AUD Study Group Q1 2015 - Page 19

Viewing 15 replies - 271 through 285 (of 1,162 total)
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  • #650058
    Anonymous
    Inactive

    what the examination and agreed-upon procedures are based on?

    #650059
    mtwst113
    Member

    Those are based on whatever the client asks the auditor to report on, whether it be prospective or historical.

    BEC | √
    AUD| √
    FAR| Spring 2015

    #650060
    Anonymous
    Inactive

    why can't review be based on whatever the client asks? What exactly is so special about the review?

    #650061
    mtwst113
    Member

    It is because a review expresses limited assurance that the financial statements are prepared in conformance with gasp. An auditor performing a review would be taking on a huge amount of risk if they provided assurance about future events.

    BEC | √
    AUD| √
    FAR| Spring 2015

    #650062
    Anonymous
    Inactive

    I guess… Though I still don't see why same isn't applied to examination

    #650063
    mtwst113
    Member

    An examination is a type of attest engagement on something other than historical financial statements. It could be a financial forecast, financial projection, agreed-upon-procedures, pro-forma financials, MD&A, etc.

    BEC | √
    AUD| √
    FAR| Spring 2015

    #650064
    ILCPA2014
    Participant

    What s the difference between Control Environment and Control Activities? Thank you

    AUD - 80
    BEC - 77
    FAR - 77
    REG - 81
    IL CPA License:
    08/22/17 - Received Final Passing Score
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    Licensed CPA 2017!!

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    Ethics 91

    #650065
    Boate
    Participant

    Hey guys,

    Can someone explain to me why Detection Risk would increase in this situation….

    Which of the following types of risks most likely would increase if accounts receivable are confirmed three months before year-end?

    From my understanding, if Sub. AP are done prior to Y/E, this would cause DR to dec. in the AP formula in order to keep the AR formula consistent with how the Auditors had originally set the AR. If I were to see this on the exam, I would always pick DR because DR is the only risk the Auditor can control but can someone shed some light on this for me?

    Thanks!

    Here we go Again

    AUD: (65)(66) 77
    REG: (66) (48) destroyed me mentally.....
    FAR: (68) (66)(69)(71)
    BEC: (63) 75

    "Greatness is not some precious thing, it is no more unique to us than breathing. We are ALL capable of it."

    #650066
    jstay
    Participant

    ILCPA, these are in BEC

    but here is a link

    https://f2.washington.edu/fm/fa/internal-controls

    #650067
    pengzars
    Member

    hey Justanothercandidate

    How about think in this way, if accounts receivable are confirmed three months before year-end, that means control risk low, then indicate DR high.

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

    #650068
    ruggercpa2b
    Participant

    Anjanja your question in regards to a review not being performed. For me the key word in that question is “third party use.” I am not home so I cannot look at my notes. However, I remember going through the different areas e.g agreed upon procedures, review, compilation, audit and seeing where it would tell you if the report issued was for general use or only for internal use.

    It is not related to what type of information is used to compile the information but on “use”. I will look at my notes when I get home and I will edit my post.

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

    #650069
    Anonymous
    Inactive

    Thanks! So it's not about f/s being prospective or not? I keep thinking about this question. I have to admit that I didn't get to the chapter on prospective statements yet, ninja questions are not really in sync with Roger's book

    #650070
    Anonymous
    Inactive

    Apparently starting 2016 companies are required to disclose their going concern uncertainty, so this is relevant to the type opinion issued if there is such uncertainty and if it's disclosed or not.

    So I guess before this new requirement there would just be emphasis of matter after the opinion, and now it could also be basis for qualified opinion. I think.

    Also… 5th amendment?

    #650071
    ruggercpa2b
    Participant

    Once you get to that chapter because you have worked the questions already it will click. I had the same issue with the Wiley book not quite aligning with the Ninja MCQs. I started doing better once I had gone through all the material.

    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.

    #650072
    Anonymous
    Inactive

    I don't understand why prior period report issued by another auditor needs to be reissued (with original date) for comparative report. Can't they just use the old one from last year?

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