[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for AUD.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

I get why C is a weakness because it's one employee doing both custodial and record keeping function which is not proper segregation of duties.

A might be wrong because even though Clerk 1 opens all incoming mail, it's not really a custodial function. This is an expenditure cycle so no checks are coming in through mail so there wouldn't be an issue of clerk 1 having custody of assets.

Hope that made sense.

[cpaMD86]

From my understanding,the mailing and receipt of checks is supposed to be done by Treasury.

FAR: 9/3

[tman102938]

@cpaMD86 that was my reasoning too

BEC:69,79 PASS
FAR:77 PASS
REG: 7/30
AUD:68,64

"If you want something, go get it. Period."

[Double-entry Deviant]

Hi guys – I'm scheduled to take my exam on Monday afternoon, 10/3, at 12:30 pm.

REG: 5/30/15 - 77
FAR: TBD
BEC: 8/31/15 - 70, 73, 1/8/16 - 77
AUD: 6/1/16- 73, 8/2/16

[Duskfall]

I'm taking my exam Wednesday, October 5th. I feel like I haven't been making progress for over a week. I keep getting around 80% on MCQ, and I can't seem to do better. Ugh…going to keep taking notes, watching CRAM and doing MCQ/Sims until my eyes bleed. I hope something breaks through and I start improving

FAR - 07/07/2016 - 81
BEC - 08/23/2016
AUD - 10/05/2016
REG - 11/23/2016

[Anonymous]

Bonus question:
What does “AT” mean?

In the preface to the AT section for the Statements on Standards for Attestation Engagements is a notation that indicates, “These statements are issued by the Auditing Standards Board, the Accounting and Review Services Committee, and the Management Consulting Services Executive Committee.” These are units of the American Institute of CPAs.

The FASB and GASB are independent authoritative bodies designated to promulgate financial accounting and reporting standards for business (for-profit) and governmental (and not-for-profit) entities.

The Government Accountability Office (GAO) is the accounting, auditing, and investigating agency of the U.S. Congress. This agency has promulgated “Standards for Audit of Governmental Organizations, Programs, Activities, and Functions” (the “Yellow Book”).

[Double-entry Deviant]

Hi all – I'm scheduled to take my exam this Monday afternoon. This is my 3rd try – scored 73% and 67%….grrr! On my last attempt, I was “trending” in the high 80's or low 90's…

When I started my re-study, I zeroed out my scores on Ninja and I started from scratch.

Right now, my average and my trending score are both at 77%. I haven't completed all the MCQ yet – I'm about 70% done.

Would you finish all the MCQ's or start reviewing all the questions you got wrong – any input?

I know when I did this for my last exam – my “trending score” went way up. I don't want to walk in and not pass but I need to get this exam done so I can pass and move on to FAR.

Any pearls of wisdom?

Bleary eyedly your's –
AD

REG: 5/30/15 - 77
FAR: TBD
BEC: 8/31/15 - 70, 73, 1/8/16 - 77
AUD: 6/1/16- 73, 8/2/16

[Double-entry Deviant]

@ Amor – I don't know yet what that term means, but I'll for sure be on the look out.

REG: 5/30/15 - 77
FAR: TBD
BEC: 8/31/15 - 70, 73, 1/8/16 - 77
AUD: 6/1/16- 73, 8/2/16

[Candace]

Someone had a great post for audit listing all of the numerical values that we needed to memorize.. now I can't find it.

For ex.. Independence is impaired if a Covered member has a loan 10% or greater.
Credit cards are allowed up to $10K..
etc.
Does anyone remember the link to the topic?

REG- 69- Felt discouraged.. took a break.
AUD- 69, 74- The worst feeling ever. Far more painful than a break up.

[Anonymous]

Thank you, Didato. I'll be waiting for your update about that “AT” Section.

I passed AUD in 2013 and lost credit last year so I am repeating it. I've compiled my notes with a title AUD By Number. Several months have passed since then and some business regulations might have changed. For instance, with Form 8-K, the required filing day was used to be 4 days, but now it’s 15 days.

4 Days…..Form 8-K reporting significant change in an issuer's business must be filed within 4 business days to update previously filed Form 10-Q and 10-K.

5 Days…..Form 8-K: A change in certifying CPA or the resignation of a director must be reported within five business days. Proxy statements are not audited, but require full disclosure with regard to the proxy solicitation. Proxy statements may, however, contain audited financial statements.

15 Days….The 8-K is not audited, but must be filed in writing 15 days after a significant event such as a change in control, sale or purchase of division, start or termination of material litigation, material default or debt, and/or write-down or abandonment of assets.
CAN ANYONE CLARIFY THE FILING DAYS REQUIRED FOR FORM 8-K?

I have 57 lists of AUD By Number to share after I get the clarification for Form 8-K.

[Candace]

Amor- I just came across a MC question in Ninja which gives this explanation of the “AT”

Statements on Standards for Attestation Engagements (SSAE) are issued by senior technical bodies of the AICPA. They apply to practitioners engaged to perform an examination or a review; or issue an agreed-upon procedure report on subject matter, or an assertion about the subject matter that is the responsibility of another party (these are called “attest engagements”). Examining and reporting on management's assertion that the entity's schedule of investment returns is presented in accordance with specific criteria would fall under these standards. SSAEs can be found in the back of the Codification of Statements on Auditing Standards publication, and they are referenced as “AT.”

REG- 69- Felt discouraged.. took a break.
AUD- 69, 74- The worst feeling ever. Far more painful than a break up.

[Anonymous]

Thanks, CPA_Ready.

Accordingly, acting as an honorary trustee for a not-for-profit company does not impair independence.
What about when you're acting as a honorary trustee for a PROFIT COMPANY?

[Anonymous]

This sample MCQ gives me headache understanding the call of the question. Please can anyone provide a simpler explanation? Thanks.

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 performing asset valuations in anticipation of mergers and acquisitions.

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

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

d.
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.

Explanation

Choice “b” is correct. An ethics ruling related to the Confidential Client Information Rule states that it is permissible for a member to disclose the name of a client without the client's consent unless the disclosure of the client's name results in the release of confidential information. The specific example given in the ethics ruling states that if a member's practice is limited to bankruptcy matters, the disclosure of a client's name suggests that the client may be experiencing financial difficulties, which could be confidential client information. Confidential client information cannot be disclosed without the client's consent.

[Anonymous]

(-.-) ZZZ

[HoosierCPA]

Which of the following matters is covered in a typical comfort letter?

A.Negative assurance concerning whether the entity's internal control procedures operated as designed during the period being audited

B.An opinion regarding whether the entity complied with laws and regulations under Government Auditing Standards and the Single Audit Act Amendments of 2013

C.Positive assurance concerning whether unaudited condensed financial information complied with generally accepted accounting principles

D.An opinion as to whether the audited financial statements comply in form with the accounting requirements of the SEC — CORRECT

This question had me confused. I thought D sounded mostly correct besides the part where it says “an opinion” right at the beginning. When I read comfort letter I immediately think negative assurance so I was drawn to A–but knew outside of it saying negative assurance it didn't sound correct.

What I was looking for was more in the line of “negative assurance as to whether the audited financial statements comply in form with the accounting requirements of the SEC”.

Are there circumstances in comfort letters when you can issue an opinion vs negative assurance?

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[Author]

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