[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]

Ok yeah you guys are right…

SSARS Review engagements:
“We will conduct our engagement in accordance with SSARS promulgated Accounting and Review Services committee of the AICPA and comply with the AICPA's code of professional conduct…”

SSARS Compliation engagements:
“We have performed compilation engagements in accordance with SSARS promulgated by Accounting and Review Services committee of the AICPA”

I apologize for the confusion!

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

[Theodore]

Thanks for all your help guys! This forum is actually more active than last quarter. I hope we all pass!

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 I have a screen shot of a sample review shot that I pasted so I'm not sure what section of becker it came out of. But its an interim report of a non-issuer. I agree with the SAS requirements however the report example words it:

Under Auditors Responsibility:

“Our responsibility is to conduct our review in accordance with auditing standards generally accepted in the United States of American applicable to reviews of interim financial information..”

SAS is “statement for auditing services” am I missing something because I don't see them quote that in their report? Again, I do agree with you Rosy that SAS is a non-issuer interim reporting requirement. I'm just trying to brush up on the wording in the reports and find it odd I don't see that wording in there.

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

[Theodore]

Oh no, you are correct. That's how the report reads. Sorry 🙂

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]

We should be more active. Whether we don't have the answer or not, we can be learning at the same time reading the thread. There might be an “ah-ha” moment.

@aatoural, How do you feel about your exam?

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

[hhung1485]

How is everyone else studying. I am taking audit this saturday the 3rd. All I am doing is sets of 30 multiple choice 1 min each on becker.

I just feel like I am guessing so many. And using so much “I feel like” this is right.

I am just panicking a bit. When I took far & reg. At least I have work experience which made some topics easy and helped me through it. I have never done an audit in my life unfortunately.

FAR - 93
REG - TBD
BEC -
AUD -

[HoosierCPA]

Auditing standards require that the independent auditors report shall contain either an expression of opinion regarding the financial statements, taken as a whole, or an assertion to the effect that an opinion cannot be expressed. Which of the following would be prohibited by auditing standards?

A. An auditor is hired to render an opinion on the balance sheet only
B. The auditor disclaims an opinion on the income statement and on the statement of cash flows, but renders an unmodified opinion on the balance sheet.
C. The auditor disclaims an opinion on the entire set of financial statements
D. None of the actions are prohibited. — CORRECT

So as I was typing this I think I realized what I was getting mixed up! I was already committed to typing the question so I finished it anyway! I originally had B as the right answer thinking you cannot express 2 separate opinions on the financial statements…then as I was typing I noticed its a disclaimer and a disclaimer is essentially the same as “no opinion”. So I'm guessing that's why it's still ok. It it was a qualified on part of the financials and unmodified on another part I am assuming that's prohibited. Agreed?

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

[hhung1485]

@dtatham10 I believe the reason B is acceptable is because a Audit of a balance sheet at a specific Point in time. So even If you didn't have income stmt or SOCF. You will be able to test the assertions on the balance sheet as for year end date (12/31/x1)

FAR - 93
REG - TBD
BEC -
AUD -

[HoosierCPA]

@hhung don't worry I feel that way all the time with Audit. I am in the same boat. I have zero audit experience so I have nothing to lean on with this material.

I think what makes AUD tricky is its conceptual so you can't calculate to get the answer and know you are correct. That stresses me out big time, I took the 2nd practice exam finishing it up feeling confident and ended up with a 68%..went back to review and saw I just didn't read entirely through a lot of questions!

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

[Theodore]

@hhung1485 I've been using becker trying to do at least 100 questions on a daily basis. was scoring in the mid 90's. decided to get NINJA MCQ and im kinda scared now. Haven't been able to get in the 90's. With NINJA i've been doing 50 questions per day. NINJA offers more explanations than becker so it takes me double the time to do 50 questions. I'm just reviewing my notes but it feels as if I'm getting more confused y reading my notes :/

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

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

[hhung1485]

Which of the following is a management assertion regarding account balances at the period end?

A. Transactions and events that have been recorded have occurred and pertain to the entity.

B. Transactions and events have been recorded in the proper accounts.

C. The entity holds or controls the rights to assets, and liabilities are obligations of the entity.

D. Amounts and other data related to the transactions and events have been recorded appropriately.

May someone explain this to me please. The answer is C according to becker. And not B.

I chose B because I believe that transactions need to be classified in the right account to reflect and accurate y/e balance. For example – Repairs & maintenance vs Fixed Assets.

I went back the lecture and I believe this relates to the mnemonics for

Account Balance – CVER
Completeness
valuation, allocation, accuracy
Existence
Right & Obligation

Transactions – COVE
Completeness
Cut-off
valuation, allocation,
Existence
UNderstanding

FAR - 93
REG - TBD
BEC -
AUD -

[Theodore]

I got the same question with Ninja and I chose B too. Ninja said that because the auditor wants to make sure that the ending balances of assets actually pertain the entity and the liabilities are the obligations of the entity. Under Acct balances – that is exactly what is defined for rights and obligations. I had to screen shot the assertions

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]

@hhung1485 i don't know if this will help, but as i went through each option i decided which assertion it went with –

A. Transactions and events that have been recorded have occurred and pertain to the entity. = occurrence

B. Transactions and events have been recorded in the proper accounts. = classification

C. The entity holds or controls the rights to assets, and liabilities are obligations of the entity. = rights & obligations

D. Amounts and other data related to the transactions and events have been recorded appropriately. = this one has me a little tripped up – classification again? although it seems like it could be read as completeness or accuracy? for someone reason when i read through the question the first time i knew this wasn't the right answer, but now i can't remember my thought process…ugh

my mnemonic for account balances is slightly different than yours:

R ights & obligation
A llocation
C ompletness
E xistence

The only answer choice that falls within there is C – Rights & Obligations (not counting my brain fritzing out on D – but somehow I had already eliminated this one…i'm thinking i read that as accuracy, which falls under Presentation and Disclosure)

the mnemonic for transactions only applies if you are looking at an individual transaction – since they are asking about an account balance you are looking for an answer that falls under your CVER mnemonic. Classification (answer B) falls under assertions about Presentation and Disclosure:

RACCU (all my mnemonics are from Roger; so they won't be the same thing you have, but it should be close)

R ights & Obligations
A ccuracy
C ompletness
C lassification
U nderstability

clear as mud;)

[Anonymous]

Not studying related, but I thought you might get a chuckle out of it:

I went to a birthday party for my life partner's grandpa over the weekend. I knew his cousin had just started at PWC but no one seemed to know what he was doing there (which is expected – my friends all joke that i'm chandler from friends because none of them know what i actually do at work). I was talking to him and turns out he is in audit. So I told him about my studying woes. When I went to leave he says:

Hey, Emily – (you have to read this next part out loud)

be audit you can be

:::cringe:::

😀 😀 😀 😀

[Anonymous]

and in regards to the activity of the group – until REG, i didn't understand the power of these studying groups. Even if I don't need help with a question, helping other people through their questions solidifies the information in my brain…or it makes me realize I don't know the answer either and I go back to figure it out.

I wish I could go back to studying for BEC and FAR to utilize the group more – but not really 😉

[Author]

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