Quick reference tools for the 2023 CPA AUD exam
Wiley's CPA Jan 2023 Focus Notes: Auditing and Attestation offer practical and hands-on flashcard-style notes on the Auditing and Attestation section of the Certified Public Accountant (CPA) exam. Perfect for targeted review sessions focused on essential, core concepts covered on AUD, the 2023 Focus Notes include:
- Ethics, Professional Responsibilities, and General Principles
- Assessing Risk and Developing a Planned Response
- Performing Further Procedures and Obtaining Evidence
- Forming Conclusions and Reporting
Designed for motivated CPA candidates sitting for AUD in 2023, Wiley's CPA Jan 2023 Focus Notes: Auditing and Attestation are the proven solution for testing your knowledge in quick study sessions leading up to exam day.
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 20
Responsibilities to Clients 21
Noncompliance with Laws and Regulations (NOCLAR) 22
Other Responsibilities and Practices 23
Quality Control 24
Tax Preparer 25
Standards for Consulting Services 26
GAO - GAGAS Ethical Principles 27
Department of Labor Independence Requirements for Employee Benefit Plans 28
Assessing Risk and Developing a Planned Response 29
Financial Statement Assertions 29
Audit Risk (AR) 30
Materiality 34
Evaluation of Misstatements 36
Consideration of Fraud in a Financial Statement Audit 37
Fraud Risk Factors Overall 39
Assessing Risk of Fraud 45
Effects of Fraud Assessment 46
Fraud-Related Documentation 47
Actions Resulting from Evidence of Fraud 48
Laws and Regulations - Responsibility to Detect and Report Illegal Acts 49
Summary of Assurance Provided by Auditor 51
Audit Planning: Communication with Predecessor Auditor 52
Audit Planning: Engagement Letter 53
Planning Considerations 55
Communication of Certain Information to Those Charged with Governance 60
Understanding Internal Control and Assessing Control Risk 62
Consideration of Internal Control 62
Components of Internal Control 63
Obtaining an Understanding of Internal Control during Risk Assessment 69
Relationship of Control Risk to Tests of Controls, Detection Risk, and Substantive Procedures 77
Further Reducing the Assessed Level of Control Risk 78
Documentation of Internal Control 79
Accounting Cycles 81
Other Considerations 90
Performing Further Procedures and Obtaining Evidence 95
Sufficient Appropriate Audit Evidence 95
Basic Types of Audit Procedures 99
Issues Related to Substantive Testing 109
Audit Documentation 123
Auditing Specific Accounts 127
Using Management Assertions to Develop Audit Programs 127
Test of Balances Approach versus Test of Transactions Approach 128
Auditing Accounts 131
Audit Sampling 157
Sampling Risk 157
Types of Statistical Sampling 161
Attribute Sampling 162
Variables Sampling 166
Probability Proportional to Size (PPS) Sampling 169
Auditing with Technology 173
Responsibilities in an Information Technology Environment 173
Controls in an IT Environment 174
Auditing through the Computer 175
Testing General Control Activities 176
Testing Application Control Activities 178
Auditing with the Computer 180
Audit Reports 181
Audit Reports 181
Standard Report 182
Group Financial Statement Audit Reports 189
Unmodified Opinion with Emphasis-of-Matter Paragraphs 194
Unmodified Opinions with Other-Matter Paragraphs 205
Modified Opinions - Two Circumstances 213
Financial Statements Prepared Using Another Country’s Framework 219
Summary Financial Statements 220
Reviews of Quarterly (Interim) Information 221
Other Types of Reports 222
Reports on Application of Framework Requirements 222
Financial Statements with Special Purpose Frameworks 223
Audits of Single Financial Statements and Specific Elements, Accounts, or Items 225
Reporting on Compliance 226
Service Organization Control (SOC) Reports 227
Governmental Auditing and Compliance Audits 229
Accounting and Review Services 239
Financial Statement Preparation 240
Compilations 243
Reviews 247
Other Compilation and Review Considerations 255
Other Professional Services 259
Reporting on Internal Control in an Integrated Audit 259
PCAOB Reporting on Whether Material Weaknesses Still Exist 267
Employee Benefit Plans 268
Attestation Engagements - General 269
Attestation Standards 270
Financial Forecasts and Projections 272
Pro Forma Financial Information 275
Management Discussion and Analysis 275
Compliance Attestation Engagements 276
Index 277
