[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

[csvirk]

Which of the following cash transfers results in a misstatement of cash on December 31, 20X1?

BANK TRANSFER SCHEDULE
Disbursement Date Receipt Date
Transfers Per Books Per Bank Per Books Per Bank
——— ——— ——– ——– ———
A. 12/31/X1 01/05/X2 12/31/X1 01/04/X2
B. 01/04/X2 01/11/X2 01/04/X2 01/04/X2
C. 12/31/X1 01/04/X2 12/31/X1 12/31/X1
D. 01/04/X2 01/05/X2 12/31/X1 01/04/X2

What is a technique/trick to solve this question? I am lost.

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[csvirk]

Which of the following checks might indicate kiting?

Disbursement Date Receipt Date
Check Bank Accounts per per per per
No. from to Books Bank Books Bank

101 National Federal Dec. 30 Jan. 4 Dec. 30 Jan. 3
202 County State Jan. 3 Jan. 2 Dec. 30 Dec. 31
303 Federal American Dec. 31 Jan. 3 Jan. 2 Jan. 2
404 State Republic Jan. 2 Jan. 2 Jan. 2 Dec. 31

how to solve this question? What are the key dates I should look for? THank everyone for helping

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[monikernc]

the answer to the kiting question from my Gleim book:
kiting is the recording of a deposit from an interbank transfer in the current period while failing to record the disbursement until the next period….checks 202 and 404 may indicate kiting. they were recorded as receipts on the books in the current period. however, they were recorded as disbursements on the books in the next year.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[monikernc]

for the cash transfers question. D is correct.
an error in cash cutoff occurs if one half of the transaction is recorded in the current period and one half in the subsequent period. inspection of the Recorded in Books column indicates the transfer was recorded as a receipt on 12/31/Y1 but not as a disbursement until 1/4/Y2. this discrepancy is an error in cutoff called a kite and it overstates the cash balance.

correct answer is D

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Pandarama]

wouldn't the cash transfer answer be D, 01/04/X2 01/05/X2 12/31/X1 01/04/X2?

It's a bit difficult to read the question because of the spacing, so I might be reading the column wrong. But, the first date showed when we reflected the disbursement from our books and the second to last date showed when we recorded the receipt on our books for the money going from one account to another. If we show a receipt earlier than the disbursement, it overstates our books for both accounts.

BEC - 80
AUD - 64, 75 - credit lost, 90!!
REG - 73, 74, 83
FAR - 61, 72, 85

Feels good finishing on my best note. Time to watch the mailbox.

[monikernc]

good spot. the correct answer is D for the transfers. the answers were ordered differently in my book. thanks for the catch

i edited my post above

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[csvirk]

makes sense. I need to redo these questions. Thank you everyone.

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[payaza2000]

Currently working in Becker Chapter 3 simulations, and I have no problem identifying the type of Fraud or the Fraud Factor, but was struggling identifying the correct Audit Procedure to Detect the Misstatement Due to Fraud, does anyone know the authoritative literature I can find it in? I am currently reading through AU-C 240 Consideration of Fraud in Financial Statement Audit.

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]

Is it AU-C 330?

“Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained”

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

[payaza2000]

@FAR_WARS Yes. Thanks.

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

[Pete]

is there a difference between negative assurance and limited assurance ?

[FAR_WARS]

Becker says this, which implies that they are the same:

“A CPA may express limited (negative) assurance on financial statements that have not been audited.”

Can anyone confirm this?

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

[FAR_WARS]

Does anyone here use roger?
What does his “CHIT” mnemonic stand for. I have his audio and he uses this mnemonic but is not clear on what it stands for.

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

[monikernc]

farwars expressing limited assurance on fin stmts that have not been audited is what a CPA does for a review.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

Do you know if limited assurance is the same thing as negative assurance?

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

[Author]

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