[jeff]

Welcome to the AUD CPA Exam Study Group for Q4 2021.

Introduce yourself and let us know how your AUD studying is going (or not going).

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[RobOh]

Keep in mind, the primary reason, as part of completing the audit, the client is requested to send a letter of inquiry to the attorney that is consulted on legal matters, in order to corroborate the information supplied by management concerning litigation. This is usually done as close to the audit date as possible. The reason the attorney is consulted is because they are the ones who have the legal knowledge.

[Ninja Albert]

right and not only that it is a letter of inquiry but also I think it is a subsequent events.. also a type one event.. therefore needs to be adjusted from the letter of inquiry and disclosed (I think!!)

[takai.jin]

Whew, moving to a new place and cramming is tough. RobOh, good point! I definitely read about it in the SAS somewhere. I'm pretty sure management would have to take into consideration the lawyer's response, especially having been received before the audit report date and issuance of the financial statements. Would you happen to know if management has a choice in the matter or the extent to which management must use the information provided by their external legal counsel? Inquiries triggering what would otherwise have been left to management's sole judgment seems to encompass the very essence of auditing.

[Ninja Albert]

Another side question on subsequent events do we ALWAYS disclose a type 2 event? examples that are things that happened after b/s date??

[Adam]

Obviously studying for AUD right now and going on to my 2nd attempt. I am currently going through the sections of becker Ive been told are most important (ie M2 and M3) which were the worst on the test for me. I scored weaker in the 2nd and 3rd area of the blueprint. What other sections should I study. I am going through the lectures again as we speak.

[alexandra]

does anyone know if there are lots of changes happening to AUD for January 2022?

[Ninja Albert]

Yes I have read that there will be some changes especially in AUDIT reports you can double check if you are using Becker also if not, Im sure Ninja Mike will go through some of those changes on NINJA Sparring. Good luck

[takai.jin]

Well, it won't be much longer now for myself–I hope do I can do a bit better this time. I think I'm going to spend the next two days going over controls and transaction cycles, the various formats of the engagement and other slightly more mechanical ideas. Tie those in with the directions and assertions and the audit program, yup. I've definitely learned more this time around but there's still time to dig deeper.

[takai.jin]

16 hours to go! I think I'll go over sampling, the transaction cycles and some of the IT control procedures. Hopefully the rest of the information I have will be enough to constrain the problems and lead to adequate responses. Good luck to everyone else–see ya in Q1 2022!

[Author]

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