[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

[DTBird]

When performing risk assessment procedures to obtain an understanding of internal controls, the auditor may include all of the following except:

A.
observing the application of specific controls.

B.
performing analytical procedures.

C.
inspecting documents and reports.

D.
tracing transactions through information system relevant to financial reporting.

^^^^This is a ninja question, the answer is B. However in my Roger book, the Risk Assessment Procedures for internal control include Analytical procedures… Can someone clear this up?

BEC - 77 (5/16)
AUD - TBD (8/16)
REG - 80 (1/16)
FAR - 76 (8/15)

[Spartans92]

I prefer doing Audit right now than FAR but I know I will get destroy on the SIMS because of my weakness in financial accounting. DTBird, I replied to your other post. Hope it helps a little. Good Luck!

BEC- PASS

[RE2PECT]

@pyacpa49 That's exactly what's giving me problems. I feel like some answers are based more on opinion than actual facts. I remember getting one wrong that asked about sending blank AR confirmations and how they would be more likely to send it back since it would make them investigate the balance. Who's to say they would just be lazy and say “F this I'm not telling them my balance, it's their job to tell me what it is.” lol

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

[CPAlife04]

After taking a break from the last testing period, I am back to attack this CPA exam. Hoping for a 75!!!!

Good luck everyone!

Audit: 11/28/15 (72) April 2016
Regulation: 2016
Financial: 2016
Business: 2016
NINJA

"The CPA exam is not a test of my ability, it is a test of my will. I have the will!"

[If I can, u can too!]

DTBird I dun follow u. Ninja n Rogers r consistent. Also other answers r incorrect.

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]

@DTBird:

I think you are confusing “risk assessment procedures” with “risk assessment procedures to obtain an understanding of internal controls”.

The latter is IRON (inquiry, reperformance, Observation, iNspection). Using this logic, we can easily eliminate letters A and C. I think Letter D counts as “reperformance” so if we eliminate that, we are left with letter b, “analytical procedures”.

From another thread I found:

“Analytical procedures are very useful for risk assessment procedures. They can point out areas where a significant increase or decrease in activity occurred. This can help the auditor determine where to focus audit procedures. For example if investments increased from $1 million in the previous year to $100 million in the current year, the auditor would likely perform some additional procedures on investments in the current year.

However, analytical procedures won't help with understanding internal control. So for the example above, if the auditors previous year information related to investments is skimpy or nonexistent, the auditor would likely now perform whatever task is needed to understand the entity's investment recording process and the controls surrounding it.”

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

[pyacpa49]

Hey guys,

Which of the following statements is correct regarding disclosure of client working papers prepared by a CPA?

A.
Working papers may not be transferred to another accountant without the client's permission.

B.
Working papers may not be turned over to a CPA quality review team without the client's permission.

C.
Working papers may not be disclosed under a federal court subpoena without the client's permission.

D.
Working papers may not be disclosed to any third parties without the client's permission.

According to NINJA that answer is A. I was torn between A and D and decided to choose D because I figured there was a better likelihood of some crazy exception that I couldn't remember for A that would make that an incorrect statement.

Would D be incorrect because they are including the third parties in the other answers? Like they can give up their working papers if they are given a subpoena, so they don't need permission from the client to give the information to ANY third parties. That's the only reason I can think of why this would be wrong..

[A]

You're on the right track.

D is incorrect because working papers can be disclosed by subpoena without obtaining client permission.
The agency issuing the subpoena is considered to be a third party.

B - 77 (2.27.16)
A - 81 (4.18.16)
R -
F -

Roger Review + Ninja MCQs

[RunningRach]

crazy question here…but are PERCV/OCCCA/OCCA still the correct assertions that are tested this quarter? I have the COVERU from Becker and trying to get a better grasp on assertions because they are not clicking. I'm questioning the balances assertions: Becker says CVER, and NINJA PERCV….Ninja says presentation/disclosure and Becker does not mention that is one of the assertions. TIA!

B-11/29/2015 68, 2/12/2016 82!!
A-10/23/2015 66, 4/18/2016 75!!
R-6/8/2016
F-8/7/2015 77!!

[pyacpa49]

@mecrushya OK that's basically what I was thinking. Just didn't interpret it like that when I read the question. Thank you.

@RunningRach I believe Wiley also said PERCV.

[If I can, u can too!]

@RunningRach you should read up on assertions and how they are confirmed. reading helped me a lot to understand about the assertions. it helped me pass the audit exam on my 5th try! i read the sections (in entirety) that i was having trouble understanding.

after reading, do some questions and post your questions here when you have doubt, we'll work through them together with you.

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).

[Jamessemma]

@Rosy0407 Every exam you take for the CPA will be tough to understand in the beginning but as you finish all the chapters and go back to the beginning chapters of the book, you will understand what certain terms mean and why they are there.

Its only normal to be confused what certain terms mean to begin with, but only become easier overtime when you understand them. Do not just memorize the words, but understand the concept.

What i started to do (which helped alot) was make time (about 4-5 days) during your review for the exam, to re-watch key lectures that cover the main purpose of that chapter. The instructor will say certain words that make more sense to you now since you know what those words mean.

Usually i do that in the beginning of my review stage so i have more of an understanding before i start practicing multiple choices.

Hope this helped a bit.

BEC: 82
FAR: 80
REG: 81
AUD: Last exam, end of may 2016.

Key to passing the exam is understanding the topic chapter and sections, not just memorizing what you read. The more you practice multiple choice, the greater chance you have to passing the exam.

[utaustincpa]

Which of the following procedures would an auditor most likely perform prior to the balance sheet date?

a. Perform search for unrecorded liabilities.
b. Send inquiry letter to client's legal counsel.
c. Review detail and test significant travel and entertainment expenses.
d. Review subsequent events.

The correct answer is C. but I do not understand why?
I get why it cannot be D but can someone please explain to me why it cannot be A or B please
Thank you

BEC - 80 2/29
AUD - 72, 76

[FAR_WARS]

a. Perform search for unrecorded liabilities.

Wait until after BS date to do this because client has until the BS date to record the event.

b. Send inquiry letter to client's legal counsel.

we are obtaining corroboration of litigation, claims, and assessments existing at the BS date, so wait until or after the BS date to send the letter.

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

[utaustincpa]

@ Far Wars, thank you for your answer, but why cannot we wait till M & E are recorded also in the BS

BEC - 80 2/29
AUD - 72, 76

[Author]

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