assumptions and accounting policies, and considering whether they appear to be presented in conformity with AICPA presentation guidelinesfn 6 and not obviously inappropriate

FAR: 74, 83
REG: 76
BEC: 77
AUD: 89

[pengzars]

hello everyone

this is a wiley question

Under International Auditing Standards (ISA), the time horizon for a going concern consideration is

1 Not longer than twelve months from the date of the audit report.

2 Not longer than twelve months from the date of the financial statements.

3 At least twelve months from the date of the audit report.

4 At least twelve months from the date of the financial statements.

answer is 3, while, according to becker, it is 4. does anyone have any idea?

then, how about GAAS role, it's no long than 1 year from the date of audit report or F/S date?

I am crazy right now…..

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

[Anonymous]

Thanks LKD, I'll write it into my memory.

[Anonymous]

I hate to beat a dead horse… But on the same subject as discussed above, check out this screenshot of a question I just worked. This is the 3rd question I've seen on this subject so I'm guessing it is an important topic or I'd leave it alone.

What do you guys think? Emphasis on the explanation of answers for “a.”

https://i.imgur.com/PZAHiSx.png?1

[Anonymous]

Got a question. I am using Becker CPA review. Which questions are closes to what you will see in the test? The homework?

[Anonymous]

@Sunni – I'm not sure if any are more specifically designed for the test than others, I would think that the all of the questions in the software are drawn from the same pool. I try to work all / as many as possible.

[salring]

I know we discussed this question before and the answer was C in Wiley I think but Gleim says D and now am officially confused. Anyone with an opinion on which answer is correct?

Legal counsel’s response to an auditor’s inquiry about litigation, claims, and assessments may be limited to matters that are considered individually or collectively material to the client’s financial statements. Which parties may reach an understanding on the limits of materiality for this purpose that are stated in the letter of inquiry?

A. The client’s audit committee and legal counsel.

B. The client’s management and legal counsel.

C. Legal counsel and the auditor.

D. The auditor and the client’s management.

Answer (D) is correct.

The letter of inquiry is prepared by management and sent by the auditor to the entity’s legal counsel. Among other things, the letter requests a statement about the nature of, and reasons for, any limitation on legal counsel’s response. Legal counsel may limit the response to matters to which (s)he has given substantive attention in the form of legal consultation or representation. Furthermore, legal counsel’s response may be limited to those matters that are considered individually or collectively material to the financial statements, such as when the entity and the auditor have agreed on materiality limits, and management has stated the limits in the letter of inquiry (AU-C 501). NOTE: According to the American Bar Association’s statement of policy, the lawyer may wish to reach an understanding with the auditor about the test of materiality. However, the lawyer need not do so if (s)he assumes responsibility for the criteria.

[LKD CPA]

In my opinion answer D is correct. The auditor will specifically request that management prepare and sends the letter to their external legal counsel. In my brain, because management is sending the letter they must be knowledgeable of what is material. So, that discussion has to occur between the auditor and the client's management in order to get the information out to the lawyers.

FAR: 74, 83
REG: 76
BEC: 77
AUD: 89

[Author]

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