[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).

[Just3Letters]

Hey people,

this is my last exam and I refuse to not pass it. That being said, Audit Procedures by Transaction Cycle is killing me! Anybody have a good way of understanding this stuff? The questions like, “what would an auditor do to limit substantive tests on sales?” are so tough for me. That was just an example but generally how are people studying this part? Any good mnemonics? I know the COVER U assertion mnemonic but that just helps me know the assertions rather than the procedures for certain cycles or whatever

Enough rambling. This stuff is so frustrating haha

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[iamonloose]

Thanks @Kanwal78
And control risk is RMM due to poor internal control? Internal control cannot catch it on time. right?

[HoosierCPA]

Someone can correct me if I'm wrong– but I've always viewed inherent risk to be the risk of financial misstatement due to factors OTHER THEN internal controls. In other words, you can have sound internal controls in place but there is still that risk that a material misstatement could occur.

Some common examples are management override and collusion. Even if you had proper segregation of duties in place that will not prevent employees from conspiring together to commit fraud.

You are correct on control risk. This is the risk that your current controls will not detect misstatements in a timely matter.

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

[KJ]

@ dtatham10 you are right don't doubt yourself :-).

Let me reiterate the sentence I wrote before Inherent risk is the RMM in the financial statements due to errors or omission “as a result of factors other than the failure of controls” (i missed this part). Yeah this sounds better.

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[KJ]

@imonloose..you got that right for control risk. Detection risk is a failure to detect a material misstatement in the financial statements by the auditors.

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[iamonloose]

Thanks! Auditors are able to change only detection risk by increasing or decreasing test of detail. When RMM is high, detection risk is low (means more test of detail).

[Theodore]

@allaboard we get our score tomorrow. I am super nervous. This is the first exam that is going to make me loose sleep the night before scores are released. Good luck to us!

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[HoosierCPA]

@rosy @allaboard good luck!!! You guys are apart of my original audit study group so I'm playing a little favoritism here! haha. 75 or higher!!!! You got it!

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

[Anonymous]

@dtatham10 thanks! @rosy0407 I've checked the score release page and the state website more times then I care to admit today thinking maybe I can find a hint to my score…knowing full well nothing will be there. It's so nerve-racking!

[aatoural]

good luck tonight guys!

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Anonymous]

someone else is finding out tonight, but we lost all of our brilliant conversations. I keep wanting to say papogator, but I know that's not right because they're done. maybe @mckanw? don't won't them to feel left out of this fun!

[Theodore]

Thanks Guys!! Dab is waiting for the score release too. I think papogator is done… @aatoural I like how you're still around for AUD. Someone has to cheer for the last ones lol

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[aatoural]

I think mckan was also waiting tonight. Papogator is done already. And I feel the same way as allaboard, I missed the brilliant conversations. Can't seem to find much in the REG thread 🙁

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[iamonloose]

Can someone please simplify the definition of materiality?

[Theodore]

an amount that can have a significant impact on the FS whether it is quantitatively (Auditor Professional Judgement) or qualitatively (set by different factors, such as FS users).

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[Author]

Replies