[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

[jasbeerch]

@ Martin, Trish, Ladyboss

What are you doing differently this time to pass AUD exam?

Plz suggest…

[Kohn]

I was told by one of my Becker instructors that you can find some sample letters, e.g. the audit engagement letter, in the Authoritative Literature section in the simulations. I haven't been able to find it has anyone else looked at it?

[ladybossxo]

@Kohn: You can find the audit engagement letter in AU-C 210.A42

CPA Exams Done.

[CPA2B_NJ]

For those of you using Becker, has mnemonics helped you guys? I finished reading the book, but I don't feel like absorbed much. I started NINJA MCQs and I'm scoring 45%. I have no Audit experience so this entire exam has been a mess for me.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[ladybossxo]

@jasbeerch: I am just taking it very slowly. I read a section of the chapter, take notes, do questions from NINJA, and when I am done with the whole chapter, I do Becker questions. When things don't make sense, I role play (especially for comparative reports and internal control). For SIMS, I try to understand the big picture of everything instead of memorizing the answers which is a recipe of another retake. Hope this helps! 🙂

CPA Exams Done.

[jasbeerch]

@ Ladyboss

Yup…that makes sense.

I am concentrating on most imp chapters (I/C, Evidence & Reporting) first. I am watching lectures and taking notes and then doing MCQ's.

Once I am done with making notes, I will start reviewing.

But Sims are still on top of my worrying list.

BTW, when is ur exam?

[ruggercpa2b]

@CPA2B – if you don't feel like you absorbed anything while doing the questions memorizing the mnemonics wont help because you wont know where to apply them. I would suggest while you are going through the questions to make sure you understand the concepts. Audit is very tricky and unless you know it some of the questions will be hard to answer.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[CPA2B_NJ]

@ruggercpa2b – Thanks for the input. Do you think it helps to re-read the textbook? It was my first read through and now I've worked through 60 MCQs so far. I wonder if I should keep going with the MCQs or re-read and see if I can pick up on the bulk of information that I wasn't able to absorb.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[Martin]

jasbeerch, Im just reading the Roger book again, and Im also going over wiley's extremely detailed chapters for the the content area where I scored weak on the score report. Before I took the exam, I was averaging 74 on Ninja,but now I'm at 82% after 820 questions. Im also going over every simulation I can find since i did not work that many before the test. I got a 72 on 2/27,so I dont want to wait that long before retaking the exam. I might take it the 9 or 11th. When are you taking your exam? Is this your first try?

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[ladybossxo]

@jasbeerch: I know!! SIMS get me every single time. The only time I scored comparable on SIMS was my second retake but I screwed up on MCQ or else I would have been done. Other than that, I had been scoring weak on SIMS. I just wish there are a few SIMS where they are word for word from the AL. I am taking it on April 15th. How about you??

CPA Exams Done.

[Camille8291]

Can anyone help me under the answer to this question.

Which of the following items would most likely require an adjustment to the financial statements for the year ended December 31, year 1?

A.Uninsured loss of inventories purchased in year 1 as a result of a flood in year 2.

B. Settlement of litigation in year 2 over an event that occurred in year 2.

C. Loss on an uncollectible trade receivable recorded in year 1 from a customer that declared bankruptcy in year 2.

D. Proceeds from a capital stock issuance in year 2 which was being approved by the board of directors in year 1.

This answer is correct because the loss on the trade receivable may be a “type 1” subsequent event requiring an adjustment if the company was in weak financial condition as of the end of year 1.

I know the answer is C but I just can't wrap my brain around why. My issue is that because the loss was already recorded as a loss in year 1, then what would the adjustment be now knowing that a bankruptcy in year 2 has taken place.

[jasbeerch]

@ Martin, ladyboss….I got 70 last time. Sims got me bcoz I didn't practice.

My Reg got expired just bcoz of AUD.

anyway, My exam is on Apr 20th..

that's why I changed to Roger this time.

This time I have to do this…otherwise I will lose one more exam credit.

lets hope for the best :))

[Camille8291]

Here's another one: apparently I'm having difficulty understanding adjustments vs disclosures of subsequent events. Just when I thought I understood the difference, I get a question showing me I really dont completely understand:

A major customer of an audit client suffers a fire just prior to completion of year-end fieldwork. The audit client believes that this event could have a significant direct effect on the financial statements. The auditor should

A. Advise management to disclose the event in notes to the financial statements.

B. Disclose the event in the auditor’s report.

C. Withhold submission of the auditor’s report until the extent of the direct effect on the financial statements is known.

D. Advise management to adjust the financial statements.

Answer A is correct because conditions which come into existence after year-end which may have a significant direct effect on the financial statements should be disclosed in the notes to the financial statements.

Even though the question said prior to completion of year-end fieldwork, doesn't mean that its prior to year-end financial statements which is how my brain was processing the question, so that would have led me to think the answer would have been wrongly D.

[ruggercpa2b]

@CPA2B I would keep working the questions and make sure if you guess or get the question wrong then read the response and make sure it makes sense. I think doing questions and paying attention to the answer explanations helps tremendously in getting the material to stick. I would not go back and reread the whole book unless you consistently keep getting the questions in that one area wrong.

For me I am weak in Audit Reports. So I know I have to go back and read the book because I did not grasp anything and my score in that area is low.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[hpj154]

In the course of an audit, the auditor realized that an internal control is deficient, but elects not to test that control. The auditor has determined that:

A) the control would not present a reasonable possibility of material misstatement to the financial statements.

B) the control would present the possibility of material misstatement to the financial statements.

C) testing the control would result in inefficiencies in the audit procedures.

D) testing the control is not part of the audit process.

Answer: A – material weakness may exist and the amount of evidence needed in a particular area. Therefore, the auditor focuses on areas that have the highest risk present. If a control would not present a risk of material misstatement to the financial statements, even if the control were deficient, it is not necessary to test that control.

Couldn't answer C be a good answer as well? When testing controls requires more time/effort than using substantive testing procedures, then you would skip tests of controls and proceed with substantive testing. So, when testing controls is inefficient, the auditor would elect not to test that control (which is how I read the question & chose answer C). Maybe I am not reading it right. Any thoughts?

AUD (Q2 2015) - 93
FAR (Q2 2015) - 85
REG (Q3 2015) - 80
BEC (Q3 2015) - 82

[Author]

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