[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).

[Josh]

Because of when I took AUD, I'm waiting until the 16th? I imagine everyone else will be as well. Now, the wait begins. Time for FAR Q1/Q4. It's been a tough 2 weeks with my daughter's birth and wife's complications. She's still recovering. Probably will be for awhile?

[thebigguy1992]

does anyone know exactly where in the AL where you can find the wording for a review report or compilation? I'm trying to find this before I take my test friday just to save myself some time. i imagine knowing the wording for these will help if i get a question on it so I'm wondering where it is before i take the test.

i can only find an example of an examination at AT301.35, nothing for a review

[thebigguy1992]

^^so i found a lot of reports when i type in “independent auditor's report” in the search, and that brings up all the scenarios for an examination, but cant find anything for review or compilation.

[jeff]

Test Your Might

4 MCQ sections will be given away …

2 on Facebook and 2 in this forum post (https://www.another71.com/cpa-exam-forum/topic/test-your-might-far-mcq-ninja-mcq-giveaway-x-4/)
Feel free to post in both places for max chances to win.

[Chrex]

Taking my AUD exam tomorrow and was curious if anyone was able to find a resource listing all of the possible modifications of the report under different circumstances. I know that this would be extensive, but it's easier for me to digest this kind of information in a logical chart rather than through MCQ.

On another note, I'm so nervous! Scored 82 and 77 on Becker's final exams, but don't really feel comfortable with this material :/

[Texasmom]

Taking AUD tomorrow as well and not feeling confident either. Did all the Wiley Test bank MCQ's and finishing up the Ninja MCQ's today. Not really sure what to expect on the sims. Praying really hard for a 75+!! Best of luck.

FAR - 84
REG - 72, 73
AUD-
BEC - Sept 2016

[DISLCPA]

I am taking on Saturday and I don't feel ready at all. I watched videos on NINJA Plus and listen to the audio everyday at work. I have rewrote and condensed my notes but still not feeling ready. I can tell I am burnt out because my % on the MCQ is horrible. I don't know what I am actually trending since I keep up on the questions I missed so my % is a 97. Hoping I get a lot of comp and review questions. Good Luck to everyone tomorrow and let us know what you thought. Pass or fail I just can't wait for a break.

BEC(8/12/16)
AUD
FAR
REG

[Anonymous]

I have audit in two days and I am not confident. I am averaging 74% and trending around 77%. I know that is decent but the SIMS frighten me.

[pharaoh]

Which statement is true regarding a situation where an auditor agrees to become an employee of an audit client?

A.The audit team member must step down immediately from any supervisory role in the audit, but may continue for two weeks in a nonsupervisory role or until the end of the audit engagement, whichever is shorter.

B.The audit firm should consider modifying the audit plan after the auditor leaves.

C.The next annual audit must be separately reviewed by an audit firm professional uninvolved in the audit.

D.The leaving auditor must disclose all correspondence regarding possible employment within 30 days of receiving a written offer letter.

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

[Anonymous]

C.The next annual audit must be separately reviewed by an audit firm professional uninvolved in the audit.

[pharaoh]

Correct

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

[Anonymous]

CPA-08141
An auditor is considering whether the omission of the confirmation of investments impairs the auditor's ability to support a previously expressed unmodified opinion. The auditor need not perform this omitted procedure if:
a. The results of alternative procedures that were performed compensate for the omission.
b. The auditor's assessed level of detection risk is low.
c. The omission is documented in a communication with the audit committee.
d. No individual investment is material to the financial statements taken as a whole.

[pharaoh]

a. The results of alternative procedures that were performed compensate for the omission.

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

[Anonymous]

Solution:
Choice “a” is correct. If other audit procedures compensate for an omitted procedure, the auditor does not need to perform the omitted procedure.
Choice “b” is incorrect. If an auditor's assessed level of detection risk is low, this would provide a further reason to perform the omitted procedure or an alternative procedure to confirm the investment balance.
Choice “c” is incorrect. An auditor would still need to apply the omitted procedure (or alternative procedure) even if the omission is documented in a communication with the audit committee.
Choice “d” is incorrect. An auditor would need to perform the omitted procedure or an alternative procedure, as the aggregate amount of investments may be material to the financial statements taken as a whole.

[pharaoh]

An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management’s assertions about

A.Valuation.

B.Presentation.

C.Existence.

D.Rights.

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

[Author]

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