[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]

Question.

How is the report modified for FS that are prepared using special purpose framework.

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

[ladybossxo]

Trish:

For financial statements that are prepared using special purpose framework, in the introductory paragraph of the report, you'd use non-GAAP terms (i.e. statement of revenue collected and expenses paid – cash basis) and you'd add an emphasis of matter paragraph alerting readers about the preparation in accordance with a special purpose framework (i.e. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than US GAAP). This applies to cash and tax basis.

For financial statements prepared in accordance with regulatory basis and contractual basis, the above requirements apply and you have to add an other matter paragraph restricting the use of the report.

CPA Exams Done.

[trish_1234]

Thanks lady!

So it does not make sense that an auditor has to modify an opinion (if using US report ) on financial statement using a financial reporting framework generally accepted in the parent’s country. But an auditor can issue a unmodified opinion when reporting on special purpose framework exp cash basis

amm I missing anything

The financial statements of KCP America, a U.S. entity, are prepared for inclusion in the consolidated financial statements of its non-U.S. parent. These financial statements are prepared in accordance with a financial reporting framework generally accepted in the parent’s country and are for use only in that country. Which is an appropriate report on the financial statements for KCP America’s auditor to issue?

A U.S. form of report (unmodified)

A U.S. form of report modified to report on the financial reporting framework of the parent’s country

The report form of the parent’s country

A. II only.

B. I only.

C. II and III only.

Answer (C) is correct.

Financial statements may be prepared in accordance with a financial reporting framework generally accepted in another country. In these circumstances, if the statements are prepared for use only outside the U.S., the auditor may use either a U.S. form of report modified to report on the financial reporting framework of the other country or, if appropriate, the report form of the other country. An unmodified U.S. form of report is inappropriate because of the departures from GAAP contained in statements prepared in accordance with a financial reporting framework generally accepted in the other country.

D. I, II, and III.

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

[trish_1234]

never mind. I get it now. its modified but the opinion is not modified…I misread the answer explanation

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

[Martin]

During Year 1 audit of Numbaro Co., the auditor performed various procedures.

For each of the audit procedures listed below, double-click on the associated shaded cell and select the type of audit procedure, if any, that the auditor performed. A type of audit procedure may be selected once, more than once, or not at all.

Audit procedures Type of audit procedure

1)During the physical inventory count, the auditor requested that certain material containers be opened to ensure they were not empty.

2)During a site visit to a branch warehouse, the auditor noted unauthorized personnel have access to the inventory.

3)The auditor obtained a copy of the company's accounting manual and read the section on inventory to prepare for the physical inventory observation.

4)The auditor sent a letter to the company's outside attorney accompanied by management's request for information concerning pending or threatened litigation, claims, and assessments.

5)The auditor obtained the company's aging of accounts receivable and independently created the aging of certain accounts.

6)The auditor scanned the repairs and maintenance account for unusually large amounts.

Options=

Analytical

Certifying

Compliance

Conformation

Guaranteeing

Inquiry

Inspection

Monetizing

Observation

Recalculation

Reperformance

Valuation

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

[trish_1234]

a- inspection

b- observation

c- inspection

d- inquiry

e- recalculation

f- inspection

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

[trish_1234]

🙂

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

[trish_1234]

when I post something here it takes an hour for it to show on the main page that I responded

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

[ladybossxo]

1. inspection

2. observation

3. inspection

4. inquiry

5. reperformance

6. analytical

CPA Exams Done.

[ladybossxo]

The accounts payable department receives the purchase order form to accomplish all of the following except:

a. Compare invoice price to purchase order price.

b. Ensure the purchase had been properly authorized.

c. Ensure the goods had been received by the party re questing the goods.

d. Compare quantity ordered to quantity purchased

CPA Exams Done.

[Martin]

a- inspection

b- observation

c- inspection

d- inquiry

e- recalculation

f- inspection

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

[AJG38]

@ladybossxo……C?

AUD - 91 (4/7/2015)
BEC - 88 (4/29/2015)
FAR - 80 (5/29/2015)
REG - 70 (8/18/2015); 82 (11/08/2015)

Gleim & Ninja Flashcards

[Martin]

c. Ensure the goods had been received by the party re questing the goods.

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]

Yep C is correct!

CPA Exams Done.

[Martin]

Ladybos, you were right, the list is =

1. inspection

2. observation

3. inspection

4. inquiry

5. reperformance

6. analytical

trish_1234, you missed the last 2.

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

[Author]

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