[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

[Pete]

the answer is b, which i don't know why ??

[If I can, u can too!]

@CPA2BEE consider EDI transaction is like sending your password file to your family member (question paraphrased). now imagine sending it to many people you don't know.

@peter what does the explanation say, especially the relevant auditing standards. i've found few answers that were incorrect in Ninja so this could be one of those situations. when in doubt, we should read the referenced pronouncement. not saying answer B isn't correct (but it does seem weird).

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).

[FAR_WARS]

“Regulatory” is a special purpose framework. Find an example report for stmts prepared in accordance w a special purpose framework and you will see that the very last paragraph of the report does indeed:
“express an opinion on whether the financial statements are presented in conformity with the regulatory basis of accounting”

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

[csvirk]

Here is what i found in AL

“Regulatory Basis Financial Statements Intended for General Use
(Ref: par. .A28)
.21 If the special purpose financial statements are prepared in accordance
with a regulatory basis of accounting, and the special purpose financial statements
together with the auditor's report are intended for general use, the auditor
should not include the emphasis-of-matter or other-matter paragraphs required
by paragraphs .19–.20. Instead, the auditor should express an opinion
about whether the special purpose financial statements are presented fairly, in
all material respects, in accordance with GAAP. The auditor should also, in a
separate paragraph, express an opinion about whether the financial statements
are prepared in accordance with the special purpose framework.”

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

[If I can, u can too!]

@csvirk perfect, thanks! where did you find it?
i can't seem to be able to find it anywhere with “Ref: par. .A28”

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).

[monikernc]

Hokinizeu A28 is in AU-C 800

When is your exam?

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]

Whoah Sims for Audit Chapter 5 for BEcker are heartbraking; at least the ones with regard to Statistical Sampling.

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]

You answered C. The correct answer is B.
When an auditor is asked to report on the fair presentation of financial statements prepared in conformity with a regulatory basis of accounting, he or she is required to issue a standard report modified for the departures from GAAP. An additional paragraph is added to this report which expresses the auditor's opinion on whether the financial statements are presented in conformity with the prescribed basis of accounting.

sorry guys for being late

so my question here is that happen for each special purpose or just regulatory basis?

[Pete]

An auditor confirms a representative number of accounts receivable with positive (debit) balances as of December 31, year 1, and investigates respondents’ exceptions and comments. By this procedure the auditor would be most likely to learn of which of the following?

a-One of the cashiers has been covering a personal embezzlement by lapping.
b-One of the sales clerks has not been preparing charge slips for credit sales to family and friends.
c-One of the computer control clerks has been removing all sales invoices applicable to his account from the data file.
d-The credit manager has misappropriated remittances from customers whose accounts have been written off.

[FAR_WARS]

@peter:

a?

and yes i believe the extra paragraph applies to all of the special-purpose frameworks.

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

[Pete]

yes right @far_wars

[FAR_WARS]

can you post full explanation?

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

[Pete]

This answer is correct(a) because lapping slows down the recording of customers’ payments. Therefore, confirmations may detect lapping when an auditor receives replies in which customers state that they have paid the receivable well before year-end.

For answer d is not correct cuz
This answer is incorrect because it relates to accounts which have been written off and not to accounts with positive balances. Only accounts with positive balances were confirmed by the auditor.

[csvirk]

Just took the AUD exam. Overall experience was better than last time. First testlet easy. 2nd one was medium and 3rd one was hard. Got two search question. Overall Sims were hard. Guessed on two sims. Beight a part of this study group helped me a lot. I highly recommend everyone to participate in this group more often and post as many questions as posits me.. I thank all of you for taking your time and answering my questions. Good luck everyone and see you in BEC study group.

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

[payaza2000]

According to the Code of Professional Conduct of the AICPA, for which type of service may a CPA receive a contingent fee?

A.
Performing an audit of a financial statement

B.
Performing a review of a financial statement

C.
Performing an examination of prospective financial information

Correct D.
Seeking a private letter ruling

Dumb question everyone; but what is a Private Letter Ruling?

Also


@csvirk See you in BEC.

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

[Author]

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