[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

[If I can, u can too!]

@capri1032 i expressed my concern to many and below are helpful responses i obtained from others. hope this helps.

https://www.another71.com/cpa-exam-forum/topic/72-3-times-on-audit-got-any-advice

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).

[cdn]

@hokinizeu – thanks,
What do you think about Ninja AUD Book? I only have Ninja MCQ and Becker full course.

[If I can, u can too!]

NP! I have never used Ninja Aud book nor any Ninja books. I think you have enough material in Becker.

Which of the following would the reviewer not have to inquire about in a review engagement?
A. The status of uncorrected misstatements identified during the previous engagement
B. The integrity of management
C. Events subsequent to the date of the financial statements that could have a material effect on the financial statements
D. Significant journal entries and other adjustments

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).

[AccountantPinkHair]

“A” is my vote

AUD - 72, 81
FAR - 71, 78
REG - 60, 78
BEC - 60, 71, 71

IF I FALL, I WILL GET BACK UP. IF I AM BEATEN, I WILL RETURN.

[If I can, u can too!]

i got this one wrong too although it confuses me since mgmt rep letter is required. i guess since it's a review authenticity of the mgmt rep letter isn't that important. other than that, Ninja has a good explanation.

Answer is B. The integrity of management
The integrity of management, principally determined through correspondence with the predecessor auditor, is important in an audit, not a review. The integrity of management also speaks to the inherent risk of material misstatement of the financial statements and the control environment. A review is not concerned with audit risk (inherent, control, and detection risk) and it does not contemplate obtaining an understanding of the entity's internal control. (AR-C 90.A89)

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).

[EuroAddict]

I would have went with “A” as well but now I know better 🙂

-----------------------------
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.

[EuroAddict]

Talk about vague questions:

“The procedure, “The accountant should communicate illegal employee acts is:

A.
required for a review only.

B.
required for both a compilation and a review.

C.
not required for a review but required for a compilation.

D. CORRECT
not required for either a compilation or a review.

“As a result of the limited procedures performed in a compilation and a review, evidence or information may come to the accountant's attention that noncompliance with laws and regulations may have occurred. In this case, the matter should be brought to the attention of the appropriate level of management. The accountant is not required to report matters regarding illegal acts [noncompliance] that are clearly inconsequential.”

The Q didn't state how serious or not serious (inconsequential) it was.

-----------------------------
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.

[Trying to pass]

Hi All.
Check out AU-C 230 A26; about Audit documentation deletion! Now it makes sense why “D” could be the answer!

am still in doubt!

[If I can, u can too!]

yeah i got that question wrong but i'm clear on this now. i hate the fact we have to be vigilant in reading every single word but that's what they're asking us to do. (sigh)

zap-ZAP-ZAP! (zapping the nasba question makers)

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).

[Trying to pass]

@hokinizeu,,,So its “D” right? loll

[If I can, u can too!]

Yes, it should be “D” see below pronouncement as well.

AR-C 80.16, for a compilation engagement, the accountant may, but “is not required to”, make inquiries or perform other procedures to verify, corroborate, or review information supplied by the entity. The results of such inquiries or procedures, knowledge gained from prior engagements, or the financial statements on their face may cause the accountant to become aware that information supplied by the entity is incorrect, incomplete, or otherwise unsatisfactory, or that fraud or an illegal act may have occurred.

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).

[cdn]

@hokinizeu- I beleive I saw it somewhere but still need to ask. Independance- I went to code but still couldnt understand. I want to get info about the % limit and so on. Any info where I can get it?

[If I can, u can too!]

sorry capri1032, i don't understand what you mean by % limit on independence.

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).

[Trying to pass]

Anyone who can explain to me about IC;

My question is;
When are we providing an opinion on the operating effectiveness of IC? Is it on Integrated Audit and Not on FS Audit and Government auditing? the concept is confusing me?

[cdn]

@hokinizeu – sorry. Let me try this. If auditor/relatives own/invest into client stock/mutual fund or some others in terms of % (ex. own 7%, 15%), when the independence will be impaired. So I got general understanding of when is impaired or when is not, but very often I see % in a question and than I get lost.

Also, my 2nd weak point is, type of procedures to apply for specific issue. Ex. when revenue are off or inventory-all procedures are so similar for me and I get confused. Any advice for those?

thanks

[Author]

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