[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

[pharaoh]

Which state? with CA, it took 3-4 weeks

FAR 8/2016
AUD 1/2017
REG TBD
BEC TBD

[Forem004]

Check with the board. The last application I mailed got lost in the mail and took about two months to process.

On the previous page everyone was discussing downloading reports. Are the ones who are needing this not working? I deal with these reports on a daily basis so luckily This is not an issue I'm facing. I guess that's good bc the wording on a lot is confusing me.

[Porma Fierles]

Hey, why would this answer be wrong? Again the answer key supports my original answer, yet it marks another answer as correct

Me: TWD has several large loans on its books. Each loan has a covenant regarding debt to equity ratios. Confirm the loan balances involved in the covenant ratios

Answer Key: TWD has several large loans on its books. Each loan has a covenant regarding debt to equity ratios. Design more extensive audit procedures to support the valuation of the debt involved in the covenant ratios
While the auditor should confirm the loan balances and perform analytical procedures on the specified accounts involved in the ratios, the auditor should also consider expanding the substantive procedures performed. Substantive tests provide information about the fair presentation of management's assertions. Management asserts that the company is in agreement with its loan covenants, and increasing substantive tests increases the evidence obtained and decreases audit risk. (AU-C 330.07)

[pharaoh]

What would you pick? and why?

Which of the following statements regarding the going concern assumption is correct?

A.Continuation of an entity as a going concern is assumed in financial reporting in the absence of significant information to the contrary.

B.The going concern concept reflects the entity's inability to meet its obligations.

C.The auditor is responsible for predicting future conditions or events in assessing the likelihood that the entity will continue as a going concern.

D.The auditor must apply audit procedures designed solely to identify conditions and events that indicate there could be substantial doubt about the entity's ability to continue as a going concern.

FAR 8/2016
AUD 1/2017
REG TBD
BEC TBD

[Sticky Nicky]

A because ive already seen this one 3 times before getting it right. haha…i picked B every other time,,,C and D are out right off the bat…A does make sense because you assume that the business will continue unless the auditor finds evidence that there may be substantial doubt like an extremely low quick asset ratio or negative cash flows…the question is tricky because going concern and going concern doubt are difference…going concern is the ability to function without the threat of liquidation of assets while a going concern doubt is the inability to function without liquidating,,,if that makes any sense…you are not going into an audit assuming that there is doubt,,,you find that when you are doing your substantive testing,,,innocent until proven guilty type of concept

[pharaoh]

Yes it is A. B was my first choice and for me, it was like DAAH!! then bummer.

And I guess the first time you read you feel like it means that there is a going concern “Doubt” until auditor proves otherwise and that's why I was like “not really”. And yes C & D were obviously out

FAR 8/2016
AUD 1/2017
REG TBD
BEC TBD

[Spartans92]

Find myself slacking off.. I opened my book today and within 10 mins I fell asleep. DANG, hardly got anything done today. Feeling a bit guilty. Starting fresh tomorrow… I can't focus at all because of my REG score.. how do you guys deal with pending scores? Its quite ironic considering how many times I have already taken the exam but I guess I can never get comfortable with them. Thanks for any input!

I apologize if this has nothing to deal with AUD.

BEC- PASS

[pharaoh]

I see that you have the AUD scheduled on Nov 28 which is now less than a month away. I guess anything I would say will be easier said than done, just try to focus and think about it as you have no choice other than passing AUD on that date. Hopefully you passed REG and we are all here to support/encourage/help each other

FAR 8/2016
AUD 1/2017
REG TBD
BEC TBD

[Forem004]

I find out my BEC score on the fourth but am putting all effort into studying audit which is scheduled December 5th. We have no control anymore over the score of the test already taken so focus on what you can control!

[Forem004]

@porma fierles I don't really understand your question.

[Sticky Nicky]

made it to the review stage…trending 100 average 80 total attempts 2044…evidence and reports are my weak areas apprently…they are the only ones not in the 80s..should i erase my stats and start over going random testlets?

[Forem004]

I would just only do questions geared toward those Areas so you can still see your total progress

[Sticky Nicky]

Sim #82

At the beginning of an engagement to compile Locomotiv Co.’s financial statements for Year 1, Stiles, CPA, asked you, as an engagement team member, to prepare a workpaper suggesting materiality in relationship to potential misstatements found while preparing the financial statements. Which section and paragraph of the AICPA's Codification of Statements on Standards for Accounting and Review Services provide a list of reasonable assumptions you can make in regard to the users of the compiled statements for purposes or materiality?

Answer AR-C 90.A6

explain this to me…AR-C 90 is for review engagements,,,the scenerio refers to a compilation which is AR-C 80 not 90

[Spartans92]

Thanks for all the positivity guys! Thats true at this point theres no control over the scores except just praying for the best! However, theres alway a little ounce of nervousness inside me..I can probably say this is true for everyone. Best of Luck to All!

BEC- PASS

[Sticky Nicky]

feeling the pressure,,,9 days left plus my sisters wedding next weekend,,and a score release the day of the wedding,,ill either find out i passed BEC and be raging with excitement on the dance floor,,,or find out I failed and be crying in the bathroom while puking from excessive alcohol consumption

[Author]

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