Full Description
The Wiley CPAexcel Study Guidedetailed study text to help you identify, focus on, and master specific topic areas that are essential for passing the AUD section of the 2018 CPA Exam.Covers the complete AICPA content blueprint in Auditing and Attestation (AUD)Authored and compiled by the same leading university accounting professors who author the Wiley CPAexcel online courseExplains every CPA Exam topic tested on the Auditing and Attestation (AUD) section of the CPA Exam (one volume)Organized in Bite-Sized Lessons so you can learn faster and remember more of what you learnUpdated for 2018 so you have the most accurate, up-to-date content available for the Auditing and Attestation (AUD) section on this year's examMaps perfectly to the Wiley CPAexcel Review Course; may be used to complement the online course or as a standalone study toolStudy text only and does NOT include practice questions or practice exams. Use in conjunction with the Wiley CPAexcel Exam Review 2018 Test Bank: Auditing and Attestation, which includes interactive multiple-choice questions and task-based simulations.
Contents
About the Authors ixAbout the Auditing and Attestation Professors xWelcome to Auditing and Attestation xiEthics, Professional Responsibilities, and General Principles 1AICPA Code of Professional Conduct 2Introduction and Preface 2Members in Public Practice 5MIPPs Introduction and Conceptual Framework 5MIPPs Nonindependence Rules 7Conflicts of Interest, Directorships, and Gifts 7Reporting Income and Subordination of Judgment 9Advocacy, Third-Party Service Providers (TSPs), General Standards, and Accounting Principles 10Discreditable Acts 12Fees 14Advertising and Confidentiality 16Form of Organization and Names 18MIPPs Independence Rules 20Introduction to MIPPs Independence Rules 20Network Firms and Affiliates 22Reissues, Engagement Letters, ADR, and Unpaid Fees 24Financial Interests 25Overview and Unsolicited Financial Interests 25Mutual Funds and Retirement Plans 27Partnerships, 529s, Trust and Estates, Employee Benefit Plans 29Depository Accounts, Brokerage Accounts, and Insurance Policies 31Loans, Leases, and Business Relationships 32Family Relationships 34Employment Relationships 36Current Employment 36Subsequent Employment 38Other Associations and Relationships 40Nonaudit Services 42Code Provisions 42Specific Services 45Members in Business 51Other Members 54Requirements of SEC and PCAOB 55Securities and Exchange Commission (SEC) 55Public Company Accounting Oversight Board (PCAOB) 61Requirements of GAO and DOL 64Government Accountability Office (GAO) 64Department of Labor (DOL) 72Assessing Risk and Developing a Planned Response 75Financial Statement Audits 76Accounting vs. Auditing 76GAAS and Principles 78Professional Standards 80Quality Control Standards (SQCS) 82Overview of Audit Process 84Overview of Auditor's Report 85Different Types of Engagements 89PCAOB Responsibilities 90PCAOB on Engagement Quality Review 92Planning Activities 94Pre-Engagement Planning Issues 94Planning and Supervision 99Materiality 101Audit Risk 103Analytical Procedures 106Detecting Fraud 108Fraud: Evaluation and Communication 113Detecting Illegal Acts 115Using the Work of a "Specialist" 117Required Communications with Those Charged with Governance 120PCAOB on Communications with Audit Committees 123Internal Control-Concepts and Standards 126Obtaining an Understanding of Internal Control 126Evaluating Internal Control 128Assessing Control Risk Under AICPA Standards 131Performing Procedures in Response to Assessed Risks 135Required Communications 138Using the Work of an Internal Audit Function 141Performing Further Procedures and Obtaining Evidence 145Internal Control: Transaction Cycles 146Specific Transaction Cycles 146Revenue/Receipts-Sales 148Revenue/Receipts-Cash 150Expenditures/Disbursements 152Payroll Cycle 155Miscellaneous Cycles 157Audit Evidence: Concepts and Standards 159Overview of Substantive Procedures 159The Nature of Evidence 163Assertions and Types of Audit Procedures 167PCAOB Risk Assessment Audit Standards 170Evaluation of Misstatements Identified During the Audit 174Audit Documentation 176PCAOB on Audit Documentation 180Confirmation 182Accounting Estimates 184Fair Value Estimates 186Lawyer's Letters 188Management Representations Letters 191Related-Party Issues 194PCAOB on Related Parties 197Subsequent Events and Related Issues 200Going Concern Issues 203Audit Evidence: Specific Audit Areas 207Introduction to Auditing Individual Areas 207Cash 209Accounts Receivable 212Inventory 214Investments in Securities and Derivative Instruments 217Fixed Assets 220Current Liabilities 221Long-Term Liabilities 223Stockholders' Equity 224Payroll 225Audit Sampling 227Introduction to Sampling 227Attributes Sampling 229Variables Sampling 231Probability-Proportional-to-Size (PPS) Sampling 235Example Problems 237Difference Estimation Problem 237Difference Estimation Solution 238Ratio Estimation Problem 239Ratio Estimation Solution 240MPU Estimation Problem 241MPU Estimation Solution 242PPS Sampling Problem 243PPS Sampling Solution 244IT (Computer) Auditing 245IT Controls-General Controls 245IT Controls-Application Controls 247IT Evidence-Gathering Procedures 249Other IT Considerations 251Forming Conclusions and Reporting 253Audit Reports 254Introduction to Audit Reports 254PCAOB on Audit Reports 261Audits of Group Financial Statements 263Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs 267Qualified for Scope Limitation 270Qualified for Misstatement 273Adverse Opinion 275Disclaimer of Opinion 277Consistency of Financial Statements 280PCAOB on Evaluating Consistency of Financial Statements 282Opening Balances-Initial Audits 284Other Information Along with Financial Statements 288Supplementary Information Related to Financial Statements 290Required Supplementary Information 292PCAOB on Auditing Supplemental Information 294Alert to Restrict Report 297Financial Statements Using Another Country's Framework 299Reporting on Summary Financial Statements 301Interim Financial Information 304Sample Reports 309Unmodified Opinion (Reference to Legal Requirements) 309Unmodified Opinion (No Reference to Legal Requirements) 311Unmodified Opinion (Sentence by Sentence) 313Unmodified in Current Year, Balance Sheet in Prior Year 315Unmodified in Prior Year, Qualified in Current Year 317Qualified for Scope 319Qualified for Material Misstatement 321Qualified for Inadequate Disclosure 323Adverse Opinion 324Disclaimer of Opinion for Scope 326Unmodified on B/S, Disclaimer on I/S and Cash Flows 327Emphasis-of-Matter Paragraph 329Other-Matter Paragraph 331Reference to Component Auditor 333Single Financial Statement 334Specific Element (Special Purpose Framework) 335Incomplete Presentation 336Application of Accounting Principles (Second Opinion) 337Report on Summary Financial Statements 338Review Report on Interim Financial Statements 339Other Reports 340Reports on Application of Requirements of Framework 340F/S with Special Purpose Frameworks 343Audits of Single F/S and Specific Elements, Accounts, or Items 346Reporting on Compliance with Requirements in an F/S Audit 349Service Organizations-User Auditors 353Service Organizations-Service Auditors 355Comfort Letters 358Government Auditing Standards 363Compliance Audits 367SSARSs-General Principles 370SSARSs-Preparation of Financial Statements 373SSARSs-Compilation Engagements 375SSARSs-Review Engagements 379SSARSs-Other Topics 383Sample Reports 387F/S Prepared on Cash Basis 387F/S Prepared on Regulatory Basis (for General Use) 388Profit Participation 390Sample Review Report on Financial Statements 391Sample Compilation Report on Financial Statements 392Separate Report on Compliance (No Instances of Noncompliance) 393Separate Report on Compliance (with Noncompliance Identified) 394Combined Report on Audited Financial Statements and Compliance Issues 395Other Professional Services 397AICPA on Reporting on Internal Control in an Integrated Audit 397PCAOB on Reporting on Internal Control in an Integrated Audit 407PCAOB on Reporting Whether a Previously Reported Material Weakness Continues to Exist 413Auditing Employee Benefit Plans 416Introduction to Attestation Standards 421Attestation Standards-Common Concepts 424Examination Engagements 427Examination Reports 431Review Engagements 435Review Reports 438Agreed ]Upon Procedures Engagements 442Prospective Financial Information 447Pro Forma Financial Information 454Compliance Attestation 459Management's Discussion and Analysis (MD&A) 463Assurance Services 467Sample Reports 469Examination of Forecast 469AUP of Forecast 470Compilation of Forecast 471Examination of Pro Forma 472Review of Pro Forma 473Examination for Compliance 474AUP for Compliance 475Example Management Report (with No Material Weaknesses Reported) 476Unmodified Opinions on Financial Statements and ICFR (Combined Report) 477Unmodified Opinion on ICFR (Separate Report on ICFR) 479Adverse Opinion on ICFR (Separate Report on ICFR) 481Examination of MD&A 483Review of MD&A 484Index 485
