[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

[pyacpa49]

@Wanna_B_TXCPA2014

I mean that does make sense. And those are along the same lines of how I think of it. But it still seems like there are gray areas between a disclaimer and a qualified, or an adverse or qualified. Like, what seems really bad to me (adverse) may seem like a problem but not a deal breaker to you (qualified). This would come from experience and familiarity with the client, so the “correct” answer seems to vary based on the situation. But we don't have the luxury of experience with working with clients and, some of us, don't have a ton of real world experience in audits. So to me it seems like it would be safer to issue a more conservative opinion. But this has not always been correct as I go through questions. Just seems subjective.

[pyacpa49]

@FAR_WARS I was going through a ton of questions yesterday and eventually gave up and tried to get some sleep. Don't have the question right off hand. I was really hoping to open discussion to see if anyone may have some helpful ways to remember the difference. Get some life in the board and try to get some clarification/hints/tips that would benefit all of us. If I do get another question I'll post it as an example.

Very good point on the distinction between modified report or modified opinion. Something that makes sense, but I never really paid too much attention to. Maybe that could something that was tripping me up as well.

[Wanna_B_TXCPA2014]

After reading the question like 5x I still can't figure out what the question is asking. I picked Human error because all the other items seemed to be indicators of fraud.

Anyone have a good system for organizing your thoughts for questions in the negative?

Which of the following is not a possible reason why a properly designed system of internal control may fail to prevent or detect fraud?
a. Human error may result in an inappropriate application of controls.
b. Collusion by two or more individuals may be used to circumvent controls.
c. Management may override controls through its attitude and actions.
d. Inadequate segregation of duties may allow one person to both perpetrate and conceal fraudulent activity.
Explanation
Choice “d” is correct. Inadequate segregation of duties implies that the system of internal control was not properly designed.
Choice “b” is incorrect. Collusion can be used to circumvent properly designed controls.
Choice “a” is incorrect. Human error may result in an inappropriate application of properly designed controls.
Choice “c” is incorrect. Management's attitude and actions may result in the override of a properly designed system of internal control.

[EuroAddict]

Wording is very tricky with audit Q's.

If you have a properly designed system of IC, which is the least likely reason that it (the properly designed system) wouldn't detect or prevent fraud.

Segregation of duties is part of an adequately designed system. The Q is asking about an ADEQUATE system. Gosh AUD was a pain and it's even harder to try and help on. lol

Sometimes if you try to re-write the Q yourself it helps you fight through it.

-----------------------------
BEC - 77, 03/2015 (first try)
FAR - 79, 05/2015 (second try)
REG - 83, 12/2015 (first try)
AUD - 84, 03/2015 (first try)

I got 99 problems but the CPA ain't one.

[Wanna_B_TXCPA2014]

@Euroaddict Wow even with doing what you said and re-wording it I still feel like I got a little twisted around. I will keep that technique in mind as I come across another question in the negative. I seem to consistently struggle with those types of questions.

[pyacpa49]

@ Wanna_B_TXCPA2014

I usually turn them into true or false type questions. So when it says which is not correct, you are looking for the false statement in your answers. However, with this question, all of the answers are true, technically. Even though D is technically incorrect in the context of this question, it is still a correct statement, which means this tactic doesn't really help here. Good explanation by EuroAddict though.

[If I can, u can too!]

@Wanna_B_TXCPA2014 it's a common type of question asked in a million way. keep plugging, things will stick in until you become a question answering machine. <- ultimate stage ppl normally reach before the exam day. ^^

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[FAR_WARS]

a double negative = a positive so you could eliminate them and read the question like this:

“Which of the following is a possible reason why a properly designed system of internal control may prevent or detect fraud?”

IC would be the only option b/c the others are “errors of internal control.

Miles (cococ) and Roger (coco) both have mnemonics for this:

Collusion (fraud)
Override (fraud)
Competence (error)
Objectivity (error)
Cost/benefit

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Wanna_B_TXCPA2014]

Thanks FAR_WARS and hokinizeu! I am reading myself for 100 MCQ's of Audit Evidence fun tonight!!! Who's coming with me?

[EuroAddict]

I'm still shocked that @FARWARS didn't pass.

-----------------------------
BEC - 77, 03/2015 (first try)
FAR - 79, 05/2015 (second try)
REG - 83, 12/2015 (first try)
AUD - 84, 03/2015 (first try)

I got 99 problems but the CPA ain't one.

[pyacpa49]

@Wanna_B_TXCPA2014

Right there with you! My test is on 4/11 and I am beginning to freak out just a little (a lot).

[Wanna_B_TXCPA2014]

@pyacpa49 we are going to do this!

Got my Ninja Notes, Becker Live Lecture notes, and Baaaaaad Intentions!!! I mean to do some harm to MCQ's tonight. I mean make em say in my TNT Mark Jackson voice “Mama there go dat Man”

Hope everyone's studying goes well.

[RE2PECT]

Did 135 mcq today on audit evidence and got crushed! lol My least favorite topic so far and looks like it's going to be the one I need to focus on the most.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[Theodore]

Started reading Ch. 1 of Becker study material with a positive attitude and slowly started looking for excuses not to continue reading. It is soooo boring. This is going to be one hell of a ride. and to top it off, some of the questions are so hard to understand. (sigh)…

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

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

[pyacpa49]

I am going through questions and am noticing that I am constantly getting sampling questions wrong. How important would we say sampling is to know? Would a broad understanding of sampling be enough, or should this be a section I really should hit hard? In going through my material it seems like there are a lot of other sections that would be better to know.

@RE2PECT Audit evidence used to give me trouble too. Still does at times, but I have gotten a lot better at it. Definitely had to focus on this section a lot. My problem with it is that all of the answers seem correct. It usually asks for the “best” answer which always gives me trouble. Questions like these make me regret not going into public right out of school.

[Author]

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