[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]

A is still expressing a piecemeal, but trying to make it ok by disclosing it.
=1 report

D is better because it is presenting the piecemeal'ed AR balance in a totally separate (specified element) report.
=2 reports.

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

[csvirk]

@FAR_WAR

Good Luck for your exam tomorrow. don't forget to share your experience.

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

[red_rose]

and another:

Which of the following procedures would an accountant least likely perform during an engagement to review the financial statements of a nonpublic entity?

A. Observing the safeguards over access to and use of assets and records

B. Comparing the financial statements with anticipated results in budgets and forecasts

C. Inquiring of management about actions taken at the board of directors' meetings

D. Studying the relationships of financial statement elements expected to conform to predictable patterns

[EuroAddict]

@THISISTHEYEAR

“The lower the assessed level of control risk, the less assurance the evidence must provide that the control activities are operating effectively.”

That choice is wrong b/c the lower the level of CR means we are trusting their controls, thus relying heavily on them, the MORE assurance the evidence must provide.

-----------------------------
BEC - 77, 03/2015 (first try)
FAR - 79, 05/2015 (second try)
REG - 83, 12/2015 (first try)
AUD - 84, 03/2015 (first try)

I got 99 problems but the CPA ain't one.

[payaza2000]

@FAR_WARS

YEah man. Good luck tomorrow.

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

[giftcpa]

Assessing control risk at below the maximum level most likely would involve

A. Performing more extensive substantive tests with larger sample sizes than originally planned.
B. Reducing inherent risk for most of the assertions relevant to significant account balances.
C. Changing the timing of substantive tests by omitting interim-date testing and performing the tests at year end.
D. Identifying specific internal control structure policies and procedures relevant to specific assertions.

The answer is D, but why not C?

[FAR_WARS]

because CR is below max. This means that our controls are reliable to some extent. We would only move substantive testing to year end if our controls completely suck and we cannot rely on them at all.

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

[Pete]

[Pete]

guys there are good mcqs too in cpareviewforfree 🙂

[Pete]

Management must disclose material weaknesses in internal control:

a-Only if the auditor discloses the weakness as significant.
b-Whenever the weakness is significant to the overall financial reporting objectives.
c-Whenever the weakness is deemed significant to a single class of transactions.
d-If the weakness exists at the end of the year.

[payaza2000]

So with regard to rules about Independence; I know that an Auditor according to the AICPA (nonissuer) is supposed to be independent in both “appearance and fact.” So what services does that entail (having trouble finding it in AL) (Bookeeping, recommending transactions to fix account,etc -> All of these are forbidden with a Public Company). I know that they cant make management decisions. What constitutes making management decisions? What if management doesn't have sufficient capacity to make their own decisions, and agrees to recommendations of the Auditor?

Questions on Internal Control to come….

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]

Management must disclose material weaknesses in internal control:

a–Only if the auditor discloses the weakness as significant.
b-Whenever the weakness is significant to the overall financial reporting objectives.
c-Whenever the weakness is deemed significant to a single class of transactions.
d-If the weakness exists at the end of the year.

[Pete]

Management must disclose material weaknesses in internal control:

a–Only if the auditor discloses the weakness as significant.
b-Whenever the weakness is significant to the overall financial reporting objectives.
c-Whenever the weakness is deemed significant to a single class of transactions.
d-If the weakness exists at the end of the year.

[Pete]

are any partners in the audit firm impair the independence of the audit engagement?

[peter1]

are any partners in the audit firm impair the independence of the audit engagement ?

[Author]

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