[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

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

[cdn]

Thanks @ FAR_WARS

[cdn]

Does anyone know where I can find info about independence – such when impaired by financial interest, what is direct, what is indirect, impaired by employment relationship and so on…

[FAR_WARS]

Ethics (ET)- AICPA Code of Professional Conduct rule 101

https://pub.aicpa.org/codeofconduct/Ethics.aspx#sthash.ZDBghoH2.dpuf

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

[cdn]

@FAR_WARS – is there a shorter version 😉

[FAR_WARS]

Will Impair Independence:
-any direct or material indirect financial interest
-more than 1 year of unpaid audit fees.
-CPA is an employee of client
-CPA's spouse has a mgmt position with client.
-CPA makes hiring decisions for client.
-certain litigation

Will Not Impair Independene
-fully insured checking account w client that is a bank.
-fully collateralized auto loan

*PCAOB is slightly different
**GAGAS is slightly different

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

[cdn]

@FAR_WARS – Thanks 🙂

[payaza2000]

Just so I got this right. If you are testing for completeness you will trace from supporting documentation to the General Ledger amounts. If you are testing for Existence you will test from the General Ledger to the Supporting Documentation.

So it would make sense to be testing for existence for revenue accounts/ assets. And testing for completeness for liability/ expense accounts. ?

Wow thus far all I have gotten out of A4 in Becker /Facepalm

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]

@far-wars

where can i find the standard for GAGAS and the single audit act ?

[FAR_WARS]

@Peter

Here are links to the official publications.
GAGAS:
https://www.gao.gov/yellowbook

Single Audit Act (OMB Circular A-133):
https://www.whitehouse.gov/omb/circulars_default

However, it would probably be more efficient to register for access through AICPA or just use the appendix of a Wiley Book.

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

[FAR_WARS]

@payaza2000:

Completeness = Trace
source documents>>accounting records

Existence = Vouch
Accounting Records>>Source Documents.

Since Revenues/Assets are good, they are likely to be overstated (fictitious). Therefore we would likely test for Existence.

Since Liabilities/Expenses are bad, they are likely to be understated (not recorded). Therefore we would likely test for completeness.

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

[PassingConfirmsMateriality]

In all seriousness, how much alcohol does it take to make auditing seem interesting? I'm dying here trying to get through the lectures.

With all of the other sections, I could at least nerd out a bit with the material. Auditing is the worst

FAR - 94
BEC - 95
REG - 92
AUD - 97

Passing the exam means never having to hear Tim Gearty say "again" again

[monikernc]

payaza – maybe this will help you remember. when i was studying aud i was also taking a dog through search and rescue training. someone or something would be hidden in the woods. we were required to trace the scent from its source to its location in order to complete the exercise successfully. then my dog would lead us back to our origin where he could vouch for the existence of the item or person we found.

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

[amandafaith15]

Any advice on how well to know ratios and which ratios to study for AUD?

REG -73 (8/2015) 81 (10/2015)
AUD - 73 (11/2015) 84 (1/2016)
BEC - 84 (2/2016)
FAR - 77 (6/2016)

[payaza2000]

@PassingConfirmsMateriality

Agree

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]

Fact Pattern: A CPA firm was purchased by a public company. The acquirer performs other professional services and has banking, insurance, and brokerage subsidiaries. The owners and employees became employees of a subsidiary. Also, the previous owners formed a new CPA firm that provides attest services. It leases employees, offices, and equipment from the parent, which also provides advertising, billing, and collection services.

Independence is not impaired when

A. An indirect superior has a material investment in an attest client of the new CPA firm.
B. An indirect superior is a promoter of an attest client of the new CPA firm.
C. A bank subsidiary in the consolidated group provides asset custody services in the ordinary course of business to an attest client of the new CPA firm.
D. The new CPA firm audits another subsidiary in the consolidated group

[Author]

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