[jeff]

Welcome to the Q3 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

[Larry]

Haha yes we did. I'm a performance review supervisor. My coworker and I are studying for the CPA.

I study after work in our conference room in Hickman building. You're more than welcome to join!

REG - 82
FAR - 78
BEC - 76
AUD - 8/27/16

[aatoural]

If I knew that earlier! Thank you! You are almost done thu! Tomorrow is actually my last day of the week I asked for Thur and Fri off I want to study as much as I can for Monday.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Theodore]

That's pretty cool guys!

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

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

[JT]

Hey guys, I'm trying to find in my notes a specific situation but I can't find it.

It involves specific situations/scenarios where the report (I forget which report) is restricted use and not allowed to be used to get a loan/obtain credit. I think it's for prospective financial statements? Or specific compilations that lack disclosures or something. I know there are times that these reports are restricted use, but when does it specifically pertain to obtaining credit/a loan?

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[Anonymous]

@aatoural – all i know is that the roger mnemonic for communication to those charged with governance includes “views of other accountants”

[Larry]

@aatoural, awesome. I only asked for 1 day off prior to the exam. You can study with my coworker. His name is Armando Gonzalez. I'm always going to the 111 building at 9 am for coffee break. Good luck bud, you got this!

Dab, that would be for projection. Financial forecast can general and limited use (I think someone confirm please). Prospective F/S can be both general and limited use. Agreed Upon procedures are restricted use. I don't have the book with me, as I just got to work.

REG - 82
FAR - 78
BEC - 76
AUD - 8/27/16

[aatoural]

@allaboard – can you teach me that mnemonics? becker does not have one for communications?

@Dab – I believe you are referring to the AUP (restricted use) as well, I don't have book with me but I was reworking summary tables Becker has last night. Also to confirm Papogator's toughts financial forecasts are both limited and general use, but finacial projections are only for limited use.

@Papogator – I know Armando! I'll ask him thanks!

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[aatoural]

@Dab – also I remember having a MCQ that touched on that if I see it again Ill post it.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Larry]

@aatoural, what's your name? I'm Larry Aguero if you ever need to look me up.

REG - 82
FAR - 78
BEC - 76
AUD - 8/27/16

[HoosierCPA]

Great talk everyone. I sent this question yesterday and never got a response. Can someone help explain this?

Which of the following statements is correct concerning sampling in tests of controls?

A. There is an inverse relationship between the expected population deviation rate and the sample size

B. In determining tolerable rate, an auditor considers detection risk and the sample size.

C. Deviations from specific control activities at a given rate ordinarily result in misstatements at a lower rate — CORRECT

D. As the population size increases, the sample size should increase proportionately.

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[sancasuki]

That's because even if the control fails it won't necessarily result in a misstatement. Like suppose the control is to compare the vendor invoice with the proof that the company actually received the goods before paying it. Even if the AP guy forgets to do that, more than likely the company did actually receive the goods, so there will be no misstatement on the financial statements.

[aatoural]

@Papogator24 – My name is Annette Alonso I'm in floor 26.

@Dab – Let attempt to go for it but heads up when I saw this questions I did it by process of elmination in part

A.There is an inverse relationship between the expected population deviation rate and the sample size – test of controls is attributes sampling so population has minimal if any influence on sample size

B. In determining tolerable rate, an auditor considers detection risk and the sample size – not true, nowhere is that said, tolerable rate is just maximum risk auditor is willing to accept

C. Deviations from specific control activities at a given rate ordinarily result in misstatements at a lower rate — all you got left then is this, which I interpret as them specifying that if you got control activities in place, then any deviations from it may be minimal (lower), but if you see the other 3 responses are very easy to see they are incorrect.

D. As the population size increases, the sample size should increase proportionately – same explanation as in A

Hope that helps!

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[HoosierCPA]

I believe I'm following you. So because a control might be awful you can reasonably assume a financial statement isn't equally as awful? Just seems like an odd way of putting it.

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[Larry]

Just wanted to add, for A. the expected population deviation rate has a direct relationship with sample size. Only the tolerable deviation rate and risk of assessing control risk too low have an inverse relationship to sample size for attribute sampling.

REG - 82
FAR - 78
BEC - 76
AUD - 8/27/16

[Anonymous]

Failed AUD again for the second time and feeling discouraged…uggghhhh.

[Author]

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