AUD Study Group Q2 2015 - Page 46

  • Creator
    Topic
  • #192520
    jeff
    Keymaster

    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
Viewing 15 replies - 676 through 690 (of 1,631 total)
  • Author
    Replies
  • #669026
    ladybossxo
    Participant

    Each of the following independent situations is material. Select from the pop-up boxes the appropriate opinion that would most likely be expressed by the auditor. Double-click on each blank box to see a list of answer choices and click on your selection. Each choice may be used once, more than once, or not at all.

    1. A client's year end inventory is 70% of its year end assets measured using the LIFO method. The client presents its FS in accordance with IFRS, which does not allow the use of LIFO

    2. During the audit period, an auditor purchased 4% of the client's common shares

    3. A client declines to present a statement of cash flows as part of its released FS that purport to present its financial position and results of operations

    4. The auditor employs a specialist to help gather evidence as to the value of derivatives held by the client. The specialist's findings support management's reported values

    a) disclaimer

    b) unmodified

    c) qualified

    d) adverse

    CPA Exams Done.

    #669027
    Martin
    Participant

    1)B

    2)D not independet,cant give an opinion.

    3)C

    4)B

    Through God all things can happen!

    “You never fail until you stop trying.”
    ― Albert Einstein
    When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
    “Just keep swimming, just keep swimming.”

    FAR= 72-84
    Audit= 73-82
    BEC= 74-75
    Reg=77

    #669028
    ladybossxo
    Participant

    Martin!

    1. D The LIFO method is prohibited under IFRS. An adverse opinion is expressed because the financial statements as a whole are not presented in accordance with IFRS

    2. A (independence issue)

    3. C

    4. B

    CPA Exams Done.

    #669029
    Martin
    Participant

    ladybossxo, lol I put info about the logic behind it and then write D instead of A, I wonder if i do that a lot during the exam? lol, I hope not!

    Through God all things can happen!

    “You never fail until you stop trying.”
    ― Albert Einstein
    When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
    “Just keep swimming, just keep swimming.”

    FAR= 72-84
    Audit= 73-82
    BEC= 74-75
    Reg=77

    #669030
    ladybossxo
    Participant

    @Martin:

    AR turnover = Sales/Avg AR

    Previous = 1,000,000/100,000 = 10

    Current = 2,000,000/300,000 = 6.67

    Allowance for doubtful accounts/AR

    Previous = 30,000/100,000 = 0.30

    Current = 50,000/300,000 = 0.167

    Company usually understate their bad debt expenses. So the answer is B

    CPA Exams Done.

    #669031
    ladybossxo
    Participant

    @Martin: I hope not!! Yeah I saw your explanation then I was thinking to myself, I know Martin knows the answer, he probably just wrote down the wrong one.

    CPA Exams Done.

    #669032
    Martin
    Participant

    ladybossxo, what did u get the last time you took Audit?You also got 6/6 on the attorney responses. You are getting very good at this.

    B.

    Accounts receivable turnovers are 10.0 and 6.6 and the ratios of uncollectible accounts receivable to gross accounts receivable are 0.30 and 0.16, respectively. Examine allowance for possible understatement of the allowance.

    Through God all things can happen!

    “You never fail until you stop trying.”
    ― Albert Einstein
    When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
    “Just keep swimming, just keep swimming.”

    FAR= 72-84
    Audit= 73-82
    BEC= 74-75
    Reg=77

    #669033
    WANNABE_CPA
    Member

    Answer to my question is D, but i think there is something wrong with the wording of the question.

    FAR : 68, 74, 83 Thank you God 🙂
    BEC : 78 (8/27) 🙂
    REG : 72 ,80 (2/25) 🙂
    AUD : 69,67, 07/23

    #669034
    WANNABE_CPA
    Member

    Here's another one, Why not A?

    Which of the following statements is correct regarding a review engagement of a nonpublic company's financial statements performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS)?

    A.

    An accountant must establish an understanding with the client in an engagement letter.

    B.

    An accountant must obtain an understanding of the client's internal control when performing a review.

    C.

    A review provides an accountant with a basis for expressing limited assurance on the financial statements.

    D.

    A review report contains an accountant's opinion of the financial statements taken as a whole.

    FAR : 68, 74, 83 Thank you God 🙂
    BEC : 78 (8/27) 🙂
    REG : 72 ,80 (2/25) 🙂
    AUD : 69,67, 07/23

    #669035
    ladybossxo
    Participant

    @Martin: I got 65 because I bombed SIMS!! I am good with ratios like that where I don't have to provide an explanation what causes the changes (though I have improved on that) Lol for the attorney responses, honestly, I just used my knowledge in FAR to apply. I don't know if you took FAR yet but there was a tiny section in Chapter 10 that covers it. That's why I know how to answer it.

    CPA Exams Done.

    #669036
    ladybossxo
    Participant

    @Wannabe: Yeah I asked that question before, Trish and I thought it was A but some people said C.

    CPA Exams Done.

    #669037
    ladybossxo
    Participant

    @Martin: By the way, where did you see the attorney responses question

    CPA Exams Done.

    #669038
    ladybossxo
    Participant

    Select from the pop-up boxes which organization type best describes the party enclosed in parentheses.

    1. Vance uses STAFF, Inc. to prepare its payroll. Vance is being audited by WAS Auditors (STAFF, Inc)

    2. Frontier handles the payroll transactions for CP Jenney. Frontier's auditor is Stern, LLP (Stern, LLP)

    3. Zach hired Thorn to process its receivables. Thorn is audited by Crawford, LP (Zach)

    4. Anvil, a major construction firm, outsources its HR work to Miller HR, LLC. Anvil's FS auditor is AssurCo (AssurCo)

    a) user auditor

    b) service auditor

    c) service organization

    d) user organization

    CPA Exams Done.

    #669039
    nissacof
    Member

    1. c) service organization

    2. b) service auditor

    3.d) user organization

    4. a) user auditor

    BEC - 4/3/2014 (80)
    FAR - 11/20/2014 (79)
    AUD - 4/2/15 (81)
    REG - 7/14/15 (80)

    #669040
    Martin
    Participant

    ladybossxo, on the WTB simulations.

    Through God all things can happen!

    “You never fail until you stop trying.”
    ― Albert Einstein
    When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
    “Just keep swimming, just keep swimming.”

    FAR= 72-84
    Audit= 73-82
    BEC= 74-75
    Reg=77

Viewing 15 replies - 676 through 690 (of 1,631 total)
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