[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

[aatoural]

Does this count as one of those mysterious “pension” questions”?

Which of the following statements is correct concerning an auditor's use of the work of an actuary in assessing a client's pension obligations?
a.The client is required to consent to the auditor's use of the actuary's work.
b.The reasonableness of the actuary's assumptions is strictly the auditor's responsibility.
c.The auditor is required to understand the objectives and scope of the actuary's work.
d.If the actuary has a relationship with the client, the auditor may not use the actuary's work.

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

[HoosierCPA]

@rosy Yeah i'm getting the same thing…I'm going to recopy it without the link so you can read it.

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

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.

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

[Larry]

@aatoural, I'm not sure, but I remember that someone mentioned it was in a SIM.

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

[HoosierCPA]

@aatoural who knows. I've searched and searched..if that's what type of questions we are going to get on them then I should be alright..assuming the correct answer is C :).

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

[Theodore]

Thank you! I was super tired yesterday and didn't understand one bit of what i was reading. it makes better sense now.

Is anyone taking their exam on September?

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

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

[aatoural]

@dtatham10 – you are correct!

@papogator – but SIMS to me at least the ones related to transaction cycles is like a muchhhhh longer MCQ and they give you 10 options instead of 4 🙁

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

[Bear-Bear]

@Rosy0407 – September 3rd here 🙂

[patelhj1]

t-1 day anyone else taking test on friday!?

the time schedule during test for Aud is
4:00 Begin Testlet 1
3:15 Testlet 2
2:30 Testlet 3
1:45 Start SIMS

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

[Theodore]

Finally done re-reading the book, taking notes and re-doing all MCQ's and SIMS! Time to put everything together and review review review! Good luck to everyone!

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

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

[Theodore]

@aatoural I found the answer to our question. I guess Mgt does not have to state their consultation with other accounts in rep letter, but it does have to get disclosed to those charged with governance.

Management representations should be obtained about all of the following, except:
a. The absence of unrecorded transactions.
b. Instances of immaterial fraud involving employees who have significant roles in internal control.
c. Management's consultation with other accountants.
d. Uncorrected misstatements identified by the auditor.
Explanation
Choice “c” is correct. The auditor might discuss with those charged with governance management's consultation with other accountants, but representations about such consultation are not required.
Choices “d”, “a”, and “b” are incorrect. Management representations should be obtained about uncorrected misstatements identified by the auditor, the absence of unrecorded transactions, and instances of immaterial fraud involving employees who have significant roles in internal control. (Immaterial fraud involving either management or employees who have significant roles in internal control must be included; for other employees, only material fraud would be included in the representation letter.)

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

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

[Theodore]

Does any one have a better way of explaining this one? I chose C :/

According to the AICPA Code of Professional Conduct, which of the following disclosures of client information by a member CPA to an outside party would normally require client consent?
a. Disclosure of confidential client information to a court or in documents in connection with a subpoena.
b. Disclosure of confidential client information to a third-party service provider when the member does not enter into a confidentiality agreement with the provider.
c. Disclosure to a potential client of the name of a client for whom the member or member's firm performed professional services.
d. Disclosure of confidential client information to the member's liability insurance carrier in response to a potential claim.
Explanation
Choice “b” is correct. According to the AICPA Code of Professional Conduct, a member CPA generally is required to obtain client consent before disclosing confidential client information to a third-party service provider when the member does not enter into a confidentiality agreement with the provider.

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

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

[Theodore]

and this one.

After performing a compliance audit of an entity that received federal funds, what conclusion would the auditor draw if the entity does not have adequate documentation to support $5 million in operating expenses paid from federal program funds?
a. The entity submitted unauthorized invoices for expenses.
b. The entity spent $5 million in operating expenses that were not approved.
c. The entity spent $5 million of government funds for services that were not required.
d. Questioned costs of $5 million for operating expenses have been identified.

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

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

[Anonymous]

@rosy0407 – on your first question, I got to the right answer by eliminating all the other choices.

For the answer you chose, I know you are allowed to disclose a client's name assuming the firm doesn't only deal with negative situations (e.g. bankruptcy); if the firm did specialize in bankruptcy, then by disclosing the client's name someone could assume they're in bankruptcy…since C didn't say “the firm only deals with bankruptcy” (which I have seen) then I think you have to assume they don't specialize in that area.

After I eliminated all the other choices B made sense – while the client's information is NOT privileged, it is confidential and you can't go around sharing the details of your client's situation (good or bad) to anyone and everyone without your client's consent.

For the second question, D is right (right?) because you don't have enough details of the $5 million to make any of the conclusions that are in A B C. You have no support for the $5 million, so the only thing you can do is point out that it's an issue.

[HoosierCPA]

@rosy also for the first question you are allowed to disclose the name of your client to another that's the general rule. However the exception to this rule is if you deal primarily in bankruptcy type services you cannot because someone Could make a reasonable assumption that you're having financial problems which intrudes the clients privacy.

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

[aatoural]

@Rosy – D is correct for you second question, if you read A5 – 67 the example in the box there explains is very well how is compliance audit regarding documentation.

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

[Author]

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