AUD Study Group Q2 2015 - Page 15

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    Topic
  • March 5, 2015 at 8:09 pm #192520
    jeff
    Keymaster

    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

Viewing 15 replies - 211 through 225 (of 1,631 total)
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  • March 15, 2015 at 5:20 pm #668557
    trish_1234
    Member

    Yup, sampling is both test of controls (attribute sampling )and test of details (variable sampling)

    tests of controls

    did the purchasing agent sign all PO before sending to vendor

    test of details

    is the management recorded balance of A/R measured at net realized value?

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

    March 15, 2015 at 5:24 pm #668558
    trish_1234
    Member

    Answer (A) is correct.

    Effective purchasing departments should use the basic economic order quantity (EOQ) calculation that minimizes both the cost of owning and storing excess merchandise and the cost of ordering merchandise (and thus the timing of ordering). This model assumes the demand is constant and does not consider the cost of stockouts. Probabilistic models have been developed to incorporate the risk of loss (cost) by not having merchandise on hand.

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

    March 15, 2015 at 5:25 pm #668559
    trish_1234
    Member

    that was a tricky one

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

    March 15, 2015 at 5:27 pm #668560
    ladybossxo
    Participant

    @Trish! Oh god. That's BEC stuff.

    CPA Exams Done.

    March 15, 2015 at 5:28 pm #668561
    trish_1234
    Member

    Really!!!!! Oh god please let some of this stuff over lap and ease our pain lol

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

    March 15, 2015 at 5:36 pm #668562
    ladybossxo
    Participant

    On December 30, 20X1, Vida Co. had cash of $200,000, a current ratio of 1.5:1 and a quick ratio of 0.5:1. On December 31, 20X1, all cash was used to reduce accounts payable. How did these cash payments affect the ratios?

    A.

    Increased current ratio and decreased quick ratio

    B.

    Increased current ratio and no effect on quick ratio

    C.

    Decreased current ratio and increased quick ratio

    D.

    Decreased current ratio and no effect on quick ratio

    CPA Exams Done.

    March 15, 2015 at 5:46 pm #668563
    trish_1234
    Member

    HAHA … Now that is the topic

    A? total guess

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

    March 15, 2015 at 5:49 pm #668564
    trish_1234
    Member

    C?

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

    March 15, 2015 at 5:52 pm #668565
    WANNABE_CPA
    Member

    is it A? I tried to do it by putting values on my own.

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

    March 15, 2015 at 5:58 pm #668566
    ladybossxo
    Participant

    @Wannabe and Trish: Correct answer is A.

    For current ratio = Current Asset/Current Liabilities

    If current asset is 150 and current liability is 100. You use cash to pay off AP, let's just say $50.

    In this case, current asset will be 100 and current liability will be 50. So now the current ratio is 2. Therefore current ratio went up.

    For quick ratio = Quick assets/Current Liabilities

    If quick asset is 100 and current liability is 200. You use cash to pay off AP, let's just say $50.

    In this case, quick asset will be 50 and current liability will be 150. So now the quick ratio is 0.33333. Therefore quick ratio went down.

    CPA Exams Done.

    March 15, 2015 at 6:01 pm #668567
    trish_1234
    Member

    Ugh

    I would have said A but would have spent way too much time thinking abt it on exam day UGH

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

    March 15, 2015 at 6:04 pm #668568
    ladybossxo
    Participant

    @Trish: Lol I know. It took me 5 minutes to figure it out.

    CPA Exams Done.

    March 15, 2015 at 6:06 pm #668569
    trish_1234
    Member

    in sims imagine

    10 of those types of questions in only one of the 7 parts lololol that is me thinking for atleast half hr

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

    March 15, 2015 at 6:10 pm #668570
    ladybossxo
    Participant

    Lol and it is not like we get them all right. Whenever I see the score report, I am thinking to myself, I might as well not even answer the ratio question because getting all of them wrong is equivalent to leaving the question blank. But in all seriousness, I really want to get this exam out of the way. I have been at it for way too long. I need to master ratios and internal controls.

    CPA Exams Done.

    March 15, 2015 at 6:13 pm #668571
    trish_1234
    Member

    Me too.

    AUD 69, 92 7/15 Gleim and Ninja test bank
    FAR sometime in 10/15 Gleim
    BEC not taken
    REG not taken

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