[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for AUD.

World Premier: “Unmodified” (Audit Reports Rap Video) 🙂

Posted by Another71 on Thursday, November 13, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

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

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

[ladybossxo]

@Nora C??

CPA Exams Done.

[trish_1234]

today I had a bad day studying 🙁 tomorrow I am going to eat the book and bang out mcq like my life depended on it!

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[trish_1234]

c

more concerned with unrecorded liability

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[NoraU]

A. Material misstatements due to fraudulent financial reporting often result from an overstatement or understatement of revenues. Therefore, the auditor should ordinarily presume that there is a risk of material misstatement due to fraud relating to revenue recognition.

Material misstatements due to fraudulent reporting often result from an overstatement of revenues, either through premature revenue recognition or recording fictitious revenue, or from an understatement of revenues by improperly shifting revenues to a later period.

Of the answer choices listed, an auditor would be most concerned that the suspense debits will be used in future operations creating an overstatement of revenues for that year.

Lady, What is the answer for yours (I have no idea)?

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[ladybossxo]

@Nora and Trish: The answer for mine is A.

Here is the explanation:

Although computing standard overhead rates and assigning overhead to manufactured products is very important in a manufacturing facility, testing this computation will not help the auditor determine whether slow-moving, defective, and obsolete items included in inventory are properly identified. It may assist the auditor with testing the cost of goods sold account.

Recommended procedures for determining if slow-moving, excess, defective, and obsolete items included in inventories are properly identified would be the following:

• Examine and analyze inventory turnover

• Review industry experience and trends

• Analytically review the relationship of inventory balances to anticipated sales volume

• Tour the plant

• Inquire of production and sales personnel concerning possible excess or obsolete inventory items

CPA Exams Done.

[ladybossxo]

@Trish: Aww what happened? I hope all is well on your end. I am on Chapter 4 today and gosh, I really hate this section.

CPA Exams Done.

[trish_1234]

my son had hockey tournament this weekend too many games and driving!

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[trish_1234]

damn I swore it was c for unrecorded liabilities, my book only talks abt suspense acct to search for unrecorded liabilities. great question

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[trish_1234]

In auditing payroll when control risk is assessed as low, an auditor most likely will

A. Trace individual employee deductions to entity journal entries.

B. Compare payroll costs with entity standards or budgets.

C. Observe entity employees during a payroll distribution.

D. Verify that checks representing unclaimed wages are mailed.

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[ladybossxo]

@Trish: Lol!! That isn't too bad! Bonding time with your son!! :):)

Is it B???

CPA Exams Done.

[trish_1234]

lol, it was a fun day!

Answer (B) is correct.

Comparing payroll costs with budgeted amounts is a standard analytical procedure that is performed in most audits of payroll.

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[trish_1234]

@ lady, you are going to nail this test 🙂

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[ladybossxo]

@Trish: You too! We got this!!!

Quick question:

An auditor is required to reach a conclusion in every audit regarding whether there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the auditor decides to mention the going concern problem in his or her report, he or she is precluded from:

A.

indicating the reason or reasons for the going concern problem.

B.

issuing a qualified opinion on an accounting matter along with the going concern explanation paragraph.

C.

issuing an unmodified opinion on the financial statements.

D.

using conditional language in the auditor's conclusion about the entity's ability to continue as a going concern in a going concern emphasis-of-matter paragraph.

I don't get why the answer is D. I thought the answer was B.

Here's the explanation:

Some auditors issue reports in which the auditor's conclusions about the entity's ability to continue as a going concern is unclear because of the use of conditional terminology, such as “substantial doubt about its (the entity's) ability to continue as a going concern.” Such language is precluded by AU-C 570, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern.

CPA Exams Done.

[trish_1234]

D

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[trish_1234]

there are certain language needed when referring to going concern on a report

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[Author]

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