Wiley CPAexcel Exam Review 2014 Focus Notes: Auditing and Attestation

Wiley CPAexcel® Exam Review 2014 Focus Notes: Auditing and Attestation......Page 5
Copyright......Page 6
Contents......Page 7
Preface......Page 9
About the Contributor......Page 11
AICPA......Page 13
GAO Code of Ethics......Page 27
Institute of Internal Auditors Code of Ethics......Page 28
Sarbanes-Oxley Act......Page 29
International Ethics Standards......Page 31
Department of Labor Independence Requirements for Employee Benefit Plans......Page 32
International Auditing and Assurance Standards......Page 33
Financial Statement Assertions......Page 34
Audit Risk (AR)......Page 35
Components of Audit Risk......Page 37
Applying Audit Risk Model......Page 38
Materiality......Page 39
Evaluation of Misstatements......Page 41
Consideration of Fraud in a Financial Statement Audit......Page 42
Laws and Regulations—Responsibility to Detect and Report Illegal Acts......Page 50
Planning Considerations......Page 58
Quality Control Elements......Page 61
Consideration of Internal Control......Page 62
Components of Internal Control......Page 63
Relationship of Control Risk to Tests of Controls, Detection Risk, and Substantives Procedures......Page 77
Accounting Cycles......Page 92
Communication of Internal Control Related Matters to Those Charged with Governance......Page 103
Communication of Certain Additional Information to Those Charged with Governance......Page 104
Effect of an Internal Audit Function......Page 106
Reports on Processing of Transactions by Service Organizations......Page 107
Sufficient Appropriate Audit Evidence......Page 108
Analytical Procedures......Page 115
Auditing Specific Accounts......Page 122
Test of Balances Approach versus Test of Transactions Approach......Page 123
Issues Related to Substantive Testing......Page 153
Audit Reports......Page 172
Standard Report—Unmodified Opinion, Nonpublic Company......Page 173
Standard Report, Unqualified Opinion, Public Company (PCAOB)......Page 175
Audit Reports—Organization of Focus Notes on Financial Statement Audits......Page 176
Unmodified Opinion with Emphasis-of-Matter Paragraphs......Page 177
Substantial Doubt about Ability to Continue as a Going Concern......Page 178
Inconsistency in Application of GAAP......Page 180
Uncertainties (Emphasis-of-Matter Paragraph Is at Auditor’s Discretion, or Auditor May Issue a Disclaimer for Multiple Uncertainties)......Page 182
Other Circumstances at Discretion of Auditor......Page 184
Group Financial Statements......Page 185
Modified Opinions—Two Circumstances......Page 190
Inability to Obtain Sufficient Appropriate Audit Evidence (Scope Limitations)......Page 193
Unmodified Opinions with Other-Matter Paragraphs......Page 196
Comparative Financial Statements......Page 197
Supplementary Information in Relation to the Financial Statements as a Whole......Page 201
Alerts as to Intended Use......Page 202
Additional Circumstances Involving Other-Matter Paragraphs......Page 203
Additional Situations......Page 204
Audits of Single Financial Statements, and Specific Elements, Accounts, or Items of Financial Statements......Page 206
Reviews of Quarterly (Interim) Information......Page 207
Summary Financial Statements and Selected Data......Page 208
Financial Statements Prepared Using a Financial Reporting Framework Generally Accepted in Another Country......Page 209
Other Reports—Auditing Standards Board......Page 210
Application of Accounting Principles......Page 212
Other Reports—Attestation Standards Based......Page 213
Management Discussion and Analysis......Page 218
Trust Services......Page 219
Service Organization Control (SOC) Reports......Page 220
Reporting on Compliance......Page 221
Compliance Attestation Engagements......Page 222
Compliance Auditing, Governmental Auditing, and the Single Audit Act......Page 223
Major Federal Programs......Page 227
Auditor Responsibility......Page 228
Testing for Compliance......Page 229
Reports under the SAA......Page 230
Summary of Relationship among GAAS, GAS, and SAA......Page 231
Attestation Engagements......Page 233
Compilations......Page 235
Nature of Compilations......Page 236
Planning Compilations......Page 237
Financial Statement Reviews......Page 240
Reviews......Page 244
Comparative Financial Statements......Page 250
Sampling Risk......Page 251
Types of Statistical Sampling......Page 255
Responsibilities in an Information Technology Environment......Page 267
Controls in an IT Environment......Page 268
Auditing through the Computer......Page 269
Testing General Control Activities......Page 270
Testing Application Control Activities......Page 271
Auditing with the Computer......Page 274
Index......Page 275