[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

[FAR_WARS]

@peter:

Audit Documentation?
Working papers/Workpapers?

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

[Pete]

audit documentation

I don't know where it's but i will keep looking up FAR_WARS

[FAR_WARS]

is there a mnemonic/memory aid?

I think it was something like:

C-Checkmarks
H-?
I-?
T-Tickmarks

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

[Pete]

According to SEC independence regulations,

A. The issuer must disclose only those fees paid to the accountant for audit work.
B. All audit partners must rotate every 5 years.
C. No partner may sell nonaudit services to the client during the audit.
D. Preapproval of accountants’ services may be in accord with detailed policies and procedures rather than explicit.

[FAR_WARS]

D. Pre approval is normally explicit. If not explicit, detailed policies and procedures must be followed. (the audit committee must be informed, and MGMT does not get authority)

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

[Pete]

yes right answer and why is not c ?

[FAR_WARS]

because tax services would still be ok?

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

[Pete]

C. No partner may sell nonaudit services to the client during the audit.
Answer (C) is incorrect.
An accountant is not independent if, during the audit and the period of the engagement, any audit partner (excluding specialty partners such as tax partners) earns or receives compensation for selling services (excluding audit, review, or attest services) to the client.

so it's wrong cuz may be tax partners do that selling ?

[FAR_WARS]

certain tax services will not impair independence under SEC/PCAOB. Therefore C is incorrect.

EDIT:
Are SEC independence rules different from PCAOB independence rules? PCAOB uses AICPA rule 101 and SEC uses Regulation S-X ???

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

[Pete]

SOX uses PACOB AND AICPA together which is for SEC

[Pete]

Hall accepted an engagement to audit the year 1 financial statements of XYZ Company. XYZ completed the preparation of the year 1 financial statements on February 13, year 2, and Hall began the audit work on February 17, year 2. Hall completed the audit work on March 24, year 2, and completed the report on March 28, year 2. The client’s representation letter normally would be dated

a-February 13, year 2.
b-February 17, year 2.
c-March 24, year 2.
d-March 28, year 2.

[csvirk]

Answer is C. that is the Date when auditor gathered sufficient audit evidence.

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

[FAR_WARS]

Fun Fact: This is also the date of the Audit Report. (completed March 28, but is still dated March 24th- last day of fieldwork)

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

[Jdn9201]

I also agree the 24th, because that's when sufficient audit evidence was obtained.

General question – how much time are y'all dedicating to the research questions? I already have my free trial with NASBA for the AL. My exam is Friday – I was going to postpone studying the research until Thursday after work. I took REG already and am very familiar with the IRC, since I work in Tax. It did not take me longer than an hour to get comfortable with the REG research. Since this is AUD and I'm less familiar with the AL, I don't want to suffer because I didn't allocate enough time to the research portion. Thanks!

BEC - 88 8/29/15
REG - 82 11/14/15
AUD - 83 1/8/16
FAR - 80 2/29/16

[FAR_WARS]

I don't practice the research questions at all. However I do refer to the AL often while practicing MCQs. Kills 2 birds with one stone.

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

[Author]

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