[jeff]

Welcome to the Q2 2016 CPA Exam Study Group for AUD.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[cultur3]

@Veggie I'm using Ninja. I'll go check those responses. I still think the answer is A personally.

F 83 4/09/16
A 85 6/10/16
B 81 7/19/16

[jpowell31]

The answer is D (per ninja). The client should not be involved in determining materiality.

[Veggie]

Without researching, go!

The AICPA has outlined auditor reports based on three services that may be provided on service organization controls (SOC). The type most directly related to SysTrust is:

1. SOC 1
2. SOC SYS
3. SOC 3
4. SOC OC

BEC (2/27) 85

CMA Part 1 (10/14) 440
CMA Part 2 (5/15) 420

[Anonymous]

@ Veggie: Without researching, gotta be number 1, right? I have only heard of SOC 1 reports (Type 1 and type 2). The others are not familiar at all.

I have a question. My question is *not* what is the answer to the following problem, I am only pasting it below for context. I was wondering what is an example of “an audit objective related to particular assertions”? I am not looking for a definition (audit objective = goal of audit testing), but an example? Are there specific audit objectives that can be listed, or is this some generic idea, like “the objective is to obtain sufficient appropriate evidence to substantiate management's assertions”?

Okay, I just re-read the above paragraph, and it seems to be a list of all the things I don't want to know. 🙂 So here is my question: Is there a list of audit objectives related to particular assertions?

An auditor may achieve audit objectives related to particular assertions by:
a. Performing analytical procedures.
b. Preparing audit documentation.
c. Increasing the level of detection risk.
d. Adhering to a system of quality control.
Explanation
Choice “a” is correct. The auditor relies on substantive tests to achieve audit objectives related to particular assertions. Analytical procedures are one type of substantive procedure.
Choice “d” is incorrect. CPA firms performing audits are required to adhere to a system of quality control, but adhering to such a system does not directly help the firm achieve specific audit objectives.
Choice “b” is incorrect. Audit documentation is used to record the results of audit procedures that have been performed to achieve audit objectives. Mere preparation of audit documentation does not achieve audit objectives.
Choice “c” is incorrect. Increasing the level of detection risk does not enable the auditor to achieve audit objectives related to a particular assertion.

[jpowell31]

@Veggie I'm going with a) for the same reason…are the other answers real :)?

@bet10… I think it's more generic so your point on obtaining reasonable assurance to support management assertions would be right. In the example, a) is the only way to obtain audit evidence of answers provided.

[Anonymous]

@jpowell31 – Cool, thanks.

[Veggie]

Correct answer is 3 or C, whichever: SOC 3.

SOC 3 reports are designed to meet the needs of uses who want assurance on the controls at a service organization related to security, availability, processing integrity, confidentiality, or privacy but do not have the need for or the knowledge necessary to make effective use of a SOC 2.

I have no clue 🙂

BEC (2/27) 85

CMA Part 1 (10/14) 440
CMA Part 2 (5/15) 420

[Jackobe24]

what the heck is this SOC? how come I didn't see any of this in Becker or Ninja….at least I don't remember…

FAR - 9/8/16 (Hopefully it's my last CPA exam, God bless me!)
REG - 80
BEC - 81
AUD - 69, 81

[Jackobe24]

Question….

in those bank transfer schedule question about kiting….

do we only look at the cash disbursement and received date by the bank to determine? and the cash disbursement and receipts per book date doesn't matter?

FAR - 9/8/16 (Hopefully it's my last CPA exam, God bless me!)
REG - 80
BEC - 81
AUD - 69, 81

[Veggie]

@Jackobe24 It's service organizational controls. I don't know much about it, I just started looking into it as I've had two practice questions on it.

SOC 1 engagement is based on an entity's internal control over financial reporting
SOC 2 report is on one or more of the SysTrust Principles
SOC 3 report is in essence a SysTrust report

BEC (2/27) 85

CMA Part 1 (10/14) 440
CMA Part 2 (5/15) 420

[Theodore]

does anyone know where I can find a better explanation in regards to ratios? Just when I think I understand them, I don't and my exam is in less than two weeks 🙁

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[Anonymous]

@ Jackobe24 – I am not sure what questions you are looking at, but I just re-read the Becker description of kiting, and it is either confusing or wrong. The biggest thing to make sure of in a bank transfer schedule is that the book disbursement date is the same as or before the book received date. The bank records are good for reconciling, but it is the company's accounting records that will affect the financial statements.

[waffle_house]

@Jackobe24 Piecemeal means the auditor expressed an opinion on the F/S as a whole (adverse, disclaimer) but expressed an unmodified opinion on a single F/S. This would contradict the adverse or disclaimer of opinion.

@didato I think what you are referring to is a scope limitation imposed by management. Yes an auditor would need access to all information to provide a sufficient basis for their opinion if not then this would be considered a scope limitation and the auditor might want to issue a qualified or disclaimer of opinion or withdraw from the audit.

[TheHoundThatRides]

Finished the exam again in 2 hours. I just….didn't see the need to spend more time on it.

I feel like the first testlet was on the same par difficulty as a Ninja MCQ testlet. But on the 2nd and 3rd testlets I was fuzzy on a lot just like my last attempt. Hopefully doing well on the 1st testlet puts me over the edge this time around!

I feel I might have done slightly better on the SIMS this time. But just barely.

Whether I pass or fail, I'm sure it'll be in the 70's range.

BEC - 78 (August 2015)
FAR - 80 (November 2015)
AUD - 73, 67. (Ok I gotta confess I was even more lazy this time around)
REG - August 27th, 2016

[Operation_CPA]

Which of the following management roles would typically be acknowledged in a management representation letter?
a. Management's compensation is contingent upon operating results.
b. Management's knowledge of fraud is communicated to the audit committee.
c. Management has the responsibility for the design of controls to detect fraud.
d. Management communicates its views on ethical behavior to its employees.

Correct answer C

Which of the following matters would an auditor most likely include in a management representation letter?
a. Management's acknowledgment of its responsibility for the detection of employee fraud.
b. Communications with those charged with governance concerning weaknesses in internal control.
c. Plans to acquire or merge with other entities in the subsequent year.
d. The reasonableness of significant assumptions used in making accounting estimates.

Correct answer D (I chose A). What is the difference b/n these two questions??

[Author]

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