[Angela]

Sometimes I feel like those research questions can have several acceptable answers. Here is an example: the questions says:

an assistant auditor thinks that they can never make a reference to the work of a specialist, but the audit manager disagrees, Which citation in the professional standards support the audit manager’s position?

The answer becker gives is AU-C 620 14, but I think that AU336.16 also works.

Any ideas？ comments? opinions?

Thanks!

Audit 92 2013
Far 80 2014
Reg: May 2014

[Anonymous]

Good point, Angela!

I want to know the justification of this answer too.

I heard or read somewhere that in AL research for AUD, we only have to use AU-C when the problem is silent describing an entity-type (as to whether it is nonissuer or issuer)

When a problem specifies the entity being an issuer, then we have to refer or just look at AU. Simply disregard AU-C.

I hope someone can straighten this us up for us.

Thanks.

[Freyer002]

I read your post earlier today and just did the same research question lol I thought that AU-C 620.15 would better explain as to why you would be able to refer to the work of a specialist… These research questions are so much harder then the ones for FAR. I am not sure why you wouldn't be able to use the AU 336.16 as you referred to above which is basically word for word the same thing as beckers answer…

FAR 66 (07/01/13), 75! (10/01/13)
AUD 64 (08/12/13), 80! (11/23/13)
BEC 84! (05/22/14)
REG 77! (08/28/14)
DONE!!!!!!!!!!!!!!
"Failure is only the opportunity to more intelligently begin again"

[Angela]

@amordiva

Thanks for your reply! I have never heard of that…I agree they should straighten this up for us. I thought AU-C is just a clarified version of AU so I think that whenever there is an AU-C version of AU, then we should not use AU. But this is just my guess. However, Becker confuses me so much…

Audit 92 2013
Far 80 2014
Reg: May 2014

[Angela]

@amordiva

Thanks for your reply! I have never heard of that…I agree they should straighten this up for us. I thought AU-C is just a clarified version of AU so I think that whenever there is an AU-C version of AU, then we should not use AU. But this is just my guess. However, Becker confuses me so much…

Audit 92 2013
Far 80 2014
Reg: May 2014

[Angela]

@Freyer002

Thanks for reply! You r right I think 620.15 works too. That's why I don't like those research questions because I don't think that there is a definite answer. I don't know how this will be graded in the real test.

Audit 92 2013
Far 80 2014
Reg: May 2014

[OhNoMrBillTK]

I couldn't agree more. I just did this SIM question, and had to get online to check whether Becker made a mistake (which I all too often have run into on HW problems).

In my opinion, not only does AU-C 620.15 work but I believe AU-C 620.14 is wrong. Clearly a report can be modified to refer to a specialist. The Question asks you to support the manager's position, which is that they disagree with their assistant who thinks that no reference can be made. The specialist would only be right if there was an unmodified opinion (AU-C 620.14). But the question asks you to support the manager.

Am I going crazy here!? …Blue Steel? Ferrari? Le Tigra? They're the same face! Doesn't anybody notice this? I feel like I'm taking crazy pills!

"I'm not good at math"
-Lois Lerner, IRS director of tax-exempt
organizations division

[Kenada]

AU-C 620.15 is correct.

There have been posts about this research question and Becker and Wiley have noted they do not have the correct answer…Supposed to fix it but the Answer is AU-C 620.15

FAR 05/27/14; 786/110 - Done !

[Angela]

@OhNoMrBillTK

No you are not going crazy. It drives me crazy too whenever I cannot agree with Becker and there is no way that I can justify it.

Anyone know why we cannot use AU instead of AU-C？

Audit 92 2013
Far 80 2014
Reg: May 2014

[ImaCPA168]

AU-C is new for 2013. Where there is an AU-C, it supercedes the AU.

I don't think you have to agonize this much over the reasearch SIMs, especially the practice ones. In my experience, Becker, Wiley, Roger, Yeager (yes, I've used them all)…are proned to typos and errors. They used to really bother me but I got over it. So instead of bashing your head in, just accept it and move on to other practice questions. As long as you're scoring well on practices at home, you'll be fine for the exam. I never found the exam research SIMs to be that hard or confusing if you just approach them correctly. AND I've never gotten a reseach SIM that was the same as one I practiced at home. This is different because I've gotten plenty of MCQs and other SIMS that were the same or similar to the practice ones on the actual exams.

Here is something I wrote a while back to answer someone else's question:

This research SIMs should be the easiest but that is not always true. Here are some things to keep in mind.

1. The correct answer lies in the prompt. Find key words from the prompt and use them in search

2. Once you locate the appropriate section of guidance, use search within to narrow it down further

3. The correct answer should answer the inital prompt exactly. If you find yourself trying to rationalize a piece of guidance back to the prompt, then you're not quite there yet. The correct answer should include several of the key words from the original prompt, sometimes, even a complete phrase. The correct answer is hardly ever (if never) in the introduction, background, or definitions part of any ASC codification/IRC. Go further down to the body of the codification. This is typically where it gives specific guidance on how to apply certain accounting/tax rules. REMEMBER: If you find yourself trying to rationalize a piece of guidance back to the prompt, by making assumptions or what not -OR- there are not that many matching key words in the that piece of guidance to the prompt, then you have headed in the wrong direction

4. If you find that you have headed in the wrong direction, don't dfreak out. Quickly pick another key word(s) from the prompt and start again. The correct answer lies in the prompt!!!

I know you're all talking about one particular question. But I hope this bit of advice helps. Good luck!

B - 83 Done
A - 88 Done
R - 81 Done
F - 77 Done

Ethics - Done
Attest Hours - Done

Licensed-May 2013!

[Angela]

@ImaCPA168

Thank you so much for your tips! Hopefully I will get over it and just focus on practicing!

About other SIMS (other than research ones), do you recommend using AL for them? I heard candidates saying using AL for all Sims and try to save two hours for SIMs. Do you think so?

Thanks!!

Audit 92 2013
Far 80 2014
Reg: May 2014

[wizards8507]

Yes yes yes yes yes use the AL for every sim. Why wouldn't you? If you have enough time and are comfortable with the AL, there's no reason not to get a perfect score on every sim. The answers are literally right there.

NY CPA

[Angela]

@wizards8507

Thanks! I will try to figure out how to use AL for SIMS other than research questions.

Audit 92 2013
Far 80 2014
Reg: May 2014

[Angela]

Can anyone （who knows how to use AL for all SIMS) help me with this question and explain how use AL to answer it?

It is a SIM question from Becker in A4.

Max. CPA, was hired to audit the financial statements of Starlight lnc. a publicly-traded company. selling playground equipment- The senior auditor on the engagement has chosen to increase attention on the financial statement assertion of valuation-

Procedures that might be used in an audit are listed below Choose the two procedures that would be most appropriate to perform in

an audit that is giving increased attention to the valuation assertion Only two procedures may be chosen

1. Observing the client count the physical inventory

2. Testing shipping and receiving cutoff procedures

3. Obtaining confirmation from lenders regarding inventories pledged under loan agreements

4 Examining paid vendors' invoices

5. Obtaining confirmation of inventories at locations outside the entity

6. Examining an analysis of inventory turnover

7. Tracing test counts recorded during the physical inventory observation to the inventory listing

Audit 92 2013
Far 80 2014
Reg: May 2014

[wizards8507]

https://www.ifac.org/sites/default/files/downloads/a017-2010-iaasb-handbook-isa-315.pdf

Valuation and allocation—assets, liabilities, and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.

Which of those fit that definition?

1. No – Completeness

2. No – Cutoff

3. No – Rights and Obligations

4. Yes – Confirmation that inventory is recorded at the appropriate amount.

5. No – Existence

6. Yes – Slow turnover may indicate obsolete inventory, which would require a valuation adjustment.

7. No – Completeness

NY CPA

[Angela]

Thank you! I sear

Audit 92 2013
Far 80 2014
Reg: May 2014

[Author]

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