[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]

@dtatham10 good luck tomorrow!!

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

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

[JT]

I'm taking my test September 7 and I'm taking off work from now till then. I should be in this forum a lot more. Hopefully we all can help each other,…

To start off with dt's questions,… I think your missing required financial statements its a GAAP issue, but since the statement of cash flow is made up of elements of other sources from the financial statements (or the auditor can probably get the information from the clients computers) it isn't as severe as an adverse opinion.

The second question, since the balance sheet is basically about the specifics balance sheet date (let's say 12/31/2015) you don't care about what beginning inventory was at all, you don't care about purchases during the year neither. You ONLY care about 12/31/2015 for the balance sheet. As for the income statement, you do care about purchases/COGS because that will have an effect on the f/s. The question says it's because “of inadequate financial records” which sounds like a GAAS issue.

I honestly might've guessed the second part was a GAAP issue and not a GAAS issue though.

The biggest underlining difference between question 1 and 2 is that the first questions says the client “omits” the balance sheet. The second, the clients records could not provide “adequate” records.

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

[JT]

Regarding the f/s assertions, I'm trying to create my own mnemonic. This is still a work in progress,….

Step 1) all assertions include “completeness” and “valuation”
Step 2)

Balances—(ER)
……..Existence
……..Rights and obligations

Disclosures—(RU)
……..Rights and obligations
……..Understanding

Transactions—(CEU)
……..Cutoff
……..Existence
……..Understanding

Notice how I use “c” for cutoff and not “o” like the way becker does.

Hopefully those are correct. Lol

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

[Theodore]

Dab you are correct. thank you!

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

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

[JT]

I might be getting confused between either public/private or some terms here.

Under PCAOB Auditing Standard 3, the auditor should complete the final set of audit documentation within how many days following the report release date?

Answer is 45 days.

My question is if “audit documentation” is the same as the “permanent file” for clients?

I know private companies have 60 days but is that to complete the “audit documentation” or to update the “permanent file”? Or both? Or are they the same thing?

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

[Theodore]

Dab the audit documentation and permanent file are two different things. becker refers to audit documentation as documentation completion date. this is the time period that the auditor has to assemble the final audit doc. file. it is 45 days for issuers and 60 for non issuers. the permanent file deals more with document retention for recurring audits. this is compared to the current file. lets say you have been doing audits for a client for 10 years now. the permanent file will contain continuous documents (anything that you will be needing for the next audit) such as contracts… the current file deals with the current audit, documents that you need for the current period such as the audit plan. if you are using becker permanent and current files are explained on A6 pg 37 and the document retention period on page 36

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

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

[JT]

Great. Thanks

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

[mckan514w]

@dtatham10 good luck today!! Kill it for us- I'm up tomorrow— yikes its gonna be a long day!!!

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

[Larry]

@dtatham, good luck today buddy!!

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

[mckan514w]

hey guys- I know there was a discussion on this earlier but I can't find it now so am thinking it was on the old board– but did we ever come to an answer on what exactly was considered piecemeal?? I keep getting this question wrong… Thanks!

Park, CPA, was engaged to audit the financial statements of Tech Co., a new client, for the year ended December 31, 20X1. Park obtained sufficient appropriate audit evidence for all of Tech's financial statement items, except Tech's opening inventory. Due to inadequate financial records, Park could not verify Tech's January 1, 20X1, inventory balances. Park's opinion on Tech's 20X1 financial statements most likely will be:

Incorrect A.a disclaimer opinion issued on both the balance sheet and the income statement.

CORRECT B.an unmodified opinion issued on the balance sheet and a disclaimer opinion issued on the income statement.

C.a disclaimer opinion issued on the balance sheet and an adverse opinion issued on the income statement.

D.an unmodified opinion issued on the balance sheet and an adverse opinion issued on the income statement.

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]

Sory guys busy afternoon and night.

Dtatham10 – I hope Im not late but yes I timed it fine with 45 min per three first testlets and the SIMS were for the reaiminder of the time.

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

[Anonymous]

@mckan514w piecemeal would be an opinion on the overall balance sheet and a different opinion on accounts payable. you can have different opinions on the separate statements (IS v BS); you cannot have different opinions on a statement and one of the parts of that statement.

[mckan514w]

@allaboard… Gotcha perfect!!! I kinda figured that out going through more questions but like to see it spelled out 🙂 THANKS!

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

[Theodore]

@allaboard Thank you!! it's finally clear!

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]

Well it's over…now the waiting game.

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

[Author]

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