[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).

[pharaoh]

mmm ….D? for the first question

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

[pharaoh]

and A.Obtaining a listing of all current-year additions, vouching significant additions to original invoices, and determining that they have been placed in service

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

[Forem004]

Yes and yes! I didn't mean to click submit on the second one yet. I'm going through the ones I missed on my last practice exam. So far I'm passing all of them now, but still getting questions wrong, so I'm not 100% comfortable yet!

[Forem004]

This one I definitely just skimmed the answers without fully reading:

Section 11(A) of the Securities Act of 1933:
A.
shifts the burden of proof in a lawsuit from the investor to the CPA who audited the financial statements.

B.
requires that the CPA be proven to have committed fraud in a lawsuit brought by an investor.

C.
protects the CPA who audits the financial statements of a registrant if the CPA follows section 11(A) to the letter.

D.
removes the discussion of materiality from any lawsuits brought by an investor against a CPA.

[pharaoh]

No clue. This is the type of questions that I hope will not show up on the exam because I will go minnie miny moe. I don't think we are expected to remember these rules

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

[pharaoh]

I didn't read the first time but went through them, is it A

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

[GiniC]

@Forem004 –

BEST OF LUCK TOMORROW!!!

GiniC

[Forem004]

It is Pharaoh. That's the exact problem I have with a lot of these questions! Thanks for the luck guys!

[Forem004]

In assessing control risk for purchases, an auditor vouches a sample of entries in the voucher register to the supporting documents. Which assertion would this test of controls most likely support?

A.
Completeness

B.
Existence

C.
Valuation and allocation

D.
Rights and obligations

[pharaoh]

B. Existence

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

[Forem004]

Also, as far as remembering rules, we need a fill in the blank where we can say that we will consult our research programs for that answer, if EVER needed!

[GiniC]

Ugh – I remember studying these for REG. 1933 was about original issuances, and 1934 regulates purchases & sales after initial issue (created the SEC and required reporting by registered issuers)

Under Section 11, anyone signing the registration documents is liable – since the CPA auditing the financial statements in the registration paperwork signs the audit report, the CPA can be liable for damages arising from misstatement. The plaintiff only has to show a) they acquired the security; b) they suffered a loss; and c) there was a material misstatement.

[Forem004]

HATED BEC worse than any other section!

and yes Pharoah, existence is correct

[Forem004]

For which of the following audit tests would a CPA most likely use attribute sampling?

A.
Identifying entries posted to incorrect accounts

B.
Estimating the amount in an expense account

C.
Evaluating the reasonableness of depreciation expense

D.
Selecting receivables for confirmation of account balances

[pharaoh]

Using elimination and still not confident, I would say A.Identifying entries posted to incorrect accounts

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

[Author]

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