[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]

@monikernc:

Reasonable Assurance

Reasonable assurance is the degree of assurance to convince a “reasonable man” within the cost-benefit constraint.

Regarding internal control: The concept of reasonable assurance recognizes that the cost of an entity's internal control structure should not exceed the benefits that are expected to be derived.

Regarding audit opinion: Obtaining reasonable assurance that the financial statements are not misstated recognizes both the time and economic limits (cost-benefit concept) in the application of audit procedures and the inherent uncertainties involved in accounting estimates, audit sampling, and human (even professional) judgment. The concept of due professional care recognizes human fallibility—that no task can be performed with the guarantee that there will be no fault or error of judgment.

The “reasonable man” concept is applied by considering whether or not a reasonable person, having all the facts and the normal strength of character, would reach the same conclusions as the auditor.

AU-C 200.06 and 500.A3

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

[payaza2000]

Thanks FAR WARS this was really really helpful

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

[monikernc]

Well, let's hope there are enough “reasonable men” left in the world to assess all this evidence and review these reports!!

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

[payaza2000]

Can someone explain this question, I took a luck guess at it, and don't quite understand the answer.

Which of the following statements ordinarily is correct concerning the content of audit documentation?

A.
Whenever possible the auditor's staff, rather than the entity's employees, should prepare schedules and analyses.

B.
It is preferable to have negative figures indicated in red instead of parentheses to emphasize amounts being subtracted.

Correct C.
It is appropriate to use calculator tapes with names or explanations on the tapes rather than writing separate lists onto workpapers.

D.
The analysis of asset accounts and their related expense or income accounts should not appear on the same workpaper.

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]

btw the reasonable assurance is high assurance

[monikernc]

I wish you guys would bring this energy to BEC. that thread is on page 2.

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]

@payaza:

If we do not label the tapes, they could get separated from the documentation and then we would have no idea what they mean. That is my guess.

The official explanation sucks:

“The quantity, type, and content of audit documentation vary with the circumstances, but it should be sufficient to show that the accounting records agree or reconcile with the financial statements or other information reported on. It also should be sufficient to permit supervisors and reviewers to understand the nature, timing, extent, and results of the procedures performed and to identify the individuals who performed or reviewed the work. Furthermore, audit documentation should be sufficient to indicate adherence to the standards of field work. As long as calculator tapes containing names or explanations achieve this purpose, separate lists need not be written onto working”

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

[monikernc]

Payaza – i think that question is emphasizing the point that the standards don't dictate the form documentation has to be in just that it is complete, identifiable, and understandable for the person that next reads it to follow it.

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]

@Monikernc

I've read yours post regarding how to familiarize with AL. You mentioned about printing first page of AL. I am having hard time navigating through AICPA website. Could you please help me how do I print those pages. I really want to follow your guide so i could do better for my January Retake. Thank you for your help!

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

[If I can, u can too!]

hint: google “NASBA: Professional Literature Request” for AL

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[SaveBandit]

@hokinizeu

I requested the AL thru NASBA. I looked at it a couple of times and haven't been back. The layout and navigation of the AL is an absolute clusterf*ck. It's hard to believe that is the best they can do. I've mostly tried to use the AL in the Becker SIMS but unfortunately you can't look at all of the information that's in there.

4 for 4

FAR 85
AUD 94
BEC 86
REG 90

[csvirk]

@SaveBandit

I agree with you. Layout is really bad and time consuming. That is why I want to print front pages to familiar with layout.

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

[monikernc]

csvirk – on page one of this thread (click below and find it) i posted the links to the standards. click those links and printout each page as a reference. you can keep those pages up in the browser and go to them when you need to access a standard for closer study. let me know if you need more help with it.

https://www.another71.com/cpa-exam-forum/topic/aud-study-group-q1-2016

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

[swim4life107]

Park, CPA, was engaged to audit the financial statements of Tech Co., a new client, for the year ended December 31, 20X1. Park obtained sufficient appropriate audit evidence for all of Tech's financial statement items, except Tech's opening inventory. Due to inadequate financial records, Park could not verify Tech's January 1, 20X1, inventory balances. Park's opinion on Tech's 20X1 financial statements most likely will be:

A. a disclaimer opinion issued on both the balance sheet and the income statement.

B. an unmodified opinion issued on the balance sheet and a disclaimer opinion issued on the income statement.

C. a disclaimer opinion issued on the balance sheet and an adverse opinion issued on the income statement.

D. an unmodified opinion issued on the balance sheet and an adverse opinion issued on the income statement.

I said A, but the correct answer is B. I thought you could NOT issue piecemeal opinions unless you issues separate reports.

BEC: 77 (08/20/15)
REG: 85 (10/10/15)
AUD: 59, 78 (01/06/16) NINJA MCQ IS A LIFESAVER!!!!
FAR: 77 (6/8/16)

ALL DONE!!! I AM PROOF THAT ANYONE CAN DO IT.

[FAR_WARS]

I don't think answer B fits the definition of a piecemeal opinion. We have not expressed an unmodified opinion on the whole set of stmts. Therefore an unmodified opinion issued on the balance sheet and a disclaimer opinion issued on the income statement would be ok.

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

[Author]

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