[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/

[mariam almas]

did not get it ?? why the answer is D ????

Ineffective general controls by themselves:

always cause misstatements.

never cause misstatements.

could cause misstatements.

could allow misstatements.

A.

I

B.

II

C.

III

D.

II and IV

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

NH

[jsim85]

Hi Mariam – I think the keyword in the first three statements are “CAUSE”. If you think about it, ineffective controls are not the CAUSE of misstatements. A human error can CAUSE a misstatement, or collusion can CAUSE misstatements, but the ineffective controls itself won't.

Therefore, ineffective controls will never CAUSE misstatements, but they could ALLOW misstatements.

Someone correct me if I'm mistaken here.

AUD - 68, 85
FAR - 75
BEC - 74, 76
REG - 80

[jsim85]

Can someone help me understand the logic behind the sample size factors for attribute sampling? I just don't get it. For example: an increase in tolerable rate will have an inverse effect on the sample size (decrease). If you're saying you're willing to live with a higher tolerable/error rate, shouldn't you increase your sample size?

AUD - 68, 85
FAR - 75
BEC - 74, 76
REG - 80

[mariam almas]

@jsim85 , thnx for your explanation

i think the logic is when the auditor is willing and agree to accept a high error rate(TR increase) this means no need to increase your effort and waste your time by testing huge amount of sample size, therefore he will test a small amount of sample size (sample size decrease), this happens when there is a strong internal control (control risk is low)

however, when the auditor NOT willing to accept high error rate(TR decrease) he should increase his effort in testing the sample size (increase sample size)

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

NH

[jsim85]

Thanks Mariam. I see we're taking the exam almost the same time, GOOD LUCK!

AUD - 68, 85
FAR - 75
BEC - 74, 76
REG - 80

[Anonymous]

Anyone else here have trouble with AUD using only Becker? I got a 72 on Audit twice using just Becker, while passing the others the first time. Planning on getting Ninja to supplement and hopefully I'll be done once and for all.

[Anonymous]

@ Future Ninja Thanks for the answer. Good to know!

I think we should number our questions so when we answer we just refer to the question number? Thoughts? Also, posting explanation is a good idea.

[Anonymous]

@jsim85 I feel you. I consider sampling as my weak area. I wish we could borrow mariam's brain to get over this topic.

[mariam almas]

@CPAby2015 sure u could hehehe

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

NH

[mariam almas]

and yeah agree with u in numbering the question

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

NH

[Anonymous]

Sounds good, but do you mean number every question? How would we do that with his Ninja MCQ

[mariam almas]

i meant, if u dont mind when u post a question please number it, so when multiple questions are posted at the same time we can easily discuss them by mention the number only

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

NH

[mariam almas]

1) An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to:

a.

Eliminate the risk of nonsampling errors.

b.

Minimize the failure to detect errors and fraud.

c.

Measure the sufficiency of the audit evidence obtained.

d.

Reduce the level of audit risk and materiality to a relatively low amount.

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

NH

[Anonymous]

Good start with the numbering: 1. C Keywords ” measure sufficiency”. 🙂

[Anonymous]

Good start with the numbering: 1. C Keywords ” measure sufficiency”. 🙂

[Author]

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