[Q3] AUD Study Group 2014 - Page 45

Viewing 15 replies - 661 through 675 (of 1,389 total)
  • Author
    Replies
  • #592808
    NYCaccountant
    Participant

    @iddyrashy I've been using Ninja because Wiley keeps repeating questions and it's annoying. It used to have an option where you can select from questions you've seen less than 2,3,4, 5 times ,etc.

    AUD - 99
    BEC - 84
    FAR - 93
    REG - 87
    NYC born and raised.

    FAR - 93
    REG - 87
    BEC - 84!!!!
    AUD - 99!!!!!! CPA exam complete.

    #592809
    riceperson
    Participant

    @NYC

    What are you studying in your FAR and BEC books? I've been looking over Asset Retirement and AFS/HTM for FAR and all the formulas in BEC. Not sure what else I should try to look over though.

    FAR 69, 83
    AUD 85
    BEC 80
    REG 82
    FINISHED

    #592810
    NYCaccountant
    Participant

    @ Riceperson I'm going look over investment securities, probably derivatives, FOB shipping point, Destination and idk what else to look up. Wiley and Ninja has some adjusting journal entry SIM, which I found to be very easy. I am normally very good with posting adjusting entries, accruals, etc.

    AUD - 99
    BEC - 84
    FAR - 93
    REG - 87
    NYC born and raised.

    FAR - 93
    REG - 87
    BEC - 84!!!!
    AUD - 99!!!!!! CPA exam complete.

    #592811
    mjp44
    Member

    For those using Becker, which chapter has SIMS that focus on adjusting journal entries? So far the only journal entry related sims ive seen in becker mainly revolved around recording accruals.

    FAR- PASSED (11/13)
    REG- PASSED (2/14)
    BEC- PASSED (5/14)
    AUD- PASSED (8/14)

    If it's important to you, you will find a way. If it isn't, you will find an excuse.

    #592812
    iddyrashy
    Member

    Less than 24hrs to Go

    AUD 89 (07/06/14)
    REG 83 (08/27/2015)
    FAR 78 (04/27/2015)
    BEC 75 (11/13/2015)

    TEXAS 2016

    #592813
    Anonymous
    Inactive

    @iddyrashy, you can do it! I'm not you, but I totally feel like you're prepared based on all the help you've been giving out!

    #592814
    Anonymous
    Inactive

    mjp44

    Chapter 4 sim 2

    By the way, I like your motto.

    #592815
    iddyrashy
    Member

    @cidywindy am taking easy now. Just study my own notes.

    AUD 89 (07/06/14)
    REG 83 (08/27/2015)
    FAR 78 (04/27/2015)
    BEC 75 (11/13/2015)

    TEXAS 2016

    #592816
    NYCaccountant
    Participant

    @Iddy Good luck on your exam! From your tips in the forum, feel like you got this.

    AUD - 99
    BEC - 84
    FAR - 93
    REG - 87
    NYC born and raised.

    FAR - 93
    REG - 87
    BEC - 84!!!!
    AUD - 99!!!!!! CPA exam complete.

    #592817
    mjp44
    Member

    For audit sampling and the risk of incorrect acceptance/rejections…they are both inversely related to sample size, correct?

    For instance, if the auditor allows a higher risk of incorrect acceptance than a smaller sample size can be used. Likewise, the same would be true for incorrect rejection. And my thinking is since they both deal with an incorrect conclusion that they are inversely related with sample size.

    FAR- PASSED (11/13)
    REG- PASSED (2/14)
    BEC- PASSED (5/14)
    AUD- PASSED (8/14)

    If it's important to you, you will find a way. If it isn't, you will find an excuse.

    #592818
    Anonymous
    Inactive

    Hi everyone! I just started studying for AUD this morning. I read 2 chapters in Wiley – Super boring!! I plan to do the MCQs for those 2 chapters tomorrow. Anyone else using Wiley?

    #592819
    Anonymous
    Inactive

    Which of the following circumstances would most likely cause an auditor to suspect that material fraud exists in a clientā€™s financial statements?

    A. Property and equipment are usually sold at a loss before being fully depreciated.

    B. Significantly fewer responses to confirmation requests are received than expected.

    C. Monthly bank reconciliations usually include several in-transit items.

    D. Clerical errors are listed on a computer-generated exception report.

    B is the answer, but WHY is this the right answer? What does the client's customers' actions have to do with whether or not there is fraud?

    #592820
    Anonymous
    Inactive

    CPA

    One explanation is, if significantly fewer confirmation requests are received than expected, there is a probability that there are fraudulent accounts receivables on the books.

    #592821
    iddyrashy
    Member

    @mjp44 correct audit sampling is inverse with risk of incorrect acceptance, means that the auditor believe that the control works fine and the ending balance is not misstated. While it's misstated. So, if the auditor accept this risk then s/he chose the small sample size. i.e auditor is taking more risk.

    Incorrect rejection doesn't have any relation with the sample size, because if auditor reject the ending balance i.e s/he assumed the balance is misstated therefore s/he applying more substantive testing.

    AUD 89 (07/06/14)
    REG 83 (08/27/2015)
    FAR 78 (04/27/2015)
    BEC 75 (11/13/2015)

    TEXAS 2016

    #592822
    iddyrashy
    Member

    @ CPA means Cant Pass if you look at other three nothing real shows the signs of fraud. Property can be sold under loss if it became impaired with the business activities. Bank recons to include cash in transit is normal.

    However, if you get few confirmations for AR the assumption can be financial fraud specific on revenue, may be management created the customers to inflate revenue. That is one assumption, and the questions is situation that will cause the auditor to suspect, which in reaction s/he will demand to review contracts, or review subsequent cash collected.

    Hope it make sense

    AUD 89 (07/06/14)
    REG 83 (08/27/2015)
    FAR 78 (04/27/2015)
    BEC 75 (11/13/2015)

    TEXAS 2016

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