[Anonymous]

Alright…anyone can ask or answer but be sure to come back and let us know whether we were right or wrong. I’ll start it off…

Name the standards that are applicable to the following engagements:

Compilation on Prospective Financial Statement

Review of Financial Statement

Audit of an Issuer

Audit of a NonIssuer

[CanIpassYou Aud]

Compilation on Prospective Financial Statement –> SSARS

Review of Financial Statement –> SSARS

Audit of an Issuer –> PCAOB auditing standards

Audit of a NonIssuer –> AICPA auditing standards

FAR-Passed
BEC-Passed
REG-Passed
AUD-Passed
Materials: Becker+Ninja Notes/Ninja MCQ/Ninja Flashcards
Click my name to view my LinkedIn account.

[Sarah1421]

CanIpassYou Aud – Prospective financials are an attest function (SSAE not SSARS). You can only perform agreed upon procedures, compilation, and examination (no review allowed) on prospective financials.

Compilation on Prospective Financial Statement…. SSAE

Review of Financial Statement….non issuer…. SSARS

….issuer………..SAS/PCAOB

Audit of an Issuer………….PCAOB

Audit of a Non Issuer……..SAS

Keep the questions coming! I'm in the home stretch (hopefully for the first and last time!).

FAR - 90
AUD - 91
BEC - 86
REG - 87

[Anonymous]

Sorry guys, I thought no one had answered. Just saw this!

Ok, what are the activities that should be performed to determine whether or not there's a going concern?

[Anonymous]

Anyone else, feel free to jump in and ask questions!

[willpassby2014]

When an auditor qualifies an opinion because of inadequate disclosure, the auditor should describe the nature of the omission in a separate explanatory paragraph and modify the

Introductory paragraph Scope paragraph Opinion paragraph

Yes No No

Yes Yes No

No Yes Yes

No No Yes

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

Activities would be to check

If the working capital is +ve or -ve….

Firm is not able to pay its debtors in time

Major business slump and inability to get new customers…etc

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

If the independent auditor decides that the work performed by internal auditors may have a bearing on the independent auditor’s own procedures, the independent auditor should consider the objectivity of the internal auditors. One method of judging objectivity is to

Review the recommendations made in the reports of internal auditors.

Examine, on a test basis, documentary evidence of the work performed by internal auditors.

Inquire of management about the qualifications of the internal audit staff.

Consider the client’s practices for hiring, training, and supervising the internal audit staff

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

@willpassby:

Yep or another way is the mnemonic PRIME:

Post balance sheet transaction review

Rep letter

Inquiry

Minutes

Examine latest available interim FS

[Anonymous]

@willpassby- is it consider the client’s practices for hiring, training, and supervising the internal audit staff?

[willpassby2014]

Thats right

BEC Passed
FAR Passed
AUD Passed
REG Passed

[CanIpassYou Aud]

@Sarah1421 thanks for the correction….lol

FAR-Passed
BEC-Passed
REG-Passed
AUD-Passed
Materials: Becker+Ninja Notes/Ninja MCQ/Ninja Flashcards
Click my name to view my LinkedIn account.

[willpassby2014]

Which of the following factors is most likely to affect the extent of the documentation of the auditor's understanding of a client's system of internal controls?

Incorrect

The industry and the business and regulatory environments in which the client operates

The degree to which information technology is used in the accounting function

The relationship between management, the board of directors, and external stakeholders

The degree to which the auditor intends to use internal audit personnel to perform substantive tests

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Tarheelgirl]

B

FAR - 46, 79 (7/8/14)
AUD - 56, 59, 2/23/15 3rd times a charm!
BEC - 69, 74 Really??
REG - April, I hope. Fingers crossed!

[Author]

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