[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for AUD. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Forem004]

I found this on a post from Jeff, so I think I'm stuck. Sorry! But in reading further posts, I think I can say just to know the broad audit topics and you will be able to decipher the questions. That is not the only thing that hurt me. Honestly, I don't think I did too bad on those questions. It was the numerous multiple choice that I was not familiar with. 🙁

Straight from the AICPA:

I hereby agree that I will maintain the confidentiality of the Uniform CPA Examination. In addition, I agree that I will not:

• Divulge the nature or content of any Uniform CPA Examination question or answer under any circumstance

… I further agree to report to the AICPA any examination question disclosures, or solicitations for disclosure of which I become aware.

[Forem004]

Also, I meant in what type of audit engagement, particularly, can an auditor lack independence? Not just any engagement. I thought you always had to be independent.

[sulaiman]

Sorry I didn't know or I wouldn't have asked.
But this is funny, why then allowing all exam reviews, who are spending their full time in reviewing each of the exams materials, to have the right to say all of the details of the exam but we can't do the same!

Anyway who cares, let's just be done with it

[sulaiman]

About your question, I think the only exception is when you're required be law to do the audit, isn't it?

[Forem004]

I'm not sure, but thanks for the guidance! I would be totally fine with sitting down and giving future test takers complete details to guide them in taking the exam. I have just came across numerous posts about not talking about it. So it's not me! 🙂

[Forem004]

1-3

When financials contain a departure from US GAAP because, due to unusual circumstances, the statements would otherwise be misleading, the auditor would express an opinion that is:
a. unmodified
b. qualified
c. adverse
d. qualified or adverse, depending on pervasiveness

[Forem004]

1-5

For which of the following events would an auditor issue a report that omits any reference to consistency?
a. change in method of accounting for inventories
b. change from accounting principle that is not GAAP to one that is
c. change in useful life to calculate depreciation expense
d. management's lack of reasonable justification for a change in accounting principle

[Holly]

a. unmodified

c. change in useful life to calculate depreciation expense

I used Becker's lectures and they didn't really mention anything about derivatives. I saw your post about the simulations you got an it totally freaked me out. I sure hope I get stuff I've actually reviewed.

How is CPA Simulation Grading Done?

The simulation questions make up 40% of your CPA exam. (Yes, a lot!) Simulations are graded positively, i.e. you don’t get penalty if you pick the wrong answer. The strategy is to make sure you never leave anything blank — if you pick the right answer by pure chance you get the points. There is nothing to lose.

BEC - 79
REG - 85
AUD - 5/27/16

[HelpHelpHelp :)]

@Forem, is it 1-3 B and 1-5 C?

The happiest people don't have the best of everything, they just MAKE the best of everything!

We can do it!! 🙂

[Forem004]

@HR, I know about the simulation grading, but I think I just had too many “once in a lifetime” topics. 🙁 and correct on the questions.

@Help, 1-3 is A and correct on 1-5: For 1-3, When circumstances indicates that a financial presentation in accordance with GAAP would be misleading, a departure from GAAP is permissible. In such cases, the auditor should issue an unmodified opinion because the financials are not materially misstated.

Make sense?

[Forem004]

@HR, but about the grading….I thought the entire exam was graded like that. Is it not?

[Forem004]

I realized that I have not even answered the questions in my old Becker book. I answered quite a few incorrectly on Chapter 2, which are the ones I choose to post, so I hope these help! Get ready, bc it's a lot!

2-1

Which of the following is an element of a CPA firm's quality control system that should be considered in establishing its QC policies and procedures?

a. Complying with law and regs
b. using statistical sampling techniques
c. assigning personnel to engagements
d. considering audit risk and materiality

Yes, I know, I should not have answered this incorrectly, but I second guessed myself. 🙁

[Forem004]

2-3

Gen Industries prepares its financials on the cash basis of accounting. For each of the following statements excerpted from the audit report, select the best option from the following list.

Option choices: Appropriate and complete – Incomplete – Incorrect

– The financial statements are prepared using a basis of accounting other than accounting principles generally accepted in the United States of America.

[Holly]

Yeah, I'm pretty sure that the whole test is graded that way.

c. assigning personnel to engagements

BEC - 79
REG - 85
AUD - 5/27/16

[Forem004]

2-10

During an engagement to review the financials of a nonissue, an accountant becomes aware of several leases that should be capitalized that are not. The accountant considers these leases to be material to the financials. The accountant decides to modify the standard review report bc management will not capitalize the leases. Under these circumstances, the accountant should:

a. issue an adverse opinion bc of the departure from GAAP
b. express no assurance of any kind on the financials
c. emphasize that the financials are for limited use only
d. disclose the departure from GAAP in a separate paragraph of the accountant's report

[Author]

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