[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

[Theodore]

@ SO Far so good i would learn them if I were you. and the adjusting entries.

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]

An accountant's compilation report on the unaudited financial statements of a nonissuer should:
a – Disclaim an opinion on the financial statements.
b – Provide negative assurance on the financial statements.
c – Indicate that the financial statements are not designed for those who are not informed about internal company
matters.
d – State that the accountant has no responsibility to update the report for events and circumstances occurring after the
date of the report.

Correct answer is A. – How can it be A if compilations should not have any opinion?

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

[SeanBaldwin]

@aatoural, disclaiming an opinion = not giving an opinion.

AUD - 7/13/16
BEC - TBD
FAR - TBD
REG - TBD

[CPATG17]

@aatoural

An accountant's compilation report on the unaudited financial statements of a nonissuer should provide “No Assurance” on the F.S and no assurance = Disclaimer like @SeanBaldwin said

Notice the answer for B was “Provide negative assurance on the financial statements” if that was “Provide NO assurance on the financial statements” then it would be correct too.

Best

AUD - 08/23/2016
REG - TBD
BEC - TBD
FAR - TBD

[RE2PECT]

So FAR So Good- I wouldn't stress over memorizing the ratios, but you should know their purpose and how they affect the financial statements.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[aatoural]

Thanks @Sean and @CPAT!

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

[Birdman]

When is an adverse opinion issued? I feel like in every situation in which adverse would be appropriate, the correct answer is to withdraw from the engagement.

FAR- 74, 78 (10/15)
BEC- 73
REG- 65, 88 (05/16)
AUD- 7/16

[aatoural]

Just try to think about every response they give you one by one to eliminate anything related to GAAS. You know adverse is a GAAP issue that is very material or pervasive. For example you can have and auditor who thinks his client has a going concern with inadequate disclosures, this means there is a departure from GAAP. If on top of that this represents a very material or pervasive issue, then auditor should issue an adverse opinion.

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

[bestcpa89]

Document Review Simulations

Had anyone seen DRS on AUD after July 2016 yet?

FAR -
BEC - 48,
AUD -
REG - 74, 70, 79

Roger CPA Review / NINJA MCQ

[bestcpa89]

@aatoural

Compilation = no opinion (no need to be independent)
Review = limited opinion
Audit = opinion

FAR -
BEC - 48,
AUD -
REG - 74, 70, 79

Roger CPA Review / NINJA MCQ

[bestcpa89]

@birdman93

Adverse opinion is for PERVASIVE inadequate Disclosure, inconsistency, and Not GAAP.

FAR -
BEC - 48,
AUD -
REG - 74, 70, 79

Roger CPA Review / NINJA MCQ

[bestcpa89]

Which of the following procedures is considered a test of controls?

A.
An auditor reviews the entity's check register for unrecorded liabilities.

B.
An auditor evaluates whether a general journal entry was recorded at the proper amount.

C.
An auditor interviews and observes appropriate personnel to determine segregation of duties.

D.
An auditor reviews the audit workpapers to ensure proper sign-off.

Roger Answer:B Ninja Answer: C.

What do you guys think

FAR -
BEC - 48,
AUD -
REG - 74, 70, 79

Roger CPA Review / NINJA MCQ

[DarkHorse]

@bestcpa

B is a substantive test

C is a Test of Controls

[aatoural]

bestcpa89 I agree with DarkHorse

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

[CPATG17]

Which of the following situations most likely could lead to an embezzlement scheme?
a.
The accounts receivable bookkeeper receives a list of payments prepared by the cashier and personally makes entries in the customers' accounts receivable subsidiary ledger.
b.
Access to blank checks and signature plates is restricted to the cash disbursements bookkeeper who personally reconciles the monthly bank statement.
c.
Each vendor invoice is matched with the related purchase order and receiving report by the vouchers payable bookkeeper who personally approves the voucher for payment.
d.
Vouchers and supporting documentation are examined and then canceled by the treasurer who personally mails the checks to vendors.

*So why B is the correct answer is that bookkeeper is already restricted to blank checks and signature plates?

AUD - 08/23/2016
REG - TBD
BEC - TBD
FAR - TBD

[Author]

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