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ACC462 Content from which final is developed: Basic concepts reconsidered: Overall audit strategy and the audit plan (AU 311.21) 2. Audit risk and...

This question was answered on Dec 20, 2012. View the Answer
Can you give me some answers and review for each point and question? (dont be too long, 4~5 sentences will be fine) No extend time.

Content from which final is developed:
Basic concepts reconsidered:
1. Overall audit strategy and the audit plan (AU 311.13-.21)
2. Audit risk and materiality (AU312.03-,04; .21-.26)
3. Responsibility for fraud (AU316.06-.13)
4. Audit Evidence (AU 326)
5. Internal Control: (AU 314.40-.101; Appendix B. AU
318.23- 49)
2.Control and Substantive testing (overall)
2.4 3. Basis of professional judgment in determining
detection risk
Understanding internal controls and testing controls
Making judgments about nature, timing and extent
of substantive testing
Understanding, in general, why all audit team
members need to know the total framework in which
the audit is developed and how the components
segments are interrelated. Planning is critical,
yet we say it needs to be reconsidered. . . why? Specific strategies:
3.4 Inventories
Long-lived assets (Property, Plant and Equipment)
Liabilities and Equity For each of the above consider:
What are key accounts? What introduces vulnerability for
What does the auditor observe to determine the nature and
quality of the accounting information
What are critical internal controls for all accounts?
What are specific internal controls for particular
4. The auditor determines that minimum testing is
necessary. On what basis did the auditor reach this
conclusion for substantive testing? What tests would the auditor perform? For each test identify
relevant assertion/assertions.
5. Substantive testing if the auditor determines that
more extensive testing is required. 6. Concluding the audit: process of review,
reconsideration of materiality, analytical procedures
consideration of estimates Audit documentation AU 339.03-.05
AU 312.50-.53; AU 329.23; AU 342.09-.10
7. Statistical Sampling
7.4 Key points of guidance provided in AU 350: Audit
Tests for internal controls: The attributes test
and the decisions that must be made by the
auditor as well as rationale for such decisions
The nature and appeal of the Probability
Proportional to Size (PPS; this model is also
Identified as Monetary Unit Sampling (MUS)
What is the usefulness of discovery sample. 8.Three auditing statements:
8.1 Inquiry of a Client’s Lawyer Concerning
Litigation, Claims, and Assessments (AU 337)
8.2 Auditing Fair Value Measurements and Disclosures
(AU 328)
8.3 Auditing Derivative Instruments (AU 332)
(Note the key points of guidance for each of the
9. The GAO and the Yellow Book
9.3 10. The mission/responsibility of the Government
Accountability Office (GAO)
General understanding of the Yellow Book
noting the extent to which AICPA standards
are accepted
The opinion of the audit of the US Federal
Government’s financial statements. Compilations and Reviews 10.1 Compilations
. Nature of the service and for whom
. extent of assurance provided
. nature of procedures
. conclusion provided
10.2 Reviews
. nature of service and for whom provided
. extent of assurance provided
. nature of procedures
. conclusion provided
11. 12. Attestation Standards
11.1 general nature of such standards
11.2 How is the need for criteria handled by
the practitioner?
11.3 Is a representation letter required?
Key Oversight Groups
12.1 Role of the SEC
. Division of Corporation Finance
. The Office of Chief Accountant
. As related to the PCAOB
12.2 Role of the PCAOB
. Mission/structure
. Key responsibilities
. Relationship to the SEC
12.3 Peer Review of the AICPA
. General overview of nature,
objectives, scope
(PR Section 100
Vol.2 of Prof Sts
Overview of some international groups

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Content from which final is developed: 1. Basic concepts reconsidered:
1.1 Overall audit strategy and the audit plan (AU 311.13-.21) The independent auditor should frame an audit plan before...

This question was asked on Dec 18, 2012 and answered on Dec 20, 2012.

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