[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/

[okcpa2015]

@Cpasucks23 got it. Sounds like you're going to knock this thing out of the park. Good luck.

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

[Anonymous]

I started studying this past Friday for AUD so I am not much help yet but will start responding to questions as soon as I start getting an understanding and progress some on my studies. I am kicking myself for not starting to study while I was waiting for my FAR results but was so convinced I had failed that I did not find the motivation.

@cpasucks

Per my understanding of the piecemeal opinion – the opinion (or lack of = disclaimer) is given on the Financial Statements as a whole AND a different opinion is given on one of the Financial Statements of the same group. On the choice 4) above – it does not state if any / what opinion was given on the Financial Statements as a WHOLE.

@jbarwick

Congratulations on your pass! Seems we have the same order of exams so far 🙂

[JeanPaul9]

Can someone please provide justification for the answer to this question. I'm taking audit tomorrow.

I understand that an EXAMINATION of IC should be integrated with an audit of an non-issuer's FS and the auditor is required to report on the effectiveness of the IC either in a combined or a separate report.

When planning an engagement to examine the effectiveness of the entity's internal control in an integrated audit of a nonissuer, a practitioner would least likely consider which of the following factors?

A. Preliminary judgments about the effectiveness of internal control.

B. The extent of recent changes in the entity and its operations.

C. The type of available evidential matter pertaining to the effectiveness of the entity's internal control.

D. The evaluation of the operating effectiveness of the controls.

[okcpa2015]

@jeanpaul, is the answer D? The auditor is still in the planning phase of the audit, they would have yet to evaluate the effectiveness of internal controls.

PLANNING is the key word in the question.

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

[JeanPaul9]

Thanks @okcpa2015 the answer indeed is D and your reasoning makes total sense. I'd have to take the key word into consideration.

[okcpa2015]

No problem. Good luck tomorrow. You're going to kill it.

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

[JeanPaul9]

Thanks @okcpa2015

[Anonymous]

Slightly silly question, I took FAR last quarter and am sitting for AUD this quarter. Last time, I “exited” the exam as I was finished and wanted to quit before the time ran out … it saved and everything was okay, but i know that is not the right way to exit the exam. So, question is, since I cannot remember the screen — what is the correct way? Is there like a “continue” button? I definitely do not remember any other complete buttons as I was looking around for a while.

[okcpa2015]

Not sure exactly what to select, but that 97 on FAR looks pretty good… Shouldn't be worried

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

[okcpa2015]

To start your Wednesday…

Which of the Following is Correct concerning a CPA firm's preparation of financial statements?

A. The statements should only be used by management and not third parties

B. A written engagement letter or oral agreement is required

C. No accountant's report ordinarily accompanies the financial statements

D. At a minimum, the accountant preparing the financial statements must comply with the compilation standards

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

[golfball7773]

I have no effing clue…….

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

*expired

[okcpa2015]

@golfball, I'm with you. That's why I put it on here lol.

The answer is C. An accountant typically only provides a report for an audit, review, or compilation. No report is required for preparation of financial statements.

I think the question is trying to make you distinguish between a compilation and preparation.

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

[NoraU]

I found this thread that might help to distinguish between a compilation and preparation.

https://www.another71.com/cpa-exam-forum/topic/audit-compilation-vs-financial-statement-preperation

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]

@NoraU that's perfect. Thanks for sharing!

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

[Anonymous]

great question okcpa. Thanks for posting

So is a letter of engagement or oral agreement not necessary, or is it that this is not what is being asked? If the prep was not at least agreed to then why would a CPA even do it?

I totally agree with the answer being C, but could it also be B or no?

[Author]

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