AUD Study Group – Q1 2018

Same here. Good luck, itooshallpass!

Taking AUD on January 2nd. I'm on my last week of learning material and then I go into review.

Kimphan – either way, you have to print replacement pages. For the videos, they recommend using 3.1 for A1 and using 3.2 for A2-A6. I ended up doing A1 without a book at all (I had to wait for the 3.2 book to be printed and shipped), and doing A2-A6 with the 3.2 book. Any time I had to use 3.1 pages in a 3.2 section, I went back and watched that part of the 3.1 video.

Still not quite sure what to do about Final Review. They sent me the 3.1 Final Review book in November (I didn't have a way to hold just that book), so I'll have to figure out how to modify it.

Thank you Jen J.

Kim

Question

When financial statements of a prior period are presented on a comparative basis with financial statements of the current period, the continuing auditor is responsible for

A. Expressing dual dated opinions.
B. Updating the report on the previous financial statements only if there has not been a change in the opinion.
C. Updating the report on the previous financial statements only if the previous report was qualified and the reasons for the qualification no longer exists.
D. Updating the report on the previous financial statements regardless of the opinion previously issued.

I picked C. But the Answer is D.

Explanation
The correct answer is D. When an auditor becomes aware of circumstances or events during his current examination that may cause him to express a different opinion than the one he previously expressed on the prior period's statements, he must update his report of the prior period regardless of what opinion was given. Per AU 700.A51: “ When reporting on the prior period financial statements in connection with th e current period’s audit, the opinion expressed on the prior period financial statements may be different from the opinion previously expressed if the auditor becomes aware of circumstances or events that materially affect the financial statements of a prior period during the course of the audit of the current period.

Answer A is incorrect because expressing dual dated opinions is when a subsequent event extends the time period through which the auditor takes responsibility.

Answer B is incorrect because the auditor’s report from the previous period needs to be updated regardless of the opinion issued.

Answer C is incorrect because the auditor’s report from the previous period needs to be updated regardless of the opinion issued.

Background: I'm coming back to study and pass this exam after 11 years out of school. I haven't been completely idle – been working for the vast majority of the time. Right now I have had to give up on some of my extra curricular activities – and slow down on starting my own business to focus on this.
Currently I'm working the Roger program. It's good, but I'm just having a heck of a time getting my head into studying. Between finding a study place that's quiet (Libraries are a no go nowadays) and just getting and staying focused feels like mission impossible. Is there anyone who has had this experience with getting things going to be able to fully and completely focus? I've also noticed that well meaning friends want me to make sure to keep a “balance” with studying and doing fun things, but quite frankly I'm ready to just push them and everything else aside so I can focus and score well. Then I feel like a selfish jerk…so…yeah.

In a nutshell – I feel like I'm barely treading water. Not a great feeling and I'm waiting for my NTS.

Audit scheduled for 3/10 but currently too distracted to study…waiting on Reg score release