Audit Contents
Ch. 2. Professional Standards
2-1. Generally Accepted Auditing standards (GAAS)
-Audit procedure
-Audit standard
2-2. Fundamental Principle: Responsibilities
-Competence and Capabilities
-Independence and Due care
--Independence in fact
--Independence in appearance
-Professional Skepticism and Professional Judgment
2-3. Fundamental Principle: Performance
-Reasonable Assurance
-Planning and Supervision
--Audit plan
-Materiality
-Risk Assessment
--Internal Control
--Risk of Material misstatement
--Inherent risk
--Control Risk
--Defection risk
--Substantive procedure
-Audit Evidence
2-4. Fundamental Principle: Reporting
--Financial Reporting framework
--Unqualified opinion
--Departures from GAAP
--Adverse opinion
-- qualified opinion
--Scope of limitation
--Declaimer of opinion
2-5. Evaluating the Quality of Public Accounting Firm’s Practices
-System of quality control
1) leadership responsibilities for quality within the firm (“tone at the top”)
2) Relevant ethical requirements
3) Acceptance and continuance of client relationships and specific engagements
4) Human resources
5) Engagement performance
6) Monitoring
-Peer review
-PCAOB Inspection of Firms
Ch. 3. Engagement Planning
3-1. Pre-Engagement Activities
-Client Acceptance or Continuance
--Predecessor auditor
--Form 8-K (special event report)
-Compliance with Independence and Ethical Requirements
--independence in fact
--independence in appearance
-Engagement Letters
--Engagement letters
--Termination letter
3-2. Audit Plan
-Staffing the audit engagement
--quality assurance partner
-Considering the work of internal auditors
-Use of Specialists
-Use of Information Technology (IT) Auditors
-Time budget
--Interim audit work
--Year-end audit work
3-3. Materiality
-Materiality Calculation
--Nature of the Item or Issue
--Engagement Circumstances
--Possible Cumulative Effects
3-4. Audit Procedures for Obtaining Audit Evidence
--Substantive audit plan
-Inspection of records and docuemtns
1)Documents prepared by
2-1. Generally Accepted Auditing standards (GAAS)
-Audit procedure
-Audit standard
2-2. Fundamental Principle: Responsibilities
-Competence and Capabilities
-Independence and Due care
--Independence in fact
--Independence in appearance
-Professional Skepticism and Professional Judgment
2-3. Fundamental Principle: Performance
-Reasonable Assurance
-Planning and Supervision
--Audit plan
-Materiality
-Risk Assessment
--Internal Control
--Risk of Material misstatement
--Inherent risk
--Control Risk
--Defection risk
--Substantive procedure
-Audit Evidence
2-4. Fundamental Principle: Reporting
--Financial Reporting framework
--Unqualified opinion
--Departures from GAAP
--Adverse opinion
-- qualified opinion
--Scope of limitation
--Declaimer of opinion
2-5. Evaluating the Quality of Public Accounting Firm’s Practices
-System of quality control
1) leadership responsibilities for quality within the firm (“tone at the top”)
2) Relevant ethical requirements
3) Acceptance and continuance of client relationships and specific engagements
4) Human resources
5) Engagement performance
6) Monitoring
-Peer review
-PCAOB Inspection of Firms
Ch. 3. Engagement Planning
3-1. Pre-Engagement Activities
-Client Acceptance or Continuance
--Predecessor auditor
--Form 8-K (special event report)
-Compliance with Independence and Ethical Requirements
--independence in fact
--independence in appearance
-Engagement Letters
--Engagement letters
--Termination letter
3-2. Audit Plan
-Staffing the audit engagement
--quality assurance partner
-Considering the work of internal auditors
-Use of Specialists
-Use of Information Technology (IT) Auditors
-Time budget
--Interim audit work
--Year-end audit work
3-3. Materiality
-Materiality Calculation
--Nature of the Item or Issue
--Engagement Circumstances
--Possible Cumulative Effects
3-4. Audit Procedures for Obtaining Audit Evidence
--Substantive audit plan
-Inspection of records and docuemtns
1)Documents prepared by