[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

[ahsq]

quick question:

which financial statement assertion is violated when an expense occuring in one year is not recorded until the following year?

a accuracy
b classification
c completeness
d occurrence

I picked d. for the existence/occurrence assertion.

[Anonymous]

I think completeness. The question is telling you that the expense occurred, so it definitely exists. It just has not been completed by being recorded in the period it was supposed to.

[TheblackCPAseeker]

@Forem004 AND @ ahsq
It is B

The only reason you trace from purchase order (Source document) to Purchase journal (Book) is to make sure the purchases were recorded correctly.

FAR - 80 (05/2015)

AUD - 68 (08/2015, Retake (07/03/16)

REG - 77 (11/2015)

BEC - Sometime in 2016

We are destined for this.

[TheblackCPAseeker]

@ahsq for your questions the answer is completeness (since it deals with the whether all transactions and events are recorded or not).

In my opinion the more appropriate assertion would have been cutoff but since that wasn't an option, completeness is the closest to the right answer.

FAR - 80 (05/2015)

AUD - 68 (08/2015, Retake (07/03/16)

REG - 77 (11/2015)

BEC - Sometime in 2016

We are destined for this.

[GiniC]

@ahsq – I had to dig around a bit, but I agree with Dr Cash A Milli that it's completeness. This site Accounting tools – assertions helped me…

[ahsq]

thanks all, here is another:

Of the following, which is the most efficient audit procedure for verification of interest earned on bond investments?

Tracing interest declarations to an independent record book.

Recomputing interest earned.

Confirming interest rate with the issuer of the bonds.

Vouching the receipt and deposit of interest checks.

>>>>>>>>> I picked confirming (substantive test) rate with issuers.

[TheblackCPAseeker]

@ahsq

I have looked around and all my sources say its: Recomputing interest earned.

I don't know how it is more efficient but I'm looking for the explains right now.

FAR - 80 (05/2015)

AUD - 68 (08/2015, Retake (07/03/16)

REG - 77 (11/2015)

BEC - Sometime in 2016

We are destined for this.

[GiniC]

@ahsq – on the verification of interest earned question – process of elimination works best for this one:

Tracing interest declarations to an independent record book – this only verifies interest if you are certain that the independent book (which you haven't audited) is correct, and what independent record book would exist for this? Finding one sounds like extra effort (therefore not very efficient)

Confirming interest rate with the issuer of the bonds – this tells you the rate(s) but not the interest earned, so you still have to recompute

Vouching the receipt and deposit of interest checks – only verifies what was received, not that it was correct

This leaves Recomputing interest earned – since you have the original bond/loan documentation you can recompute the interest and reconcile it to the recorded interest earned and perhaps to those vouched checks.

[Sticky Nicky]

anyone know if Roger practice exams actually grade TBS? I got a 88% on a practice and left all the TBS blank lol

[Forem004]

For th research questions for this section, if I have Au-c 315.27a, which is the section Vs paragraph?

[Sticky Nicky]

315 section 27a para

[user2701]

Difficulty in understanding chapter-Audit Sampling.

As I am unable to grasp, I feel ROGER is running too fast in this chapter.. ha ha ha

Any idea..how to have a hold on this chapter ?

BEC- 43(Feb'16), Retake-June 10, (Wiley text book/WQB/NINJA MCQ)
REG- TBD
FAR- TBD
AUD- TBD

[ahsq]

thanks all, heres another:

During the first part of the current fiscal year, the client company began dealing with certain customers on a consignment basis. Which of the following audit procedures is least likely to bring this new fact to the auditor’s attention?

Tracing of shipping documents to the sales journal.

Test of cash receipts transactions.

Confirmation of accounts receivable.

Observation of physical inventory.

>>>>i chose confirmation of AR.

[Sticky Nicky]

id say observation of physical inventory

[ahsq]

i seriously have a problem with these audit procedures. am i so f&(*ing stupid or what??

[Author]

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