[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

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

[Anonymous]

CPA-02611:

Which of the following statements is correct concerning statistical sampling in tests of controls?

Correct answer: Deviations from specific control activities at a given rate ordinarily result in misstatements at a lower rate.

Explanation: Deviations from control activities do not necessarily result in misstatements. Therefore, deviations from pertinent control activities at a given rate would ordinarily be expected to result in misstatements at a lower rate.

Is this basically saying that if I find a 10% deviation rate (e.g. 10% of PO's aren't being properly approved by the credit department) then an account/transaction (e.g. revenue or AR) will be misstated by less than 10% (e.g. off by +/- 5%)?

[johnny_debt]

Hey guys, I just took the exam. It wasn't brutal but it felt like a marathon. I started to get fatigued lol. I received a simulation that asked for the specific section for governmental accounting. In the Sims in ninja mcq, if it ask for section but doesn't specify paragraph all we have to do is enter the section. During the exam it ask for section and did not specify paragraph. However when I went to put in the answer the blank box appeared for section and paragraph. Are we suppose to omit the paragraph or should we fill in the section and paragraph?

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

[Anonymous]

Does anyone know what the difference/big deal is between reporting on a “subject matter” vs “assertion”?

Are you more liable if you report on a subject matter than just an assertion? E.g. if the auditor is wrong, they'll be held liable for misrepresenting something.

[jeff]

[raymondsfamily]

AUD question that is hard for me to break down – any help is greatly appreciated (I'm almost done with all of the Ninja AUD MCQs and this one is just not clicking for me):

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.

Answer is A…

F - 5/8/13 81
R - 74, 2/7/14 86
B - 74, 12/6/13 82
A - 70, 11/4/14 89!!!

I'm done 🙂 Many thanks to Jeff, A71 and Roger CPA!!!

MBA and CPA

[alinute]

I'm scheduled for my test on Tuesday Nov 4th, anyone else? it will be my third time taking AUD (pretty much bombed the first 2 times).. I feel pretty prepared but these test always make me nervous and every time I walk out, I feel defeated.. I bought Wiley test bank and I just took 3 quizzes of 30 questions each and scored 92% average. What do you guys do the last couple days before the test? Anyone else using Wiley online test bank, what are your thoughts on it?

BEC:74,71,80
FAR:57
AUD:61
REG:

Switched from Becker to Roger in April.

[NeedToPassAudit]

@raymondsfamily

Like myself, I see that you took FAR a long time ago. My understanding is as follows:

The amortization of the excess cost over investee underlying book value would reduce your portion of the investee earnings. If the amortization was overstated, it would understate the return on the equity investment. My guess is that when doing analytical procedures, the auditor noticed that the return was materially inconsistent with prior period.

FAR 80
REG 88
BEC 86
AUD 98

Thank GOD!

[magatha12]

Does anyone know of a good resource that lists out all the audit report types and formats? I have CPA Excel as well as NINJA MCQ, and Notes, and I am looking for a “one stop shop” of all the different kinds of reports (attestation ones as well as regular audit ones), with their formats and deviations (for EOM paragraphs and division of responsibility and whatnot), does anyone know of a resource that has all of this together? I feel like I'm using too many different supplements for it and they are kind of clashing.

FAR: 79
AUD: 81
REG:5/29/15
BEC:85

Using CPA Excel, NINJA notes and audio, NINJA MCQs

[Anonymous]

If you're using Becker, what I did was just type out the unmodified report manually in Word. This is a good exercise to memorize the details.

Then, I copied the file, and tweaked the unmodified report into the various types and made the changes in bold/red.

[magatha12]

Thanks @Akvod! I don't have Becker but that actually sounds like it will be very helpful! I might try to work on that

FAR: 79
AUD: 81
REG:5/29/15
BEC:85

Using CPA Excel, NINJA notes and audio, NINJA MCQs

[Anonymous]

magatha12 what study materials are you using? Does it have the various reports in full?

[magatha12]

Mainly CPAExcel, which kind of just lumps all of the reports in one section and I can't tell if any are missing

I obviously know that I need to know the regular audit reports (Unmodified, modifieds)

Attestation (exam, review AUP) -> which have different kinds (ex: review of MD&A)

Compilation

Gov't reports

PCAOB (Internal control over fin reporting)

Am I missing anything?

FAR: 79
AUD: 81
REG:5/29/15
BEC:85

Using CPA Excel, NINJA notes and audio, NINJA MCQs

[Anonymous]

Hi Magatha,

Thank u for posting that question… I am facing the same situation!

Akvod,, thank you for a nice suggestion!

[Anonymous]

Skimming through all the chapters right now with Becker outline (test tomorrow… I'm beyond burned out at this point. I can't even feel tired).

Here's a copy paste from my notes summarizing the various reports and the changes to them:

1. Unmodified Opinion

2. Referencing audit of component auditor

Modify Auditor’s Responsibility to state that “We did not audit”

Modify Opinion to state that “based on our audit and the report of the other auditors”

3. Going concern – Adequate and inadequate disclosure

Add Emphasis of Matter paragraph

3. Justified lack of consistency (material)

Add Emphasis of Matter paragraph

4. GAAP – Qualified and Adverse

Modify Auditor’s Responsibility to state that “provide a basis for our qualified/adverse opinion”

Add Basis for Opinion paragraph

Modify (Qualified/Adverse) Opinion paragraph to add “Except for the omission… present fairly”/”Because of… Do not present fairly”

5. GAAS – Qualified

Modify Auditor’s Responsibility to add “qualified” opinion

Add Basis for Opinion paragraph

Modify (Qualified) Opinion paragraph to add “except for the POSSIBLE EFFECTS…”

6. GAAS – Disclaimer

Modify Intro to add “We WERE engaged to audit”

Modify Auditor Responsibility to replace after the first 2 sentences “Because of the matters described I the basis for Disclaimer… we were not able to obtain sufficient appropriate evidence”

Add Basis for Disclaimer of Opinion paragraph

Modify (Disclaimer of) Opinion paragraph to state that “we do not express an opinion”

[How many letters do you need]

Hi Magatha: honestly I suggest you just create your own! That's what I'm doing. Roger has a couple of great charts I'm just creating a one pager excel doc that combInes them all.

MBA,CMA,CPA, CFF?, ABV?

[Author]

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