AUD Study Group Q4 2014 - Page 24

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  • September 23, 2014 at 10:47 am #622196
    willpassby2014
    Member

    Based on the understanding of how management developed the estimate, the auditor would not use which of the following approaches in evaluating reasonableness?

    A.

    Review subsequent events or transactions

    B.

    Review the process used by management to develop the estimate

    C.

    Review and test the process used by management to develop the estimate

    D.

    Develop an independent expectation of the estimate to corroborate the reasonableness of management's estimate

    BEC Passed
    FAR Passed
    AUD Passed
    REG Passed

    September 23, 2014 at 11:21 am #622197
    mariam almas
    Participant

    Does the answer is A ?

    AUD: 81 (Done)
    REG: Currently studying
    FAR: TBD
    BEC: TBD

    NH

    September 23, 2014 at 12:08 pm #622198
    willpassby2014
    Member

    Answer is B (ninja MCQ)

    BEC Passed
    FAR Passed
    AUD Passed
    REG Passed

    September 23, 2014 at 12:36 pm #622199
    mariam almas
    Participant

    The explanation please

    AUD: 81 (Done)
    REG: Currently studying
    FAR: TBD
    BEC: TBD

    NH

    September 23, 2014 at 12:46 pm #622200
    willpassby2014
    Member

    In evaluating reasonableness, the auditor should obtain an understanding of how management developed the estimate. Based on that understanding, the auditor should use one or a combination of the following approaches:

    Review and test the process used by management to develop the estimate.

    Develop an independent expectation of the estimate to corroborate the reasonableness of management's estimate.

    Review subsequent events or transactions occurring prior to the date of the auditor's repor

    BEC Passed
    FAR Passed
    AUD Passed
    REG Passed

    September 23, 2014 at 12:47 pm #622201
    willpassby2014
    Member

    The difference is review in oprtion B and review and test in option C

    BEC Passed
    FAR Passed
    AUD Passed
    REG Passed

    September 23, 2014 at 2:03 pm #622202
    Anonymous
    Inactive

    @CPAHOPEFUL11 I had the same problem, but then I read the IC chapter in my Wiley book front to back and did every Ninja MCQ question (245 approx.) and now the information is finally sticking (somewhat).

    The last two or three days I have to study I'm going to devote entirely to IC, Evidence, and SIMS.

    September 23, 2014 at 2:32 pm #622203
    mariam almas
    Participant

    @willpassby2014 Ohhh this is a new information, thnx bro will writ it down as note for me, please keep posting these kind of questions

    AUD: 81 (Done)
    REG: Currently studying
    FAR: TBD
    BEC: TBD

    NH

    September 23, 2014 at 3:23 pm #622204
    Anonymous
    Inactive

    Dunkindonutsjunkie, that is exactly what I was planning on doing today. I need to hammer down IC and Evidence as well as all the simulations. I need big time practice on the research problems and the program on Wiley or Ninja really aren't the same as the actual exam.

    September 23, 2014 at 3:23 pm #622205
    Anonymous
    Inactive

    Dunkindonutsjunkie, that is exactly what I was planning on doing today. I need to hammer down IC and Evidence as well as all the simulations. I need big time practice on the research problems and the program on Wiley or Ninja really aren't the same as the actual exam.

    September 23, 2014 at 3:25 pm #622206
    Qlad
    Member

    Questions…as this one…I'm totally lost in the words and what it means…

    When is the independence of the CPA auditor of a client company’s financial statements most likely to be impaired because of involvement in litigation?

    A. A creditor of the client sues the CPA alleging reliance on materially misstated financial statements.

    B. An underwriter of securities is a co-defendant with the client and the CPA. It files a cross-claim against the CPA, but the client does not.

    C. Shareholders of the client bring a class action against the client, its management, and the CPA. The CPA files a cross-claim against management alleging fraud.

    D. A director of another client is a co-defendant with the client and the CPA. This person files a cross-claim against the CPA.

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

    September 23, 2014 at 6:20 pm #622207
    Future Ninja
    Participant

    @Qlad. is the answer C?

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

    September 23, 2014 at 6:25 pm #622208
    Future Ninja
    Participant

    question: If mgt declines to present supplementary information reqd by GASB, the auditor should issue?

    a. qualified with EM par

    b. unmodified opinion

    c. unmodified opinion with O par

    d. Adverse opinion

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

    September 23, 2014 at 7:19 pm #622209
    Anonymous
    Inactive

    @willpassby2014 That's a good question. I would also go with A if I should have not known. Thanks for posting.

    @Qlad I will go with C because that's the ONLY answer that the “CPA files cross-claims”, therefore will result to conflict of interest?

    September 23, 2014 at 7:31 pm #622210
    Future Ninja
    Participant

    @Qlad is the answer C? – I think there is a threat when a cpa filed a suit against the client. I forgot what its called.

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

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