[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

[jeff]

AU-C 315.A69 states: Risk assessment procedures to obtain audit evidence about the design and implementation of relevant controls may include

• inquiring of entity personnel.

• observing the application of specific controls.

• inspecting documents and reports.

• tracing transactions through the information system relevant to financial reporting.

NINJA is correct per the standard.

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

[jeff]

re: Single Audit Act threshold

The change shouldn't be in CPA Review materials unless it's for mid-2015 exams.

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

[Windel]

ARCPA2B

You're correct .The answer is “C” per the following explanation provided by NINJA:

A manager or partner should perform the analytical procedures in the overall review stage because they have a more thorough understanding of the client and the industry when compared to other individuals who have less knowledge of the client and the industry.

The objective of analytical procedures used in the overall review stage of the audit is to assist the auditor in assessing the conclusions reached and in the evaluation of the overall financial statement presentation.

[Windel]

wannabeCPAin2015

No one responded to the not-for-profit threshold limit.

[Windel]

ARCPA2B

Thanks for the links and the confirmation regarding not-for-profit limitation. The frustration is that that question was included on ninja in the 2015 material but when I chose the $750K answer, it says that I was incorrect. IF that had occurred in the AUD 2014 Ninja test bank then I wouldn't be surprise but I'll make a mental note to scream at the Prometric center on Sunday if I get that very same question.

[Anonymous]

@King – Check Jeff's response above… The threshold change was effective January 2015 and therefore will not be tested until July 2015 (I assume, 6 month testing window). Therefore the correct answer on the exam if the question arises would be $500,000.

[Kate]

How well are you guys memorizing the transaction cycles?

What about financial ratios?

AUD (2/3/2015) Pass
REG (4/24/2015) Pass
FAR (8/3/2015) Pass
BEC (10/25/2015) Pass

[ijustwant76]

In which of the following situations would an auditor ordinarily choose between expressing a qualified opinion or an adverse opinion?

A. The auditor did not observe the entity's physical inventory and is unable to become satisfied about its balance by other auditing procedures.

B. Conditions that cause the auditor to have substantial doubt about the entity's ability to continue as a going concern are inadequately disclosed.

C. There has been a change in accounting principles that has a material effect on the comparability of the entity's financial statements.

D. The auditor is unable to apply necessary procedures concerning an investor's share of an investee's earnings recognized on the equity method.

Answer is B. If there are inadequately disclosed conditions that cause the auditor to have substantial doubt about the entity's ability to continue as a going concern, the auditor must determine whether to issue a qualified or adverse opinion. When there is a departure from GAAP, the auditor must decide whether to issue either a qualified opinion or an adverse opinion.

Gosh, if there's doubt about the entity as a “going concern”, the auditor should disclaim. Why would it be a disclosure issue? I suppose you also have to disclose and then the auditor disclaims. So if no disclosure, then the auditor issues qualified/adverse????

Thanks for any help.

[Anonymous]

I need some help. I understand the Audit very well but have problems answering questions 🙁 I got 61 on my last take and my next exam is on 11 of FEB. I always get in the 60s while answering the question. I am using roger review course and ninja questions.

[Anonymous]

@ijustwant76 – It is a GAAP requirement for the entity to disclose in the financial statements a going concern issue. If the entity does not disclose the going concern issue in the financial statements then it has departed from GAAP. A departure from GAAP = qualified / adverse opinion.

From the other side; an auditor can issue an unmodified opinion with an emphasis of matter paragraph identifying the going concern issue or the auditor can disclaim an opinion (with explanation of the going concern). This is of course if the concern has been disclosed by the entity.

[Anonymous]

Transaction cycles and substantive procedures performed to test the cycles are killing me. Any study suggestions? Half the time I read the question and I can't even determine what the hell they're asking. AUD studying was going great until I hit this garbage. Who talks like this anyway?

[Anonymous]

Just picked up the Ninja AUD MCQs to hopefully get a different perspective from Becker, I've already worked all of the Becker questions / sims so hopefully I can pick up something new from Ninja. Anyone else using Ninja MCQ?

Do you have to launch it from the website with each use? I haven't tried it out on iPad yet (its charging) is there an app? What has your experience been with Ninja and how do you use it?

Any input would be great.

@CTM & Kate – Post transaction cycle questions you are struggling with when you come across them so we can get some discussions going to help everyone. I always feel that if I can think/study something in different contexts (i.e. through MCQs and discussion in a group setting) I will be able to remember it better.

[Anonymous]

I think I need to just completely throw out everything I heard from the lecturer in the Becker video for A4. Every time I attempt to apply what I think he was trying to say I get a question wrong. When I just use common accounting sense I get the question right. I feel like he confused me more than he helped.

[Martin]

Cpamaster007, do not worry too much about averaging low on Ninja. My average there is around 72, and from WTB is around 85. What is your average thus far on Roger test bank>? I just started working on Becker questions too and I keep scoring in the low 80s. Some of the Ninja questions throw many curved balls, they ask for stuff that you just dont see in Becker or Wiley. And this is a good thing cause it will prepare you well for the exam. The bad side is that you feel discourage. I'm going to start working of Becker's final exam, if i get a good score there, I will feel more confident.

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

[ijustwant76]

@ARCPA2B. Thanks.

Using Ninja MCQ now and yes, my understanding is that it works from iPad (not as well from iPhone). And yes, it launches on a website, so you'll need a connection.

[Author]

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