[jeff]

Post by Another71.

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

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

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

[Zafar]

Hi Every one

I have paid my fees waiting for the nts

but nasba site says that me education docs are missing

donno what to do

[Anonymous]

Confused:

When the auditor reissues a report of the financial statements, the responsibility of the auditor with respect to the reissued report is which of the following?

The auditor:

A.

should adjust the financial statements as needed or qualify the opinion.

B.

must disclaim an opinion.

Incorrect C.

should perform additional audit procedures under certain circumstances.

D.

has no responsibility in this case.

You answered C. The correct answer is D.

When the auditor reissues a report of the financial statements, the independent auditor has no responsibility to make further investigation or inquiry as to events which may have occurred during the period between the original report date and the date of the release of additional reports.

[mtwst113]

This took me a while to think about. To answer correctly, they want you to determine if “the auditor” mentioned is the predecessor auditor or current (continuing auditor), since the responsibilities differ. Since the question makes no mention of a predecessor auditor, you have to assume that they're asking about the continuing auditor's responsibility for a report they issued. A predecessor would be responsible for inquiring of the successor and getting rep letters from the successor and management, however a continuing auditor has no responsibility for events occurring AFTER the date of the audit report. Don't get this confused with an auditor's responsibility for subsequent events, which occur between when the date of the financial statements and the date of the auditors report.

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

Which of the following statements is correct concerning an auditor's required communication with those charged with governance?

Correct A. This communication should include disagreements with management about significant audit adjustments, whether or not satisfactorily resolved.

B. If matters are communicated orally, it is necessary to repeat the communication of recurring matters each year.

C. If matters are communicated in writing, the report is required to be distributed to both those charged with governance and management.

D. This communication is required to occur before the auditor's report on the financial statements is issued.

Why isn't C correct?

[Anonymous]

mtwst113 if you are right then it's just mean. There is no way of determining this, I don't think

[MushroomHead]

So I am planning on taking Audit Q1, and I have becker's review, however, I am certain that it will not be enough to help me to pass, I'm the kind of person that needs to actually understand the lecture. So I decide to try Ninja studying material. Would anyone suggest things that worked on them before? For example, Ninja Audio/ or Ninja notes or Roger Review, etc. Thanks a lot in advance!!

[ruggercpa2b]

C is not correct because there is no requirement that if you communicate to those charged with governance “in writing” then because your communication was in writing you have to report to those charged with goverrnence AND management. Communication is fine orally or in writing. The key words for me were “required”.

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]

I would think C is incorrect possibly because there are circumstances where the communication with those charged with governance is either confidential or simply irrelevant to management.

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

Actually there is a requirement to communicate in writing to both. Sas 115 and I Roger has this nice table for communication too

[mtwst113]

So that means either the answer is wrong or maybe it's correct in the context of auditing standards issued by the PCAOB

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

After rereading answers few times I think it's maybe because they use word “if” which makes this answer not valid since auditor is in fact required to communicate in writing. Meaning there should be no if. Thoughts?

[ruggercpa2b]

Yeah but it doesn't say that because the communication is in writing then you are required to distribute it to those caharged with goverrnence and management. That phrase to me is what made that answer choice wrong.

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.

[Anonymous]

Oh, pcaob requires it in writing alright

[Anonymous]

I guess. The answer C seems correct to me but it's phrased in weird way, who knows what they meant to say

[ruggercpa2b]

In my Roger cram book it says “During the conduct of an audit, there are several items that the auditor will want to communicate regarding the entity with those charged with governance, which may include management.

These communications may be oral or in writing, and may be communicated during the audit or after the audit report is issued. Matters communicated orally should be documented by the auditor.

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.

[Author]

Replies