[jeff]

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

[curlyhare]

First off, @helphelphelp CONGRATS!

So, I took Audit today for the 3rd time (got a 70 and 71 the last two times, respectively). I felt a lot better this time around and didn't feel as rushed, finished the MC in an hour and 45 mins and used the full remaining time to do the sims. I even searched AL for anything helpful, even if I thought I knew the answer. The testlets felt easy-medium-brutal to me, which is probably actually medium-hard-medium/hard (since I don't think that easy exists). I really hope this isn't another failure….just give me that 75. Was scoring consistently in the upper 80s w/Roger review before the exam and did every single question once and then the ones I got wrong again (that;s 1300 questions). I studied only 2.5 weeks this time since this was my 3rd time taking it and didn't look at it at all the day before the test. . Since I felt okay/good about this one I am hoping that it means I passed. Previously my 70 felt like a 70, my 71 actually felt like a 65.

So tips for the masses:

Know what business events impact components audit risk.
Know the transaction cycles so well that you start to believe you devised them! Even the cycles you think aren't important
Don't skip the government reporting stuff…its a necessary evil.

[lilJT24]

Not sure if this was asked and answered already, but I'm wondering if we can still purchase the AUD 2016 ninja notes. I'll be taking the exam on the last available and I noticed the ninja notes were updated for the 2017 exam.

[mooseonloose]

@curly thanks for the tip! and good luck!

[mooseonloose]

@jason I would email Jeff and ask him.

[Lauren Gregory]

Studying for audit right now before I take it on February 28th and before FAR expires. I have passed it once and unfortunately it expired bc I had the roughest time with REG. Has anyone ever taken audit and NOT have the ratios provided? They have been for me the first time I took it but curious as I'm reviewing because there are a lot of SIMS with them not provided in the review material. ALSO any last suggestions before I take it for areas to cram in??

THANK YOU!

Audit -78 (expired) retake 2/28
FAR- 78
BEC- 82
REG- 65, 71, 70,77 (finally passed)

[Spartans92]

Which of the following is a false statement regarding restrictions on the use of an accountant's compilation or review report on subject matter or presentations based on measurement or disclosure criteria contained in contractual agreements or regulatory provisions?

A.
Accountant's reports on subject matter or presentations prepared in conformity with an OCBOA are ordinarily not restricted regarding use.

B.
If an accountant issues a single combined report covering both subject matter or presentations that require a restriction and subject matter or presentations that do not ordinarily require a restriction, use of the combined report should be restricted to the specified parties.

C.
Where required by law or regulation, a separate restricted-use report may be included in a document that also contains a general-use report.

D.
If an accountant issues a document including both a separate restricted-use report and a general-use report, both reports should be restricted to the specified parties.

Anyone can simplify this in layman terms? I dont know why but I can't wrap my head around all the wording! Thanks

BEC- PASS

[Lauren Gregory]

what is the correct answer? I'm guessing A?

[mooseonloose]

Is the answer A?

[Spartans92]

I guessed A too. Unfortunately, the correct answer is D.

BEC- PASS

[Spartans92]

Sorry guys I should know this by now. But under what section can I find transaction cycle questions in ninja Mcq?

BEC- PASS

[metamor]

I don't quite understand the following:

An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all
a. Noncapitalizable expenditures for repairs and maintenance have been recorded in the proper period.
b. Expenditures for property and equipment have been recorded in the proper period.
c. Noncapitalizable expenditures for repairs and maintenance have been properly charged to expense.
d. Expenditures for property and equipment have not been charged to expense.

You Answered Incorrectly.
The analysis of repairs and maintenance accounts is primarily performed to determine that capitalizable expenditures have not been erroneously charged to expense. Examining noncapitalizable expenses charged to repairs and maintenance provides evidence supporting the existence/occurrence of those expenses.

[Operation_CPA]

After reading the sampling section in Becker… I thought this section would be a breeze, but my MCQ scores are not all that impressive. Does anyone have any supplemental information that could potentially help me connect the dots on some of this material? Possibly more high level.

[wc4044]

Becker does a good enough job with sampling…mainly because it is u likely that you will see more than 1 or 2 sampling questions on your exam.

[Operation_CPA]

Two questions I have from sampling (They are pretty much the same type of question)… still struggling on this. Any help is appreciated!

(1). As a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses control risk higher than appropriate. The most likely explanation for this situation is that:

a.The deviation rates of both the auditor's sample and the population exceed the tolerable rate.

b.The deviation rates of both the auditor's sample and the population are less than the tolerable rate.

c.The deviation rate in the auditor's sample is less than the tolerable rate, but the deviation rate in the population exceeds the tolerable rate.

d.The deviation rate in the auditor's sample exceeds the tolerable rate, but the deviation rate in the population is less than the tolerable rate

Correct answer is D. Can someone please explain this? I am having a hard time understanding the relationship between the deviation rate, tolerable rate, etc.

(2). As a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses control risk lower than appropriate. The most likely explanation for this situation is that:

a.The deviation rate in the auditor's sample is less than the tolerable rate, but the deviation rate in the population exceeds the tolerable rate.

b.The deviation rates of both the auditor's sample and the population is less than the tolerable rate.

c.The deviation rate in the auditor's sample exceeds the tolerable rate, but the deviation rate in the population is less than the tolerable rate.

d.The deviation rates of both the auditor's sample and the population exceed the tolerable rate.

A is correct. Again the relationship between these rates….Thanks in advance!!

[Spartans92]

@metamor, not sure if you gave the answer.. but is it D?
The purpose of looking at repair and maintenance is to determine whether these cost should be capitalized or expense. Hence, you want to make sure they should not be erroneously charged to expense when should have been capitalized.

BEC- PASS

[Author]

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