[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

[trish_1234]

@ matin, I didn't either. But still reviewing quickly

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

[trish_1234]

Happy Tuesday!!!

So I noticed for every sims in ninja there is AL reference. I am struggling to find this reference so that I can see what info is there to do the problem

One of the tricks to pass sims is using AL to answer sims, I suggest we all spend sometime becoming familiar with this function to take advantage during exam!!!

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

[NoraU]

trish, this is a good idea. I think even practice research questions is helpful. I have not done it before, and I could not find the answer on exam day which made me fail (in my opinion). I also find it useful to go to original standards on aicpa site sometimes when I can not grasp the material right away.

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[ladybossxo]

Happy Tuesday and Happy St Patrick's Day everyone!! :):)

@Martin: For IT Audit, I am just looking over the 6 terms and that's about it

1) transaction tagging

2) embedded audit modules

3) test data

4) integrated test facility

5) parallel simulation

6) generalized audit software package

@Trish and Nora: I totally agree with you both!

CPA Exams Done.

[ladybossxo]

The AL definitely helps with some of the SIMS questions on the exam. I remember the first time I took the exam, I thought you only use the AL for research questions. *face palm*

CPA Exams Done.

[trish_1234]

Happy Irish day lol

So I was doing some sims once submitted it shows the section at the end of the questions, I tried finding it, I couldn't.

(The reference for this question is section 3327.17 in the Auditing & Attestation Reference Volume.)

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

[trish_1234]

I wanted to see what the reference said to see if it was sufficient to answer this question.

For sims its easy to find any report type questions

but assertions and ratios etc will be difficult

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

[ladybossxo]

@Trish: Yeah that's why for assertions and ratios, you have to know them inside out. With assertions, they're mainly scenario-typed questions, even if they are in the AL, they are just definitions, it wouldn't help much.

CPA Exams Done.

[trish_1234]

here is one about testing controls

When an auditor plans to rely on controls that have changed since they were last tested, which of the following courses of action would be most appropriate?

A.

Test the operating effectiveness of such controls in the current audit

B.

Document that reliance and proceed with the original audit strategy

C.

Inquire of management as to the effectiveness of the controls

D.

Report the reliance in the report on internal controls

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

[jasbeerch]

is it A trish !

[ladybossxo]

A?

CPA Exams Done.

[trish_1234]

A

The auditor should design sufficient tests of controls to obtain reasonable assurance that the controls are operating effectively throughout the period of reliance.

In the AL( posted this to show what is in AL

The auditor should design sufficient tests of controls to obtain sufficient appropriate audit evidence that the controls are operating effectively throughout the period of reliance. Factors that the auditor may consider in determining the extent of tests of controls include the following:

a. The frequency of the performance of the control by the entity during the period

b. The length of time during the audit period that the auditor is relying on the operating effectiveness of the control

c. The relevance and reliability of the audit evidence to be obtained in supporting that the control prevents, or detects and corrects, material misstatements at the relevant assertion level

d. The extent to which audit evidence is obtained from tests of other controls related to the relevant assertion

e. The extent to which the auditor plans to rely on the operating effectiveness of the control in assessment of risk (and thereby reduce substantive procedures based on the reliance on such control)

f. The expected deviation from the control

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

[ladybossxo]

The procedure, “The accountant should modify the accountant's report if there is a change in accounting principles that is adequately disclosed,” is:

A.

required for a review only.

B.

required for both a compilation and review.

C.

not required for a review but required for a compilation.

D.

not required for either a compilation or a review.

CPA Exams Done.

[trish_1234]

thats tricky

so if its adequately disclosed and management has good reason for the change

no modification

D

IDK

I dont get the question 🙁

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

[ladybossxo]

@Trish: It is D, but the key to the question is “accounting principle”

A change in accounting principle “is a change from one accounting principle in accordance with the applicable financial reporting framework to another accounting principle in accordance with the applicable financial reporting framework when (1) two or more accounting principles apply or (2) the accounting principle formerly used is no longer in accordance with the applicable financial reporting framework. A change in the method of applying an accounting principle also is considered a change in accounting principle.” (AU-C 708.A4)

While changes in accounting principle having a material effect on the financial statements for an audit require the addition of an emphasis-of-matter paragraph in the independent auditor's report, the same is not required for a compilation or a review.

Changes in accounting principles need to be disclosed, but the SSARSs do not directly address any report modifications for them. AR 80.25 and 90.33 state that changes in accounting principles are not to be placed in an emphasis paragraph in the accountant's report. Absent specific guidance for this situation, the accountant should follow the guidance for departures from the applicable financial reporting framework. If management adequately discloses the change(s) in accounting principles (for example, in the notes to the financial statements), it is not necessary to modify the accountant's report.

CPA Exams Done.

[Author]

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