[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/

[Iggy1985]

Found this; “Through 2009, interim reviews of nonissuers followed Statement on Standards for Accounting and Review Services (SSARS) for reviews and Statement on Auditing Standards (SAS) for the year-end audit. However, the Auditing Standards Board’s SAS 116, Interim Financial Information, which amends SAS 100 of the same name, now requires reviews of interim financial information to be performed under the audit standard if the prior year-end financial statements were audited and the firm has been engaged, or expects to be engaged, to audit current year-end financial statements. Concurrent with the issuance of SAS 116, AICPA issued SSARS 18, which includes a provision that SSARS is not applicable when the above situation exists.”

So yeah my thoughts are..

interim review of nonissuer that will be audited at year end = SAS

interim review of public companies = SAS (adopted by PCAOB with some modifications…) so unclear whether to say PCAOB or SAS – simulation in wiley says SAS

interim review of nonissuer that will not be audited at year end = SSARS

https://pcaobus.org/Standards/Auditing/Pages/AU310.aspx

Source: SAS No. 1, section 310; SAS No. 45; SAS No. 83; SAS No. 89.

Issue date, unless otherwise indicated: November, 1972.

I seriously don't understand how so many people get in the 90's on AUD, this stuff seems so convoluted whereas FAR I felt like most everything was clear lol

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[Anonymous]

If anyone comes across any service organization questions, please post them here. That is definitely one of my weaknesses.

[Iggy1985]

@CPAHOPEFUL11

I actually JUST got one in my last 15 MCQs of the test bank, and of course I got it wrong….

An auditor is auditing a mutual fund company that uses a transfer agent to handle accounting for shareholders. Which of the following actions by the auditor would be most efficient for obtaining information about the transfer agent’s internal control?

A Use reports on internal control suitability of design and operating effectiveness produced by the agent’s own auditor.

B Review prior year workpapers to determine whether the number of transactions processed by the agent has materially increased.

C Perform an audit on the internal control function of the agent.

D Perform tests of controls on a sample of the audited firm’s transactions through the agent.

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[Anonymous]

I think Cpargh got it straight!

So I just finished doing exam rehearsal, I got 83 on MCQs and 81 on SIMs, I hope this performance remain true (at least at minimum) on the actual test. I have few more days to improve my scores. As I have mentioned in my previous post, I am staring at my exam score in sticky note, AUD – 95.

Wifey heard me persistently coughing and gave me Mucinex right before I started the rehearsal, which was a bad idea. I almost feel asleep while taking the test (lol), so I ordered a cup of coffee. Glad it still turned out good! 🙂

[Anonymous]

I am reviewing my answers and I noticed that most questions I got wrong were flagged questions. If I should have not changed them, I should have gotten them correct. Oh boy… 🙁

[Anonymous]

Here's a good question:

Which of the following procedures would be most appropriate for testing the completeness assertion as it applies to inventory?

A. Scanning perpetual inventory, production, and purchasing records.

B. Performing cutoff procedures for shipping and receiving.

C. Examining paid vendor invoices.

D. Tracing inventory items from the tag listing back to the physical inventory quantities.

[Iggy1985]

B?

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[Anonymous]

Anyone who can guess the answer and explain it in a simple way?

Which of the following is a correct statement about the circumstances under which a CPA firm may or may not disclose the names of its clients without the clients’ express permission?

A. A CPA firm may disclose this information if the practice is limited to bankruptcy matters, so that prospective clients with similar concerns will be able to contact current clients.

B. A CPA firm may not disclose this information because the identity of its clients is confidential information.

C. A CPA firm may disclose this information unless disclosure would suggest that the client may be experiencing financial difficulties.

D. A CPA firm may disclose this information if the practice is limited to performing asset valuations in anticipation of mergers and acquisitions.

[Iggy1985]

well A and C don't really make sense to me.. D – what?

I would choose B lol. .

buuut I guess that's wrong because the AICPA says;

“014 It is permissible under rule 301 [ET section 301.01] for a member to disclose the name of a client, whether publicly or privately owned, without the client's specific consent unless the disclosure of the client's name constitutes the release of confidential information. For example, if a member's practice is limited to bankruptcy matters, the disclosure of a client's name would suggest that the client may be experiencing financial difficulties, which could be confidential client information”

So you can unless it's tied to confidential info like bankruptcy or financial difficulties, so C.

A would be incorrect because if the firm only dealt with bankruptcy clients, it would suggest the client is going through bankruptcy.

D would be incorrect because if the firm only deals with mergers/acquisitions, releasing the name of a client would suggest they are going to have a merger/acquisition and that's confidential info.

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[johnny_debt]

I came across this question and maybe someone can help explain it. I answered C, which is incorrect according to Ninja MCQ. The correct answer is B. The question is shown below.

Which of the following is an example of discrepancies in accounting records that could be used to assess the risk of material misstatement due to fraud?

A. Inconsistent, vague, or implausible responses from management or employees arising from inquiries or analytical procedures

B. Evidence of employees' access to systems and records inconsistent with that necessary to perform their authorized duties

C. Unusual discrepancies between the entity's records and confirmation replies

D. Unavailable or missing electronic evidence, inconsistent with the entity's record retention practices or policies

The question is asking for ‘discrepancies in accounting records', but I don't understand how evidence of employee access to records systems represents ‘discrepancies in accounting records'. If anything one can conclude that the organization has inefficient internal controls but not a discrepancy until further procedures are performed.

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

[johnny_debt]

@CPAby2015, is it B. Performing cutoff procedures for shipping and receiving.

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

[Iggy1985]

@johnny – C seems like the reasonable answer to me as well… but here's what the PCAOB says;

“Also, other conditions may be identified during fieldwork that change or support a judgment regarding the assessment—such as the following:

Discrepancies in the accounting records, including—

Transactions not recorded in a complete or timely manner or improperly recorded as to amount, accounting period, classification, or entity policy.

Unsupported or unauthorized balances or transactions.

Last-minute adjustments by the entity that significantly affect financial results.

Conflicting or missing evidential matter, including—

Missing documents.

Unavailability of other than photocopied documents when documents in original form are expected to exist.

Significant unexplained items on reconciliations.

Inconsistent, vague, or implausible responses from management or employees arising from inquiries or analytical procedures.

Unusual discrepancies between the entity's records and confirmation replies.

Missing inventory or physical assets of significant magnitude.”

kind of a silly distinction to make, no? and it doesn't say anything about access. I guess they ruled out the other three since they are under “conflicting or missing evidential matter” in the PCAOB standards

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)

[Anonymous]

CPAby2015, first answer B, second answer C?

[Anonymous]

Johnny, I came across that question yesterday and had answered B mainly because the question mentions discrepancy due to fraud. Unusual discrepancies on the confirmations could be due to errors as well, but employees performing tasks unrelated to their duties could indicate fraud – for example, if the auditor obtains evidence that someone with recording functions has also been performing tasks related to custody of assets then that would increase the risk of fraud.

I think C is also a good answer, but not the best answer as the question mentions fraud.

[Iggy_1985]

hey guys I'm back, with a new account.. all of my responses were being hidden until approved and I just thought no one wanted to talk to me lol >_> testing testing!

FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio/Notes
BEC - 82 (5/8/15) Ninja MCQ, A few Becker lectures during commute
REG - 84 (8/14/15) Ninja MCQ, A few Becker lectures during commute

Letters after my name soon!

[Author]

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