[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

[HoosierCPA]

@King I've been there REG is my nemesis, I've failed it 3 times! I've been as close as a 74! But the pain in temporary, you will feel much worse if you quit and a year from now you realize you've given up on your dream!

Anyway, I do have a audit question based on your exam experience how vital do you think knowing the reports is? I understand the jist of them (ex. Qualified has the except for wording in the opinion, the management responsibilities with GAAP and auditors responsibilities with GAAS, etc). I've debated spending an evening to go through all of the reports and understand them as best I can…is that time well spent? I know if I am only going to see them in the sims you can search for them in the literature so memorization isn't as vital. However, if there is a ton of reference to them in the MCQ looking up in the literature isn't an option.

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

[sancasuki]

Know when to use an other-matter paragraph and when to use an emphasis-of-matter paragraph. Ninja didn't have much of any questions on that. And I have the two all confused in my head.

[Bear-Bear]

Can someone help me out on the Single Audit Act? I know that the dollar threshhold is 750k, and that Low-Risk programs are defined as 20% of funding…but here is my confusion. Ninja Notes says High-Risk programs are 40% of funding spent. I could have sworn that on Ninja MCQs I had a question where it was 70%. Am I imagining the 70% figure? Anyone else remember this?

[Anonymous]

@dtatham10 Yes, I think knowing them is valuable as you said because I've had a SIM related to the reports but never a MCQ other than in my study material. Knowing the key differences between the one used for Public Companies and the ones used for Private Companies will help. I may not be able to quote the reports but by reading them I can tell if anything is missing or if something was added that shouldn't be. Hopefully that answer helps!!!

Yes, I will definitely keep going. I am going to step away from it and study for FAR. I am registered to take it in October and I amnot looking forward to it at all. I heard it is a beast!!!!

[Larry]

@Bear I am not aware of anything mentioning 70%. Low risk is 20% and high risk is 40%.

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

[HoosierCPA]

@King thanks

For governmental reporting. I see the 3 reporting standards are GAAS, GAGAS, and SAA (Single Audit). Ch 6 GAAS has me confused as this standard is used in prior chapters and they seem to contradict my understanding of prior chapter's GAAS. Am I making this up? Is there a different set of GAAS standards for Goven't? If so can someone explain to me the big difference.

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

[Theodore]

Good morning everyone! Chapter 6 has me confused too. and I actually did worse on the MCQ on Government Auditing than the first time around.

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

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

[HoosierCPA]

@Rosy take a look at this prior thread. It's helps get an idea of the overall structure of GAAS, GAGAS, and SAA.

https://www.another71.com/cpa-exam-forum/topic/gaas-vs-gagas-circular-a-133-requirements/

GAAS — Basic required for all audits. Opinion given on FS and supplementary schedules

GAGAS — Next level up, this gets added to GAAS if you need a compliance audit. How od you know if you need a compliance audit? 1) you are a govent'l agency 2) agency is required to have a single audit 3) compliance audit is required in addition to the basic FS. The compliance and IC audit in GAGAS is giving NEGATIVE ASSURANCE

Single Audits — The most in depth type of audit. This audit deals with compliance and IC over each major program! This report includes the negative assurance from GAGAS as well as OPINION on compliance for each major program.

It seems the key is knowing that each one stacks on top of each other. If you have a single audit the components of the GAAS and GAGAS are included in it as well as the additional requirements which in this example the additional requirement is the opinion on the compliance of each major program.

I hope this helps!

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

[patelhj1]

Hey can someone tell me how important the SIMS are for A5 and A6, I havn't completed them and only have 1 more day left before exam. Want to optimize my time

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

[mckan514w]

confused on a question:

Which of the following events occurring in the year under audit would most likely indicate that internal controls utilized in previous years may be inadequate in the year under audit?

A.The entity announced that the internal audit function would be eliminated after the balance sheet date.
B.The audit committee chairperson unexpectedly resigned during the year under audit.
C. The chief financial officer waived approvals on all checks to one vendor to expedite payment.
D.The frequency of accounts payable check runs was changed from biweekly to weekly.

I originally got this question wrong on Rogers as I picked C but they said the correct answer was B however I just came across it again on Ninja and got it wrong again because I picked B based on my understanding of Rogers explanation and they said that the correct answer is C.

C makes much more sense to me but what gives? which one is correct???

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[aatoural]

Becker has C correct as well. Which makes sense, management override is a big red flag under segregation of duties ARC.

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

[aatoural]

Can somebody explain when is “materiality levels” used or relevant?

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

[HoosierCPA]

Management override is an inherent risk in all control environments and is not necessarily indicative of poor internal controls. I would say C is correct because losing the audit committee chairperson in the current year would most likely cause less over site of internal controls which could result in weaknesses in IC.

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

[JT]

General question for you guys…..

Is my understanding regarding the different levels of assurance correct here? I understand comps reviews and audits, but I get tripped up on agreed upon procedures, pro forma and prospective a lot. Is this correct?

Audit-positive assurance
Agreed upon procedures/prospective f/s-disclaimer that its presented in conformity with AICPA guides
Pro Forma F/S-can be a review or exam
Exam- assumptions provide a reasonable basis/positive assurance
Review-Limited/negative assurance
Compilation-no assurance

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

[Theodore]

@dtatham10 Thank you! I'll look at the thread once I get home. I can't read the rest of your comment. It's blocked by a a huge picture of the ninja home page.
@patehj1 Idk if it's a good idea. I can't concentrate when Im rushing things just to get through the material. But then again they're not that long. you'll for sure spend two hours doing them when you can be reinforcing your knowledge on other topics. That's my opinion. 🙂

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

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

[Author]

Replies