Wiley CPAexcel Exam Review 2018 Focus Notes: Auditing and Attestation

Reinforce key concepts for the Auditing and Attestation section of the CPA Exam with these easy-to-read and carry spiral-bound focus notes. Learn acronyms and mnemonic devices to help you remember accounting rules, checklists and more.  Let Wiley CPAexcel Focus Notes help you memorize formulas, concepts, acronyms and more. Drill yourself on key steps in performing needed financial calculations or tasks. Learn important strategies for taking the exam more quickly and accurately. Solve exam questions and reinforce material being studied with a simplified, focused approach. Memorize a variety of rules and checklists with our acronyms and mnemonics. Covering the entire gamut of required subjects and skills, these handy supplements provide critical knowledge in an easy-to-understand and easy-to-remember format.

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 Laws and Regulations—Responsibility to Detect and Report Illegal Acts 45 Fraud-Related Documentation 47 Actions Resulting from Evidence of Fraud 48 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 105 Audit Documentation 119 Auditing Specific Accounts 123 Using Management Assertions to Develop Audit Programs 123 Test of Balances Approach versus Test of Transactions Approach 124 Auditing Accounts 127 Audit Sampling 150 Sampling Risk 150 Types of Statistical Sampling 154 Attribute Sampling 155 Variables Sampling 159 Probability Proportional to Size (PPS) Sampling 162 Auditing with Technology 166 Responsibilities in an Information Technology Environment 166 Controls in an IT Environment 167 Auditing through the Computer 168 Testing General Control Activities 169 Testing Application Control Activities 170 Auditing with the Computer 173 Audit Reports 174 Audit Reports 174 Standard Report 175 Group Financial Statement Audit Reports 178 Unmodified Opinion with Emphasis-of-Matter Paragraphs 183 Unmodified Opinions with Other-Matter Paragraphs 193 Modified Opinions—Two circumstances 201 Other Audit Reports 207 Reviews of Quarterly (Interim) Information 217 Other Types of Reports 218 Reports on Application of Framework Requirements 218 Financial statements with special purpose frameworks 219 Audits of Single Financial Statements and Specific Elements, Accounts, or Items 221 Reporting on Compliance 222 Service Organization Control (SOC) Reports 223 Governmental Auditing and Compliance Audits 226 Accounting and Review Services 236 Financial Statement Preparation 237 Compilations 240 Reviews 244 Other Compilation and Review Considerations 252 Other Professional Services 256 PCAOB Reporting on Whether Material Weaknesses Still Exist 256 Attestation Engagements—General 257 Attestation Standards 258 Financial Forecasts and Projections 260 Pro Forma Financial Information 263 Management Discussion and Analysis 263 Compliance Attestation Engagements 264 Index 265