AUD Study Group Q1 2017
January 29, 2017 at 10:36 pm #1450013
I'm sure you'll do great and be done with the exams for ever! Hopefully I'll join you too next thursday! Good luck in your exam:)January 30, 2017 at 12:26 am #1450037
A CPA concludes that the unaudited financial statements on which the CPA is disclaiming an opinion are not in conformity with generally accepted accounting principles (GAAP) because management has failed to capitalize leases. The CPA suggests appropriate revisions to the financial statements, but management refuses to accept the CPA's suggestions. Under these circumstances, the CPA ordinarily would:
Restrict the distribution of the CPA's report to management and the entity's board of directors.
Describe the nature of the departure from GAAP in the CPA's report and state the effects on the financial statements, if practicable.
Express limited assurance that no other material modifications should be made to the financial statements.
Issue a qualified opinion or adverse opinion depending on the materiality of the departure from GAAP.
The answer is B. I chose D because the question talks about departure from GAAP. Can someone explain to me why the answer is B?January 30, 2017 at 5:38 am #1450049
Because the CPA is not issuing opinion as it stated in the question “which the CPA is disclaiming an opinion” meaning the attest service that the CPA performing is not auditing(most likely a review) so the CPA cannot issue a qualified opinion nor adverse and the best answer is BJanuary 30, 2017 at 4:49 pm #1450286
Just took the exam yesterday — was scheduled for Jan 3 and I wasn't ready at all, rescheduled to 1/14 which would give me a Feb 7 release date, but then they cancelled due to potential snow, so had to reschedule for 1/29.
I didn't think it was too bad. The multiple choice was extremely easy in the first testlet, and then was harder the last 2 testlets. The sims were very manageable. I felt horrible coming out of FAR and passed with a 91 — hope that doesn't mean what everyone says it means.
I am having my second kid in March, so I've scheduled BEC right before, hopefully she doesn't come early! But now I'm a bit irritated that I have to wait 10 weeks for results for REG which I'll take in Q2.January 31, 2017 at 12:20 am #1450643
I am sure you will do just fine. Good luck 😀January 31, 2017 at 11:18 am #1450902
I remember taking audit last year. My first testlet was extremely easy. Second testlet was extremely hard, and the third one was extremely easy. 4 out of the 7 sims were cake. I knew about 50% of two other sims and I completely skipped 1. I felt confident until I received my score: 64.January 31, 2017 at 12:29 pm #1450986
shit. that ^ worries me….January 31, 2017 at 6:10 pm #1451357
Just got done taking AUD.
1st testlet: easy
2nd testlet: hard
3rd testlet: hard
4th testlet: hard (sims are always difficult for me)
other thoughts: I was actually able to think through and answer the SIMs for AUD. I know I didn't get everything correct. However, my experience doing AUD sims are night and day when compared to FAR. For FAR I literally guessed on ALL of the SIMs. I still managed to pass….just barely.
Here's to hoping I passed AUD.January 31, 2017 at 6:49 pm #1451369
Took AUD yesterday. Testlets felt Medium, Hard, Hard. The SIMs were tough, but manageable if you were calm and prepared well. I feel like I passed, but I know not to trust that feeling. Compared to the others, I feel most confident about this one…but we'll see.January 31, 2017 at 8:14 pm #1451421
I've been studying AUD since Friday. Yes, Friday the 27th. I know I am not far into it but I am a little concerned and hoping you all could steer me in the right direction. I have no auditing experience what so ever, so I'm learning all of this from scratch. I'm currently using Wiley CPAexcel and working on internal control concepts. So far I have been averaging 75 or 80% on the MCQs but on internal control I have been 58%. I am sick (cold or allergies or something) and I know I haven't been able to focus and concentrate on the questions, but my exam is March 8th so I have to keep moving. How awful is this for the first time through? I plan on reviewing the last week, writing notes and using Wiley Test Bank.
Thoughts? 🙂January 31, 2017 at 9:03 pm #1451472
@scared_cpa Im like you in that I also used Wiley CPAexcel along with Ninja MCQ. 75-80% sounds pretty good. You said it yourself, you have to keep moving. Get through everything as soon as you can. Take notice of which areas gave you the most difficulty and focus on those areas. Ninja MCQ is great in that you can pinpoint specific question topics and create a testlet that only focuses on that specific topic.February 1, 2017 at 12:08 am #1451576
From your experience, do you feel that the audit reports have to be memorized? And, audit evidence is really hard for me because I have no audit experience. How did you go about learning what procedures to do when you are in various cycles?
Thanks,February 1, 2017 at 10:14 am #1451703
@lcros I dont think the audit reports have to be memorized verbatim. You just have to know what it contains conceptually. For example, on a standard unmodified audit report it will contain:
1. objectives and scope
2. managers responsibilities
3. auditors responsibilities
4. opinion paragraph
5. emphasis of matter (if any)
6. other matter (if any)
You can sort of make an educated guess as to what each paragraph contains. That being said, it doesn't hurt to read over all the different types of reports. You may not be able to recall the exact verbage from memory but if you saw the words in front of you, your brain will recognize it. Does that make sense?
Editing to clarify: What I mean is, on a MCQ about the verbage on an Audit Report, it will list 4 possible answers. If you read enough Audit Reports during your preparation, you should be able to pick out the answer that looks the most familiar.
I dont have any Audit experience either. So, like you, Audit Evidence was a difficult chapter in the book. All I really did for this was do as many questions as I can. I tried to logically think through the question. Where in the audit trail are the recipts, vouchers, control ledgers, purchase orders, shipping documents, trial balances, etc. Try to map it in your mind. If youre going Top-Down (ie: financial statements to underlying records) then youre testing Existence. If youre going Down-Top (ie: Underlying Records to Financial Statements) then youre testing for Completeness.
Just practice and do as many questions as you can.February 1, 2017 at 11:48 am #1451765
@lcros the only time you would need to know the report verbatim would be on the sims, in which case you can look up the reports in the authoritative literature. For MC questions, you just need to know the general form and content of each paragraphFebruary 1, 2017 at 12:40 pm #1451804
Thank you so much Kenneth and Carly…I really appreciate the help.. I am scheduled to take the test Saturday and I hadn't learned them verbatim yet, and was starting to worry but this calmed me down. Thank you 🙂February 1, 2017 at 9:42 pm #1452182
I think you should be familiarizing yourself with audit reports and not depend on AL, because you'd not waste time on sims looking for the appropriate report and more importantly from my study, I learned so much the objective of audit/attestation/review…etc and the little differences and details from the reports, so it's really worth your time reviewing them.
I test tomorrow after spending 6 weeks studying day&night! Hopefully it'll the last time I set for a CPA test! Wish me luck!February 1, 2017 at 11:44 pm #1452249
Thank you, Kenneth!February 2, 2017 at 12:00 am #1452252
Hey guys stupid question.. but for those that have retake AUD before are on their retakes do you actually re-read the book? I keep finding myself zoning out. I just wanna save time and crank out the mcq instead as reading takes me about an hour per section (even the small ones).February 2, 2017 at 12:18 am #1452258
Spartens- I read the sections that I did not score well in. I wouldn't say I read everything again, but I did reference it a lot.February 2, 2017 at 8:58 am #1452351
Hey @mperez102204, so I also took my Audit retake last Friday the 27th. I, too, felt like I was going to throw up the entire morning and even the night before.
I read your post from last Friday and I felt the same way. I felt the MCQ's were much harder than last quarter. I got some really obscure questions about Emphasis-of-Matter paragraphs and 2 or 3 on Service Organizations. I'm only about 50% confident on the SIMS as well.
Needless to say, I cried all evening on Friday. In the car while I was driving, in the parking lot waiting to pick my son up from Basketball. I was a complete mess, I've never felt so horrible after leaving an exam. Not trying to get anyone down, I'm sure everyone here will do just fine and won't have the issues I've been having. I have awful test anxiety and I was dreading that exam every minute of every day.
I'm really hoping you did well!!! 🙂February 2, 2017 at 12:45 pm #1452522
@Vee I totally feel you on that. I feel like you just never know though. From what I read about people's experience with these exams on here, Reddit and other forums, you just never know. Some people walk out of the exam feeling like a champ but end up getting a 65. Others, like me, walk out of FAR feeling like total shit but end up barely passing with a 77.February 3, 2017 at 2:24 pm #1453307
I'll be taking AUD 2/13, can some one please explain SAS 130 & SAS 131 that are new in Q1 and what has changed due to these , how did you guys prepare for it? thanks.February 3, 2017 at 4:29 pm #1453374
@mmafem SAS 130 simply moves AT 501 into GAAS; (removing it from AT, which are attestation standards). AT 501 discusses that internal control opinions must be integrated with financial audits for public (issuer) companies. So there is no new principle, just a change for the point of reference. See below for SAS 131 explanation. Hope this helps.February 3, 2017 at 5:40 pm #1453403February 4, 2017 at 3:28 pm #1453895
Hey guys I'm taking my final exam in a couple days and I'm having trouble finding an answer to a question.. Can someone tell me when a report is issued on internal control over financial reporting? Is it only by request?February 4, 2017 at 11:23 pm #1454160
Im not 100% sure but here's my thought process: A report/opinion on internal control is NOT required under AICPA standards but IS required under PCAOB auditing standards. Due to SarBoxley, public issuers now REQUIRE a report on internal control over financial reporting. I think the ICFR report can be issued separately from the Finacial Statement Audit Report OR combined.February 5, 2017 at 12:04 am #1454169
ICOFR is under SSAE, right?
And of the 4 report types (C-A-R-E: Compilation; Agreed-Upon Procedures; Review; Examination), ICOFR service is provided in AUP and examination reports.
I’ve already shared this screen on this thread, but let me post this again and see if this helps you.
Good luck.February 5, 2017 at 10:20 am #1454292
How different do you think the audit test in Q1 2017 will be to the Q2 2017?February 5, 2017 at 2:37 pm #1454436
also, more emphasis on SIMS 50% versus 40%February 6, 2017 at 6:35 pm #1461954
Hi everyone. I sit for AUD this Friday (2/10) and am starting to get nervous. I feel the more questions I work, the worse I have been testing. I started out great, and now I'm averaging in the 70's. Any advice on how to focus during my last few days of studying for this one?
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