Wiley Module 1 Stimulation 6:
Answer 1 is G because it said “For performance of a REVIEW of a NON-public”, when you see the word REVIEW and COMPLIANCE it automatically mean SSARs – Statement on Standards for Accounting & Review Sercies. SSARs is in charge of 99% of reviews and compliances.
Answer 2 is B because it said “CONTINGENT FEE”, if you ever see a question on whether you can take contingent fee. It means ETHIC which means Code of Professional Conduct (ET). I don't know why but it's always true, I blame American logic.
Answer 3 is F because it said “PRACTICE MONITORING SYSTEM”. Whenever you see monitoring system, there are only two possible answers. Either it's peer reviews or quality control standards. Who else can you monitor? Now this question didn't mention it's being review by “another accounting firm” (which is peer review), so it's basically quality control..
Answer 4 is H because it's a “FINANCIAL FORECAST”. Financial forecast, project and agree upon procedure and attestation always belong to SSAE. Hey, it's attestation so it goes to attestation!
Answer 5 is I because it said “ADVISORY SERVICE”. Any advisory service is consulting! In AUD, we don't talk advisory here. Please go to Standard for consulting services.
Answer 6 is PUBLIC. Didn't you know that Public = PCAOB?
Answer 7 is NON-PUBLIC AUDIT CLIENT. That means Auditing standard. Auditing standard regulate all Non-public audit, or audits from non-issuer.
Note: In audit, if you are public –> PCAOB, if you are non-public –> Auditing Standard (AS)
Answer 8 is tricky, All PRO FORMA FINANCIAL INFORMATION is actually attestation. In attestation, you are trying to proof is _______ is true and give an opinion. In Pro Forma FS, you are trying to proof if the Pro Forma FS is good. It's actually not a review / compliance / audit. You can't audit or review anything because it's already too late, it's not a compliance either because you are not trying to create a FS for the client.
Answer 9. Again, INDEPENDENCE = PROCESSIONAL CONDUCT. Just remember this!
Answer 10. Did you see “COMPLIANCE”? Who oversee review and compliance? SSARS. (See question 1).
Lastly.. things that didn't appear
AICPA ByLaws (BL) –> Basically it's a statement that state in an entity (mostly corporation) who and who should do this and who and who get that… some sort of law that regulate the corporation, to define the company structure and ensure it's running smoothly
PR Peer Review –> Means you are monitoring your projects with “another” accounting firm.
Tax services –> All tax related matters
NY - CPA
New York - NYC
Passed CPA Exam (11/2014)
In search for a position in NYC that will fulfills the license requirement.
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