[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for AUD.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

[FAR_WARS]

It's not about how hard you look, its about knowing where to look! Reviews are tricky because they could be or SSARS, SAS, PCAOB, or SSAE!

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Pete]

what makes me confused the difference between GAGAS vs Single Audit Act vs Gaas vs audit performance
That I wanna really focus on more it's my weakness 🙁

[payaza2000]

If I were to venture a guess, I would say that GAGAS is used for say in the Audit of say NYC. Whereas the Single Audit act is used by organizations that receive up to $750,000 of Federal Funds, it can apply to Government Organizations, Nonprofits, etc. I would venture to guess that their is a bit of overlap between the two, i.e a city that receives more than $750,000 in federal funds. If anyone would care to clarify, please do? I am also confused a bit.

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[FAR_WARS]

GAGAS applies to all governmental audits. They are more strict than GAAS, and require a report on compliance and a report on Internal Control.

The Single audit act (OMB Circular) sets forth additional requirements that apply to entities who take in MORE THAN $750k of federal funding.

Does anyone know what the threshold of a “major federal program” is? My 2014 Becker materials say $300k. Ninja Notes say “40% of funding spent”.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Pete]

when will i have the only option to inform who rely on the report if there's issue related to the report ?

[payaza2000]

In auditing accounts receivable, the negative form of confirmation request most likely would be used when:

Incorrect A.
the total recorded amount of accounts receivable is immaterial to the financial statements taken as a whole.

B.
response rates to properly designed positive confirmation requests were inadequate in prior years.

C.
recipients are likely to return positive confirmation requests without verifying the accuracy of the information.

D.
the combined assessed level of inherent risk and control risk relative to accounts receivable is low.

If negative assurance is telling the individual that nothing came to your attention to cause you to believe that A/R was misstated, and if positive assurance in terms of the individual on the receiving end is more reliable, wouldn't you use negative assurance in the confirmation of A/R if A/R is immaterial to the F/S. I.E how to know whether to select D or A?

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[ahugemistake]

If the A/R account is immaterial you would probably not even test it as it would be inefficient.

When determining your approach for testwork, the risk of material misstatement related to the account plays a big part, and as stated here since inherent and control risk relative to AR are low, you would be more comfortable using the negative confirmations, because you don't expect to get too many responses back. This would be a more efficient approach than positive confirms.

I hope this makes sense.

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[FAR_WARS]

be sure not to confuse “negative assurance” with “negative confirmations”. These are 2 different things.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[SaveBandit]

@FAR WARS

Becker doesn't get specific as to what the other qualifications are for deeming a program “major.” All my book says (other than the 750k rule) is “smaller programs may be deemed major if they are classified as ‘high risk' even if they do not meet the monetary threshold. The Circular provides guidance on applying this ‘risk-based approach' to program selection.

4 for 4

FAR 85
AUD 94
BEC 86
REG 90

[Pete]

Tell, CPA, is auditing the financial statements of Youth Services Co. (YSC), a not-for-profit organization, in accordance with Government Auditing Standards. Tell’s report on YSC’s compliance with laws and reg­ulations is required to contain statements of:

A.
both positive and negative assurance.

B.
only positive assurance.

C.
only negative assurance.

Incorrect D.
neither positive nor negative assurance.

the correct answer is a, why ?

[phx2london]

Just to give a word of encouragement to AUD folks. I just passed with a 78 after 6, yes 6 cracks at this beast. Two things I can tell you that helped me the most was reading the question, then look at the answers, eliminate two (you can usually spot two wrong ones) THEN go back and look at key words in the sentence (ie, nonissuer, etc). Focus on the key words and then go back to the answers and you can usually figure it out.

Another strategy is I never spent more than about 20 seconds on each question. If I didn't know it right away, I flagged it and went on. Then I came back to the flagged questions and did the above with key words.

Use the AL a lot on the sims.

I took a break between MC and SIMS for 10 mins only to go to the bathroom and eat a snickers.

I used Becker and trended above 90% on all multiple choice and progress tests of 30 questions going into the exam. Previously I trended only about 85-90%. Don't let the practice test freak you out. I failed both in Becker but passed the real thing.

Good luck to everyone, you can do it!

[SaveBandit]

From Becker: “Each of the five components of internal control may affect any of the three entity objectives.” What are the three entity objectives?

4 for 4

FAR 85
AUD 94
BEC 86
REG 90

[payaza2000]

@SaveBandit

I think it is from AU-C315.A68

1.Financial Reporting
2.Compliance
3. Operations

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[FAR_WARS]

@peter

I believe that the positive assurance is on compliance and that the negative assurance is on Internal Controls. Both statements are required in the report.

Positive Assurance:
“In our opinion, Example Entity complied, in all material respects, with the compliance requirements referred to above that are applicable”

Negative Assurance:
“We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses”

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Burke_220]

Hey guys,

So I took AUD back in November and got a 74 so I plan on retaking it January 5th. One of the weaker areas my score report said was Evaluating and Reporting, so on top of just brushing up on everything else, I wanted to really try and master this “Evaluating and Reporting” material. I'm using Becker. Does anyone know which chapters in Becker this would coincide with? I don't believe Becker's chapters are exactly parallel with how NASBA classifies the information. Any and all help is appreciated. Thanks!

AUD- 87
BEC- 84
REG- 80
FAR- September

[Author]

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