[jeff]

Post by Another71.

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AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Anonymous]

Yeah

risk of incorrect rejection – risk that the auditor concludes that the account balance is misstated based on the sample, when the it actually isn't – inefficient audit – waste of time and effort

risk of incorrect acceptance – risk that the auditor assumes that the balance is not misstated when it is – ineffective audit

[ruggercpa2b]

B is incorrect because it says that Lascos is required to direct the successor auditor. It's not true. The successor auditor requests permission to contact the predecessor and the client can say yes or no. It's also initiated by the successor auditor. The word required makes B incorrect. If the successor asks the predecessor can say no to showing their work papers because at the end of the day the work papers belong to them and not the client.

Audit is very tricky and usually one word throws off what could have been a correct answer.

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

AUD - 1/6/18
FAR - TBD
REG - TBD
BEC - TBD

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[mtwst113]

@anjanja thank you!

BEC | √
AUD| √
FAR| Spring 2015

[TN-CPA]

@Angelwatch

Thanks for the heads up. I just came across this issue while going through the Becker videos (self-study). To those who are using Becker, watch the A4 Answer video for Class Question 8 under “Audit Procedures By Transaction Cycle.” The instructor indicates the test makers will use the word trace in the “generic sense” rather than the directional audit sense.

BEC- 77
REG- 86
FAR- 81
AUD- (5/30/15)

[mtwst113]

Does anyone have an acronym to help remember management's assertions?

BEC | √
AUD| √
FAR| Spring 2015

[Dantrick]

An internal auditor's work would most likely affect the nature, timing, and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the:

A.

existence of contingencies.

B.

valuation of intangible assets.

C.

existence of fixed asset additions.

D.

valuation of related party transactions.

Correct answer is C. I read the explanation why but can anyone explain it differently, dumb it down for me.

[Anonymous]

Hello,

I need to refresh my memory regarding adjusting entries. They showed up on TBS on November exam and they are getting more tested in AUD exam. Lets use the example of having sales and we need to make adjusting entry; should we do

A/R xxx

sales xxx

GOGS xxx

Inventory xxx

Thanks

[jstay]

Dantrick,

the other 3 require judgment whereas the fixed asset additions dont

[Anonymous]

Cpamaster007

Depends on what you are adjusting, if you add more sales then yes

[jstay]

hows everyone doing with the authoritative literature?

[ruggercpa2b]

@CPAmaster I remember seeing some journal entry practice simulations in the Ninja testbank. Either Ninja or CPAexcel had a simulation with that inventory JE. It did give different scenarios and you had to pick on what type of adjusting entry you would make or no entry was needed.

I also found a list of JEs online that I went through and went through the list and picked out the basic JEs and tried to learn those as well.

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

AUD - 1/6/18
FAR - TBD
REG - TBD
BEC - TBD

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[pengzars]

A sim question of NINJIA:

determine if it is an inherent risk, control risk, or detection risk

1.Management of TWD Company does not enforce its policies and procedures.

answer is Control risk

explain: The control environment is such that internal control activities (policies and procedures) meant to prevent and detect misstatements may not be implemented, and the internal control system may not prevent material errors from being recorded on the financial statements.

In my idea, it's a inherent risk, and the explain proved it

2.A new law places increased pressure on TWD Company to find environmentally friendly methods of disposal for waste by the end of the current year.

answer is Inherent risk

explain: TWD Company may face contingent liabilities due to possible penalties for being out of compliance with the new law. This contingency may have to be disclosed and is an example of an external circumstance giving rise to a business risk.

in my idea, it's a control risk cause of pressure

BEC--83
REG--83
FIN--77
AUD--68-74-Q1/2015
MAY THE FORCE BE WITH US!!!

[mtwst113]

1) Inherent risk exists independent of an audit. Think of the nature of the entity's industry as an example of inherent risk. If management does not enforce it's policies related to internal control, control risk is probably high.

2) Laws and regulations are another great example of inherent risk because they likely effect the entire industry and are not related to a company's internal controls.

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

When third-party use of prospective financial statements is expected, an accountant may not accept an engagement to:

A. perform a review.

B. perform a compilation.

C. perform an examination.

D. apply agreed-upon procedures.

Could somebody please explain why can't review be performed?

[mtwst113]

It can't be used because a review is based on historical financial information.

BEC | √
AUD| √
FAR| Spring 2015

[Author]

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