[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

[giftcpa]

@FAR_WARS

Thank you and I appreciate for the links

[FAR_WARS]

@csvirk:

type 1- describes IC
type 2- describes IC & effectiveness of IC

anything more?

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

[csvirk]

Thank you @FAR_WAR

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

[Anonymous]

How do you prepare for FAR based sims? This will be my second time taking audit and after intense studying I don't feel any more confident about those sims. I'm honestly counting on getting lucky and not having any or just inserting 0's. Probably not the best method. Any recommendations on how I can at least do decent on this part? I wasn't the strongest intermediate student in college. My exam is on 1/14

Thanks!

[swim4life107]

I just got back from the exam. I never can really gauge how well I do on these things. I had a mixed/shitty feeling leaving the first 2 exams, and I ended up passing (my scores are below in the sig). As a result, I felt the same last time with AUD and thought I probably passed given that my takeaway was similar. I ended up bombing.

This time, it was very obvious I breezed through the first testlet. The second testlet was noticeably harder. The third testlet wasn't as hard as the second, but definitely wasn't as easy as the first. Hard to know where I landed.

As for the sims, I think it's a good thing that pass or fail, I'm going to be preparing for FAR next. There's just F/S concepts that you don't study while preparing for AUD that always pop up on these simulations. I ended up getting *2* research questions. This has never happened to me before, I only ever got 1. My guess is one of the research questions will end up being a pretest question. Here's to hoping, though!

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.

[payaza2000]

An auditor's tests of controls for completeness for the revenue cycle usually include determining whether:

A.
each receivable is collected subsequent to the year-end.

Correct B.
an invoice is prepared for each shipping document.

C.
each invoice is supported by a customer purchase order.

D.
each credit memo is properly approved.

I got this right, but does anyone have any tips for distinguishing when you should be testing for existence (Vouch), and testing for Completness (Trace) on the exam.

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]

tracing is usually source documents>>>accounting records
vouching is usually accounting records>>>source documents

but you have to be careful because the examiner's #1 goal in life is to confuse the hell out of us. For example:

To gain assurance that all inventory items in a client's inventory listing schedule are valid,an auditor most likely would trace:
a. Inventory tags noted during the auditor's observation to items listed in the inventory-listing schedule.
b. Inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices.
c. Items listed in the inventory-listing schedule to inventory tags and the auditor's recorded count sheets.
d. Items listed in receiving reports and vendors' invoices to the inventory-listing schedule.

Choice “c” is correct. Tracing from the inventory schedule to the inventory tags and the auditor's recorded count sheets verifies the validity (existence) of the items. Note that the correct term for the directional test for existence is “vouch.” However, in practice (and on the CPA Exam), the term trace is sometime used interchangeably with the term vouch.

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

[payaza2000]

As a result of sampling procedures applied as test of controls, an Auditor incorrectly assess control risk lower than appropriate. The most likely explanation for this situation is:

A) The deviation rate in the Auditors Sample is less than the tolerable rate,but the deviation rate in the population exceeds the tolerable rate

B) The deviation rate of both the Auditors sample, and population exceed the tolerable rate

C) The Deviation rate in the Auditors Sample exceeds the tolerable rate, but the deviation rate in the population is less than the tolerable rate.

D) The deviation rates of both the Auditors sample and population is less than the tolerable rate.

Can someone explain the relationship between deviation in the tolerable rate, and deviation in the population as it relates “incorrectly assess control risk lower than appropriate.” Answer is A BTW, could some please explain. Thanx

I know that there is an inverse relationship between the tolerable deviation rate and sample size, inverse relationship to the assessment of control risk and sample size, and a direct relationship between expected deviation rate and sample size.

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]

There is no such thing as “deviation in the tolerable rate”
There is only “deviation in the sample” and “deviation in the population”.
In this case, “deviation in the sample” does not accurately portray “deviation in the population”.
Therefore we have incorrectly set control risk at an amount that is lower than appropriate.

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

[payaza2000]

@FAR_WARS

Thank you for making me understand that. Sometimes I get confused with the jargon. Have you picked a date for your retest?

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]

1/15. Just over a week. You are going sooner, correct?

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

[payaza2000]

About a week after, 1/20. I feel I'M good on most things, but need to review once more Assertions and what substantive procedures to apply to them. Also the sims. Good luck man. Hopefully see you in BEC next.

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]

Thanks, same to you! Are you going to wait for your AUD score before you start BEC? I have BEC on 2/29 and really hope to have AUD done before i jump into that.

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

[payaza2000]

I will probably take a break for a week or two,and than get started regardless of my AUD score.

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

[D]

Can anyone help explain why D is the answer below?

I feel like it should be B because, “Availability and reliability of relevant data” seems to deal more with Detection Risk, and the fact that if relevant and reliable data isn't made available there is more of a chance that an auditor will not detect an error. Detection Risk is not part of the Risk of Material Misstatement (which is comprised of Inherent and Control Risk), therefore I feel it should be B.

Thoughts? Thanks. 🙂
—————————————————————————————————————————————————–
QUESTION:
Which of the following would not affect the risk of material misstatement?

A. Complexity and subjectivity associated with the process
B. Availability and reliability of relevant data
C. Degree of uncertainty associated with the assumptions
D. All of the answer choices affect the risk of material misstatement.

ANSWER:
D – The risk of material misstatement normally varies with the: complexity and subjectivity associated with the process, availability and reliability of relevant data, number and significance of assumptions that are made, and degree of uncertainty associated with the assumptions.
——————————————————————————————————————————————

----------
AUD - 74, 77! (1/2016)
BEC - 80! (5/2016)
REG - tbd (8/2016)
FAR - tbd

Study materials: NINJA MCQ/Audio/Notes

"I can do ALL things through Christ who strengthens me!"
----------

[Author]

Replies