Wiley CPAexcel Exam Review 2014 Study Guide, Auditing and Attestation

Wiley CPAexcel® Exam Review 2014 Study Guide: Auditing and Attestation......Page 5
Copyright......Page 6
Contents......Page 7
Preface......Page 9
About the Contributor......Page 11
Introduction......Page 13
Examination Content......Page 15
Applying to Take the Examination......Page 16
Attributes of Examination Success......Page 17
Purpose and Organization of this Review Textbook......Page 19
Other Textbooks......Page 20
Working CPA Questions......Page 21
Self-Evaluation......Page 22
Multiple-Choice Feedback......Page 24
Overall Strategy......Page 25
Weekly Review of Preparation Program Progress......Page 26
Time Management of Your Preparation......Page 27
Tasked-Based Simulation Grading......Page 29
Requesting a Score Review......Page 30
Multiple-Choice Screen Layout......Page 31
Multiple-Choice Question Solutions Approach Example......Page 32
Task-Based Simulations......Page 33
Task-Based Simulations Solutions Approach......Page 34
Research Simulations......Page 36
Time Requirements for the Solutions Approach......Page 38
Test Center and Procedures......Page 39
One week before you are scheduled to sit......Page 40
Exam-taking strategy......Page 41
After taking the examination......Page 42
Content Specification Outlines (CSOs)......Page 43
Skill Specification Outlines (SSOs)......Page 47
Advanced Searches......Page 49
Attest Function—General Nature......Page 50
Expansions of the Attest Function......Page 51
Diagram of an Audit......Page 52
Generally Accepted Auditing Standards......Page 54
Statements on Auditing Standards......Page 56
Statements on Standards for Attestation Engagements (SSAE)......Page 59
Statements on Quality Control Standards (SQCS)......Page 60
Auditing and Attestation......Page 61
A. AICPA Requirements......Page 63
B. The Sarbanes-Oxley Act of 2002......Page 84
C. Public Company Accounting Oversight Board......Page 85
D. International Standards—Ethical......Page 86
E. International Standards—Auditing/Assurance......Page 88
F. Other......Page 90
Key Terms......Page 91
Multiple-Choice Questions (1–47)......Page 94
Multiple-Choice Answers and Explanations......Page 99
Simulations......Page 103
Simulation Solutions......Page 108
A. Basic Concepts......Page 113
B. Audit Planning......Page 119
C. Obtain an Understanding of the Entity and Its Environment (AU-C 315)......Page 122
E. Quality Control......Page 124
Key Terms......Page 126
Multiple-Choice Questions (1–116)......Page 129
Multiple-Choice Answers and Explanations......Page 141
Simulations......Page 154
Simulation Solutions......Page 169
Module 3: Understanding Internal Control and Assessing Control Risk......Page 179
A. The Nature of Internal Control......Page 180
B. The Auditor’s Consideration of Internal Control......Page 183
C. Audits (Examinations) of Internal Control......Page 190
D. Accounting Cycles......Page 198
E. Other Considerations......Page 215
Key Terms......Page 218
Multiple-Choice Questions (1–165)......Page 221
Multiple-Choice Answers and Explanations......Page 237
Simulations......Page 255
Simulation Solutions......Page 262
Module 4: Responding to Risk Assessment: Evidence Accumulation and Evaluation......Page 267
A. Evidence—General......Page 268
B. Evidence—Specific (Substantive Procedures)......Page 271
C. Other Specific Audit Evidence Topics......Page 281
E. Other Related Topics......Page 296
Key Terms......Page 297
Multiple-Choice Questions (1–169)......Page 299
Multiple-Choice Answers and Explanations......Page 316
Simulations......Page 336
Simulation Solutions......Page 346
Module 5: Reporting......Page 355
A. Audit Reports: Standard Unmodified Reports......Page 357
B. Audit Reports: Unmodified Opinion with Emphasis-of-Matter Paragraphs......Page 359
C. Circumstances Resulting in Audit Reports with Modified Opinions......Page 363
D. Audit Reports: Group Financial Statements......Page 366
E. Audit Reports: Unmodified Opinions with Other-Matter Paragraphs......Page 368
F. Audit Reports: Additional Situations......Page 372
G. Accountant Association Other Than Audits......Page 375
H. Reporting on Compliance......Page 386
Key Terms......Page 392
Multiple-Choice Questions (1–167)......Page 394
Multiple-Choice Answers and Explanations......Page 413
Simulations......Page 430
Simulation Solutions......Page 434
Module 6: Accounting and Review Services......Page 437
B. Planning Compilations......Page 438
D. Overall Compilation Reporting Issues......Page 439
C. Review Procedures......Page 440
D. Overall Review Reporting Issues......Page 441
Statements on Standards for Accounting and Review Services......Page 443
Key Terms......Page 461
Multiple-Choice Questions (1–52)......Page 463
Multiple-Choice Answers and Explanations......Page 469
Simulations......Page 474
Simulation Solutions......Page 475
Module 7: Audit Sampling......Page 477
A. Basic Audit Sampling Concepts......Page 478
B. Sampling in Tests of Controls......Page 481
C. Sampling in Substantive Tests of Details......Page 486
Key Terms......Page 496
Multiple-Choice Questions (1–58)......Page 498
Multiple-Choice Answers and Explanations......Page 505
Simulations......Page 512
Simulation Solutions......Page 515
A. The Auditor’s Consideration of Internal Control When a Computer Is Present......Page 517
B. Computerized Audit Tools......Page 521
Key Terms......Page 523
Multiple-Choice Questions (1–32)......Page 524
Multiple-Choice Answers and Explanations......Page 527
Simulation......Page 531
Simulation Solution......Page 532
Statements on Standards for Attestation Engagements......Page 535
Statements on Auditing Standards (Clarified)......Page 554
Government Auditing Standards (Issued by the Comptroller General of the United States, General Accounting Office)......Page 660
A. Information Systems Within a Business......Page 665
B. Characteristics of IT Systems—General......Page 667
C. Characteristics of IT Systems—Specific......Page 676
D. Control Objectives for Information and Related Technology (COBIT)......Page 685
E. Effect of IT on Internal Control......Page 686
F. Flowcharting......Page 694
Key Terms......Page 696
Appendices......Page 697
Appendix A: Auditing and Attestation Sample Examination......Page 699
Appendix B: Sample Auditing and Attestation Testlet Released by AICPA......Page 727
Appendix C: 2013 Released AICPA Questions for Auditing and Attestation......Page 733
Index......Page 749