[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]

I don't see what cash balance has to do with fraud related to the revenue recognition. Could somebody please explain? Thanks!

Material misstatements due to fraudulent financial reporting often occur in the form of revenue recognition. The auditor should presume a higher risk of fraud in which of the following accounts?

I Cash Balance

II Accounts Receivable

III Accounts Payable

A. I

Correct B. I and II

C. I, II, and III

D. None of the answer choices are correct.

[ruggercpa2b]

@anjanja I think that the first sentence in that question does throw you off a little. However, when you read the second part it completely goes away from revenue recognition and asks which of the accounts listed would have a higher risk of fraud. And cash on hand has a higher risk of fraud.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[Anonymous]

Thanks ruggercpa2b!

[Anonymous]

Performing a walkthrough is an efficient way of:

1. understanding the flow of transactions in the entity, including how the transactions are initiated, authorized, processed, and recorded.

2. verifying that the auditor has identified the points within the entity's processes at which a material misstatement could arise (including misstatements due to fraud).

3. identifying the controls that management has implemented to address potential misstatements.

4. identifying the controls that management has implemented to prevent or timely detect unauthorized acquisition, use, or disposition of company assets that could result in a material misstatement of the financial statements.

Does #2 make sense? How can walkthrough verify the fact the auditor identified something?

[Ima_Audit_You]

@anjanja – If I had to guess, I'd say the best answer is 1, obtaining an understand rather than 2, verifying. Does the test bank say 2 is the correct answer?

FAR 5/1 - 83
REG 7/7 - 79
AUD 11/20 - 85
BEC 8/27 - ALMOST THERE!!

3 for 3! Study high, get high grades!!

[Anonymous]

Sorry, the answer is all four, I answered 1, 3, and 4

[ruggercpa2b]

@anjanja I believe that you can identify an issue through management inquiry and also just observation.

I know at work there are times during our planning phase when we talk to management about their processes and learn more about what they do we are able to identify some areas where we don't think the controls implemented are truly being effective or maybe just missing certain controls.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[Sandia]

If you get one transaction walkthrough – for example return merchandise, it will be so easy to see the weakness in the I/C such as authorization for damage merchandises expenses or merchandises in good condition count as an inventory.

The merchandise in good condition expense and it was properly approved, it is fraud. This is something that you can get in the practices more than in the books. I hope help you.

FAR – 77

AUD – waiting

FAR - 77 x2 Wiley book & no test bank
AUD - 83 x3 NINJA Test bank 3 time
REG - 80 x1 NINJA Test bank
BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
Ethic 100% Licensed VA CPA

[Anonymous]

Well it just sounds as if the auditor has already identified something and as if the walkthrough was somehow proving this fact.

Kind of reminds me of mark Twain where he says that the annual procession in the church confirms the miracle of angel putting a sword in a sheath, you know

Maybe overthinking

[willpassby2014]

Giving my exams tomorrow …..

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Sandia]

@ willpassby2014 good luck!! you can do it!!

FAR - 77 x2 Wiley book & no test bank
AUD - 83 x3 NINJA Test bank 3 time
REG - 80 x1 NINJA Test bank
BEC - 78 X2 NINJA Test bank ..done!!promesa cumplida mama -que llege al cielo 🙂
Ethic 100% Licensed VA CPA

[willpassby2014]

How can you identify which one is old standard and which one is clarified standard

AU-C 620.15 states, “If the auditor makes reference to the work of an auditor's external specialist in the auditor's report because such reference is relevant to an understanding of a modification to the auditor's opinion, the auditor should indicate in the auditor's report that such reference does not reduce the auditor's responsibility for that opinion.”

Note: The clarified standards are now the correct standards. If you selected AU 336.16, you selected the old standard, which has been superseded.

Simulation #68

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Cpachance]

Help – maybe a few months ago, someone posted a huge list of simulations to do for audit. I can't specifically remember the topic as I was studying for far at the time and that's why my search has not been successful. At the time, I copy and pasted these sims to word to remember when I started studying for audit again and now I can't find them. Does anyone remember this post or can you help me find it? Maybe I'm search illiterate

[Anonymous]

Just got a 71% on Audit Ninja Practice Exam. I have Becker too and those practice tests are usually pretty tough, but how should I feel after getting a 71 on Ninja? Test on Tuesday. Someone talk me down…

FAR 83

AUD 72, 72… (11/25/14)

BEC 85

REG 83

[Panda Love]

I am gonna have to join you guys again 🙁 Woke up to a 54 on AUD first time taking this section. I hope to get it done by the beginning of next year. Good luck to all of you guys still waiting on your scores.

[Author]

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