[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

[knicks92]

can anyone explain the difference between allowance for doubtful accounts and bad debt write off

Tough times don't last. Tough people do.

B: 88
A: 77
R: 89
F:

[Zuly]

@knicks92 Allowance for Doubtful accounts is GAAP because you are recording the bad debt in the same period of the sale, where as the write off method does not follow GAAP. When a company has a credit sale they are supposed to estimate an amount based on two type of approaches where upon recording the sale they also accrue for the bad debt. The J/E looks something like this:

Dr Accounts Receivable

Cr Sales Revenue

Dr Bad Debt Expense

Cr Allowance for Doubtful Accounts

In a bad debt write off the company would not make this type of estimate and they would simply record the sale but not the bad debt as above and then months later when they know the customer is not going to pay that's when they make this J/E to get rid of the receivable.

Dr Bad Debt Expense

Cr Accounts Receivable

Hope this makes sense…Roger does a much better job of explaining it than me. 🙂

FAR - (11/01/14) 71 (02/07/15) 79
AUD - (04/30/15) 86
BEC - (07/21/15) 73 (10/01/15) 75
REG - (11/30/15) 55 (05/19/16) 74

[alafount02]

@ trish_1234 The question was :

Which of the following events occurring in the year under audit would most likely indicate that internal controls utilized in previous years may be inadequate in the year under audit?

A. The entity announced that the internal audit function would be eliminated after the balance sheet date.

B. The audit committee chairperson unexpectedly resigned during the year under audit.

C. The chief financial officer waived approvals on all checks to one vendor to expedite payment.

D. The frequency of accounts payable check runs was changed from biweekly to weekly.

Roger said B was the correct answer and Ninja says C. From everything I have learned I feel both could be valid but I feel like C is the better answer.

AUD: 5/2/15-79
FAR: 8/31/15-80
REG: 11/15/15 -79
BEC: Feb-20-16-71 April 16-77 DONE!

[Martin]

alafount02, it cant be C because you dont know how material that one vendor is, and the question does not tell you either. The audit committee chairperson unexpectedly resigning on the other hand sounds fishy.

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

[okcpa2015]

For this question I thought the time period was 2 years? NINJA say 1. Any insight?

Question: Rules issued under the Sarbanes-Oxley Act of 2002 restrict former members of an audit engagement team from accepting employment as a chief executive, chief financial or chief accounting officer, or controller of an audit client that files reports with the Securities and Exchange Commission. How many annual audit periods must be completed before such employment can be accepted?

Answer: One

FAR - 91
REG - 88
AUD - 98
BEC - 88

[Anonymous]

2 years is the rotation for an audit partner other than the lead partner. A regular member of the audit engagement team is 1 year.

[ladybossxo]

@Ok: Yep the answer to your question is one year. Lead audit partners and concurring partner ROTATE off after 5 years and their TIME OUT period is 5 years. For other audit partners, they ROTATE off the audit engagement after 7 years and their TIME OUT period is 2 years.

CPA Exams Done.

[ladybossxo]

@ala It is C because isn't that management override?

CPA Exams Done.

[ladybossxo]

@Martin: No just waiting patiently for may 5th to come. How's BEC coming along?

@Trish: It was alright. I had two journal entries SIMS. Honestly, don't know what to think of it. So many fill in the blanks. I am just hoping I didn't bomb any SIMS. Good luck studying!!

CPA Exams Done.

[CPA2B_NJ]

Last day before exam. Focus on troubled questions or stick with Adaptive mode?

I'm scoring 80% trending average. I'm definitely not hitting review mode.

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[Anonymous]

Can someone explain to me what the difference is in regulatory basis- general use and regulatory basis?

[CPA2B_NJ]

I only see regulatory basis, I don't see variations of it.

Look at AU-C 800 https://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-C-00800.pdf

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[zcpa32]

Hi Guys,

I have 3 days before my Audit section exam. Just did a sample exam from becker and didn't do so well 🙁

I am straggling with the different requirements for audit engagements v. review engagement. Does anyone have an easy/good way to remember the review engagement requirements?

TYIA

FAR - 83
Aud - 76
BEC - 75
REg- very soon

[monikaweiner]

I just took Audit. What a ride. I got lucky on two sims.. looked them up in the codification. I am anticipating my score in about three weeks. Need to pray hard! In the mid time, I am getting ready for BEC, which seems much easier.

[CPA2B_NJ]

@monikaweiner – I took my exam yesterday too. I felt ok with the MCQs. I was able to find answers in the codification for two SIMS too, but the rest were a concern. Good luck to us all!! I hope good news come out on 05/27 🙂 I prayed and left in God's hands. We did what we could, which was to study hard. God helped to bring what we learned into rememberance and God willing, we will be victorious!

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[Author]

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