AUD Study Group Q3 2016 - Page 2

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  • July 5, 2016 at 7:58 pm #784952
    Bear-Bear
    Participant

    I'm sure I'll be sick of it soon enough, but having just taken REG….all I can say to theory is “Sweeeeeeet.”

    FAR - PASS
    BEC - PASS
    REG - PASS
    AUD - PASS

    Done and licensed!

    July 6, 2016 at 3:44 am #784953
    Madam Secretary
    Participant

    so anyone who can lend some answer to my question?

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
    July 6, 2016 at 3:45 am #784954
    Madam Secretary
    Participant

    #2. In a review engagement, the accountant should establish an understanding with the entity regarding the services to be performed. The understanding should include all of the following except a

    A. Description of the nature and limitations of the services to be performed.
    B. Description of the report the accountant expects to issue.
    C. Provision that the engagement cannot be relied upon to disclose errors, fraud, or noncompliance with laws and regulations.
    D. Provision that any errors, fraud, or noncompliance with laws and regulations that come to the accountant’s attention need not be reported to the entity.

    my question: between B and D, why the best answer is D? why not B? can anyone shed some light on this, please. does it mean, that in understanding phase of review engagement, we can describe the review report that we expect to issue?

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
    July 6, 2016 at 4:32 am #784955
    patelhj1
    Participant

    @Warrior – I just started studying for Audit and I just completed A1 in Becker, so I am attempting this with my limited knowledge.

    The answer is D because is it not the job of the auditor to report any error, frauds, or noncompliance with laws and regulations; this is not the job of an auditor. The job an auditor is to express an opinion on whether the F/S are presented fairly.

    The answer is not B because the auditor would be required to plan for the audit therefore a description of the report the account expects to issue would be included.

    PASSED ALL CPA EXAM AUG 2016

    BECKER / NINJA MCQ

    BEC 78 08/2015
    REG 71 11/2015, RETAKE 83 01/2016
    FAR 75! 5/2016
    AUD ? 8/2016

    Becker with Nonstop NINJA MCQ
    Google most difficult professional exam

    July 6, 2016 at 5:05 am #784956
    CPATG17
    Participant

    @Pateihj1 You are correct. D is the most reasonable answer here and that is because its a “Review ” ONLY

    Generally, any indication of fraud even immaterial fraud should be discussed with an appropriate level of management
    “At least one level above those involved. Or if any fraud involving senior management, regardless of the impact to the F.S., should be reported directly to those charged with governance.

    When you get to F3 – Becker you will see it all under Fraud Risk

    AUD - 08/23/2016
    REG - TBD
    BEC - TBD
    FAR - TBD

    July 6, 2016 at 7:49 pm #784957
    Madam Secretary
    Participant

    @patelhj1 thank you.

    @CPATG17 thank you.

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
    July 6, 2016 at 7:50 pm #784958
    Madam Secretary
    Participant

    I'm using Gleim. I would appreciate it if you could post some questions from becker too. thank you.

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
    July 6, 2016 at 8:22 pm #784959
    Madam Secretary
    Participant

    I got this wrong.

    A CPA is required to comply with the provisions of Statements on Standards for Attestation Engagements (SSAE) when engaged to
    A. Report on financial statements that the CPA generated through the use of computer software.
    B. Review management’s discussion and analysis (MD&A) prepared pursuant to rules and regulations adopted by theSEC.
    C. Provide the client with a financial statement format that does not include dollar amounts.
    D. Audit financial statements that the client prepared for use in another country.

    Correct Answer: B. why?

    Note: My answer was between A or B. I choose A because I thought B referred to issuing for public SEC purposes and SSARS is not for public, they are for private companies. I misunderstood what the statement meant to be. I was in a hurry. Attestation engagement from my understanding includes compilation (which is A). My bad. To correct myself, attestation engagement includes only my “EAR”; Examination, Aup and Review.

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
    July 6, 2016 at 10:28 pm #784960
    A1lessio
    Participant

    @warrior for SSAE we are focusing on attestation engagements and not audits. So my understanding is that we are providing reasonable assurance that managements assertions (about forecast, projections, etc) are correct. In an audit you would provide an opinion as to whether the F/S are free from material misstatements but not in a SSAE.

    When I answered this question I automatically eliminated any choice that mentioned auditing or reporting financial statements (A & D). Secondly, C just sounds wrong. The client should prepare their own F/S. Why would the auditor give them a specific format.

    Lastly, Tim Gearty saying “Managers Dreams and Aspirations” during the lecture made choice B stick out.

    Hope my logic is correct…

    AUD - 86
    BEC - 70
    FAR - 78
    REG - 84
    People who subject themselves to the strictest discipline, who give up certain pleasurable things in order to obtain a goal are the happiest of men.

    AUD (08/02/2016)

    July 6, 2016 at 10:44 pm #784961
    A1lessio
    Participant

    I am really struggling with the Chapter 4 – sims. Do people here really focus on the Sims or should I move on to chapter 5. I may just take the rest of the week to memorize the ratios and fully comprehend the assertions.

    AUD - 86
    BEC - 70
    FAR - 78
    REG - 84
    People who subject themselves to the strictest discipline, who give up certain pleasurable things in order to obtain a goal are the happiest of men.

    AUD (08/02/2016)

    July 6, 2016 at 10:54 pm #784962
    Madam Secretary
    Participant

    Thank you @A1lessio.

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
    July 6, 2016 at 10:56 pm #784963
    Madam Secretary
    Participant

    @A1lessio: how about this one? why not B? Isn't audit is an assurance service too? what makes C a better answer than B?

    The AICPA assurance service, called CPA Performance Review, attempts to provide users with

    A. A profile of the business risks and the appropriate systems in place to manage those risks.
    B. An opinion on whether the financial statements are fairly stated.
    C. An evaluation of whether an entity has reliable measures of performance beyond the traditional financial statements.
    D. An assessment of management’s assertion on internal control and whether the system is meeting the objectives of the organization.

    Correct answer is C.

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
    July 6, 2016 at 11:17 pm #784964
    CPATG17
    Participant

    @Warrior

    Notice they called a CPA “REVIEW ” not to “AUDIT” so therefore C is the correct answer.

    Please someone correct me if I am wrong.

    @A1lessio

    Focus on the chapter questions for now and get back to the Sims later when you are @ better level. That is what I am doing and that what I was told by most of my friends who are now CPA's now.

    AUD - 08/23/2016
    REG - TBD
    BEC - TBD
    FAR - TBD

    July 6, 2016 at 11:38 pm #784965
    Madam Secretary
    Participant

    @CPATG17 got that but what does it mean when they say “beyond traditional FS”?

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
    July 6, 2016 at 11:40 pm #784966
    Madam Secretary
    Participant

    @ CPATG17 I'm sorry bud. my queries looks so dumb and stupid but I have to ask for help anyway.

    Which of the following standards should a CPA firm apply in a review of pro forma financial information?

    A. Statements on Standards for Attestation Engagements.
    B. Statements on Standards for Consulting Services.
    C. Statements on Standards for Accounting and Review Services.
    D. Generally accepted auditing standards.

    answer is A. why not C? SSARS also tackle review in pro-forma information. I'm confused big time here. help please.

    AUD - 78
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - 77
    "I can't take the easy way out. I don't need to invoke anything but the truth".
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