Auditing Update (16 hrs.)

Section 1: Auditing Update

After reading the Section 1 course material, you will be able to:

• • Identify an example of a concentration which might require disclosure
  • Recall the definition of near term
  • Identify the most obvious approach to account for a PPP loan under GAAP
  • Recall how an entity should account for PPP loan forgiveness
  • Identify a scenario in which it would be impracticable for an auditor to attend a physical inventory
  • Recognize an advantage of remote auditing
  • Recognize a behavioral trait of most occupational fraudsters
  • Recognize the difference between fraud and an error
  • Recall the three conditions of the fraud triangle
  • Identify common types of financial statement fraud noted by the FBI
  • Recognize an example of a misappropriation of assets
  • Identify an additional procedure required to deal with the risk of management override of internal controls
  • Recognize a factor to consider in evaluating going concern of an entity
  • Recall how an investment in equity security should be accounted for under GAAP
  • Recognize the new sales tax rules in the wake of the Wayfair decision
  • Recognize an example of a coverage ratio
  • Recall the timeframe within which most lawsuits against auditors occur
  • Identify a recommendation to tighten up auditor workpapers

Section 2: Auditing Update cont.

After reading the Section 2 course material, you will be able to:

• Identify a suggestion for an auditor reducing time and increasing audit efficiency
• Recognize when negative accounts receivable confirmations should not be used
• Identify the form of a comfort letter that would be appropriate for an accountant to make to a lender
• Recall the rule for an auditor presenting his or her city and state on the audit report
• Identify the rules for an auditor communicating deficiencies found in an audit
• Recognize an example of a result that can occur if there is a problem with a DOL employee benefit plan audit
• Identify a type of fraudster
• Recognize an example of an attribute of information obtained as audit evidence per SAS No. 142
• Identify how inherent and control risk should be assessed under the SAS No. 143 requirements
• Recall the three approaches that an auditor can use to perform further audit procedures required by SAS No. 143
• Identify some instances in which an auditor may conclude that a specialist’s work is not adequate
• Identify a type of risk assessment procedure that an auditor can use in accordance with SAS No. 145
• Recall examples of risk assessment procedures that an auditor may perform in SAS No. 145
• Recognize how to perform risk assessment procedures when relying on information obtained from previous experience with an entity
• Identify examples of risk assessment procedures to obtain audit evidence in accordance with SAS No. 145
• Recognize a new requirement made by SAS No. 145 in connection with assessing inherent risk and control risk in an audit, and
• Identify how an auditor should respond if the auditor does not plan to test the operating effectiveness of an entity’s controls
• Recall the date by which an engagement partner must take responsibility for determining that ethical requirements are fulfilled
• Identify certain requirements an engagement partner must satisfy in performing an audit engagement
• Recognize examples of resources assigned or made available by a firm to support performance of an audit engagement
• Identify a type of unconscious bias defined in SAS No. 146
• Recall a possible action that an engagement team may take to mitigate impediments to exercise professional skepticism
• Identify when a successor auditor should request management to authorize a predecessor auditor’s response to the successor auditor’s inquiry
• Recognize one of the new inquiries a successor auditor should make of a predecessor auditor by SAS No. 147
• Recall the extent of a predecessor auditor’s response to a successor auditor’s inquiries when there are certain restrictions on the predecessor auditor
• Identify an example of a recently issued auditing standard that SAS No. 148 incorporates into amendments to AU-C 935, Compliance Audits
• Recognize one of the five components of a system of internal control identified in SAS No. 145 and incorporated into Au-C 935 by SAS No. 148 amendments
• Recall examples of inherent risk factors related to identifying and assessing risks of material misstatement in a compliance audit
• Recognize one of the four types of engagements within SSAE No. 21’s new definition of attestation engagement
• Identify an example of subject matter that is within the scope of SSAE No. 22’s review