Wiley CPAexcel Exam Review 2020 Focus Notes: Auditing and Attestation

Get effective and efficient instruction for the AUD portion of the CPA exam in 2020 Wiley CPAexcel Exam Review 2020 Focus Notes Auditing and Attestation reinforce key concepts for the auditing and attestation portions of the Certified Public Accountants exam. Contained in an easy-to-carry spiral-bound book and designed to be easy-to-read and review, these focus notes will help you to learn and retain crucial accounting rules, formulas, concepts, acronyms, and more.

Table of Contents:
Preface xi Professional Responsibilities 1 Financial Statements, an Audit, and Audited Financial Statements 1 Code of Professional Conduct 5 Conceptual Frameworks 8 Independence Rule 11 Integrity and Objectivity—Members in Business 19 Responsibilities to Clients 20 Other Responsibilities and Practices 21 Quality Control 22 Tax Preparer 23 Standards for Consulting Services 24 GAO—GAGAS Ethical Principles 25 Department of Labor Independence Requirements for Employee Benefit Plans 26 Assessing Risk and Developing a Planned Response 27 Financial Statement Assertions 27 Audit Risk (AR) 28 Materiality 32 Evaluation of Misstatements 34 Consideration of Fraud in a Financial Statement Audit 35 Fraud Risk Factors Overall 37 Assessing Risk of Fraud 43 Effects of Fraud Assessment 44 Fraud-Related Documentation 45 Actions Resulting from Evidence of Fraud 46 Laws and Regulations—Responsibility to Detect and Report Illegal Acts 47 Summary of Assurance Provided by Auditor 49 Audit Planning: Communication with Predecessor Auditor 50 Audit Planning: Engagement Letter 51 Planning Considerations 53 Communication of Certain Information to Those Charged with Governance 58 Understanding Internal Control and Assessing Control Risk 60 Consideration of Internal Control 60 Components of Internal Control 61 Obtaining an Understanding of Internal Control during Risk Assessment 67 Relationship of Control Risk to Tests of Controls, Detection Risk, and Substantive Procedures 75 Further Reducing the Assessed Level of Control Risk 76 Documentation of Internal Control 77 Accounting Cycles 79 Other Considerations 88 Performing Further Procedures and Obtaining Evidence 93 Sufficient Appropriate Audit Evidence 93 Basic Types of Audit Procedures 97 Issues Related to Substantive Testing 107 Audit Documentation 121 Auditing Specific Accounts 125 Using Management Assertions to Develop Audit Programs 125 Test of Balances Approach versus Test of Transactions Approach 126 Auditing Accounts 129 Audit Sampling 151 Sampling Risk 151 Types of Statistical Sampling 155 Attribute Sampling 156 Variables Sampling 160 Probability Proportional to Size (PPS) Sampling 163 Auditing with Technology 167 Responsibilities in an Information Technology Environment 167 Controls in an IT Environment 168 Auditing through the Computer 169 Testing General Control Activities 170 Testing Application Control Activities 172 Auditing with the Computer 174 Audit Reports 175 Audit Reports 175 Standard Report 176 Group Financial Statement Audit Reports 181 Unmodified Opinion with Emphasis-of-Matter Paragraphs 186 Unmodified Opinions with Other-Matter Paragraphs 196 Modified Opinions—Two Circumstances 204 Financial Statements Prepared Using Another Country’s Framework 210 Summary Financial Statements 211 Reviews of Quarterly (Interim) Information 212 Other Types of Reports 213 Reports on Application of Framework Requirements 213 Financial Statements with Special Purpose Frameworks 214 Audits of Single Financial Statements and Specific Elements, Accounts, or Items 216 Reporting on Compliance 217 Service Organization Control (SOC) Reports 218 Governmental Auditing and Compliance Audits 221 Accounting and Review Services 231 Financial Statement Preparation 232 Compilations 235 Reviews 239 Other Compilation and Review Considerations 247 Other Professional Services 251 Reporting on Internal Control in an Integrated Audit 251 PCAOB Reporting on Whether Material Weaknesses Still Exist 259 Employee Benefit Plans 260 Attestation Engagements—General 261 Attestation Standards 262 Financial Forecasts and Projections 264 Pro Forma Financial Information 267 Management Discussion and Analysis 267 Compliance Attestation Engagements 268 Index 269