[win2bet]

Here a few examples:

1) Which of the following best describes the reason an auditor performs a walkthrough of transactions from inception through financial statement presentation?

I. To ensure that the single transaction type involved in a walkthrough is properly recorded in the general ledger

II. To determine if a necessary control is missing or ineffective

Ill. To determine the different types of significant transactions handled by the process

A: II

B: I, II, III

C: II & III

Yup, answer is C. even though I is clearly true. the reasoning is, auditor isn’t expected to perform a walkthrough for each & every truncation type. Yes, I know that, but that’s not the choice given. I think should be B

2) Which of the following parties should request inquiry of a client’s lawyer?

A: The Auditor

B: The stockholders

C: Client Mgmt

Answer is C. doesn’t the auditor request mgmt if its okay to corroborate with the lawyer, & then mgmt tells the lawyer its okay to confirm the info. if the auditor said nothing about the lawyer, i don’t think mgmt would do anything. I think should be A

3) Which of the following is correct regarding the communication between successor and predecessor auditors?

Answer: The successor auditor should request permission from the prospective client to make an inquiry of the predecessor auditor.

The reasoning behind #3 contradicts the reasoning behind #2.

REG 68,87
BEC 85
FAR 75
AUD 64,64, 86!

[FAR_WARS]

1
“The single type” of transaction is what makes it wrong. During a walkthrough we are looking at many types of transactions, not just a single type. I agree that this question doesn't seem fair.

2.
The letter of audit inquiry is prepared by client mgmt, but then sent to the lawyer by the auditor.

3.
Not necessarily. We generally need permission to contact one of mgmt's clients. We must have had it in question 2, otherwise mgmt would not have prepared the letter.

Hope that helps some!

FAR- 80
BEC- 75
AUD- 78
REG- ?

[win2bet]

Thanks, made the reasoning behind #2 a bit clearer! & amazing how in #1 the answer can come down to the word “single” being used

REG 68,87
BEC 85
FAR 75
AUD 64,64, 86!

[Anonymous]

I remember coming across #2 and just about throwing my computer out the window when I read the answer. The wording of that sentence is horrible.

[amandafaith15]

OMG I think I had nightmares about number 2 and I'm sure I yelled at my computer about it.

REG -73 (8/2015) 81 (10/2015)
AUD - 73 (11/2015) 84 (1/2016)
BEC - 84 (2/2016)
FAR - 77 (6/2016)

[Author]

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