[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

[Spartans92]

DANG Sticky! when are you sitting? Since thanksgiving is around the corner do yall take a break that day? Just curious since its my first time studying during a holiday. For the record, I should start final review next week (1 week ahead).

BEC- PASS

[Sticky Nicky]

Im sitting on the 9th,,one week from today,,,,and Thanksgiving i may study a little here and there but not full force session,,,just some MCQs on topics I already covered,,,ill be studying for REG during that time which im scared to death of lol

[nk522]

I keep hearing that Becker's MCQ are generally a little bit harder than the actual exam? Aren't all of Becker's questions just past CPA questions? Can someone share their experience who has sat for the exam already, if there is any varying level of difficulty between Becker MCQ and the actual exam?
Thanks 🙂

[JT]

Sticky Nicky, once your done with your exam, I would appreciate it if you told me which additional test bank you recommend (either wiley or roger). Im sitting on nov 28 and would like to purchase another test bank within the next 1-2 weeks.

I used ninja and Becker and I feel like both test banks did an “ok” job. could've been better.

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[Forem004]

@gini c. There are only two differences between the two. You already mentioned the report and You don't have to be independent to perform a preparation service.

[Porma Fierles]

Hey

Anyone know how they got this answer? Thanks.

Me-3. If it were the only situation discovered, the fact that FGH Company’s attorney has refused to respond to the letter of inquiry, either in writing or orally, would cause the auditor to issue which type of opinion? Disclaimer

Answer Key-3. If it were the only situation discovered, the fact that FGH Company’s attorney has refused to respond to the letter of inquiry, either in writing or orally, would cause the auditor to issue which type of opinion? Qualified
A lawyer’s refusal to furnish the information requested in an inquiry letter either in writing or orally would be a limitation on the scope of the audit sufficient to preclude an unmodified opinion. The auditor would issue a qualified opinion or a disclaimer of opinion, depending on the amount of the scope limitation. (AU-C 501.24)

[Forem004]

I believe that's the definition of when to issue a disclaimer

[Porma Fierles]

OK thanks

[Sticky Nicky]

it would help to post the question

[Sticky Nicky]

anyone know how heavily GAGAS is tested? I know some but its probably the toughest area

[pharaoh]

I thought it is just me. Every time I review the GAGAS section, I feel that I got it, when I see the questions, I feel that I have no clue.

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

[Porma Fierles]

OK, so then what about this one?

Use the research material available to answer the following question. (See Research Task-Based Simulations for instructions.)

During the year-end audit of Client Mfg., the lead auditor in charge of the audit asks you to provide guidance for the treatment of material transactions with related parties. What section and paragraph of the AICPA's Codification of Statements on Auditing Standards (clarified standards) provide examples of procedures to recognize material transactions with related parties?

Me-AU-C 550.03

Answer: AU-C 550.A2 states, “Established accounting principles ordinarily do not require transactions with related parties to be accounted for on a basis different from that which would be appropriate if the parties were not related.”

What the heck? Totally left field to me.

[Porma Fierles]

Also this was the SIM I posted earlier

The following items were noted during the audit of FGH Company. Read each one and respond to the questions below.

FGH Company did not disclose a $200 petty cash checking account. It does not appear on their statements or in their note disclosures.
FGH Company invested in a derivative during the year under audit. The details regarding the risk and uncertainty involved in this investment are not adequately disclosed in the financial statements. The amount of investment is considered material.
FGH Company’s attorney has refused to respond to the letter of inquiry, either in writing or orally.

Me: 3. If it were the only situation discovered, the fact that FGH Company’s attorney has refused to respond to the letter of inquiry, either in writing or orally, would cause the auditor to issue which type of opinion? Disclaimer

Answer: 3. If it were the only situation discovered, the fact that FGH Company’s attorney has refused to respond to the letter of inquiry, either in writing or orally, would cause the auditor to issue which type of opinion? Qualified
A lawyer’s refusal to furnish the information requested in an inquiry letter either in writing or orally would be a limitation on the scope of the audit sufficient to preclude an unmodified opinion. The auditor would issue a qualified opinion or a disclaimer of opinion, depending on the amount of the scope limitation. (AU-C 501.24)

[nk522]

In the Bank Transfer Schedule below, which of the following cash transfers results in a misstatement of cash at December 31, 20X1?

Disbursement date per books Disbursement date per bank Receipt date per books Receipt date per bank
a. 12/31/X1 01/04/X2 12/31/X1 12/31/X1
b. 01/04/X2 01/05/X2 12/31/X1 01/04/X2
c. 12/31/X1 01/05/X2 12/31/X1 01/04/X2
d. 01/04/X2 01/11/X2 01/04/X2 01/04/X2

The correct answer is B.
Can someone simplify the explanation for this please, Becker for some reason isnt helping me out with this one.

[Michael Hunsche]

Just got back from sitting for the AUD section, this was my first section using Ninja, I've passed the other 3 using just the Becker Books (I should disclose, I've been in public practice for 15 yrs). I got a 72 on my first try and used the MCQ's to just help me fill in and “bone up”.

My impression walking out was the content in the MCQ's is nothing like the exam. The simulations are MUCH easier on here, especially the auditing standards citing. The exam is nothing like the simulations, it's much more vague and requires you to figure out what section first (AU-C for example), the section and paragraph.

I went in feeling very confident based on my MCQ results (80-90%), but honestly feel 50/50 on the actual exam. Not a very good impression to be honest given the extent of the MCQ's…. 1700 questions/simulations, and not a single one was on the exam, or close?

[Author]

Replies