[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

[Anonymous]

@trish_1234, I would go with D? Because reperformance tends to be the strongest evidence of operating effectiveness, whereas inspection, observation, and inquiry are mainly used by the auditor in obtaining an understanding of the design and implementation of the control…? That is kind of a weird question. Curious to know the answer.

[nissacof]

definitely a weird one…D. Reperformance?

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

[Martin]

I have a quick question. If a client does not disclose a going concern issue, we will have to qualify the opinion because inadequate disclosure. But if the going concern is very material, we will have to issue a disclaimer, Why not adverse since it belong to the disclosure principles? Is it because the client's going concern is such a big deal that only merits a disclaimer?

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

[MandiJ21]

@DPD516, You're right that the details and wordiness of the questions can easily throw you off but we just need to stay focused. Our hard work will pay off. I will be rereading chapters in CPAExcel and the Ninja book as well as working those MCQs and practice SIMS until noon on Friday and then its game time. My lack of work experience in Audit is making me nervous too but plenty of people pass without it. We seem to be on the same timeline as far as when we are taking our exams. Good luck to you!

FAR-85 (1/28/15)
AUD-91 (4/3/15)
BEC-82 (5/21/15)
REG-90 (7/31/15)

I am done!!!!

[trish_1234]

I know… would have thought reperformance too…

correct answer inquiry …argument that inquiry is always used together with a combination of the other choices…

Answer (A) is correct.

According to AU-C 330, an auditor’s tests of controls include other audit procedures in combination with inquiry. For this purpose, inquiry combined with inspection, reperformance, or recalculation may be preferable to inquiry and observation. Observation is relevant only at a moment in time.

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

[AJG38]

@Martin…..I believe, based upon the adequacy of disclosures, you would be choosing from an unmodified, qualified, or adverse opinion, depending on the lack of disclosure and the pervasiveness of the omission. In regards to the aforementioned I don't think you would ever have a disclaimer of opinion, perhaps if there were a pervasive lack of sufficient audit evidence.

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

[trish_1234]

@ martin, I also was confused with the whole disclaimer and adverse situation…. I accept the adverse due to inadequate disclosure ….

but a disclaimer of opinion is due to an inability to obtain sufficient appropriate audit .. So I don't get the whole idea behind this disclaimer. My book simply says ” by itself, the substantial doubt ordinarily does not require a modified opinion, but the auditor is not precluded from disclaiming an opinion”

My thoughts is that maybe the disclaimer is due to the fact that the going concern is so bad that the auditor could not obtain sufficient appropriate evidence that the going concern will be resolved!?

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

[Anonymous]

@nissacof – Thanks.

[Martin]

Ajg38, thanks.

When you qualify an opinion because of insufficient evidence do you have to change the Auditor's responsibility paragraph? According to Becker, you have change it,but not according to Roger. According to Roger, you only change the Auditor's responsibility paragraph on a disclaimer.

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]

Martin,

Gleim says you do…. it states the following for modifying the opinion (qualified) due to lack of sufficient evidence, “we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.”

Would be nice if there was consensus, especially for a seemingly more relevant topic, amongst the study prep materials!

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]

Ajg38, I doable checked with Becker, and Gleim is correct. Roger is wrong on this one. When are you taking the exam?

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

[Martin]

What do you have for emphasize of a matter that are not mandatory?

I have as optional=

Related party transactions

Material Uncertainties

Subsequent events

Lack of concistency

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]

For the optional emphasis of matter paragraph:

1. Uncertainty due to future outcome of unusually important litigation or regulatory action

2. Major catastrophe that has had/continues to have significant effect on financial position

3. Significant related party transactions

4. Unusually important subsequent events

Exam April 7 at 9:00 AM!

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

[trish_1234]

I dont remember reading abt the answer to this question, its not that tricky but thought Id share ….

Which of the following statements about an auditor’s communication of internal control related matters identified in an audit of a nonissuer is true?

A. Significant deficiencies or material weaknesses need not be recommunicated each year if the audit committee has acknowledged its understanding of such deficiencies.

B. Significant deficiencies or material weaknesses may not be communicated in a document that contains suggestions regarding activities that concern other topics such as business strategies or administrative efficiencies.

C. The auditor should communicate significant internal control related matters no later than 60 days after the report release date.

D. The auditor may issue a written report to management and those charged with governance that no significant deficiencies were noted.

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

[Anonymous]

The report should be issued no later than 60 days after the report release date?

[Author]

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