Table of Contents
Part I Authoritative and Nonauthoritative Guidance on the Auditor’s Risk Assessment in a Financial Statement Audit
1 Overview of Applying the Audit Risk Standards .01-.42
2 Key Concepts Underlying the Auditor’s Risk Assessment Process .01-.122
3 Planning and Performing Risk Assessment Procedures .01-.147
4 Understanding the Client, Its Environment, and Its Internal Control .01-.89
5 Risk Assessment and the Design of Further Audit Procedures .01-.76
6 Performing Further Audit Procedures .01-.125
7 Evaluating Audit Findings, Audit Evidence, and Deficiencies in Internal Control .01-.79
Part II Additional Resources
Appendix
A Considerations in Establishing the Overall Audit Strategy
B Understanding the Entity and Its Environment
C Internal Control Components
D Exhibit - Management Antifraud Programs and Controls
E Illustrative Financial Statement Assertions and Examples of Substantive Procedures Illustrations for Inventories of a Manufacturing Company
F Consideration of Prior Year Uncorrected Misstatements
G Assessing the Severity of Identified Deficiencies in Internal Control
H Examples of Circumstances That May Be Deficiencies, Significant Deficiencies, or Material Weaknesses
I Suggestions for Conducting Inquiries
J Matters to Consider in Determining Performance Materiality
Part III Illustrative Audit Documentation Case Study
Appendix
K Illustrative Audit Documentation Case Study: Young Fashions, Inc.
K-1 Young Fashions: Understanding of Entity and Its Environment
K-2 Young Fashions: Evaluation of Entity-Level Controls
K-3 Young Fashions: Understanding of Internal Control - IT General Controls
K-4 Young Fashions: Evaluation of Activity-Level Controls - Wholesale Sales
K-5 Young Fashions: Assessing Risks of Material Misstatement and Linkage to Further Audit Procedures
K-6 Young Fashions: Evaluation of Uncorrected Misstatements and Assessment of Control Deficiencies
L The Effect of Group Audits on Planning and Determining Materiality
M Overview of Statements on Quality Control Standards
N Schedule of Changes Made to the Text From the Previous Edition
Index of Pronouncements and Other Technical Guidance
Subject Index
