[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]

Thanks dtatham10, I think my brain just gets confused with the growing from here to there.

Your are welcome.

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

[Larry]

I'm going to stay with you guys until 9/9. I need to be on top of this in case I need a rematch (I hope not).

I should have done better on the sims. It may have been my downfall. I was feeling the pressure of just wanting to pass this and be done forever.

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

[aatoural]

@papogatorI hope you don't have to re-match. But I bet the feeling of been so close to be done is a threat to concentration.

@dttahm10 & @Dab – I just got this MCQ referring to what we were looking at about opinions under FS audits and Integrated audits and communication of deficiencies and material weaknesses.

An auditor has been hired to report on a nonissuer's internal control over financial reporting. Which of the following best describes a reporting option in this scenario?
a.If management fails to provide a written representation letter acknowledging its responsibility for the effectiveness of internal control, the auditor may issue either a qualified opinion or an adverse opinion.
b.When a significant deficiency exists, the auditor may issue either a qualified or adverse opinion.
c.If management fails to provide a written representation letter acknowledging its responsibility for the effectiveness of internal control, the auditor will generally issue an unmodified opinion with additional explanatory language.
d.When a material weakness exists, the auditor should issue an adverse opinion.

Explanation
Choice “d” is correct. When a material weakness exists, the auditor should issue an adverse opinion.
Choices “c” and “a” are incorrect. Failure of management to provide a written representation letter acknowledging its responsibility for the effectiveness of internal control generally will result in a disclaimer of opinion or withdrawal from the engagement.
Choice “b” is incorrect. While the auditor is required to communicate significant deficiencies to management and those charged with governance, the opinion on internal control need not be modified unless a material weakness is noted.

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

[Anonymous]

I am reading more for AUD than any other section because my last attempt I made a 74 and its because I didn't read and understand the concepts enough. Trying to go for the clean sweep with two more left.

[Larry]

Make sure you understand the concepts of reports and the different engagements.

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

[hhung1485]

Hi All,

Taking my test next Saturday on the 3rd. Anyone have suggestions which chapters to focus on.?

Should I memorize the ratios?

Also does anyone have an overview of the audit process. Like a flowchart of the audit process.
From accepting the engagement —> Final Review.??

I feel like I am not understanding the overall.

Before accepting Engagement
Planning
—–?
—?

FAR - 93
REG - TBD
BEC -
AUD -

[MICpaCandidate89]

Just took it yesterday, got an 83 on Becker practice exam 2 (average of scores weighted) but the test was kind of rough. First test let in pretty sure I destroyed, second one however was very difficult and the third was somewhere in the middle. The sims were hit and miss. All in all I'm worried, and this is my first exam so I do t want to start in the hole. 9/9 (score release) can't be soon enough!

[aatoural]

MICpaCandidate89 – Good luck, I know the feeling been there with the first exam and it was rough I had over a month wait.

Papogator – I was gonna work on more transaction cycles but I guess I am gonna better read more of engagements

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

[aatoural]

I think somebody had asked this bfore but I cannot find it so here it goes. Becker has this question to which correct answer is A. However Becker book says on table in page A1-44 that lack of consistency requires an emphasis of matter. Now my question is, the emphasis of matter is added but not really necessary if disclosures are all correct?

Management of Edgington Industries plans to disclose an uncertainty as follows:
The Company is a defendant in a lawsuit alleging infringement of certain patent rights and claiming damages. Discovery proceedings are in progress. The ultimate outcome of the litigation cannot presently be determined. Accordingly, no provision for any liability that may result upon adjudication has been made in the accompanying financial statements.
The auditor is satisfied that sufficient audit evidence supports management's assertions about the nature and disclosure of the uncertainty. What type of opinion should the auditor express under these circumstances under U.S. auditing standards?
a. Unmodified without an emphasis-of-matter paragraph.
b. Disclaimer of opinion.
c. Unmodified with an emphasis-of-matter paragraph.
d. “Except for” qualified.

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

[Theodore]

@aatoural an E-O-M Paragraph is REQUIRED for a going concern, justified change in accounting principle, Change in opinion, and for special reports. the auditor MAY add an E-O-M paragraph for an uncertainty related to an unusual important litigation that has been properly disclosed, major catastrophe, sig. related party transactions and/or unusually important sub. events. A1 pg 23 &24

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]

In this question, he does not need to add an E-O-M paragraph.

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

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

[Larry]

It's driving me nuts trying to look up answers that I've taken from the exam to see if I'd be able to pass. The struggle is real because it's the last exam. I wasn't like this with the others. If I don't pass this, I have 2 chances left before reg expires.

I just noticed that in Becker A3-18-19 explains Financial Statement Assertions and Relevant Assertions. I think I may possibly know why I am getting mixed up. For example,

Financial Statement Assertions
C – Completeness
O – CutOff
V – Valuation, Allocation, and Accuracy
E – Existence and Occurence
R – Rights and Obligations
U – Understandability and Classification

Relevant Assertions
Transactions and Events – Completeness, cutoff, accuracy, classification and occurrence
Account Balances – Completeness, allocation and valuation, rights and obligations, and existence
Presentation and Disclosures – completeness, understandability and classification, rights and obligations, and valuation and accuracy.

Maybe I am overthinking this.

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

[Anonymous]

can anyone make sense of this question? I feel like the question and the answers are talking about two different things.

How should differences of opinion between the engagement partner and the quality control reviewer be resolved?

Preparation of an original income tax return.
Representation of a nonattest client in an IRS examination.
Preparation of an amended income tax return to claim a deduction that was inadvertently omitted on an originally filed return.
Performance of consulting services for an audit client.

[Theodore]

@allaboard Yea it doesn't make sense. At least not to me

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]

@allaboard those questions right there are what's making me terrified to take this exam.

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

[Author]

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