Efficiently reinforce key CPA exam competencies
Wiley's CPA Jan 2022 Focus Notes: Auditing and Attestation delivers practical and hands-on flashcard-style notes on the Auditing and Attestation portion of the Certified Public Accountants series of exams. The Focus Notes include coverage of every competency tested by the challenging exam, including:
- Ethics, Professional Responsibilities, and General Principles
- Assessing Risk and Developing a Planned Response
- Performing Further Procedures and Obtaining Evidence
- Forming Conclusions and Reporting
Perfect for anyone preparing for the 2022 Auditing and Attestation CPA exam, these Focus Notes are the ideal study tool to reinforce and retain critical concepts.
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 155
Sampling Risk 155
Types of Statistical Sampling 159
Attribute Sampling 160
Variables Sampling 164
Probability Proportional to Size (PPS) Sampling 167
Auditing with Technology 171
Responsibilities in an Information Technology Environment 171
Controls in an IT Environment 172
Auditing through the Computer 173
Testing General Control Activities 174
Testing Application Control Activities 176
Auditing with the Computer 178
Audit Reports 179
Audit Reports 179
Standard Report 180
Group Financial Statement Audit Reports 187
Unmodified Opinion with Emphasis-of-Matter Paragraphs 192
Unmodified Opinions with Other-Matter Paragraphs 203
Modified Opinions - Two Circumstances 211
Financial Statements Prepared Using Another Country’s Framework 217
Summary Financial Statements 218
Reviews of Quarterly (Interim) Information 219
Other Types of Reports 220
Reports on Application of Framework Requirements 220
Financial Statements with Special Purpose Frameworks 221
Audits of Single Financial Statements and Specific Elements, Accounts, or Items 223
Reporting on Compliance 224
Service Organization Control (SOC) Reports 225
Governmental Auditing and Compliance Audits 227
Accounting and Review Services 237
Financial Statement Preparation 238
Compilations 241
Reviews 245
Other Compilation and Review Considerations 253
Other Professional Services 257
Reporting on Internal Control in an Integrated Audit 257
PCAOB Reporting on Whether Material Weaknesses Still Exist 265
Employee Benefit Plans 266
Attestation Engagements - General 267
Attestation Standards 268
Financial Forecasts and Projections 270
Pro Forma Financial Information 273
Management Discussion and Analysis 273
Compliance Attestation Engagements 274
Index 275
