Each of the following independent situations is material. Select from the pop-up boxes the appropriate opinion that would most likely be expressed by the auditor. Double-click on each blank box to see a list of answer choices and click on your selection. Each choice may be used once, more than once, or not at all.
1. A client's year end inventory is 70% of its year end assets measured using the LIFO method. The client presents its FS in accordance with IFRS, which does not allow the use of LIFO
2. During the audit period, an auditor purchased 4% of the client's common shares
3. A client declines to present a statement of cash flows as part of its released FS that purport to present its financial position and results of operations
4. The auditor employs a specialist to help gather evidence as to the value of derivatives held by the client. The specialist's findings support management's reported values
“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.”
1. D The LIFO method is prohibited under IFRS. An adverse opinion is expressed because the financial statements as a whole are not presented in accordance with IFRS
ladybossxo, lol I put info about the logic behind it and then write D instead of A, I wonder if i do that a lot during the exam? lol, I hope not!
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.”
@Martin: I hope not!! Yeah I saw your explanation then I was thinking to myself, I know Martin knows the answer, he probably just wrote down the wrong one.
ladybossxo, what did u get the last time you took Audit?You also got 6/6 on the attorney responses. You are getting very good at this.
B.
Accounts receivable turnovers are 10.0 and 6.6 and the ratios of uncollectible accounts receivable to gross accounts receivable are 0.30 and 0.16, respectively. Examine allowance for possible understatement of the allowance.
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.”
Which of the following statements is correct regarding a review engagement of a nonpublic company's financial statements performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS)?
A.
An accountant must establish an understanding with the client in an engagement letter.
B.
An accountant must obtain an understanding of the client's internal control when performing a review.
C.
A review provides an accountant with a basis for expressing limited assurance on the financial statements.
D.
A review report contains an accountant's opinion of the financial statements taken as a whole.
FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23
@Martin: I got 65 because I bombed SIMS!! I am good with ratios like that where I don't have to provide an explanation what causes the changes (though I have improved on that) Lol for the attorney responses, honestly, I just used my knowledge in FAR to apply. I don't know if you took FAR yet but there was a tiny section in Chapter 10 that covers it. That's why I know how to answer it.
“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
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