[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]

“The private letter ruling is the letter the IRS sends back to the taxpayer, which explains the rulings and the rational for the decision. The PLR is specific and applicable to that tax situation and that taxpayer only.”

So if we are representing a client, we would be aloud to charge different amounts based on the IRS's ruling in the letter.

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

[for425]

In the Auditors Report, is the auditor required to hand write his or her signature?

A question came up regarding this with a compilation and the answer was- “manual, printed, or digital are appropriate”

FAR - 72, 81
BEC - 76
REG - 78
AUD - 61 (1/24), Retake (6/6)

Materials: Becker
FAR Retake: + Wiley TB
REG & AUD: + Ninja MCQ

[FAR_WARS]

I can confirm that “manual or printed” signatures are appropriate for an audit, but can't find anything about digital. My guess is that Digital is allowed for audits. But since requirements for compilations are less strict, perhaps they could allow digital while audits don't?

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

[Pete]

@far_wars

CCHIT

C: comment on exceptions
C: Conclusions
H:heading
I:Initinals
T:Tickmark
F:Foot

[FAR_WARS]

thanks peter!

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

[Pete]

Do I have to remember Public Accounting Oversight Board Sections or just read it?

[payaza2000]

@Peter

I would know where the PCAOB differentiates with the SAS

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]

Thanks payaza2000 🙂

I was reading about the network firms and Alternative practice structure (APS) related to professionals ethics are not covered well in Wiley

[Pete]

To establish illegal “slush funds,” corporations may divert cash received in normal business operations. An auditor would encounter the greatest difficulty in detecting the diversion of proceeds from

a-Scrap sales.
b-Dividends.
c-Purchase returns.
d-COD sales.

What's Scrap Sales ?

[Pete]

According to PCAOB standards which of the following is a control deficiency that is at least a significant deficiency?

a-Weak controls over the selection and application of accounting principles.
b-Weak controls over safeguarding of inventories.
c-Weak controls over bank reconciliations.
d-Weak controls over authorization of payroll.

[FAR_WARS]

1. a? Probably more of a BEC topic. Scrap Materials are the ones which cannot be sold either as Finished Goods, and have no storage value or internal usage value to the organization. They are often sold at a specially discounted rate, to recover some value.

2. a?

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

[Pete]

yes right Far_wars

A deficiency in any one of the following controls would at least be a significant deficiency:

1• Controls over the selection and application of accounting principles that are in conformity with generally accepted accounting principles
2• Antifraud programs and controls
3• Controls over nonroutine and nonsystematic transactions
4• Controls over the period-end financial reporting process

[win2bet]

@peter, sounds like its def A

REG 68,87
BEC 85
FAR 75
AUD 64,64, 86!

[Pete]

@win2betmore yes right 🙂

@win2betmore do you think it's good idea to read Government standards (yellow book) ?or just through the material ?

[Pete]

Which of the following would be a consideration in planning a sample for a test of subsequent cash receipts?

a-Preliminary judgments about materiality levels.
b-The amount of bad debt write-offs in the prior year.
c-The size of the intercompany receivable balance.
d-The auditor’s allowable risk of assessing control risk is too low.

[Author]

Replies