Auditing & assurance services / Timothy J. Louwers . . . [et al.].

Contents;


Part One The Contemporary Auditing Environment
Chapter 1: Auditing and Assurance Services
User Demand for Reliable Information
Information Risk in a Big Data World
Auditing, Attestation, and Assurance Services
Definition of Financial Statement Auditing
Auditing in a Big Data Environment
Attestation Engagements
Assurance Services
Examples of Assurance Services
etc.

Chapter 2 Professional Standards
Introduction
Generally Accepted Auditing Standards (GAAS)
Fundamental Principle: Responsibilities
Fundamental Principle: Performance
Fundamental Principle: Reporting
Evaluating the Quality of Public Accounting Firms’ Practices
etc.

Part Two The Financial Statement Audit
Chapter 3 Engagement Planning
Introduction
Pre-Engagement Activities (AU-C 300, AS 2101)
Client Acceptance or Continuance
Compliance with Independence and Ethical Requirements
Engagement Letters
Audit Plan (AU-C 300, AS 2101)
Staffing the Audit Engagement
Considering the Work of Internal
Re-performance
Analytical Procedures
Planning in a Computerized Environment
etc.

Chapter 4 Management Fraud and Audit Risk
Introduction
Audit Risk (AU 320, AS 1101)
Audit Risk?119
Inherent Risk?120
Control Risk?120
Detection Risk?120
Audit Risk Model?120
Fraud Risk (AU-C 240, AS 2401)
Fraud
etc.

Chapter 5 Risk Assessment: Internal Control Evaluation
Introduction
Internal Control Defined
Management Versus Auditors’ Responsibility for Internal Control
Auditors’ Internal Control Responsibilities
Components of Internal Control
Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring
Limitations of Internal Control
Internal Control Evaluation
etc.

Chapter 6 Employee Fraud and the Audit of Cash
Introduction
Employee Fraud Overview
Employee Fraud Red Flags
Characteristics of Fraudsters
The Fraud Triangle (AU-C 315, AS 2401)
Incentive/Pressure
Opportunity
Attitude/Rationalization
etc.

Chapter 7 Revenue and Collection Cycle
Introduction
Revenue and Collection Cycle: Typical Activities
Receiving and Processing Customer Orders, Including Credit Granting
Delivering Goods and Services to Customers
Billing Customers and Accounting for Accounts Receivable
Management Reports and Data Files in the Revenue and Collection Cycle
Significant Accounts and Relevant Assertions
Risk of Material Misstatement
Revenue Recognition
Collect-ability of Accounts Receivable
Customer Returns and Allowances
Internal Control Activities and Design Evaluation
Entity-Level Controls in the Revenue and Collections Cycle
Control Considerations at the Account and Assertion Level
Tests of Operating Effectiveness of Internal Control
etc.

Chapter 8 Acquisition and Expenditure Cycle
Introduction
Acquisition and Expenditure Cycle: Typical Activities
Purchasing Goods and Services
Receiving the Goods or Services
Recording the Asset or Expense and Related Liability
Significant Accounts and Relevant Assertions
Accounts Payable
Expenses
Risk of Material Misstatement
etc.

Chapter 9 Production Cycle
Phar-Mor Inc.
Production Cycle: Typical Activities
Significant Accounts and Relevant Assertions
Risk of Material Misstatement
etc.

Chapter 10 Finance and Investment Cycle
Introduction
Finance and Investment Cycle: Typical Activities
Financing the Entity through Debt and Stockholder Equity
Financial Planning (1)
Raising Capital (2)
Investing Transactions: Investments and Intangibles (3)
Significant Accounts and Relevant Assertions
Risk of Material Misstatement
Fair Market Value
Related-Party Transactions
etc.

Chapter 11 Completing the Audit
Introduction
Audit Timeline
Procedures Performed During Fieldwork
Completing Substantive Procedures
Attorney Letters
Written Representations
Ability to Continue as a Going Concern
etc.

Chapter 12 Reports on Audited Financial Statements
Introduction
Overview of Auditors’ Reports
The Standard Report
Auditors’ Reports for Public Entities
Types of Opinions
Conditions That Require Modifications to the Auditors’ Standard (Unmodified) Report
Departures from GAAP
Scope Limitations
Audits of Group Financial Statements
Auditors’ Reports Referencing Other Matters Encountered During the Audit
Consistency
“Going-Concern” Uncertainties
Other Information Accompanying Audited Financial Statements
etc.

Part Three Stand-Alone Modules
Module A: Other Public Accounting Services
Introduction
Attestation Engagements
Introduction to Attestation Engagements
Applying Agreed-Upon Procedures
Prospective Financial Information and Pro Forma Financial Information
An Examination of an Entity’s Internal Control over Financial Reporting That Is Integrated with an Audit of Its Financial Statements (AT 501)
Compliance Attestation
Broker—Dealer Compliance
Management’s Discussion and Analysis
Service Organizations
Audited Financial Statements: Reviews, Compilations, and Preparation Engagements
Review Services
Compilation Services
Preparation of Financial Statements
Summary of Audits, Reviews, and Compilations
Responsibilities Related to Reporting on Interim Financial Information
Other Topics: Special and Restricted-Use Reports
etc.

Module B: Professional Ethic
Chapter 12 Reports on Audited Financial Statements
Introduction
Overview of Auditors’ Reports
The Standard Report
Auditors’ Reports for Public Entities
Types of Opinions
Conditions That Require Modifications to the Auditors’ Standard (Unmodified) Report
Departures from GAAP
Scope Limitations
Audits of Group Financial Statements
Auditors’ Reports Referencing Other Matters Encountered During the Audit
Consistency
“Going-Concern” Uncertainties
Other Information Accompanying Audited Financial Statements
etc.

Part Three Stand-Alone Modules
Module A Other Public Accounting Services
Introduction
Attestation Engagements
Introduction to Attestation Engagements
Applying Agreed-Upon Procedures
Prospective Financial Information and Pro Forma Financial Information
An Examination of an Entity’s Internal Control over Financial Reporting That Is Integrated with an Audit of Its Financial Statements (AT 501)
Compliance Attestation
Broker—Dealer Compliance
Management’s Discussion and Analysis
Service Organizations
Audited Financial Statements: Reviews, Compilations, and Preparation Engagements
Review Services
Compilation Services
Preparation of Financial Statements
Summary of Audits, Reviews, and Compilations
Responsibilities Related to Reporting on Interim Financial Information
Other Topics: Special and Restricted-Use Reports
Specified Elements, Accounts, or Items
Special-Purpose Frameworks
Reports on Application of Requirements of an Appropriate Financial Reporting Framework
etc.

Module B Professional Ethic
Key Terms
Multiple-Choice Questions for Practice and Review
Exercises and Problems
Module D Internal Audits, Governmental Audits, and Fraud Examinations
Introduction
“External,” Governmental, and Internal Audits
Internal Audits
Independence
Value-Added Audit
Scope of Service
Internal Audit Standards
Internal Audit Reports
Governmental Audits
etc.

Multiple-Choice Questions for Practice and Review
Exercises and Problems
Module E Overview of Sampling
Introduction
What Is Sampling?
When Should Sampling Be Used?
Sampling Risk versus Non sampling Risk
Statistical Sampling versus Non-statistical Sampling
The Basic Steps Involved with Sampling
Planning
Performing
Documenting the Sampling Procedure
Use of Sampling in the Audit
Study and Evaluation of Internal Control
etc.

Multiple-Choice Questions for Practice and Review
Exercises and Problems
Module F Attributes Sampling
Introduction
Role of Attributes Sampling in the Audit
Planning
Step 1: Determine the Objective of Sampling
Step 2: Define the Characteristic of Interest
Step 3: Define the Population
Performing
Step 4: Determine the Sample Size
Step 5: Select the Sample Items
Step 6: Measure the Sample Items
Step 7: Evaluating the Sample Results
Calculating the Upper Limit Rate of Deviation
Making the Evaluation Decision
Qualitative Evaluation of Deviations
Documenting
Other Attributes Sampling Methods

I1-I48.