AUD POP QUESTIONS - Page 3

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    Topic
  • February 23, 2017 at 3:48 pm #1496601
    NeedsA75
    Participant

    For those of you studying for AUD, I thought we could have a thread where we asked each other questions that we are unsure of…I saw a similar thread for BEC and it really helped me in certain areas..

    It goes like this: answer the most recent question in the thread, and then ask a question of your own. It doesn’t have to be a question right out of the study material, but can be more of a general question..

    I’ll go first:

    Q. How long does an auditor have to retain their working papers after the completion of an audit for issuers and non-issuers?

    AUD - 96
    BEC - 86
    FAR - 76
    REG - 92
    PETH - 92
    Licensed in California

     

Viewing 15 replies - 31 through 45 (of 119 total)
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  • February 24, 2017 at 6:16 pm #1497826
    Spartans92
    Participant

    A: Management and those Charged with governance are responsible for preventing and detecting fraud.
    Auditor is responsible for detecting noncompliance. The purpose of an audit is to ensure management/ the company are in compliance to laws and regulations.

    @Moose, the assertion is correct but what audit procedure or directional testing could be done? For example, to ensure inventory are properly recorded we can go from the inventory tags back to the listing.

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

    February 24, 2017 at 6:20 pm #1497835
    Spartans92
    Participant

    Q: in a compilation report, what is explicitly stated and what is implicitly stated?

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

    February 24, 2017 at 6:22 pm #1497838
    NeedsA75
    Participant

    @Spartans

    A: Auditor should ensure that all invoiced items have actually been shipped by vouching from the invoice register to the bill of lading? Or is this wrong?

    Also, can either of you clarify what you mean by eliminating control? Are you referring to eliminating tests of internal controls?

    @Spartans

    A: Explicitly stated that NO assurance is provided in a compliation….Implicit I'm not sure?

    AUD - 96
    BEC - 86
    FAR - 76
    REG - 92
    PETH - 92
    Licensed in California

     

    February 24, 2017 at 6:33 pm #1497850
    mooseonloose
    Participant

    @Spartan
    I thought management is responsible for detecting noncompliance, I don't think auditors are responsible for detecting noncompliance.

    Yes, for completeness we trace from shipping document to the accounting records.

    @need yes eliminate control testing.

    Independence is implied? lack of independence must be mentioned

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    BEC: April
    AUD: April
    REG: July
    FAR: Sept
    February 24, 2017 at 6:48 pm #1497864
    Spartans92
    Participant

    @Needs, I was going for looking at shipping docs to customer invoices to see if things were properly recorded and billed.
    I believe that is what eliminating controls mean..

    As far as implicit vs explicit. I think theres a bunch of answers to this. For instance, independence can be explicit if there is a lack of it. While for implicit I was gearing towards that all disclosure by GAAP are included.

    @moose, you might be right. Im not sure on the noncompliance part LOL. My brain hasn't been working that well. Just got a 55% on a 20 set question on Ninja 🙁 Discouraged now. UGH

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

    February 24, 2017 at 6:53 pm #1497867
    NeedsA75
    Participant

    Q: What is the exception to the rule on piecemeal opinions?

    AUD - 96
    BEC - 86
    FAR - 76
    REG - 92
    PETH - 92
    Licensed in California

     

    February 24, 2017 at 7:01 pm #1497870
    Spartans92
    Participant

    A: Ahh Shit! Piecemeal cannot be provided but you can provide an opinion on certain account balances or statements such as A/R even if you dont audit B/S.

    I really wanna know this answer LOL. Im definitely not prepared as I should be. DANG IT!

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

    February 24, 2017 at 7:04 pm #1497874
    NeedsA75
    Participant

    That's right Spartans. General rule is no piecemeal opinions UNLESS you offer a differing opinion on an account balance that is not a significant part of the F/S and you issue that opinion separately from the opinion on the entire F/S. Net income or a statement of cash flows constitutes a significant part of the F/S so you can't give a piecemeal opinion on them

    AUD - 96
    BEC - 86
    FAR - 76
    REG - 92
    PETH - 92
    Licensed in California

     

    February 24, 2017 at 7:05 pm #1497877
    mooseonloose
    Participant

    @need, only if its issued separately?

    In determining the sample size for a test of controls, an auditor should consider the ———,———, and ———

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    BEC: April
    AUD: April
    REG: July
    FAR: Sept
    February 24, 2017 at 7:05 pm #1497879
    NeedsA75
    Participant

    A: Nature, Timing, and Extent ?

    Q: Management is responsible for the _____, _____, & ______ of internal control?

    Doh, totally botched my previous answer!

    AUD - 96
    BEC - 86
    FAR - 76
    REG - 92
    PETH - 92
    Licensed in California

     

    February 24, 2017 at 7:08 pm #1497882
    mooseonloose
    Participant

    @need
    Assessing control risk too low, expected rate of deviation, and tolerable deviation.

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    BEC: April
    AUD: April
    REG: July
    FAR: Sept
    February 24, 2017 at 7:12 pm #1497885
    mooseonloose
    Participant

    Q: representation letter and engagement letter is issued by? to?

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    BEC: April
    AUD: April
    REG: July
    FAR: Sept
    February 24, 2017 at 7:13 pm #1497886
    Spartans92
    Participant

    @Needs, right right. MR. DIM to the management question. Design, implementation, and maintenance.

    Q: Define Risk of incorrect accepting vs incorrect rejection?

    We are the only 3 responding bahahaa.

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

    February 24, 2017 at 7:13 pm #1497888
    NeedsA75
    Participant

    A: Rep letter is issued by management to the auditor. Engagement letter is issued by the auditor to management ?? Not sure on the second half..

    AUD - 96
    BEC - 86
    FAR - 76
    REG - 92
    PETH - 92
    Licensed in California

     

    February 24, 2017 at 7:14 pm #1497891
    Spartans92
    Participant

    @moose, Rep letter is issued to Auditor by Management and it is required. if no rep letter is furnished then no opinion should be issued not even disclaimer. hence, may consider withdrawing. Engagement letter is by auditor to management it is similar to a contract that outlines the fees and billings, and timing of the audit etc.

    I have prep way too many of those during my internship haha

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

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