[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

[ladybossxo]

An auditor most likely would not rely on controls if the payroll department supervisor is responsible for:

A.

examining authorization forms for new employees.

B.

comparing payroll registers with original batch transmittal data.

C.

authorizing payroll rate changes for all employees.

D.

hiring all subordinate payroll department employees.

CPA Exams Done.

[Anonymous]

d?

[ladybossxo]

@Boricua That's what I thought too, but the correct answer is C

Here's the explanation:

Properly designed control activities should include proper controls over segregation of duties. Examples of specific control activities include authorization, performance reviews, information processing, physical controls, and segregation of duties. In order to have a proper segregation of duties, one should not have the ability to perform multiple control activities.

In this instance, a payroll department supervisor would have controls over the information processing. Giving this person authorization controls violates the segregation of duties control activity.

CPA Exams Done.

[oceansister]

c?

[oceansister]

oops, I didn't see the next post.

[Anonymous]

@ladybossxo I was between C and D too but I chose D. For me, this is a tricky one Thanks! 🙂

[ladybossxo]

@oceansister Yep that's correct.

In an audit of financial statements in accordance with generally accepted auditing standards, an auditor is required to:

A.

document the auditor's understanding of the entity's internal control.

B.

search for significant deficiencies in the operation of internal control.

C.

perform tests of controls to evaluate the effectiveness of the entity's accounting system.

D.

determine whether control activities are suitably designed to prevent or detect material misstatements.

CPA Exams Done.

[Anonymous]

a

[ladybossxo]

@Boricua That's correct! 🙂

CPA Exams Done.

[trish_1234]

Hey guys

My brain is fried from multiple choice and simulation…anyone here studying the book or are we all banging out problems?

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

[Anonymous]

Trish, I didn't even bother purchasing a book for this section. My only study material is the ninja test bank. I utilized this study method for BEC and it worked in my favor, so I'm praying that I'll have a favorable outcome for Audit as well. After suffering through the Wiley texts for REG and FAR, I found that I learn better by hammering questions.

[ladybossxo]

@Trish: I am reading the book, though this time, I read a section, stop, do questions, understand the concepts, move on to the next topic.

CPA Exams Done.

[trish_1234]

Great, I am going to buy Ninja today! this is my second attempt at AUD (69) I studied a lot first time round book audio memorizing etc after sitting the exam I also think the best way to study is endless mcq and sims …. Lets do this!!!

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

[trish_1234]

Lady, I looked through the statements on auditing standards to see if it has info on the “ugh” sections of AUD nothing!!! I spent so much time trying to figure out controls that I think I forgot the other stuff lol

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

[ladybossxo]

When evaluating internal control of an entity that processes sales transactions on the Internet, an auditor would be most concerned about the:

A.

lack of sales invoice documents as an audit trail.

B.

potential for computer disruptions in recording sales.

C.

inability to establish an integrated test facility.

D.

frequency of archiving and data retention.

CPA Exams Done.

[Author]

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