[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

[Theodore]

@aatoural I thought it was B. :/

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]

🙁

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

[mckan514w]

@aa The key to this question is “in aggregate” and determining who does not have anything affiliated / to do with the client you are auditing.

In aggregate means essentially how involved is the CPA firm involved with this particular client- is it a small firm that provides both non-audit and audit services with few CPAs to do the bulk of the work- in this case there will probably be a lot of lap over in services thus compromising independence or is it a huge firm like a PWC who has lots of CPAs available to do all sorts of work without really getting to involved in other issues….

Thus A. would be the correct answer because you could have a senior member who is not part of the clients audit team or non-audit service team review the work to ensure everything was done with independence…

So for example B is wrong because someone in management may also be on the audit / or non-audit team so their review or supervision would not be independent
C would be incorrect because even if you had the ability to remove the auditor from the audit team they have already been a part of the team at some point and thus could have compromised independence and D. is wrong because you can not bring an outside auditor in to review your audit services….

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]

Thanks mckan!

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

[Theodore]

Thank you mc!

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]

what is this segment information about?

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

[GQStatus]

Hey guys I have a question about a problem I got while practicing via Ninja CPA. I got this answer right, but I just want to know why B in particular is the wrong answer. If you have any insight please let me know.

SSARS guidance for compilations of unaudited financial statements establishes standards and procedures for which of the following engagements?

A. Assisting in adjusting the books of account for a partnership

B. Compiling an individual’s personal financial statements which will be used solely to assist the client and the client’s advisors to develop the clients’ personal financial goals

C. Processing financial data for clients of other accounting firms

D. Compiling an individual’s personal financial statements to be used to obtain a mortgage

FAR - (Let's not talk about that score)
AUD - 77!
REG - 70, 70
BEC - 77!

[mckan514w]

Im going to go with A here and say B and D are wrong because SSARS provide guidelines for compilations for non-issuers not individuals… and C is wrong because you wouldn't be working for clients of another accounting firm….

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

[GQStatus]

@mckan514w The actual answer is D though. When you're presented with unaudited financial statements the only engagement you're allowed to perform is compilation engagements. I guess my question specifically is why am I able to perform a compilation in order to obtain a mortgage, but a compilation to develop financial goals is disallowed?

FAR - (Let's not talk about that score)
AUD - 77!
REG - 70, 70
BEC - 77!

[mckan514w]

yeah you clearly got me on that one based on my answer- ha ha ha…. guess I will be spending the afternoon reading the SSARS rules….

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

[HoosierCPA]

Which of the following would least likely be part of an auditors procedures with respect to fair values?

A. Obtain managements representations relating to intent and ability to carry out planed courses of action.

B. Evaluate the appropriateness of valuation model used by management

C. Develop an independent fair value estimate

D. Review subsequent events occurring after completion of the audit for evidence regarding fair value measurements as of the balance sheet date — CORRECT

I chose A. “…ability to carry out planned courses of action” seemed extremely generic..what do they even mean? For D, I thought reviewing subsequent events was typical of audits..for example I thought if something significant happened with a customer that could have been reasonably expected that would impair your ability to collect on AR then you would be expected to increase your allowance for doubtful accounts?

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

[Anonymous]

so for A i think they just mean get an understanding of management's estimate process/position, so then you can develop your own expectation of the estimate, and confirm if what they did was appropriate.

for D, not sure but i'm leaning towards saying that the analysis of subsequent events is a step in the audit process, but it isn't technically a “procedure” – when they say procedure I think of substantive testing.

[HoosierCPA]

Also, can someone explain to me the assurance given for SSAE engagements?

It looks like Becker says examinations are positive assurance and reviews are negative assurance. Aren't reviews solely SSARS? Or can reviews and examinations both fall under SSAE engagements? Lastly, what exactly are examinations?

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

[aatoural]

@dtatham – correct me if I'm wrong but I thought that when you have reason to know that something was already wrong with a client bfore the BS date was a type 1 subsequent event. Then that would make D the opposite, meaning a type 2 subsequent event, because it talks about events occurring after BS date. But anyways I tripped on this question too a couple of days ago.

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

[aatoural]

Reviews of interim financial information is not SSARS, it belongs to SAS. Also interim FS of issuers is under PCAOB.

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

[Author]

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