[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

[nissacof]

WANNABE_CPA – Here is the answer why not A.

AR-90

Establishing an understanding

The accountant should establish an understanding with management regarding the services to be performed and document that through a written communication with management.

A. The understanding should include the objectives of the engagement, management's responsibilities, the accountant's responsibilities, and the limitations of the engagement.

B. These matters should be communicated in an “engagement letter.”

So the answer why not answer A. is because AR-90 indicates “should be” vs. “Must” in answer A.

BEC - 4/3/2014 (80)
FAR - 11/20/2014 (79)
AUD - 4/2/15 (81)
REG - 7/14/15 (80)

[WANNABE_CPA]

@nissacof.. thanks, great explanation. Totally forgot if i even paid attention to the must and should in this one.

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

[ladybossxo]

@nissacof: You're correct!

CPA Exams Done.

[Anonymous]

Section 404 of the Sarbanes-Oxley Act of 2002 requires each annual report of an issuer to include which of the following?

a. Reasonable assurances that fraud will be identified before the issuance of the company's annual report.

b. Management representations that the company's external auditors have examined its internal control over compliance with laws and regulations.

c. Management's assessment of the effectiveness of internal control over financial reporting.

d. Representations from the company's external auditors that the company has effective internal control over operations.

[ladybossxo]

It is C

CPA Exams Done.

[Anonymous]

Yes that's right

[Anonymous]

I'm sure this has been asked before, but for anyone who has taken a Becker Final Exam, do you have a good way of assessing your score? I took one just this morning and have no idea what my results mean. Would love to taper my studying down this weekend…

[Anonymous]

hey could someone simply explain positive vs negative assurance? I am having trouble understanding the terms in A2 because i notice they mention them a lot but I dont seem to really understand exactly what they mean.

[trish_1234]

Positive assurance is when confirmation requires a response from customer to agree/disagree with amount

negative assurance is when auditor sends confirmation but only requests a respond only if customer does not agree with amount

thus, positive confirmation is more persuasive evidence

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

[Anonymous]

I think trish is referring to postive/negative confirmations, which are used to confirm the existence of accounts receivables. cpasucks, are you asking about postive and negative assurance over the financial statements? Negative assurance is a weaker form of assurance that an auditor is required to provide in a review report. Negative assurance simply means that nothing came to the auditors attention that would require a material modification to the financial statements. Think negative = nothing. Positive assurance is required in audits, examinations, and other reports. Positive assurance is stronger because the auditor is providing an opinion that the financial statements conform with GAAP. Maybe a simpler comparison would be negative assurance is what the CPA does not know (does not know of any material modifications), and positive assurance is what the CPA knows (knows/reasonably certain that FS conform to GAAP).

[sileemo]

Positive assurance is used when doing an audit or examination. A report with positive assurance will state “all required elements were included”. Because the auditor as performed sufficient work, they can confidently say that all the required elements were included.

Negative assurance also called limited assurance can be used when performing review and the report will state that “nothing came to our attention that caused us to believe that all required elements were not included”. So with negative assurance, they're giving lesser assurance because they did not perform sufficient work. There may be errors that indicate that a required element was not included, but because they did not perform sufficient work it would not be detected. I hope that makes sense.

@trish I think you switched assurance with confirmation.

[trish_1234]

My bad sorry!

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

[Anonymous]

thanks everyone. It is a lot more clear now

[Martin]

TWD Company is subject to international and domestic environmental laws. No one on your staff is familiar with these laws.

Options=

A) Resign from engagement

B)Read everything about the international laws

C)Hire a specialist

D)Disclose the lack of Knowledge in the report

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

[ruggercpa2b]

Is the answer B Martin?

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.

[Author]

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