[jeff]

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

[Forem004]

1256: With respect to Auditing Standards and Ethics and Independence Rules, the PCAOB:

A.
has adopted its own rules.

B.
relies on guidance of the AICPA.

C.
relies on guidance of the AICPA and its state societies.

D.
has yet to make any rules.

[Forem004]

@thebigguy, I know! I just keep letting myself get confused with the fact that you would communicate it to mgmt if found vs being required. 🙁

[Forem004]

@thebigguy, Are you working? I'm just curious as to why you're taking it on a Sunday?! I always schedule mine for Mondays so I can be off and study all weekend.

[Forem004]

Can anyone explain how substantial support is defined with regards to modifications to the cash basis of accounting? What would make up substantial support?

The cash receipts and disbursements basis of accounting, and modifications of the cash basis when such modifications are substantially supported, such as recording depreciation on fixed assets or accruing income taxes

A definite set of criteria having substantial support that is applied to all items appearing in financial statements, such as the price level basis of accounting

[Forem004]

148: Which of the following characteristics most likely would heighten an auditor's concern about the risk of material misstatements in an entity's financial statements?

A.
The entity's industry is experiencing declining customer demand.

B.
Employees who handle cash receipts are not bonded.

C.
Bank reconciliations usually include in-transit deposits.

D.
Equipment is often sold at a loss before being fully depreciated.

[Forem004]

1350: For the purpose of Title IV of the Sarbanes-Oxley Act of 2002, Section 406, “Code of Ethics for Senior Financial Officers,” the code of ethics should promote:

A.
honest and ethical conduct.

B.
full, fair, accurate, timely, and understandable disclosures.

C.
compliance with applicable governmental rules and regulations.

D.
All of the answer choices are correct.

[Forem004]

This is so ridiculous. I have answered all of these questions correctly at some point. Why do I keep getting them wrong??? Also, I just realized I've been posting the category number if anyone looks these up for explanations.

696: Under which set of standards does an audit report not allow reference to another audit firm involved in a portion of the audit?

U.S. PCAOB Auditing Standards
International Standards on Auditing (ISAs)
A.
I only

B.
II only

C.
Both I and II

D.
Neither I nor II

[Forem004]

509: In statistical sampling methods used in substantive testing, an auditor most likely would stratify a population into meaningful groups if:

A.
probability-proportional-to-size (PPS) sampling is used.

B.
the population has highly variable recorded amounts.

C.
the auditor's estimated tolerable misstatement is extremely small.

D.
the standard deviation of recorded amounts is relatively small.

[Forem004]

I did not know this meant an “audit” examination.

136: When planning an examination, an auditor should:

A.
consider whether the extent of substantive tests may be reduced based on the results of the internal control questionnaire.

B.
make preliminary judgments about materiality levels for audit purposes.

C.
conclude whether changes in compliance with prescribed control procedures justify reliance on them.

D.
prepare a preliminary draft of the management representation letter.

[Forem004]

By the amount of questions I'm getting wrong, it's time for a break. I'm finishing this set and taking my puppies for a walk!

1624: When financial statements that an accountant has compiled in accordance with Statements on Standards for Accounting and Review Services omit substantially all disclosures required by generally accepted accounting principles, the accountant's report should include:

A.
management's justification for its decision to elect to omit substantially all the disclosures.

B.
no modification of the standard compilation report because compilations do not require disclosures that are required for audited financial statements.

C.
information alerting readers about omission of the disclosures and notification that the omission may influence the user's conclusions about the financial statements.

D.
a separate paragraph in the compilation report stating that the financial statements are misleading due to the lack of disclosures by management.

[thebigguy1992]

@forem004 i am working, i took this whole week off to take it sunday. the storm got it cancelled so now I'm taking it monday.

also, if you want feedback – its better to just ask specific questions if you have like 10 questions you got wrong. maybe write a sentence for each question that you have and ask it that way. probably more likely to get responses instead of just copying and pasting every question you get wrong from the software.

[Forem004]

Thanks for the advice, but I'm not looking for feedback. I did this in 2016 and everyone enjoyed seeing the questions in a different form rather than just the doing the multiple choice repeatedly. It's also even more random for them so while you may not appreciate it, someone might! 🙂

[Holly]

good luck tomorrow @thebigguy1992!!!!!

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

[Holly]

I personally like the questions and others thoughts on right answers. It helps to see things from a different point of view.

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

[Forem004]

That's what I was thinking. The ninja questions lead to other questions that people may have. I can understand most of this info once I read the explanation. I'm so mad at myself for the 71 last month and continuing to get these questions wrong! I work at a small firm and have been there almost five years. The audit engagement partner I work with has rarely performed any audit procedures in probably two years on my audits. I get to do all of it and just go to him for the topics I can't research on my own. Then he reviews it and discusses any problems. So, the way I see it, I should have knocked that one out of the park!

[Author]

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