AUD Study Group Q1 2015 - Page 45

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  • January 22, 2015 at 9:45 pm #650449
    Anonymous
    Inactive

    Also let me get this straight. Because of clarity standards, we dont need to know the old 10 GAAS?

    January 22, 2015 at 10:55 pm #650450
    ruggercpa2b
    Participant

    Even Wiley or the Ninja Audit book really have much on International Standards. In the last 3 times I have taken audit I have worked through all the questions in the software on ISA and that has been enough.

    AUD - 73, 72 retake 7/2/2016
    BEC - 8/20/2016
    REG - TBD
    FAR - TBD

    I am so ready for this nightmare to be over. Been at this way too long.

    January 23, 2015 at 3:47 am #650451
    Anonymous
    Inactive

    Audit Sampling – Ratio Estimation Sampling

    Anyone want to educate me on this topic? I've run across 1 or 2 questions in Becker about this and realize it might not be a big subject but I've taken 2-3 auditing courses, reviewed Becker, Ninja notes and still seem to have no recollection of this sampling procedure.

    The only thing I do know, from a MCQ (in Becker):

    Ratio estimation is most effective if there is a correlation between book values and audit amounts.

    January 23, 2015 at 4:54 am #650452
    Anonymous
    Inactive

    How much is the AICPA code of conduct tested. Feel like I could be using my time better.

    January 23, 2015 at 12:02 pm #650453
    Anonymous
    Inactive

    Do you have to have equations memorized for this section. I was under the impression that they give it to you in the simulation section. Becker has some questions in the homework part

    January 23, 2015 at 1:00 pm #650454
    uokoro
    Member

    Hey guys Please help, Is a compilation of financial statement an attest function or an assurance. I know it is govern by ssars. thanks

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

    This too shall Pass

    January 23, 2015 at 2:08 pm #650455
    Anonymous
    Inactive

    Assurance > Attest > Audit.

    If you are one of those things you are in a subcategory of the others (in order). So all audits are attest services which are in turn assurance services. EXCEPT compilation. Compilation is an attest service without being an assurance service.

    January 23, 2015 at 2:31 pm #650456
    Anonymous
    Inactive

    Here are some good reads on the subject…

    https://www.another71.com/cpa-exam-forum/topic/aud-compilation

    https://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/QualityServicesDelivery/KeepingUp/DownloadableDocuments/Brochure%20Customizable-%20Difference%20between%20Comp%20ReviewAudit.pdf

    I'd like to research a little bit of what is stated in the A71 post, but it sounds correct.

    Compilations – prospective financial statements – attestation engagement – SSAE

    Compilations – historical financial statements – attestation engagement – SSARS

    Compilations, unlike other attestation engagements, does not require independence but a lack of independence should be disclosed when performing compilation services.

    Let me know if I've interpreted this wrong.

    Additionally, is it correct that compilation services are prohibited for public companies (issuers)? Or am I making this up?

    January 23, 2015 at 3:29 pm #650457
    Anonymous
    Inactive

    That is correct. Compilations cannot be done for issuers but I believe you can compile prospective financial statements for issuers. Someone please correct me if this is incorrect.

    January 23, 2015 at 4:15 pm #650458
    Anonymous
    Inactive

    Im pretty sure compilations can be done for issuers. They still have to submit audited financial statements to the SEC but I doubt an entity who cant create financial statements themselves would be prohibited from hiring someone to do it.

    January 23, 2015 at 4:15 pm #650459
    Anonymous
    Inactive

    @CTM – I think I did read that somewhere and that it would be governed by the PCAOB. So to add onto that; is independence required for prospective compilations for issuers – not just a disclosure? (If it is permitted.)

    January 23, 2015 at 4:52 pm #650460
    Martin
    Participant

    If the following are attestation services=

    Examination

    Reviews

    Agreed upon procedures

    Special Reports

    Compilations

    Taxes

    Consultations

    Which are examples of Assurance services?

    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

    January 23, 2015 at 5:01 pm #650461
    Anonymous
    Inactive

    Compilations can ONLY be performed for nonissuers under SSARS. As for prospective financial statements, independence is not required but must be disclosed in a separate paragraph of the report if accountant lacks independence. This is all coming straight from my Becker review material (I double-checked just to confirm). That said, If I see a question that detailed on the exam I might be in trouble. Unless it's on this subject matter. After this level of review I don't think I'll ever forget it!

    January 23, 2015 at 6:49 pm #650462
    Anonymous
    Inactive

    I just bumped into two similar questions but got one wrong. Why can an attest engagement to examine and report on nonissuers internal control be distributed but an auditors report on significant deficiencies has to be restricted?

    January 23, 2015 at 6:55 pm #650463
    Anonymous
    Inactive

    @Martin

    Assurance simply improves decision making. Financial or Nonfinancial.

    Anytime I have ever gotten a question asking which is an example of an assurance service, the answer is almost always SysTrust, WebTrust, ElderCare and I have used other review materials before becker.

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