[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

[okcpa2015]

Welcome @Tcohle. I see you're using CPAExcel, are you using the exam planner tool?

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

[Tcohle]

@okcpa yes I am. I'm planning on getting the ninja combo for this one too. Felt overwhelmed by the CPAExcel exam planner for FAR, but should be more prepared this time.

P.S. I'm a pacers fan, love Kevin Durant though! Westbrook's a beast too

FAR- 5/11/15 76!!
AUD-10/31/15 63, 84!
REG-7/12/16 72
BEC-8/31/15 75!! Perfect Score!

Wiley CPAExcel Platinum
Ninja 10 pt combo for FAR/AUD/BEC

[okcpa2015]

Thunder Up! We have an awesome group of guys playing for us, it's exciting to watch.

I'll tell you that the AUD material 10 times easier to get through than the FAR material. Study planner worked well for me to learn the material, but for practice I suggest NINJA MCQ. NINJA MCQ has helped me connect all the material together instead of just “knowing” 20 different topics.

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

[Tcohle]

Yeah you do! I can't imagine what it's like in that arena for home games! Must be so much fun. I live in PA but am a Pacers fan, so the Sixers are the only team anyone talks about.

That's a huge relief. I think it's a good idea to take FAR first because the rest of the tests probably feel like they're easier to study! lol. Definitely getting Ninja MCQs they're awesome. If I fail FAR I'm going to try and take it July 1st.

I'm dreading REG, I never liked tax.

FAR- 5/11/15 76!!
AUD-10/31/15 63, 84!
REG-7/12/16 72
BEC-8/31/15 75!! Perfect Score!

Wiley CPAExcel Platinum
Ninja 10 pt combo for FAR/AUD/BEC

[Anonymous]

You guys are right. The answer is B.

Explanation

Choice “b” is correct. Accounts receivable turnover is calculated as sales / average net receivables. A decline in this ratio may indicate that there was an improper cutoff of sales at the end of the year. For example, if sales made at the beginning of the subsequent year were inadvertently recorded in the current year, both sales and receivables would be overstated by the same amount. This would generally result in a larger proportionate effect on receivables (since the receivables balance is smaller than sales for the year), and an overall decrease in the ratio.

@Tcohle, everyone is different in how they interpret these tests. I found AUD to be the hardest out of the bunch. Everyone has different backgrounds and what is hard for one person may be easy for another. I actually found FAR to be the easiest to study for because of all the financial reporting classes I took in college. Just something to keep in mind. As you can see by my scores, I don't do great so my advice may not be worth as much as others. Good luck with your studies.

[jbarwick]

Onto A2 of Becker and it is just so much information. Not overly complex like FAR can be but little nuances. As I look at some of the questions in here, I am not far enough to help out but once I get some more ground in AUD, hopefully I can lend a hand.

Journey Started - January 2015
FAR - 4/2015 - Passed
AUD - 7/2015 - Passed
BEC - 8/2015 - Passed
REG - 11/12/2015 - Passed

[okcpa2015]

Question: Which of the following procedures concerning accounts receivable would an auditor MOST likely perform to obtain audit evidence in support of an assessed level of control risk below the maximum level?

A. Observing an entity's employee prepare the schedule of past due receivable

B. Sending Confirmation requests to an entity's principal customers to verify the existence of accounts receivable

C. Inspecting an entity's analysis of accounts receivable for unusual balances

D. Comparing an entity's uncollectible accounts expense to actual uncollectible accounts receivable

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

[okcpa2015]

@jbarwick jump in with any questions whenever. Glad to have you.

To be honest, the biggest benefit of this forum for me is usually if I posted a question on here I typically won't forget it. So start early and often if you'd like.

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

[Anonymous]

Hey everyone I am taking audit tomorrow and would appreciate help on the question below:

Auditing standards require that the independent auditor's report shall contain either an expression of opinion regarding the financial statements, taken as a whole, or an assertion to the effect that an opinion cannot be expressed. Which of the following would be prohibited by auditing standards?

1) The auditor disclaims an opinion on the entire set of financial statements.

2) None of the above are prohibited.

3) An auditor is hired to render an opinion on the balance sheet only.

4) The auditor disclaims an opinion on the income statement and on the statement of cash flows, but renders an unmodified opinion on the balance sheet.

I thought the answer would be choice 4 because that is a piecemeal opinion and would thus be prohibited, but the answer is 2. Can someone please explain. It specifically states in Becker A2-13 that a single FS is considered to be a major portion of a coplete set of FS. Therefore, an unmodified opinion should NOT be expressed on a single FS if the audtior expressed an adverse or disclaimer opinion on the complete set of FS

[okcpa2015]

@cpasucks, you can't disclaim an opinion for the financial statements taken as a whole, but then provide an opinion on something else (such as receivables is fairly stated or the balance sheet if fairly stated). That would be a “piecemeal” opinion.

However, an auditor can provide an opinion on any single financial statement so long as the there is not a scope limitation.

Hope that helps. Good luck tomorrow.

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

[Anonymous]

@okcpa2015…isnt choice 4 a piecemeal opinion though?!?! The BS is getting an unmodified opinion while the income statement and cash flows is getting a disclaimer of opinion. Is piecemeal only work for specific accounts or balances instead of an entire statement (dont think thats what i read)

[NoraU]

@okcpa2015: Is the answer A? I think all other choices are substantive procedures.

My test is Friday and I really need all the luck possible. I am not sure I can go through this material third time…

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!!!!!!!!!!!!!!!!!!!!!!

[okcpa2015]

Think about what typical audit engagement if for? To provide a opinion on the Financial Statements taken as whole. If you disclaim an opinion on the Financial Statements taken as a whole, but then turn around and and say the balance sheet is fine that would overshadow or contradict the main audit opinion.

Also, the term “disclaim” above seems to indicate “We didn't audit this.” But if you disclaim the Financials Statements taken as a whole your saying “there is something material and pervasive enough to the financials that we can't form an opinion.” Two different things here.

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

[okcpa2015]

@NoraU, correct. The answer is A. Looks like you have a good understanding of what's going on.

Observation and Reperformance are typically the best ways to test a control.

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

[Anonymous]

oh wait i think i understand now.

So if you give an disclaimer on statement of cash flow and income statement but unmodified on BS thats ok and NOT a piecemeal.

BUT if you give a disclaimer on the entire FS and than give an unmodified opinion like accounts receivable or balance sheet, than thats not ok and is a piecemeal opinion right?

I think i just got confused with assuming statement of cash flow and income statement being considered the entire FS.

[Author]

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