[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

[Camille8291]

Well I got a 74. My breakout was 3 strong and 3 comparable, but I was weak on SIMS. Morale is no matter how strong we are on MC, it won't matter if SIMS are weak.

Make sure you really know ratios (increases/decreases) and really know risks.

[Anonymous]

Awesome. I'm testing May 15. The thread has been dead lately. I want to do questions/quizzes/helpful hints, but if I was the only one testing soon, it would have been pointless.

[golfball7773]

I am going to start trying to answer/post questions when I see them

FAR: 63, 55, 62
REG: 65, 77*
AUD: Fail, 64, 71
BEC: 72, 74, 81

*expired

[Anonymous]

Headed to a meeting soon, but I will be back on here tonight posting questions and asking for clarity/explanations.

[Anonymous]

An auditor examining inventory most likely would use variables sampling rather than attributes sampling to

a.Identify whether inventory items are properly priced.

b.Estimate whether the dollar amount of inventory is reasonable.

c.Discover whether misstatements exist in inventory records.

d.Determine whether discounts for inventory are properly recorded.

The answer Wiley gives is: B. Explanation : This answer is correct because variables sampling deals with dollar amounts (or quantities), and accordingly, this answer is correct because it involves the dollar amount of inventory. Attributes sampling addresses deviation rates from various controls.

---

Im sure im missing concepts here since I cannot see why C would not also be correct? The explanations for a,c,d state that these wrong answers involve Attribute sampling and not variables sampling.

Can anyone explain why C or ‘Discovering if misstatements exist in inventory records' would (most likey) be Attribute sampling and not variables sampling?

Thanks

[Camille8291]

@cdwolf

The reason C is incorrect (I believe) is because of the word “record”. Generally when there are misstatements in records thats when internal controls are being tested. If the question would have said something like misstatement exist in substantive testing, I believe the best answer would have been what I just mentioned. I think because you saw the word misstatements you and me both, would almost automatically assume misstatements have to be dollar amounts but thats not always the case. Someone else might have a better/different answer from me.

[trish_1234]

awwwwww lady CONGRATS 🙂 sooo happy for you!! now you can go back to living!!! wishing you nothing but success

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

[trish_1234]

CD wolf that is a good question you posted… I believe the key word to the correct answer is “dollar amount”…

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

[trish_1234]

An auditor reports on an examination of the effectiveness of an entity’s internal control over financial reporting. If the control criteria used are established by a regulatory agency, the report should

A. State that the practitioner assumes responsibility for the comprehensiveness of the criteria if they have not been subjected to due process procedures.

B. Modify the inherent limitations paragraph.

C. Contain a statement of restriction on use if the criteria have not been subjected to due process procedures and are appropriate only for a limited number of users.

D. Identify the control criteria in the scope paragraph.

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

[okcpa2015]

I agree with @trish that the key word is “dollar amount”.

Variable sampling is testing to see if an amount is within a “reasonable range” (also consider the word reasonable).

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

[law0915]

The AUD exam was all concept application

REG 77 Feb14
BEC 13*, 79 Aug14
FAR 64**, 76 Nov14
AUD 89 Feb15

*Exited exam after first testlet
**Only studied F1-F6 out of 10 Becker chapters

Licensed Arizona CPA

[Anonymous]

@cdwolf as others have stated, I would have picked that answer specifically since it mentioned “dollar amount”. Other than that, I have no explanation 🙁

@trish: good question. I have no idea. Is it C?

[trish_1234]

Good job cpatitle

Answer (C) is correct.

If the criteria were established by a regulatory agency after following due process procedures, including distribution of proposed criteria for public comment, and the criteria are available to users, a standard form of reporting may be used. If the control criteria have not been subjected to due process procedures, and the auditor determines that the criteria are appropriate only for a limited group of users (e.g., those who participated in their establishment), the appropriate form of the report should be modified to include a restriction on use stated in a paragraph following the opinion paragraph (AT 101).

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

[ahugemistake]

@trish I'm going with C

2nd guess D

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[trish_1234]

I was suppose to retake auditing for this score release but didn't… Going through the material again to take it asap. Not excited SIMS kills me…. I wish we had more increases/decreases of ratios questions to practice!!! I wish the material would better cover sims, I feel no matter how much I study, I can very easily fail thanks to simmsss

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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