Auditing Standards – Major Changes: ASB Clarity Project SAS Nos. 122-133
This course explains the significant changes made to auditing standards by the Auditing Standards Board’s Clarity Project that resulted in the issuance of SAS Nos. 122-133. The course is written in a format that provides an overview by allowing the reader to review, recall and identify key provisions within the new standards.
Course information
Course No. F080
Format: Online pdf (239 pages).
Prerequisites: General understanding of auditing standards
Advance Preparation:None
Level: Overview
CPE Credit: 8 Hrs.
Field of Study: Auditing
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: March 2018
Objectives
After reading the Section 1 course material, you will be able to:
· Recall the structure of the new ASB Clarity Project and how each new standard is segregated
After reading the Section 2 course material, you will be able to:
· Identify categories of laws and regulations that are found in AU-
· Identify the scope of communications an auditor should make with respect to noncompliance with laws and regulations
· Identify some of the different types of deficiencies in internal control found in a financial statement audit
· Identify the indicators that may suggest there is a material weakness in internal control
· Identify the information that should be included in a communication of certain deficiencies in internal control
· Recognize the new audit report title
· Identify examples of headings that should be in the new auditor report
· Recall some of the modified opinion headings found in the new audit report
· Identify the new type of paragraph that is permitted in the audit report
· Identify some examples of where an emphasis-
· Identify the new group auditor rules including the responsibilities of parties involved, and the procedures to be performed
· Identify the different types of special purpose frameworks permitted under the new auditing standards
· Identify some of the elements that are required in the different types of special purpose reports
· Identify the general types of disclosures requires in special purpose framework financial statements
After reading the Section 3 course material, you will be able to:
· Identify how an auditor can evaluate “professional judgment”
· Recognize some of the elements that must be in an engagement letter
· Identify the requirements that a successor auditor must satisfy in an initial audit engagement involving opening balances
· Identify an instance in which it may be necessary for an auditor to obtain a positive confirmation
· Identify when an auditor may not be required to use external confirmation procedures
After reading the Section 4 course material, you will be able to:
· Identify a procedure an external auditor should perform with respect to an internal auditor
· Define the term “reasonable period of time”
· Identify an example of a mitigating plan as used in the evaluation for going concern
· Recognize how an auditor should report on going concern when there is substantial doubt
· Recall an example of a type of exempt offering covered by SAS No. 133
