[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

[ruggercpa2b]

Trish is it C?

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.

[trish_1234]

rugger and lady you guys are correct!!!!

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

[trish_1234]

In evaluating the reasonableness of an entity’s accounting estimates, an auditor considers whether assumptions are significant. These are most likely to be

A. Objective and not susceptible to bias.

B. Deviations from past experience.

C. Stable and not sensitive to variation.

D. Similar to industry guidelines.

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

[Anonymous]

An auditor most likely would inspect loan agreements under which an entity's inventories are pledged to support management's financial statement assertion of completeness with respect to:

I.Presentation and disclosure.

II.Transactions and events.

III.Account balances.

The answer is presentation and disclosure.

Does anyone know where assigned or pledge inventory is classified on the balance sheet? Becker's question on chapter 4 mentions about completeness assertions when it comes to the pledged inventory for the presentation and disclosure. But I don't know where is the inventory will be presented on the F/S. Thanks for all the help!

[trish_1234]

thought this question was worded funny and it almost through me off

After obtaining an understanding of the entity and its environment, including its internal control, the auditor assesses

A. Detection risk to determine the acceptable level of inherent risk.

B. Detection risk and inherent risk to determine the acceptable level of control risk.

C. Control risk and inherent risk to determine the acceptable level of detection risk.

D. The need to apply auditing standards.

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

[trish_1234]

@ dedication.. I saw this question in gleim too..

I am not 100% sure but I conclude that its disclosed in the notes and this is why: Because it is a completeness assertion for presentation and disclosures (not IS and BS component but notes to financial statements)

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

[AJG38]

Trish…B?

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]

@ajg YES!

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

[AJG38]

Nice! I feel like in the 3K MCQs i've done that I have seen many different instances of problems, and hope the recognition will help on my exam next Tuesday.

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

[Anonymous]

@ trish_1234, thanks for the clarification. I know that the answer explains about that. But there are some questions about ratios that make me think the pledge inventory is separately presented in the B/S. Thanks anyway!

[ladybossxo]

Trish: Is the answer C to your second question?

CPA Exams Done.

[trish_1234]

@ dedication let me know if you figure it out.

@ lady

Answer (C) is correct.

The acceptable level of detection risk for a relevant assertion is a function of the assessed RMMs (the combined assessment of inherent risk and control risk) and the given level of audit risk. Thus, as the RMMs increase, the acceptable level of detection risk decreases.

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

[Anonymous]

“In a test of controls, sample size varies inversely with the tolerable (or maximum) rate of deviation. As the number of allowable deviations increases, the sample size decreases. Sample size increases as the expected population deviation rate increases.” -except from ninja mcq answers

—I get the first part but can anyone explain to me why the “sample size increases as the expected population deviation rate increases”?

thx

[ladybossxo]

@cdwolf: If you expect less deviation, you would use a smaller sample size. If you expect more deviation, you would use a larger sample size. Hope this helps

CPA Exams Done.

[lab2008]

@cdwolf I'm thinking deviation rate has to do with number of errors… think about an audit

in my job if you do a SOX control, the first set of population of samples you have to review is 20 (just an example.) If you go through all 20, without problems you are finished. If you find problem with the 20, you have to expand your population or sample size to check more to see if the first 20 with an error was really a good reflection of how many issues you have with that particular process.

3 out of 4 passed and sitting for FAR on May 31. Will lose credit for Audit if I don't pass FAR by Aug 4. I love leases and bonds.

[Author]

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