[jeff]

Post by Another71.

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

[Anonymous]

I'm with Rugger, D.

[Martin]

Im confused now more than ever. According to Wiley book, we dont use Analytical procedures for risk assessment.

Inquiries

Observation

Inspecting Documents

Tracing Transactions Through info system

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

[ruggercpa2b]

I am confused as well.

I just did a search in the Audit Ninja book and I found 2 separate sections where it says the auditor should perform these procedures to understand an entity and its internal control and then a separate section which goes over procedures to obtain evidence about the design and implementation of relevant controls.

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.

[Martin]

Can someone with Audit experience help us determine which is the right answer. It will suck to get this question as part of a simulation, and not been able to know which of the 2 is the right answer. Although it took me a lot longer to study for FAR, I think Audit is a pain in the a$$ and now i understand why it has the lowest passing rate.

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

[ruggercpa2b]

Martin can you email Jeff and see what he says?

Audit makes me angry. I just hope this is the last time I have to study for it.

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.

[Martin]

ruggercpa2b, I will try to contact him. Have you been using only Becker for Audit? I think Roger CPA helps a lot when it comes to understanding Audit, but you still have a lot of stuff to memorize. Becker is mainly memorization.

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

[tami3492]

I am leaning towards D now too. According to AU 314.06, analytical procedures is a type of risk assessment procedure.

FAR 7/8/14 - 88 - Becker live course
REG 10/14/14 - 82 - Becker live course, Ninja notes and audio
BEC 11/25/14 - 88 - Becker live course, Ninja audio, Wiley book for extra questions
AUD 2/3/15 - 94 - Becker self study, Ninja audio, Wiley book for extra questions

[ruggercpa2b]

@Martin for this retake I am using the Audit Ninja Book and the MCQs. I do have Roger's audit cram and book and I usually refer to his book. Reading his cram book helped me understand Internal Control and sampling. My Becker expires this month so I have not been spending any time in it.

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.

[superstani]

Which of the following outcomes is a likely benefit of information technology used for internal control?

A.Processing of unusual or nonrecurring transactions

B.Enhanced timeliness of information

C.Potential loss of data

D.Recording of unauthorized transactions

Ninja Is telling me B is the answer. What does everyone think? i thought it was D

FAR-79
REG-79
BEC-81
AUD-82

[Martin]

tami3492, I think you might be right.

ruggercpa2b, how many questions have you done using the ninja MC test bank? What is your average thus far? I get around 90 on Roger's test bank,but I dont trust it since I heard is too easy. I trust WTB a little more, and my avarage score there is around 85. My ninja average score thus far after 400 MC questions is between 70 to 75. I think the Ninja test bank is harder than Wiley.

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

[Anonymous]

superstani, D would be an internal control risk related to IT. Think risks as bad and benefits as good. The recording of unauthorized transactions is bad/risk. The enhanced timeliness of information is good/benefit.

[superstani]

@CTM hey thank you for that explaination. I will try to remember it way you explained. i sometime confuse timelineless with record retention.

FAR-79
REG-79
BEC-81
AUD-82

[Anonymous]

In response to the risk assessment question earlier, I've been trying to find something to justify the use of analytical procedures during risk assessment to obtain an understanding of internal controls and have not found anything very concrete… I still think D sounds the most correct to me.

The only thing I was able to find is from AU329A.06…

“The purpose of applying analytical procedures in planning the audit is to assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter for specific account balances or classes of transactions. To accomplish this, the analytical procedures used in planning the audit should focus on (a) enhancing the auditor's understanding of the client's business and the transactions and events that have occurred since the last audit date, and (b) identifying areas that may represent specific risks relevant to the audit. Thus, the objective of the procedures is to identify such things as the existence of unusual transactions and events, and amounts, ratios and trends that might indicate matters that have financial statement and audit planning ramifications.”

More specifically from this outtake, “… (b) identifying areas that may represent specific risks relevant to the audit…” So, like I said, not very concrete, but it seems that maybe this could be interpreted to mean the auditor could use the identified areas of specific risks as a focal point to inspect controls over the identified areas in obtaining its understanding of internal controls…

That's just my shot in the dark, please don't count it as fact.

[Anonymous]

Double post…

[Windel]

I don't recall where in this forum I've seen the discussion regarding the OMB-133 Federal Award threshold for not-for-profit companies but can someone confirm whether or not that amount has increased from $500K to $750? I encountered this question in Ninja. My exam in Feb 1 and seeing a question like this makes me a bit uneasy knowing that the test bank may not be totally accurate.

Here's the question:

Nonprofit organizations are required to have a single or program-specific audit under OMB Circular A-133 if the organization expends:

A.

$300,000 or more in a year in federal awards.

B.

$500,000 or more in a year in federal awards.

Incorrect C.

$750,000 or more in a year in federal awards.

D.

$1 million or more in a year in federal awards.

Answer is B per Ninja, reason being: Nonprofit organizations that expend $500,000 or more in a year in federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of OMB Circular A-133.

Update

I just found the following information on Becker's website regarding Audit Course updates included in V1.1

“The new Single Audit rules under Title 2 of the Code of Federal Regulations, 200.500-521. Note that the Single Audit threshold has increased from $500,000 to $750,000.

!!!!!!! JEFF !!!!!!!!!

Please confirm the aforementioned information is accurate and if so, please update Ninja 2015 AUD-MCQ's for the sake of other candidates in 2015.

Thanks

[Author]

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