[jeff]

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Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

[Anonymous]

1. Unconditional responsibility (must) – The auditor MUST comply whenever it is relevant.

2. Presumptively mandatory responsibility (should) – The auditor must comply whenever it is relevant except in rare circumstances.

3. Responsibility to consider (may, might, could, etc.) – auditor use professional judgment in determining whether to perform.

[Anonymous]

Answer is B.

[Anonymous]

So if it is should, then technically it would be “may” not must, right?

[Anonymous]

I think “should” is a “must, except”. Anyway, enough for tonight!

[johnny_debt]

Guys, getting a bit hung up on this question. Can anyone answer and explain why?

An auditor's analytical procedures indicate a lower than expected return on an equity method investment. This situation most likely could have been caused by:

A.an error in recording amortization of the excess of the investor's cost over the investment's underlying book value.

B. the investee's decision to reduce cash dividends declared per share of its common stock.

C. an error in recording the unrealized gain from an increase in the fair value of available-for-sale securities in the income account for trading securities.

D. a substantial fluctuation in the price of the investee's common stock on a national stock exchange.

AUD - 91
BEC - 84
FAR - 91
REG - 91

[Anonymous]

A because recording excessive amortization which is an expense decreases net income.

[Future Ninja]

It's A.

The way I see it, ROI (return of investment) = Net Income divided by Investment ( I think ). To lower the ROI, means lower the Net income. To lower the net income, increase the expense. Amortization entry has an entry of debit to expense.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

That's how I see it as well.

[plotikkk85]

Good morning everyone!!! GOT down 50 MCQ.

Good luck!!!

[Future Ninja]

Good morning plotikkk85. when is your schedule to sit for aud?

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Qlad]

If an accountant concludes that unaudited financial statements of an issuer on which the accountant is disclaiming an opinion also lack adequate disclosure, the accountant should suggest appropriate revision. If the client does not accept the accountant’s suggestion, the accountant should

A. Accept the client’s inaction because the statements are unaudited and the accountant has disclaimed an opinion.

B. Refer to the appropriate revision and issue a modified report expressing limited assurance.

C. Express an adverse opinion and describe the appropriate revision in the report.

D. Describe the appropriate revision to the financial statements in the accountant’s disclaimer of opinion.

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

Would it be D?

[Qlad]

@cpahopeful…yes it is D…cud u pls explain this one to me…it's a twisted question

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

Since it is unaudited it likely either a review or compilation. So an inadequate disclosure has the accountant modify the last paragraph of the report and add an EOM after it.

[Anonymous]

Tell me if I'm right here.

If comparative FS are presented with last year being an audit, and current year being a review, you don't modify any paragraph but add an EOM AFTER the opinion paragraph?

If comparative FS are being presented with the last years opinion being changed from a qualified opinion to an unqualified opinion, then the EOM is BEFORE the opinion paragraph?

Lastly if OCBOA is used instead of GAAP, the EOM is before the opinion paragraph?

[Author]

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