[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for AUD.

World Premier: “Unmodified” (Audit Reports Rap Video) 🙂

Posted by Another71 on Thursday, November 13, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

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

[ladybossxo]

Which of the following statements is correct regarding an independent auditor's reliance on a client's internal audit staff?

A.

An independent auditor should not reduce the amount of audit testing based on the work of internal auditors.

B.

An independent auditor should assess the organizational status of the director of internal audit.

C.

An internal auditor should provide direct assistance to the independent auditor during preparation of audit workpapers.

D.

An independent auditor should use internal audit workpapers when available.

CPA Exams Done.

[WANNABE_CPA]

@ladyboss, oceansister, trish …good work with the quizes, i will be joining you soon. I am refreshing the material right now and getting back in Audit mode. When are you all testing, I am on 1st april. Too soon, but since its my second time, i want to take less time, be able to finish all becker homework once and practice Ninja as well. We can do it, keep up the work.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[WANNABE_CPA]

is it A or C?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[oceansister]

b ?

[oceansister]

@wannabe- my second shot at audit, too. i haven't scheduled retake, but thinking end of april.

[jamfranny]

c?

BEC Passed
AUD - 70, retake April 2015
REG - May 2015
FAR - August 2015

[ladybossxo]

@Wannabe, Ocean, and Jam: I thought it was A. The answer is B.

Here's the explanation:

Before the external auditor uses the internal audit function to obtain audit evidence, the external auditor should review the function's organizational status and level of competence, and its application of a systematic and disciplined approach, including quality control.

CPA Exams Done.

[ladybossxo]

I am scheduled for April 15th!

CPA Exams Done.

[jamfranny]

thanks ladyboss, bout to do some mcq!!

BEC Passed
AUD - 70, retake April 2015
REG - May 2015
FAR - August 2015

[ladybossxo]

The objective of tests of details of transactions performed as tests of controls is to:

a. Determine whether internal controls have been implemented.

b. Detect material misstatements in the account balances of the financial statements.

c. Monitor the design and use of entity documents such as prenumbered shipping forms.

d. Evaluate whether internal controls operated effectively.

CPA Exams Done.

[WANNABE_CPA]

@ladyboss, B ?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

b? ahh! tricky!

[oceansister]

d ?

[WANNABE_CPA]

i think rest are all related to test of attributes, as they are related to design of internal control. I am not sure, just little information retained in my brain suggested B.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[ladybossxo]

@Wannabe, Boricua and Ocean: The answer is D. Oceansister is correct!

The answer would be B if the question is the objective of tests of details of transactions performed as SUBSTANTIVE TESTS is to detect material misstatements in the financial statements.

CPA Exams Done.

[Author]

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