AUD Study Group Q2 2015 - Page 77

  • Creator
    Topic
  • #192520
    jeff
    Keymaster

    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/

Viewing 15 replies - 1,141 through 1,155 (of 1,631 total)
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    Replies
  • #669500
    monikaweiner
    Member

    I am anticipating my AUD score.. still a couple of weeks left.. In the mid time I am studying for BEC.. Seems pretty straight forward so far. This is going to be a good year! Just a feeling..

    #669501
    golfball7773
    Participant

    Anybody check this group throughout the day? If so I can post random questions when I need a mental break from work…

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

    *expired

    #669502
    okcpa2015
    Participant

    @golfball bring it on. I'd love some extra practice.

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

    #669503
    okcpa2015
    Participant

    Another tricky one for me…

    Question: Each of the following is identified by both the PCAOB risk assessment standards and the AICPA risk assessment standards as an assertion to be specifically addressed by the auditor, except for

    A. Existence or Occurrence

    B. Completeness

    C. Rights and Obligations

    D. Presentation and Disclosure

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

    #669504
    golfball7773
    Participant

    My best guess is C…..

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

    *expired

    #669505
    Zuly
    Participant

    @ahugemistake I re-wrote all the reports in a word doc by putting them in a table format. The left side had the actual text and the right had my notes of what the text included in a summarized version. I read these several times and especially right before my exam. I'd re-write all the important reports and the engagement letter, management rep letter, etc. This will be helpful to you for the MCQs. For the SIMS you can use the A/L to help you and you'll find the information word for word. My only advice, (wish I had done this prior to the exam), make sure you know where you can find all the reports, letters, etc. in the A/L/ It'll help you find them faster come exam day.

    Here's a sample of an unmodified report…sorry the table format is gone but hopefully you get the idea.

    Independent Auditor’s Report

    My note: Title must include “Independent”

    To the Board of Directors and Stockholders of ABC Company

    We have audited the accompanying consolidated financial statements of ABC Company and its subsidiaries, which comprise the consolidated balance sheets as of December 31, 20X1 and 20X0, and the related consolidated statements of income, changes in stockholders’ equity and cash flows for the years then ended, and the related notes to the financial statements.

    My note:

    Introductory Paragraph

    o Who: Identify the Entity

    o What: State that they have been Audited

    o When: Specify the Date or Period

    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

    #669506
    okcpa2015
    Participant

    @golfball that's what I though as well, but the correct answer is D, Presentation and Disclosure.

    Presentation and Disclosure is an assertion under PCAOB standards, but only a “category” of assertions per the AICPA.

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

    #669507
    golfball7773
    Participant

    well that is bullsh!t

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

    *expired

    #669508
    golfball7773
    Participant

    When there has been a change in accounting principle, but the effect of the change on the comparability of the financial statements is not material, the auditor should:

    A.

    refer to the change in an explanatory paragraph.

    B.

    explicitly concur that the change is preferred.

    C.

    not refer to consistency in the auditor’s report.

    D.

    refer to the change in the opinion paragraph.

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

    *expired

    #669509
    okcpa2015
    Participant

    I'm going with C since it is immaterial.

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

    #669510
    okcpa2015
    Participant

    Question: An auditor tests an entity's policy of obtaining credit approval before shipping goods to customers in support of management's financial statement assertion of

    A. Valuation and Allocation

    B. Completeness

    C. Existence or Occurrence

    D. Rights and Obligations

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

    #669511
    golfball7773
    Participant

    fyi – I am just pulling random questions – I will try to remember the hard ones when I am studying tonight

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

    *expired

    #669512
    golfball7773
    Participant

    C is correct. If an accounting change has no material effect on the comparability of the financial statements, the auditor does not need to recognize the change in the current year's audit report.

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

    *expired

    #669513
    golfball7773
    Participant

    I am torn between B and C…..

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

    *expired

    #669514
    okcpa2015
    Participant

    @golfball The answer is actually A.

    Remember from FAR that Receivables are recorded at Net Realizable Value. If a the company sold goods to a customer with a bad crediting rating then they might be able to assume that they could only collect a portion. That being said the “Value” of the receivable might be less then the amount sold.

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

Viewing 15 replies - 1,141 through 1,155 (of 1,631 total)
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