[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

[Just3Letters]

Hey everyone! I just moved from BEC to AUD so I have an embaressing question here:

I'm in A2 right now and I'm looking at prospective f/s.

Becker says for a compilation you provide “No Assurance”. For an AUP you provide a “Disclaimer”.

What's the difference between no assurance and a disclaimer of opinion?

Thanks 🙂

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Theodore]

Before applying substantive tests to the details of asset accounts at an interim date, an auditor should assess:

A. control risk below the maximum level.
B. inherent risk at the maximum level.
C. the difficulty in controlling the incremental audit risk.
D. materiality for the accounts tested as insignificant.

I don't recall beker covering the incremental audit risk -.-

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]

Hi Rosy, I noticed becker using the term “incremental audit risk” in a few questions as well which wasn't specifcally covered in text. From my understanding it is just referring to the risk related to rest of the period because things can change after interim testing.

Ps- I'm also currently studying for audit and taking it on Oct 1st. I have been a silent reader of this thread haha.

[Theodore]

Annie, yea I just learned this. or i might have forgotten it since I haven't been using Becker for about a couple of weeks now. It expired on Saturday, but i switched to Ninja way before it did. 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.

[Anonymous]

Rosy, yeah same thing happened to me. I was confused if becker even mentioned about this and got a few questions wrong in a row then realized what it really meant haha.

Also, I was wondering if you guys are using the audit ninja notes? I used it for BEC and was wondering if they are hepful for audit.

[Theodore]

I'm not. This is my first time using ninja but i'm only doing MCQ's and SIMs. Becker sucked at explaining AUD, in my opinion.

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]

I am using the Ninja notes – they aren't adding any new information, but I do think it's a good review. If you don't do your own notes, it's a nice quick* way to go over all the information and make sure it makes sense.

going to go watch your ratio video, @rosy0407

*not necessarily quick, but it is quicker than reading the book or watching all the lectures again

[Larry]

Rosy, incremental audit risk is just the risk of depending on the opinion at the point of time without continuing to test until the B/S date. For example, I'm going to test the A/R at interim date and I'm going to rely on the results. However, you are taking on the risk that the A/R balance can be misstated at the B/S date.

Hope that kinds of help.

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

[Anonymous]

Becker really does suck at explaining some things, espcially transaction cycles. I SUCK at those.

@allaboard I do try to take my own notes but I get lazy midway and just give up and continue with questions instead. I guess getting ninja notes can't really hurt. Thanks 🙂

[Theodore]

I found the videos very helpful being that Becker didn't provide a lecture and they only provided a quick summary at the end of the chapter. They did the same thing with FAR. I'm going to go over the videos tomorrow too. Today I am focusing on ch. 5 & 6 and MCQs.

@papogator24 yea it makes sense now. thank you! wasn't really prepared for this question.

Becker provides quick outlines/notes. They're actually pretty helpful. They're highlights of the chapters, but it helps me remember the material as i am going over them.

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]

thoughts on this one?

Under the IESBA Code of Ethics for Professional Accountants, threats to the fundamental principles are to be identified so that safeguards can be applied. Potential threats identified include all of the following except:

A. self-interest threats.

B. self-review threats.

C. structural threats.

D. All of the answer choices are threats identified in the Code of Ethics.

I picked C thinking structural threats were a Governmental Audit Standards threat. Ninja says the answer is D. Here is the explanation:

The International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants identifies five potential threats to the fundamental principles: self-interest, self-review, advocacy, familiarity, and intimidation threats. Once identified, safeguards are to be applied so that the principles are not compromised. Examples of safeguards are provided in Part B and C of the Code of Ethics.

structural threats is not one of the 5 listed. maybe the question is just messed up?

[Theodore]

I chose D because i think i remember becker saying something along the lines about the auditor not acting objectively similar to the intimidation threat. But you are right this threat is not listed under IESBA code of ethics. hmmm

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]

ok this is stupid.

A measure of central tendency obtained by totaling all the values and dividing by the number of items

is that the definition of mean or average?

[JT]

Mean and average is the same thing.

I also hose d in your previous question.

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

[Anonymous]

Ninja SIM #45 gives you that definition and says pick the term that this is defining. Both mean and average were options. Mean was the correct answer. I was also under the impression that mean and average are the same thing – but there must be something different about them or maybe that's just a jerk of a question.

@Dab did you pick D because you saw something where structural threat is included in the IESBA code of ethics? is the explanation for the answer making this more complicated?

[Author]

Replies