June 19, 2019 at 10:26 pm #2493243
Congrats @sidieuleveut on the REG score. I'm restudying for AUD, scheduled for July 18. I received a 73 in Feb, then focused nearly all of Q2 on REG. It may be a week or two past when I preferred to schedule, but I'm going to take advantage of the extra time. Good luck to all!June 19, 2019 at 11:13 pm #2493345
Hi Everyone, AUD is my last exam and I'm ready to give it my all. I want to sit in mid August, and I'm using Wiley and Ninja for my final review. I'd appreciate any tips anyone has for where to focus on the most? I passed AUD back in 2016 and have already forgot what was even tested. Goodluck to everyone prepping to sit in the upcoming testing window. WE GOT THIS!June 21, 2019 at 10:42 am #2497119
Regarding Becker's 3 Mock Exams.
For FAR, I scored a 51%, 57% and 51%. I passed with 75.
For AUD, I scored a 60%, 62% and 63%. I passed with 78.
Moral of the story: Don't let Mock Exams to let you down. They're more difficult compared to the real test, you should not be disappointed by a bad score.
Good luck everyone!!June 21, 2019 at 11:18 am #2497173
Hello. AUD is also my last section. Planning to take it on September 1. Good luck to everyone!June 21, 2019 at 9:05 pm #2498493
Rescheduled my FIRST cpa exam (AUD)for July 2nd. Less than 2 weeks left! What main topics to focus on?! Advice on sims needed badly! #StressedOutJune 22, 2019 at 3:58 pm #2500359
I've heard from others to have an extremely thorough understanding of management's assertions (completeness, existence, etc..), how to audit them (directional testing and what documents to look at) and the different transaction cycles.June 25, 2019 at 11:00 am #2506971
the marathon continuesParticipant
Hi everyone, BEC expires for me on 9/5, I'm planning to take AUD on 8/26. This will be my 3rd attempt , best of luck to everyone!June 27, 2019 at 11:34 am #2511924
Good luck @TMC! What is your plan for this attempt? I need to focus on reports for my retake. I believe that weighed heavily on the sims (scored weaker).June 27, 2019 at 11:34 am #2511927
Goodluck Marathon! What's the most difficult part for you in AUD? Have you done auditing before?June 27, 2019 at 1:57 pm #2512365
Is it even possible to feel prepared for this exam? I passed FAR with an 87 and felt mildly ok going into the exam, but I have AUD next Tuesday and I honestly don't feel like I've learned much. This is weird because I am regularly scoring 85-95% on my sets of MCQs, got 43/50 of the recently released AICPA questions correct, and got a 79 on my Becker mock exam. This exam blowsJune 29, 2019 at 11:33 am #2515497
What does “at relevant assertion level” mean?June 29, 2019 at 5:04 pm #2515944
V= Valuation, Allocation, Accuracy
R= Rights & Obligations
U= Understandability & Classification
Account Balances, the relevant assertions are (CVER)
Transactions, the relevant assertions are (COVEU)
Presentation and Disclosures, the relevant assertions are (CVRU)June 29, 2019 at 5:48 pm #2516016
Thanks, now it makes sense. I didn't know it referred to those 13 assertions… Somehow Wiley didn't make that link clear.
good luck in your exam!July 1, 2019 at 11:28 am #2521545
How is a compilation considered an attest engagement when independence is not required? I understand that if you are not independent you must disclose. Does this mean that the only difference between a compilation and a preparation engagement is the fact that you issue a report in a compilation engagement? When I was in school I remember learning that independence was required for attestation. Is a compilation literally the only attestation engagement that doesn't require independence?July 1, 2019 at 6:52 pm #2522985
Check out AR Section 80 .21July 2, 2019 at 11:24 pm #2526633
An auditor concludes that there is substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. If the entity’s disclosures concerning this matter are adequate, the audit report may include a(n)
Correct answer: Disclaimer – yes, Qualified – No
Isn't it that substantial doubt to continue as a going concern is Unqualified with Emphasis Matter paragraph?
so i chose no/no for both.
i'm confused why it is also considered as Disclaimer
any help is greatly appreciated! thanks!!July 4, 2019 at 5:37 pm #2531478
So, I think under the PCAOB rules the auditor isn't specifically precluded from disclaiming an opinion in “cases involving uncertainties”–going concern or otherwise. I'm not 100% sure, I got this one wrong too! 🙂
Inadequate disclosure = qualified or adverse
Adequate disclosure = unqualified + paragraph or disclaim the opinion + paragraph
“The inclusion of an explanatory paragraph (immediately following the opinion paragraph) in the auditor's report contemplated by this section should serve adequately to inform the users of the financial statements. Nothing in this section, however, is intended to preclude an auditor from declining to express an opinion in cases involving uncertainties. If he disclaims an opinion, the uncertainties and their possible effects on the financial statements should be disclosed in an appropriate manner (see paragraph .10), and the auditor's report should give all the substantive reasons for his disclaimer of opinion (see paragraphs .44–.47 of AS 3105, Departures from Unqualified Opinions and Other Reporting Circumstances).”
Source: https://pcaobus.org/Standards/Auditing/Pages/AS2415.aspxJuly 6, 2019 at 6:03 pm #2536914July 10, 2019 at 12:17 pm #2546976
What could be a real life example of Service Organization as provided by AU-C 402, Audit Considerations Relating to an Entity Using a Service Organization?July 10, 2019 at 4:15 pm #2547402
@75 Generally speaking, the auditor is concerned with service organizations that provide services that are relevant to the audit. For example, providing:
1. maintenance of the user entity's accounting records
2. management of the user entity's assets or
3. initiating, authorizing, recording or processing transactions as an agent of the user entity
So basically, anyone who provides services that ultimately impact the client's financial statements. The most frequently used examples I can think of is payroll services (like ADP) or third party custodians who manage a company's pension plan (like Morgan Stanley). If a company like ADP manages the client's payroll, I would want some kind of assurance that ADP's controls are working properly and those payroll amounts are free from misstatement. Hope this helps, I'm certainly no expert.July 10, 2019 at 4:49 pm #2547465
@David Becker says:
Attest = report
Non-attest = no report
That confused me too at first because I thought attest engagements only means SSAE but no, attest vs non-attest is based on the above mentioned.July 10, 2019 at 7:34 pm #2547945
Thank you Sarah, You are right. It makes sense now.July 11, 2019 at 6:54 am #2548407
Its going to be my first time taking AUD (no experience in this area) and want to take it in 5 weeks. Lately Ive been thinking it might be best to study by taking sets of 10 or 20 mcq as open book tests. I am using a wiley book and printing out the MCQ that they have in the back. Ill answer like its a normal quiz but I have no clue I will look for detail in the applicable chapter. Has anyone ever tried this? Going through the book without seeing the questions first will put me to bed and jumping blindly into MCQ can be defeating.Hoping this method will help me better grasp the material before I jump heavily into MCCQ/Sims.July 12, 2019 at 4:28 pm #2552493
I need pls some help on this
Preconditions for attestation engagement:
1-The practitioner must be independent.
2-The responsible party must take responsibility for the subject matter.
3-The engagement has these characteristics:
(a) the subject matter is appropriate;
(b) the criteria to be used are suitable and available;
(c) evidence is expected to be available to support the opinion, conclusion, or findings; and
(d) the opinion, conclusion, or findings will be expressed in a written report.
I believe characteristic (a) “subject matter” could be the financial statements or anything measurable, but what could be a real life example “the criteria” as per characteristic (b) ?July 12, 2019 at 6:18 pm #2552661
What is the difference between Management Written assertions and Management written representations in Examination Engagements?July 14, 2019 at 9:41 am #2555445
@75 “criteria” is the measuring stick on which you base you opinion or conclusion, etc. In a financial statement audit, for example, the auditor seeks to determine if the financial statements are presented fairly in accordance with the “criteria”, whether that be GAAP, cash basis, tax basis, regulatory, contract, or some other set of accounting principles. Alternatively, when the auditor gives an opinion on the operating effectiveness of internal control, the “criteria” might be COSO Internal Control Framework. It all depends on the type and purpose of the engagement, but each attest engagement must have some kind of criteria on which the auditor can judge the client's financial statements, compliance, internal control, etc. So, as a precondition for accepting an engagement the auditor should ensure whatever criteria management is using acceptable.
In regards to your second question, “management's written assertion” (as it relates to an examination, review or agreed-upon procedures under SSAE) is a written report obtained from management when purpose of engagement is to issue an opinion or conclusion on whether or not “management's assertion” is fairly stated. This assertion should be clearly stated in management's written report and accompanies the examination, review or agreed-upon procedures report. On the other hand, management's written representation is the letter provided to the auditor by management that expressly states management's responsibility in relation to the engagement (i.e., management is responsible for the financial statements, internal control, internal control over fraud, and has disclosed to the auditor all known related party transactions, fraud, noncompliance contingent liabilities, litigation, etc.)
Hope this helps!July 16, 2019 at 9:52 am #2559777
I agree with you Kostas. I too took all 3 of Becker's mock exams: 74, 75, 83. I sorta panicked after the first one I got a 74 on. So I reviewed and reviewed and reviewed. Subsequently saw my score increase to a 75 and reviewed more. I wanted to skip the third mock exam – thinking the Becker bump will save me, but I didn't want to leave anything out/cheat myself. So I took the third one, but studied some more. When it came to the real exam, I knew what was expected and didn't get hung up too much – except 2 SIMS…Thus, what helped me through studying this go around was simply not cheating myself, understand vs memorize, and staying optimistic. We shall see 8/6!July 16, 2019 at 4:15 pm #2560578
@sarah Thank you! If I understood well, the “management's written assertion” could be anything that management wants the CPA to attest on.
Best of luck with your exam.July 17, 2019 at 8:09 am #2561673
What could be an example of:
Laws and regulations having a direct effect on Financial Statements and
Laws and regulations not having a direct effect?July 30, 2019 at 6:15 pm #2591367
Hi everyone 🙂
I am planning on taking Audit at the end of august! Should be getting my NTS sent to me in a couple of days. Best of luck to everyone!
You must be logged in to reply to this topic.