[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

[swim4life107]

Makes perfect sense, thank you!

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]

In which of the following circumstances would an auditor not express an unmodified opinion?

A. There has been a material change in accounting principles between periods.
B. Quarterly financial data required by the SEC has been omitted.
C. The auditor wishes to emphasize an unusually important subsequent event.
D. The auditor is unable to obtain audited financial statements of a consolidated investee.

I understand why D is correct, but why is B incorrect? As long as we disclose the missing SEC data, we can still give an unmodified opinion?

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

[csvirk]

@FAR_WAR

To my understand Quarterly Financial data is additional supplementary Information (SI). Auditor only job is to express opinion on Financial statement and If client decided to add SI with reports auditor job is to inspect SI for any misstatements, .

Please correct me if I have this concept wrong.

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

[monikernc]

SWIMLIFE and FARWARS – for your question above – the question specifies it is a new client

See also AUC705.15 which also refers you to AUC705.A17. AUC705.A17 allows for an unmodified opinion on balance sheet and disclaimer on income stmt and cash flows only for an INITIAL audit.

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]

In performing a financial statement audit in accordance with Government Auditing Standards, an auditor is required to report on the entity's compliance with laws and regulations. This report should:

A.
state that compliance with laws and regulations is the responsibility of the entity's management.

B.
describe the laws and regulations that the entity must comply with.

C.
provide an opinion on overall compliance with laws and regulations.

D.
indicate that the auditor does not possess legal skills and cannot make legal judgments.

I understand why it is A. But why C is wrong?

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

[FAR_WARS]

You do report an opinion on compliance with laws and regulation. but NOT “OVERALL” compliance. only those that have a direct material effect on the financial statements.

more: https://www.another71.com/cpa-exam-forum/topic/compliance-audit-under-gas

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

[Pete]

So if the auditor is auditing according to GAAS to report on the compliance of the laws and regulations, it will be the same as GAS, only those that have a direct material effect on the financial statements, right?

[If I can, u can too!]

good question csvirk. thnx.

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).

[Pandarama]

@csvirk –
Reporting on regulation compliance is the same as reporting on internal controls; for a public company financial statement audit, you don't give an opinion on the internal controls unless there is something significantly wrong. The same goes for regulation compliance. Both of these items are considered to be the management's responsibility. The company could be significantly ignoring regulations and internal controls but have financial statements that are fine and not misleading. You're only really only giving your opinion on the financial statements because that's what you/your company was hired to do.

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.

[csvirk]

@Pandarama Thank You clearing that up.

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

[Vinny]

I've been in a funk when it comes to studying for the CPA Exam. have taken AUD 2 times, and taking it a 3rd in January, haven't even begun taking the other parts yet bc I know Aud is the most difficult for me … I want to try something different this go around … maybe after my next go around if i fail this next time … does anyone live on long island and want/need a study partner?

FAR - 41, 47 06-21-2016
AUD - 55, 62, 75 02-04-2016
REG - 07-10-2016
BEC - 08-03-2016

[monikernc]

this has been reposted in awhile:

This gets posted about once a week for far and audit and they are helpful:
from Mjganier:
These links are a great list of Journal Entries. May not be every single one but, they cover most of those encountered.

https://www.principlesofaccounting.com/illustrative%20entries/entrieslist.htm

https://sites.google.com/site/farnotes/gas-34/journal-entries–fund-based-vs-government-wide

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]

When an accountant examines a financial forecast that fails to disclose several significant assumptions used to prepare the forecast, the accountant should describe the assumptions in the accountant's report and issue:

A.
an “except for” qualified opinion.

B.
a disclaimer of opinion.

C.
an unmodified opinion with a separate emphasis-of-matter paragraph.

D.
an adverse opinion.

Correct answer is D but Why not B?

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

[FAR_WARS]

“fails to disclose” = GAAP problem

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

[csvirk]

so scope limitation = disclaimer of opinion?

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

[Author]

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