[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/

[rp 12]

Hello,

Am Ronak. Gave my AUD exam last month and found out y'day that I failed. I used Becker, and failed it 3 times in total (AUD and FAR). Am contemplating Rogers, and Wiley book for MCQ's. Am not sure how the MCQ's & SIMS are from Rogers. Any feedback guys on what materials to get?

"Success in life comes when you simply refuse to give up, with goals so strong that obstacles, failure, and loss act only as motivation"

AUD: 68, 62, 77✔ (expires 10/31/16)
FAR: 53, 48, XX (retake 6/16)
REG:
BEC: 53

[Maaneet]

Ronak,

Go with Ninja! It sure helped me pass AUD. Notes and MCQs are worth the buy. Plus there is a BOGO offer this week.

Good Luck!

FAR - 81 (2/13), Expired. 🙁 Retake 79 (11/14)
AUD - 63 (10/13), 71 (2/14), 69 (7/14), 81 (10/14) Finally!!!
BEC - 77 (2/14)
REG - 78 (5/14)

[Anonymous]

Hey! So I take AUD tomorrow afternoon(last exam..hopefully!) I'm really nervous about this one because i'm so close to being done and I dont want to mess this one up! haha. Anyways, I just got done taking the Beckers 1st final exam and scored 80s on all three testlets – what were your grades on the practice final exam compared to your actual exam? thanks!!

[Anonymous]

Is fraud inquiry required for a review of a nonissuer – both Interim AND review? It is required for a review of an issuer.

[rachel525]

I have to retake AUD next year and does anyone know if there are any significant changes?? Thank you!

[Anonymous]

@rachel525

Probably not any significant changes, but seeing as it will be another year I would keep up to date on new laws and regulations.

[Anonymous]

Another MCQ I'm confused about. The answer says that documentation of inquiry and analytical procedures does not include legal representation letter. but then the explanation lists that very document as part of the review. Isn't this a contradiction?

---

The documentation of the inquiry and analytical procedures on a review engagement should include all of the following except:

A. additional procedures performed in response to significant unexpected differences arising from the analytical procedure and the results of such additional procedures.

B. communications, whether oral or written, to the appropriate level of management regarding fraud or noncompliance with laws and regulations that come to the accountant's attention.

C. legal representation letter.

D. management representation letter.

The accountant's documentation in a review engagement should include the following:

The engagement letter

The analytical procedures performed

The expectations when the expectations are not otherwise readily determinable from the documentation of the work performed, and factors considered in the development of those expectations

Results of the comparison of the expectations to the recorded amounts or ratios developed from recorded amounts

Management's responses to the accountant's inquiries regarding fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount

Any additional procedures performed in response to significant unexpected differences arising from the analytical procedure and the results of such additional procedures

The significant matters covered in the accountant's inquiry procedures and the responses thereto

Any findings that are significant

Unusual matters that the accountant considered during the performance of the review procedures, including their disposition

Communications, whether oral or written, to the appropriate level of management regarding fraud or noncompliance with laws and regulations that come to the accountant's attention

The representation letter<

---

see this is included

[rachel525]

@Determined Thank you! Good luck on your AUD exam!

[jgarcia09]

Which of the following factors is most likely to affect the extent of the documentation of the auditor's understanding of a client's system of internal controls?

A.

The industry and the business and regulatory environments in which the client operates

B.

The degree to which information technology is used in the accounting function

C.

The relationship between management, the board of directors, and external stakeholders

D.

The degree to which the auditor intends to use internal audit personnel to perform substantive tests

Can someone explain why it is that A would not be the answer?

[cpain2015]

Just got done the AUD exam…I feel ok..better than the last time I took it..there were some iffy questions, but most of the multiple choice questions were ok thanks to CPAExcel…the simulations were ok this time. I actually feel good about this one eventhough I know I missed a few questions..hopefully its enough to pass

FAR - 73, 75 PASSED
AUD - 74, 96
BEC - 79
REG - 89! Done. I'm a CPA!!

[Ima_Audit_You]

@jgarcia – I'd say A is incorrect because it relates more to inherent risk. I think B would be a better answer since it relates to internal controls.

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]

Could someone make sense of this to me (answer is ‘A')? Seems to like the two would work in concert as opposed to having an inverse relationship.

The acceptable level of detection risk is inversely related to the:

A.

assurance provided by substantive tests.

B.

risk of misapplying auditing procedures.

C.

preliminary judgment about materiality levels.

D.

risk of failing to discover material misstatements.

[jgarcia09]

When performing risk assessment procedures to obtain an understanding of internal controls, the auditor may include all of the following except:

A.

observing the application of specific controls.

B.

performing analytical procedures.

C.

inspecting documents and reports.

D.

tracing transactions through information system relevant to financial reporting.

what would you say the answer is for this one?

[spinfuzer]

@aspiring1accountant

If you want lower your chance of letting a material misstatement go undetected, you need more assurance from your substantive procedures.

Detection Risk – chance that a material misstatement will go undetected

@jgarcia09

B, observation, inquiry, inspection, and walkthroughs help you understand internal controls.

FAR - 08/08/14 - 93
BEC - 08/28/14 - 95
REG - 10/11/14 - 96
AUD - 11/30/14 - 99

[Anonymous]

@jgarcia

If you didn't know all of what spinfuzer stated you could reason that analytical procedures is the correct answer.

When analyzing the question, the key phrases are “risk assessment procedures” and “understanding of internal controls”. Analytical procedures are very useful for risk assessment procedures. They can point out areas where a significant increase or decrease in activity occurred. This can help the auditor determine where to focus audit procedures. For example if investments increased from $1 million in the previous year to $100 million in the current year, the auditor would likely perform some additional procedures on investments in the current year.

However, analytical procedures won't help with understanding internal control. So for the example above, if the auditors previous year information related to investments is skimpy or nonexistent, the auditor would likely now perform whatever task is needed to understand the entity's investment recording process and the controls surrounding it.

[Author]

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