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The Role of the Public Accountant in the American Economy |
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1 | (32) |
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What Are Assurance Services? |
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1 | (1) |
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1 | (3) |
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Assurance and Nonassurance Services |
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3 | (1) |
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Financial Statement Audits |
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4 | (8) |
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What Creates the Demand for Audits? |
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5 | (2) |
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Major Auditing Developments of the 20th Century |
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7 | (2) |
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The Accounting Profession's Credibility Crisis |
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9 | (1) |
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10 | (1) |
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11 | (1) |
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The Public Accounting Profession |
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12 | (11) |
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American Institute of Certified Public Accountants |
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13 | (2) |
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15 | (1) |
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State Boards of Accountancy |
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15 | (1) |
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Financial Accounting Standards Board |
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15 | (1) |
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Governmental Accounting Standards Board |
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16 | (1) |
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Federal Accounting Standards Advisory Board |
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16 | (1) |
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The Public Company Accounting Oversight Board |
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16 | (1) |
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Securities and Exchange Commission |
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16 | (1) |
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Other Types of Professional Services |
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17 | (2) |
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Organization of the Public Accounting Profession |
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19 | (1) |
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20 | (1) |
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Responsibilities of the Professional Staff |
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20 | (2) |
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Professional Development for Public Accounting Firm Personnel |
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22 | (1) |
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Seasonal Fluctuations in Public Accounting Work |
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22 | (1) |
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Relationships with Clients |
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22 | (1) |
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23 | (1) |
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Key Terms Introduced or Emphasized in Chapter 1 |
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24 | (1) |
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25 | (1) |
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Questions Requiring Analysis |
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26 | (1) |
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Multiple Choice Questions |
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27 | (1) |
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28 | (2) |
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30 | (1) |
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Research and Discussion Case |
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30 | (1) |
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31 | (2) |
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33 | (30) |
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Auditing Standards for Public and Nonpublic Companies |
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33 | (6) |
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AICPA Generally Accepted Auditing Standards |
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33 | (1) |
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General Standards---Auditor Qualifications and Quality of Work |
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34 | (2) |
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Standards of Fieldwork---Planning, Accumulating, and Evaluating Evidence |
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36 | (1) |
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37 | (1) |
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AICPA Statements on Auditing Standards (SASs) |
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37 | (2) |
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The Auditors' Responsibility for Detecting Misstatements |
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39 | (2) |
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39 | (1) |
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40 | (1) |
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41 | (6) |
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The Introductory Paragraph of the Auditors' Report |
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41 | (2) |
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The Scope Paragraph of the Auditors' Report |
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43 | (1) |
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The Opinion Paragraph of the Auditors' Report |
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43 | (3) |
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Other Types of Auditors' Reports |
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46 | (1) |
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Public Company Audit Reports |
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46 | (1) |
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The Attestation Standards |
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47 | (1) |
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Quality Control in CPA Firms |
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47 | (3) |
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Regulation of Accounting Firms |
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50 | (2) |
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Public Company Accounting Oversight Board |
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50 | (1) |
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Peer Review and Inspections |
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50 | (2) |
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International Accounting and Auditing Standards |
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52 | (1) |
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53 | (1) |
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Key Terms Introduced or Emphasized in Chapter 2 |
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54 | (1) |
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55 | (2) |
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Questions Requiring Analysis |
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57 | (1) |
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Multiple Choice Questions |
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57 | (2) |
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59 | (2) |
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61 | (1) |
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Research and Discussion Case |
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62 | (1) |
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62 | (1) |
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63 | (42) |
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63 | (3) |
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What Are Ethical Dilemmas? |
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63 | (1) |
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A Framework for Ethical Decisions |
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64 | (1) |
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Making Ethical Decisions---A Professional Example |
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64 | (2) |
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The Need for Professional Ethics |
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66 | (2) |
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Professional Ethics in Public Accounting |
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67 | (1) |
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The AICPA Code of Professional Conduct |
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68 | (22) |
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Background on Independence and the AICPA Conceptual Framework for Independence Standards |
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70 | (3) |
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73 | (8) |
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Analysis of Integrity and Objectivity |
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81 | (1) |
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Analysis of General Standards |
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82 | (1) |
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Analysis of Compliance with Standards |
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82 | (1) |
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Analysis of Accounting Principles |
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83 | (1) |
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Analysis of Confidential Client Information |
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84 | (1) |
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Analysis of Contingent Fees |
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85 | (1) |
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Analysis of Acts Discreditable |
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86 | (1) |
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Analysis of Advertising and Other Forms of Solicitation |
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86 | (1) |
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Analysis of Commissions and Referral Fees |
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87 | (1) |
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Analysis of Form of Organization and Name |
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87 | (1) |
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Alternative Practice Structures |
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88 | (1) |
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The CPA as Tax Advisor---Ethical Problems |
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88 | (1) |
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Enforcement of Professional Ethics |
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89 | (1) |
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Ethics for Internal Auditors |
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90 | (2) |
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92 | (1) |
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Key Terms Introduced or Emphasized in Chapter 3 |
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93 | (1) |
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94 | (1) |
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Questions Requiring Analysis |
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95 | (1) |
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Multiple Choice Questions |
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96 | (2) |
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98 | (4) |
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102 | (1) |
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Research and Discussion Case |
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103 | (1) |
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103 | (2) |
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105 | (30) |
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The Scope of CPA Liability |
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105 | (2) |
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Litigation Placed in Perspective |
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105 | (1) |
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106 | (1) |
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CPAs' Liability to Their Clients under Common Law |
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107 | (3) |
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The Elements of Duty and Breach of Duty |
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108 | (1) |
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The Element of Losses (Damages) |
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109 | (1) |
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The Element of Causation (Proximate Cause) |
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109 | (1) |
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Auditors' Common Law Liability to Third Parties |
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110 | (2) |
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Ultramares (Known User) Approach |
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110 | (1) |
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Restatement of Torts (Foreseen User) Approach |
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111 | (1) |
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Rosenblum (Foreseeable User) Approach |
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111 | (1) |
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Summary of Third-Party Liability Approaches |
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112 | (1) |
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Liability to Third Parties under Statutory Law |
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112 | (10) |
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113 | (1) |
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Securities Exchange Act of 1934 |
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114 | (2) |
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Comparison of the 1933 and 1934 Acts |
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116 | (1) |
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Racketeer Influenced and Corrupt Organizations Act |
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117 | (1) |
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Auditors' Criminal Liability under the Securities Acts |
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117 | (1) |
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Criminal Liability under Other Statutes |
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118 | (1) |
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SEC and Public Company Accounting Oversight Board Regulation |
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118 | (1) |
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CPAs' Liability for Accounting and Review Services |
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119 | (2) |
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CPAs' Posture in the Age of Litigation |
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121 | (1) |
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122 | (1) |
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Key Terms Introduced or Emphasized in Chapter 4 |
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122 | (2) |
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124 | (1) |
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Questions Requiring Analysis |
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125 | (2) |
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Multiple Choice Questions |
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127 | (2) |
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129 | (3) |
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132 | (1) |
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Research and Discussion Case |
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133 | (1) |
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133 | (2) |
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Audit Evidence and Documentation |
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135 | (48) |
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The Relationships among Audit Risk, Audit Evidence, and Financial Statement Assertions |
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135 | (11) |
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Financial Statement Assertions |
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135 | (2) |
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Audit Risk at the Account Balance, Class of Transaction, or Disclosure Level |
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137 | (1) |
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138 | (1) |
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138 | (2) |
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140 | (1) |
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140 | (6) |
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146 | (3) |
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Nature of Substantive Procedures |
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147 | (1) |
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Timing of Substantive Audit Procedures |
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147 | (1) |
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Extent of Substantive Procedures |
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147 | (1) |
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148 | (1) |
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149 | (4) |
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Nature of Analytical Procedures |
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149 | (3) |
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Timing of Analytical Procedures |
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152 | (1) |
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Extent of Analytical Procedures |
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153 | (1) |
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Audit Evidence for Subjective Areas |
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153 | (4) |
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Evidence Regarding Accounting Estimates |
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153 | (1) |
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Evidence Regarding Fair Values |
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154 | (2) |
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Evidence Regarding Related Party Transactions |
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156 | (1) |
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157 | (9) |
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Confidential Nature of Working Papers |
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157 | (1) |
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Ownership of Audit Working Papers |
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158 | (1) |
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Working Papers and Auditors' Liability |
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158 | (1) |
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159 | (2) |
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Organization of Working Papers |
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161 | (2) |
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Guidelines for Preparation of Working Papers |
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163 | (1) |
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Computer-Generated Working Papers |
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163 | (2) |
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Review of Audit Working Papers |
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165 | (1) |
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166 | (1) |
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Key Terms Introduced or Emphasized in Chapter 5 |
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167 | (2) |
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169 | (1) |
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Questions Requiring Analysis |
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170 | (2) |
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Multiple Choice Questions |
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172 | (2) |
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174 | (3) |
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177 | (3) |
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Research and Discussion Cases |
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180 | (1) |
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181 | (2) |
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Audit Planning, Understanding the Client, Assessing Risks, and Responding |
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183 | (60) |
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183 | (2) |
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185 | (4) |
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187 | (1) |
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Communication with Predecessor Auditors |
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188 | (1) |
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189 | (4) |
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Establishing an Understanding with the Client |
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190 | (1) |
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Develop an Overall Audit Strategy and Audit Plan |
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191 | (1) |
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Use of the Client's Staff |
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192 | (1) |
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Involvement of Other CPAs |
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192 | (1) |
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192 | (1) |
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Additional First-Year Considerations |
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192 | (1) |
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Obtaining an Understanding of the Client and Its Environment |
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193 | (8) |
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Risk Assessment Procedures |
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193 | (2) |
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195 | (2) |
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197 | (4) |
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Assessing the Risks of Material Misstatement and Designing Further Audit Procedures |
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201 | (9) |
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Assessing Risks of Material Misstatement |
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201 | (2) |
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Addressing the Risks of Material Misstatement Due to Fraud |
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203 | (4) |
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Designing Further Audit Procedures in Response to Assessed Risks |
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207 | (1) |
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The Audit Trail and Directional Testing |
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208 | (1) |
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Transaction Cycles (Classes of Transactions) |
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209 | (1) |
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210 | (5) |
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The Systems (Internal Control) Portion of the Program |
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210 | (1) |
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The Substantive Procedures Portion of the Program |
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211 | (2) |
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Summary of the Relationship between Tests of Controls and Substantive Procedures |
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213 | (1) |
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Objectives of Audit Programs |
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213 | (1) |
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General Objectives of Audit Programs for Assets |
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214 | (1) |
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Substantiation of Account Balances |
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215 | (2) |
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215 | (1) |
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215 | (1) |
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Establishing Completeness |
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215 | (1) |
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216 | (1) |
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216 | (1) |
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Financial Statement Presentation and Disclosure |
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217 | (1) |
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An Illustration of Audit Program Design |
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217 | (2) |
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217 | (2) |
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219 | (1) |
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Key Terms Introduced or Emphasized in Chapter 6 |
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219 | (2) |
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221 | (1) |
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Questions Requiring Analysis |
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222 | (2) |
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Multiple Choice Questions |
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224 | (1) |
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225 | (3) |
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228 | (1) |
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228 | (1) |
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Appendix 6A Selected Internet Addresses |
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228 | (1) |
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Appendix 6B Examples of Fraud Risk Factors |
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229 | (4) |
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Appendix 6C Illustrative Audit Case: Keystone Computers & Networks, Inc. |
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233 | (1) |
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233 | (8) |
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241 | (2) |
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243 | (50) |
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The Meaning of Internal Control |
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243 | (3) |
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The Foreign Corrupt Practices Act of 1977 |
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245 | (1) |
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Means of Achieving Internal Control |
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245 | (1) |
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246 | (4) |
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Integrity and Ethical Values |
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246 | (1) |
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246 | (1) |
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Board of Directors or Audit Committee |
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246 | (1) |
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Management Philosophy and Operating Style |
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247 | (1) |
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247 | (2) |
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Assignment of Authority and Responsibility |
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249 | (1) |
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Human Resource Policies and Procedures |
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249 | (1) |
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250 | (1) |
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250 | (2) |
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250 | (1) |
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Information Processing Controls |
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250 | (1) |
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251 | (1) |
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252 | (1) |
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The Accounting Information System |
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252 | (1) |
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253 | (1) |
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Limitations of Internal Control |
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254 | (1) |
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Enterprise Risk Management |
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254 | (1) |
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Financial Statement Audits: The Role of Internal Control |
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255 | (1) |
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Obtain an Understanding of the Client and Its Environment, Including Internal Control |
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255 | (8) |
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Required Auditor Understanding of Internal Control Components |
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256 | (2) |
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Areas Difficult to Control |
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258 | (1) |
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Risk Assessment Procedures for Internal Control |
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259 | (1) |
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Documenting the Understanding of Internal Control |
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259 | (4) |
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Assess the Risks of Material Misstatement |
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263 | (2) |
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Assess Risks at the Financial Statement Level |
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264 | (1) |
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Assess Risks at the Relevant Assertion Level |
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265 | (1) |
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Design and Perform Further Audit Procedures |
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265 | (7) |
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265 | (2) |
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Revise the Risk of Material Misstatement Based on the Results of Tests of Controls |
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267 | (1) |
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Design and Perform Substantive Procedures |
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267 | (1) |
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267 | (3) |
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Decision Aids for Audit Program Modification |
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270 | (1) |
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Consideration of the Work of Internal Auditors |
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270 | (1) |
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Communication of Control-Related Matters |
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271 | (1) |
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Internal Control Reporting by Public Companies and Their Auditors |
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272 | (3) |
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Overall Approach for an Audit of Internal Control |
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274 | (1) |
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Internal Control in the Small Company |
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275 | (1) |
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276 | (1) |
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Key Terms Introduced or Emphasized in Chapter 7 |
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277 | (2) |
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279 | (1) |
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Questions Requiring Analysis |
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280 | (3) |
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Multiple Choice Questions |
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283 | (1) |
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284 | (4) |
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288 | (2) |
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Appendix 7A Antifraud Programs and Control Measures |
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290 | (3) |
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Consideration of Internal Control in an Information Technology Environment |
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293 | (34) |
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Nature of IT-Based Systems |
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294 | (4) |
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Characteristics of Various Types of IT-Based Systems |
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294 | (3) |
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Impact of IT on the Audit Trail |
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297 | (1) |
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Internal Control in an IT Environment |
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298 | (9) |
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Organizational Structure of the Information System Function |
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298 | (3) |
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301 | (1) |
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Internal Auditing in an IT Environment |
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301 | (1) |
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Control Activities in an IT System |
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302 | (1) |
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General Control Activities |
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302 | (3) |
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Application Control Activities |
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305 | (1) |
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306 | (1) |
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Control in Decentralized and Single Workstation Environments |
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306 | (1) |
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The Auditors' Consideration of Internal Control in an IT Environment |
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307 | (7) |
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Obtaining an Understanding of IT-Based System Controls |
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307 | (3) |
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Assessing the Risks of Material Misstatement |
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310 | (4) |
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Designing Substantive Procedures with Computers |
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314 | (2) |
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Using Audit Software: An Illustration |
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314 | (2) |
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Computer Service Centers and Outsourced Computer Processing |
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316 | (1) |
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317 | (1) |
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Key Terms Introduced or Emphasized in Chapter 8 |
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317 | (3) |
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320 | (1) |
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Questions Requiring Analysis |
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321 | (1) |
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Multiple Choice Questions |
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321 | (2) |
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323 | (2) |
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325 | (2) |
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327 | (50) |
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Comparison of Statistical and Nonstatistical Sampling |
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327 | (6) |
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Selecting a Random Sample |
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328 | (2) |
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Other Methods of Sample Selection |
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330 | (1) |
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330 | (1) |
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Types of Statistical Sampling Plans |
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331 | (1) |
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Allowance for Sampling Risk (Precision) |
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332 | (1) |
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332 | (1) |
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Audit Sampling for Tests of Controls |
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333 | (1) |
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Sampling Risk for Tests of Controls |
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333 | (1) |
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334 | (8) |
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Determine the Objective of the Test |
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334 | (1) |
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Define the Attributes and Deviation Conditions |
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334 | (1) |
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335 | (1) |
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Specify the Risk of Assessing Control Risk Too Low and the Tolerable Deviation Rate |
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335 | (1) |
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Estimate the Expected Population Deviation Rate |
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336 | (1) |
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Determine the Sample Size |
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336 | (1) |
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337 | (1) |
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337 | (1) |
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Evaluate the Sample Results |
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337 | (2) |
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Document the Sampling Procedure |
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339 | (1) |
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Detailed Illustration of Attributes Sampling |
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339 | (1) |
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Other Statistical Attributes Sampling Approaches |
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340 | (2) |
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Nonstatistical Attributes Sampling |
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342 | (1) |
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Audit Sampling for Substantive Procedures |
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342 | (1) |
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Sampling Risk for Substantive Procedures |
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343 | (1) |
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Classical Variables Sampling |
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343 | (9) |
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344 | (1) |
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Controlling Sampling Risk |
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344 | (1) |
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Determination of Sample Size |
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345 | (1) |
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Evaluation of Sample Results |
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345 | (1) |
|
Illustration of Mean-per-Unit Estimation |
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|
346 | (3) |
|
Difference and Ratio Estimation |
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|
349 | (1) |
|
Illustration of Difference and Ratio Estimation |
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|
350 | (2) |
|
Nonstatistical Sampling for Substantive Procedures |
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352 | (2) |
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Illustration of Nonstatistical Sampling |
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352 | (2) |
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354 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 9 |
|
|
354 | (2) |
|
|
|
356 | (1) |
|
Questions Requiring Analysis |
|
|
357 | (2) |
|
Multiple Choice Questions |
|
|
359 | (1) |
|
|
|
360 | (3) |
|
|
|
363 | (1) |
|
Appendix 9A Probability-Proportional-to-Size (PPS) Sampling |
|
|
364 | (6) |
|
|
|
370 | (2) |
|
Key Terms Introduced or Emphasized in Chapter 9 Appendixes |
|
|
372 | (1) |
|
Questions and Problems for Chapter 9 Appendixes |
|
|
372 | (1) |
|
In-Class Team Cases for Chapter 9 Appendixes |
|
|
373 | (2) |
|
Integrating Problem for Chapter 9 and the Appendixes |
|
|
375 | (2) |
|
Cash and Financial Investments |
|
|
377 | (48) |
|
|
|
377 | (9) |
|
Sources and Nature of Cash |
|
|
377 | (1) |
|
The Auditors' Objectives in the Audit of Cash |
|
|
377 | (1) |
|
How Much Audit Time for Cash? |
|
|
378 | (1) |
|
Internal Control over Cash Transactions |
|
|
378 | (1) |
|
Internal Control over Cash Receipts |
|
|
379 | (2) |
|
Internal Control over Cash Disbursements |
|
|
381 | (5) |
|
Audit Documentation for Cash |
|
|
386 | (1) |
|
|
|
386 | (13) |
|
Interim Audit Work on Cash |
|
|
399 | (1) |
|
|
|
399 | (2) |
|
The Need for Specialized Knowledge |
|
|
399 | (1) |
|
The Auditors' Objectives in Auditing Financial Investments |
|
|
399 | (1) |
|
Internal Control over Financial Investments |
|
|
400 | (1) |
|
Internal Control Questionnaire |
|
|
401 | (1) |
|
Audit of Financial Investments |
|
|
401 | (6) |
|
Risks of Material Misstatement of Financial Investments |
|
|
402 | (1) |
|
Substantive Procedures for Financial Investments |
|
|
402 | (5) |
|
|
|
407 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 10 |
|
|
408 | (1) |
|
|
|
409 | (1) |
|
Questions Requiring Analysis |
|
|
410 | (2) |
|
Multiple Choice Questions |
|
|
412 | (1) |
|
|
|
413 | (4) |
|
|
|
417 | (2) |
|
Research and Discussion Case |
|
|
419 | (1) |
|
|
|
419 | (1) |
|
|
|
420 | (4) |
|
|
|
424 | (1) |
|
Accounts Receivable, Notes Receivable, and Revenue |
|
|
425 | (68) |
|
|
|
425 | (8) |
|
Sources and Nature of Accounts Receivable |
|
|
425 | (1) |
|
Sources and Nature of Notes Receivable |
|
|
425 | (1) |
|
The Auditors' Objectives in Auditing Receivables and Revenue |
|
|
426 | (1) |
|
Internal Control of Accounts Receivable and Revenue |
|
|
426 | (1) |
|
|
|
426 | (1) |
|
|
|
427 | (1) |
|
Revenue Cycle---Accounting System and Control Activities |
|
|
427 | (4) |
|
|
|
431 | (1) |
|
Internal Control over Notes Receivable |
|
|
431 | (1) |
|
Audit Documentation for Receivables and Revenue |
|
|
432 | (1) |
|
Audit of Receivables and Revenue |
|
|
433 | (23) |
|
Interim Audit Work on Receivables and Revenue |
|
|
456 | (1) |
|
|
|
456 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 11 |
|
|
457 | (1) |
|
|
|
457 | (2) |
|
Questions Requiring Analysis |
|
|
459 | (2) |
|
Multiple Choice Questions |
|
|
461 | (1) |
|
|
|
462 | (4) |
|
|
|
466 | (2) |
|
|
|
468 | (1) |
|
|
|
469 | (2) |
|
Appendix 11A Illustrative Audit Case: Keystone Computers & Networks, Inc. |
|
|
471 | (1) |
|
Consideration of Internal Control |
|
|
471 | (13) |
|
|
|
484 | (1) |
|
Appendix 11B Illustrative Audit Case: Keystone Computers & Networks, Inc. |
|
|
485 | (1) |
|
Substantive Tests---Accounts Receivable and Revenue |
|
|
485 | (6) |
|
|
|
491 | (2) |
|
Inventories and Cost of Goods Sold |
|
|
493 | (40) |
|
Inventories and Cost of Goods Sold |
|
|
493 | (7) |
|
Sources and Nature of Inventories and Cost of Goods Sold |
|
|
493 | (1) |
|
The Auditors' Objectives in Auditing Inventories and Cost of Goods Sold |
|
|
493 | (1) |
|
Internal Control over Inventories and Cost of Goods Sold |
|
|
494 | (1) |
|
|
|
495 | (1) |
|
|
|
495 | (1) |
|
|
|
496 | (1) |
|
Purchases and Production Cycles---Accounting Systems and Control Activities |
|
|
496 | (4) |
|
Audit Documentation for Inventories and Cost of Goods Sold |
|
|
500 | (1) |
|
Audit of Inventories and Cost of Goods Sold |
|
|
500 | (19) |
|
Problems Associated with Inventory of First-Year Audit Clients |
|
|
518 | (1) |
|
|
|
519 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 12 |
|
|
519 | (1) |
|
|
|
520 | (1) |
|
Questions Requiring Analysis |
|
|
521 | (2) |
|
Multiple Choice Questions |
|
|
523 | (2) |
|
|
|
525 | (3) |
|
|
|
528 | (1) |
|
|
|
529 | (1) |
|
Research and Discussion Case |
|
|
529 | (1) |
|
|
|
530 | (531) |
|
|
|
531 | (2) |
|
Property, Plant, and Equipment: Depreciation and Depletion |
|
|
533 | (26) |
|
Property, Plant, and Equipment |
|
|
533 | (4) |
|
The Auditors' Objectives in Auditing Property, Plant, and Equipment |
|
|
533 | (1) |
|
Contrast with Audit of Current Assets |
|
|
534 | (1) |
|
Internal Control over Plant and Equipment |
|
|
534 | (1) |
|
|
|
535 | (2) |
|
Initial Audits and Repeat Engagements |
|
|
537 | (1) |
|
Audit of Property, Plant, and Equipment |
|
|
537 | (8) |
|
|
|
545 | (4) |
|
The Auditors' Perspective toward Depreciation |
|
|
545 | (1) |
|
The Auditors' Objectives in Auditing Depreciation |
|
|
546 | (1) |
|
Audit Program---Depreciation Expense and Accumulated Depreciation |
|
|
546 | (1) |
|
Testing the Client's Provision for Depreciation |
|
|
547 | (1) |
|
Examination of Natural Resources |
|
|
547 | (1) |
|
Audit of Intangible Assets |
|
|
548 | (1) |
|
Audit of Plant, Equipment, and Intangibles in Advance of the Balance Sheet Date |
|
|
549 | (1) |
|
|
|
549 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 13 |
|
|
549 | (1) |
|
|
|
550 | (1) |
|
Questions Requiring Analysis |
|
|
550 | (2) |
|
Multiple Choice Questions |
|
|
552 | (2) |
|
|
|
554 | (3) |
|
|
|
557 | (1) |
|
|
|
558 | (1) |
|
Accounts Payable and Other Liabilities |
|
|
559 | (34) |
|
|
|
559 | (4) |
|
Sources and Nature of Accounts Payable |
|
|
559 | (1) |
|
The Auditors' Objectives in Auditing Accounts Payable |
|
|
559 | (1) |
|
Internal Control over Accounts Payable |
|
|
560 | (3) |
|
Audit Documentation for Accounts Payable |
|
|
563 | (1) |
|
Audit of Accounts Payable |
|
|
563 | (10) |
|
|
|
573 | (5) |
|
Amounts Withheld from Employees' Pay |
|
|
573 | (1) |
|
|
|
574 | (1) |
|
|
|
574 | (1) |
|
|
|
574 | (1) |
|
|
|
574 | (4) |
|
Balance Sheet Presentation |
|
|
578 | (1) |
|
|
|
578 | (1) |
|
|
|
578 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 14 |
|
|
579 | (1) |
|
|
|
579 | (2) |
|
Questions Requiring Analysis |
|
|
581 | (1) |
|
Multiple Choice Questions |
|
|
581 | (2) |
|
|
|
583 | (2) |
|
|
|
585 | (2) |
|
|
|
587 | (2) |
|
Appendix 14A Illustrative Audit Case: Keystone Computers & Networks, Inc. |
|
|
589 | (1) |
|
Consideration of Internal Control |
|
|
589 | (3) |
|
|
|
592 | (1) |
|
|
|
593 | (26) |
|
|
|
593 | (2) |
|
Source and Nature of Debt |
|
|
593 | (1) |
|
The Auditors' Objectives in Auditing Debt |
|
|
593 | (1) |
|
Assessment of the Inherent Risks Related to Debt |
|
|
594 | (1) |
|
Internal Control over Debt |
|
|
594 | (1) |
|
|
|
595 | (1) |
|
|
|
595 | (6) |
|
Time of Examination---Debt |
|
|
601 | (1) |
|
|
|
601 | (3) |
|
Sources and Nature of Owners' Equity |
|
|
601 | (1) |
|
The Auditors' Objectives in Auditing, Owners' Equity |
|
|
602 | (1) |
|
Internal Control over Owners' Equity |
|
|
602 | (2) |
|
Audit Documentation for Owners' Equity |
|
|
604 | (1) |
|
Audit Program---Capital Stock |
|
|
604 | (4) |
|
Retained Earnings and Dividends |
|
|
608 | (1) |
|
Financial Statement Presentation of Stockholders' Equity |
|
|
608 | (1) |
|
Time of Examination---Stockholders' Equity |
|
|
609 | (1) |
|
Audit of Partnerships and Sole Proprietorships |
|
|
609 | (1) |
|
|
|
609 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 15 |
|
|
610 | (1) |
|
|
|
610 | (2) |
|
Questions Requiring Analysis |
|
|
612 | (1) |
|
Multiple Choice Questions |
|
|
613 | (1) |
|
|
|
614 | (3) |
|
|
|
617 | (1) |
|
|
|
618 | (1) |
|
Auditing Operations and Completing the Audit |
|
|
619 | (38) |
|
|
|
619 | (1) |
|
The Auditors' Approach to Auditing Operations |
|
|
619 | (1) |
|
|
|
620 | (1) |
|
Relationship of Revenue to Balance Sheet Accounts |
|
|
620 | (1) |
|
|
|
620 | (1) |
|
|
|
621 | (3) |
|
Relationship of Expenses to Balance Sheet Accounts |
|
|
621 | (1) |
|
Substantive Procedures for Selling, General, and Administrative Expenses |
|
|
621 | (3) |
|
|
|
624 | (4) |
|
Internal Control over Payroll |
|
|
624 | (3) |
|
Documentation of Internal Control for Payroll |
|
|
627 | (1) |
|
Audit Program for Payroll |
|
|
627 | (1) |
|
Audit of the Statement of Cash Flows |
|
|
628 | (1) |
|
|
|
628 | (15) |
|
Search for Unrecorded Liabilities |
|
|
629 | (1) |
|
Review the Minutes of Meetings |
|
|
629 | (1) |
|
Perform Final Analytical Procedures |
|
|
629 | (1) |
|
Perform Procedures to Identify Loss Contingencies |
|
|
629 | (4) |
|
Perform the Review for Subsequent Events |
|
|
633 | (3) |
|
Obtain Representation Letter |
|
|
636 | (1) |
|
Communicate Misstatements to Management |
|
|
636 | (1) |
|
|
|
637 | (4) |
|
|
|
641 | (1) |
|
Responsibilities for Other Information in the Financial Report |
|
|
641 | (1) |
|
Opinion Formulation and Report Issuance |
|
|
642 | (1) |
|
Additional Communications |
|
|
642 | (1) |
|
Post-Audit Responsibilities |
|
|
643 | (1) |
|
The Auditors' Subsequent Discovery of Facts Existing at the Date of Their Report |
|
|
643 | (1) |
|
Subsequent Discovery of Omitted Audit Procedures |
|
|
643 | (1) |
|
|
|
643 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 16 |
|
|
644 | (1) |
|
|
|
645 | (1) |
|
Questions Requiring Analysis |
|
|
646 | (2) |
|
Multiple Choice Questions |
|
|
648 | (1) |
|
|
|
649 | (5) |
|
|
|
654 | (1) |
|
Research and Discussion Case |
|
|
654 | (1) |
|
|
|
655 | (2) |
|
|
|
657 | (34) |
|
Types of Reports Issued by Auditors |
|
|
657 | (4) |
|
|
|
657 | (1) |
|
Financial Statement Disclosures |
|
|
658 | (1) |
|
Comparative Financial Statements |
|
|
658 | (1) |
|
The Auditors' Standard Report---Nonpublic Clients |
|
|
658 | (2) |
|
The Auditors' Standard Report---Public Clients |
|
|
660 | (1) |
|
|
|
661 | (13) |
|
|
|
661 | (5) |
|
|
|
666 | (2) |
|
|
|
668 | (1) |
|
|
|
669 | (1) |
|
Summary of Auditors' Reports |
|
|
670 | (1) |
|
Two or More Report Modifications |
|
|
670 | (3) |
|
Different Opinions on Different Statements |
|
|
673 | (1) |
|
Reporting on Comparative Financial Statements |
|
|
673 | (1) |
|
|
|
674 | (1) |
|
|
|
674 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 17 |
|
|
675 | (1) |
|
|
|
675 | (1) |
|
Questions Requiring Analysis |
|
|
676 | (1) |
|
Multiple Choice Questions |
|
|
677 | (2) |
|
|
|
679 | (7) |
|
|
|
686 | (3) |
|
Research and Discussion Case |
|
|
689 | (1) |
|
|
|
689 | (2) |
|
Integrated Audits of Public Companies |
|
|
691 | (30) |
|
|
|
691 | (1) |
|
Management's Responsibility for Internal Control |
|
|
692 | (3) |
|
Management's Evaluation Process and Assessment |
|
|
692 | (3) |
|
The Auditors' Responsibility for Reporting on Internal Control in PCAOB Audits |
|
|
695 | (17) |
|
|
|
696 | (1) |
|
Use a Top-Down Approach to Identify Controls to Test |
|
|
697 | (5) |
|
Test and Evaluate Design Effectiveness of Internal Control over Financial Reporting |
|
|
702 | (1) |
|
Test and Evaluate Operating Effectiveness of Internal Control over Financial Reporting |
|
|
702 | (4) |
|
Form an Opinion on the Effectiveness of Internal Control over Financial Reporting |
|
|
706 | (3) |
|
Audit Report Modifications |
|
|
709 | (1) |
|
Other Communication Requirements |
|
|
710 | (2) |
|
Reporting on Whether a Previously Reported Material Weakness Continues to Exist |
|
|
712 | (1) |
|
|
|
712 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 18 |
|
|
713 | (1) |
|
|
|
714 | (1) |
|
Questions Requiring Analysis |
|
|
715 | (1) |
|
Multiple Choice Questions |
|
|
715 | (2) |
|
|
|
717 | (1) |
|
|
|
718 | (3) |
|
Additional Assurance Services: Historical Financial Information |
|
|
721 | (28) |
|
|
|
721 | (14) |
|
|
|
721 | (4) |
|
Financial Statements Prepared for Use in Other Countries |
|
|
725 | (1) |
|
Audits of Personal Financial Statements |
|
|
726 | (1) |
|
Reviews of the Interim Information of Public Companies (Issuers) |
|
|
727 | (3) |
|
Review Services for Nonpublic Companies (Nonissuers) |
|
|
730 | (3) |
|
Accountants' Reports on Comparative Statements |
|
|
733 | (1) |
|
|
|
734 | (1) |
|
Condensed Financial Statements |
|
|
734 | (1) |
|
|
|
735 | (3) |
|
Compilation of Financial Statements of Nonpublic Companies |
|
|
735 | (2) |
|
Other ``Association'' with the Financial Statements of Public Companies |
|
|
737 | (1) |
|
|
|
738 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 19 |
|
|
739 | (1) |
|
|
|
739 | (1) |
|
Questions Requiring Analysis |
|
|
740 | (1) |
|
Multiple Choice Questions |
|
|
741 | (2) |
|
|
|
743 | (3) |
|
|
|
746 | (1) |
|
Research and Discussion Case |
|
|
747 | (1) |
|
|
|
747 | (2) |
|
Additional Assurance Services: Other Information |
|
|
749 | (24) |
|
|
|
749 | (3) |
|
The Demand for Assurance Services |
|
|
749 | (3) |
|
|
|
752 | (5) |
|
|
|
753 | (2) |
|
Attestation Risk and Materiality |
|
|
755 | (1) |
|
The Character of the Engagement |
|
|
755 | (2) |
|
Assurance Service Examples |
|
|
757 | (9) |
|
Assurance on Internal Control over Financial Reporting |
|
|
757 | (3) |
|
Assurance on Prospective Financial Statements |
|
|
760 | (1) |
|
|
|
761 | (1) |
|
Assurance on Management's Discussion and Analysis |
|
|
761 | (1) |
|
|
|
762 | (2) |
|
ElderCare/PrimePlus Services |
|
|
764 | (1) |
|
|
|
765 | (1) |
|
CPA Risk Advisory Services |
|
|
765 | (1) |
|
Future Assurance Services |
|
|
766 | (1) |
|
|
|
766 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 20 |
|
|
767 | (1) |
|
|
|
768 | (1) |
|
Questions Requiring Analysis |
|
|
768 | (2) |
|
Multiple Choice Questions |
|
|
770 | (1) |
|
|
|
771 | (1) |
|
|
|
772 | (1) |
|
Research and Discussion Case |
|
|
772 | (1) |
|
Internal, Operational, and Compliance Auditing |
|
|
773 | (32) |
|
|
|
773 | (10) |
|
What Is the Purpose of Internal Auditing? |
|
|
773 | (1) |
|
Evolution of Internal Auditing |
|
|
773 | (2) |
|
The Internal Auditors' Role in Sarbanes-Oxley Compliance |
|
|
775 | (1) |
|
Professional Standards of Internal Auditing |
|
|
775 | (7) |
|
Certification of Internal Auditors |
|
|
782 | (1) |
|
|
|
783 | (3) |
|
Objectives of Operational Audits |
|
|
783 | (1) |
|
General Approach to Operational Audits |
|
|
783 | (3) |
|
|
|
786 | (11) |
|
Attesting to Compliance with Laws and Regulations |
|
|
787 | (2) |
|
Compliance Auditing of Government Entities and Organizations Receiving Federal Financial Assistance |
|
|
789 | (7) |
|
Compliance Auditing---A Summary |
|
|
796 | (1) |
|
|
|
797 | (1) |
|
Key Terms Introduced or Emphasized in Chapter 21 |
|
|
797 | (1) |
|
|
|
798 | (1) |
|
Questions Requiring Analysis |
|
|
799 | (1) |
|
Multiple Choice Questions |
|
|
800 | (2) |
|
|
|
802 | (1) |
|
|
|
803 | (2) |
| Index |
|
805 | |
