AUD Study Group Q1 2017
December 31, 2016 at 11:07 pm #1403912
@didato I'm trending 98% with 82% of all questions answered correctly. I am doing the 5 question thing, too! I do the regular MCQ, then go down the list of ‘questions selected from' option under the custom button. What happens once you reach Review?January 1, 2017 at 8:02 pm #1404413
I have a question if anyone of you work on audit field because I am having a hard time with this concept. What is exactly “Compilation”? And how is it different from preparation? And why is it not allowed for issuers?
Thanks in advance!January 1, 2017 at 8:02 pm #1404414
….January 1, 2017 at 11:45 pm #1404632
Difference in comp and prep is the report.January 2, 2017 at 1:00 pm #1405017
Failed by a few points.
Had a ton of questions about pensions (you can delete this post if it is against forum rules). IS pensions a new thing (I guess I should of read changelogs better).
Overall the Audit exam was straightforward. My advice is for everyone to use the 4 hours effectively and read, READ, READ the questions thoroughly.January 2, 2017 at 2:38 pm #1405095
Hi Ny1105. Sorry about your test result. Could you please share the general nature of these pension questions? Were they focused on laws/regulations such as ERISA, or more on audit planning/fieldwork/reporting? Not looking for actual questions, just looking for their general nature so I know how to focus my research effort. Thanks!January 2, 2017 at 4:57 pm #1405289
I will be taking the AUD exam in the middle of FEB 17, I have used Wiley CPAexcel books for all the three parts and now looking to buy the 2017 edition of AUD, I am still unable to find one online, should i get the 2016 edition or may be wait a little more, is it late due to exam changes? is any one else able to find the 2017 edition?
Thanks for any input and guidance in this regard!January 2, 2017 at 6:36 pm #1405392
I had very few questions and quite a few on derivatives. It's all about the exam you get!January 2, 2017 at 6:47 pm #1405404January 2, 2017 at 6:54 pm #1405412
thanksJanuary 2, 2017 at 6:57 pm #1405416
I got it.January 3, 2017 at 6:57 am #1405743
Anyone taking the test next week?January 3, 2017 at 5:18 pm #1406351
can anyone tell me why in the ninja plus videos bob says that examinations, compilations and reviews use SSAE? it is now SSARS obviously – is this a change that happened years ago that the videos dont update?January 3, 2017 at 8:19 pm #1406516
There have been updates lately. I assume that would be one. I'm not sure of the specifics.January 3, 2017 at 11:34 pm #1406769
which of the following procedures generally would not be performed in a review of a public entity's interim financial statements
Answer: inquire of the entity's attorney
an answer choice that i thought was correct was inquire regarding significant deficiencies in internal control, but the answer says you would do that. why would you inquire of internal control in a review- i thought you dont consider internal control in a review. do you consider it in this case because it is public? or because it is interim..?January 4, 2017 at 1:58 am #1407146January 4, 2017 at 7:56 am #1421963
I am currently studying for AUD and I'm wrapping up A2 in Becker. I used the NINJA MC to supplement for BEC, which I believe help me tremendously. Everybody's different, but realistically do you think I have enough time to sufficiently study for and take AUD Jan 30th? Any advice..
Thanks!January 4, 2017 at 9:21 am #1421991January 4, 2017 at 9:48 am #1422060
@thebigguy1992 I came across this question and chose that answer based solely on the reasoning that I think in a review you don't inquire outside of management. No confirmations. Does that sound right to y'all?January 4, 2017 at 5:46 pm #1423007
On Saturday!January 4, 2017 at 6:04 pm #1423034
Well no, for examination because it is always SSAE, but for review and compilation, yes! non issuers use SSARS. Also, remember that compilation is only allowed for issuers under one circumstance which is for prospective FS
That sounds correct because in a review, we don't inquire or confirm beyond the entity itselfJanuary 4, 2017 at 7:51 pm #1423358
@sulaiman let me also get this straight. if you are doing a review of interim financial statement of an issuer, you are required to get an understanding of their internal control because they are public (you dont have to test controls though). for a NON-issuer review of interim financial statements, you dont need an understanding of internal control, nor do you have to test controls (obviously). correct?
also, can you tell me how an examination is different from a review/compilation and a full audit? is an examination mostly just dealing with forecasting/projections?January 4, 2017 at 7:55 pm #1423368
i know these are super old but i found some youtube videos where jeff goes over a few MCQ for audit and its nice to hear his explanations and see the whole ninja word problem and answer on the full screen.January 4, 2017 at 8:48 pm #1423446
I would say yes for your first question but keep in mind, even for issuers, if there is a better answer than understanding internal control, you should choose it. That's why I asked you if you have all four answers. Again, if you compare understanding of internal control to inquire the entity’s attorney, it's seems the former would need less work than a confirmation besides it's within the entity itself, so I think that's why you got it wrong.
About examination, you can use it for services including prospective FS, Pro forma FS, Internal control, Compliance, and MD&A. Review(in SSAE) can be only for pro forma and MD&A. Agreed upon procedures can be for prospective FS, internal control and compliance. Compilation (using SSAE) only for prospective FS.
To differ examination from audit, review, and compilation, think of it this way (more work to less work to do)
1-Audit (issue opinion)
2- Examination (positive assurance)
3- Review (negative assurance) –
4- Compilation and Agreed upon procedures – Do not express opinion (and indicate that in your report)
I hope that helpsJanuary 5, 2017 at 12:29 am #1423611
I'm going over some professional responsibility questions and I just came to a question where it asked what would impair a covered members independence. The answer was a munipal bond, and materiality is not a factor. Since when is a municipal bond a direct financial interest…? I was under the impression the direct financial interest was owning stock in the client. Munipal bonds sorta came out of no where for me. Besides those two, what are any other examples of direct financial interests I should know?January 5, 2017 at 12:10 pm #1423806
Also, can anyone confirm exactly what assertions are being tested when you are sending out positive confirmations? I am assuming it mostly is just existence and rights/obligations, correct? I feel like it can not prove valuation because in a confirmation if someone has a higher balance than what it actually is, you can't rely on them to correct that balance, so valuation/accuracy isn't really being tested. Am i correct?January 5, 2017 at 1:19 pm #1423923
@thebigguy1992 That's what I think (ugh) about A/R and the assertions. I think when valuation is used with A/R it's for the determination of uncollectible accounts.January 6, 2017 at 9:58 am #1424802
Reporting on internal control under Government Auditing Standards differs from reporting under generally accepted auditing standards in that Government Auditing Standards require a:
statement of positive assurance that internal control procedures designed to detect material errors and fraud were tested.
written report describing each significant deficiency observed, including identification of those considered material weaknesses.
statement of negative assurance that internal control procedures not tested have an immaterial effect on the entity’s financial statements.
written report describing the entity’s internal control procedures specifically designed to prevent fraud, abuse, and illegal acts.
why is the answer B…? i thought that under GAAS in an audit for an issuer you also have to have a report on internal control and tell the audit committee if there were any significant deficiencies or material weaknesses?January 6, 2017 at 10:17 am #1424816
Government Auditing Standards (the “Yellow Book”) require a written report on internal control in all audits. (This is different from GAAS reporting requirements.)
^^how is this different from GAAS reporting requirements..? is it for only issuers do they require a report on internal control and not for non-issuers?January 6, 2017 at 5:37 pm #1425609
Which of the following nonfinancial information would an auditor most likely consider in performing analytical procedures during the planning phase of an audit?
Turnover of personnel in the accounting department
Objectivity of audit committee members
Square footage of selling space
Management's plans to repurchase stock
why is the right answer C….how does square footage of selling space constitute NONfinancial data..?
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