[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

[ladybossxo]

@Trish Lol ok I thought you'd send out like AR confirmations to detect that mistake. Eek

CPA Exams Done.

[trish_1234]

LOL Lady! on exam with abt 18 choices (after freaking out for 1/2 hour) Id guess (totally not educated as I have no clue) unless I saw the question before!

lady and Nora what do you think???

sending confirmations is a substantive procedure to detect MM at account balance

these types of questions are asking for controls that will detect or prevent the error.

does the above info help lady?

So Nora looked at the docs that are needed to do the recording, maybe on the exam if there is only one choice that has the word remittance this will work for me. I will try to answer questions using this strategy and see how it goes.

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

[Martin]

tHE ANSWER TO THE PRIOR QUESTION IS B. Without looking at your notes, answer the following=

Who is responsible for the prevention and detection of fraud?

Management

The internal auditor

Those charged with governance

A.

I

B.

II

C.

I and II

D.

I and III

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]

Prevention and detection?

Management

but that question is tricky

I said management bc auditors are responsible for providing reasonable assurance that the financial statements are free from material misstatement whether due to fraud or error. Auditors considers the possibility of fraud etc

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

[trish_1234]

ups auditors were not an option

so answer is management

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

[trish_1234]

oops *

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

[Martin]

I just found another one that looks like the real exam question. Let me wait until someone else answers and I give you the answer.

Field, CPA, is auditing the financial statements of Miller Mailorder, Inc., (MMI) for the year ended January 31, 20X1. Field has compiled a list of possible errors and fraud that may result in the misstatement of MMI's financial statements, and a corresponding list of internal controls that, if properly designed and implemented, could assist MMI in preventing or detecting the errors and fraud. Select the internal control that most likely could assist MMI in preventing or detecting the misappropriation of a customer's check.

A.

Monthly statements are mailed to all customers with outstanding balances.

B.

Remittance advices are separated from the checks in the mailroom and forwarded to the accounting department.

C.

Total amounts posted to the accounts receivable ledger from remittance advices are compared with the validated bank deposit slips.

D.

An employee other than the bookkeeper periodically prepares a bank reconciliation.

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]

see that is tricky bc when is the misappropriation taking place?

I have 2 similar questions and 2 different answers

checks misappropriated after being forward to cashier

Answer ??? multiple choices from sims guess? the answer is one of ur choices above

checks misappropriated before forward to cashier

Answer multiple choices from sims guess?? the answer is in ur answer choices above

ugh hate Auditing

Ughh I am stuck between A and C …B looks good too

On exam Id say A

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

[NoraU]

I go with B?

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[excel monkey]

I'm just starting my AUD studies, but I'll give these a shot.

Who is responsible for the prevention and detection of fraud?

D – I and III – Both management and those charged with governance are responsible. My logic is that obviously management is responsible for P&D of fraud, but who's watching over management to insure they aren't abusing their power with overrides and the like. Ultimately that fails to those charged with governance.

As for the second question – I'm going to say A, based on the following thought:

If the guy/girl in the mailroom opening the envelopes is pocketing the checks, he/she could throw away the remittance advice as well. Neither B, C, nor D would catch this, since both the check and the remittance advice would be gone. The most likely thing to happen is a pissed off customer calling you up when they get the bill saying they didn't pay last month, when the check they sent has cleared their bank. Just a thought, hopefully I'm right.

FAR - 91
AUD - 88
BEC - 86
REG - 79

[ladybossxo]

@Martin, to answer your first question, is it management and internal auditor? I'd say C

Your second question, I am going with A.

@Trish, Lol I remember those two questions, I think if checks are misappropriated before, you'd send out monthly statements but if it is after, the answer is total amounts posted to the accounts receivable ledger from remittance advices are compared with the validated bank deposit slips. But I am not too sure. Lol damn I hate these questions.

CPA Exams Done.

[Martin]

excel monkey, you are absolutely right on both. I used the same reasoning for question 2 If the guy/girl in the mailroom opening the envelopes is pocketing the checks , he/she could throw away the remittance advice as well.

You just started studying Audit? This is the way you answer most questions from Audit 50% logic 50% knowledge. The only problem for me was that to be able to get the logic part, you first have to be extremely familiar with Audit.

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]

These are the answer guys, and no.2 is the kind of questions I saw on the exam 50%logic 50% knowledge

D.

I and III

A.

Monthly statements are mailed to all customers with outstanding balances

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]

UGH

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

[trish_1234]

I just had a bad conversation on the forum abt not working. Took me down, now I am over-thinking other stuff.

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

[Author]

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