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chap 1-

RAPMEAM
TIPPIEACDO

opinions
1)modified un qfd
2)gaap- qfd/adverse
3)gaas- qfd/disclaimer

subsequent events= PRIME

comparative F/S...
-reissued(dual date/reissue date)
-not reissued(new auditor mentions in intro para DORCS)

chap 2

Quality control standards.


HELPME

Special reports
-ocboa
-schedules
-financial infomn for loans..etc
-compliance wit laws and regulation-restrict use
-compliance with regulatory agencies wrtaudited f/s = restrict use & negative assurance

Compilation = ALARD
Review= ULIARCPA
AMIASNM

Review of issuers =ULIARCPA


(involves internal control and communication with reulatory agencies)

comfort letter...to the underwriter...

SSAE
-agreedupon procedures
-I/C communications
-PFS
-MD N A
-Pro forma
-compliance with laws and regn

Attestation engagements= examn,review and agreedupon preocedures.


Agreed upon procedures= IAMSURE(restrict use)

a summary of chap 3

ok do for planning..before engmnt auditor has to communicate with old auditor...


regarding disagreements,reasons for chng,,..commuin of fraud illegal act... integrity of
mngt
after aceptance communicate specific audit procedutes and findings...and refer old
auditors documentation NOT his engmnt letter'
after acceptance understand the internal control of the client
CRIME
assess business risk...clients risk and auditors risk..
audabilityt of f/s= adequacy of accountingnrecords
evaluate prelim judjments of materiality based on past experience or latest available
interim f/s
cliens objectives is F/S reporting, compliance and operations
auditor is mainly concerned with the controls tat afftect the financial reporting objective
he tests accounts balances with respect to F/S assertions
the whole point of this is coz risk of material misstatements in the finanancial statements
mainly conerend with improper revenue recogn...and whr mngmt requires judgement...
collusion among employees and mngt override is inherent risk within the entity
after understanding all the internal control and if /not implemented
the suditor assess the RMM which is revised at every stage of audit and depends on
mngt's judgement and
RMM= CR * IR
respond to the assessed risks
and c if/not u rely on the controls...
then based on tat do control testing/substanttive tests
control testing to c the operating effectiveness of controls=
observation,inquiries,reperformance,inspection,....
substative tests= tests of details and annalytical procedures
tests of details= dollar balances=- recalcn,confmn,footing ....FIVECARROTS
Vouching= existance ,tracing=completeness
to c if assets not over stated
or liabilities not understated.
annalytcal procedures may be used as substantatoive tests..but nnot reqd.
ratios and percentages.
after the testing u gather evidence ..appropriate evidence...
document..RMM, basis on which u assesed risks, adit procedures..if sampling used then
sdamplng procedures
extent of substantive testing depends on RMM, contol testing, costs of control testing....
the efficiency of evidence expected..
F/S assertions for which auditor doess this is for
Transaction and events= CPACO
Account balances=CARE
Presentation and disclosures= CURVE
existing control activities=PAIDTIPS
standard of fieldwork and reorting is mainly for AR and RMM

me: anyways then comes chap 4..where we leard the different flowcharts/transaction
cycles and we do control testing for them if they r properly done.
revenue cycle/expenditure cyclepayroll cycle,
main resp. to c if ARC is divided.

in revenue cycle.... sales order approved by cr approval dept....sent to


shipping,billing/A/R,accounting depts....shippping depts..prepares inventory summary
sent to accoutning and billing dept... prepared bill of lading....then billing dept prepares
sales invoice... postd A/R .... accounting depts compares everythin and posts G/L..G/L
AND A/R reconciled by an independent... treasurer is sent W/O and he approves them

then there is documentation reqmnt..


workpapers...property of auditor not of client
pcaob= 7yrs and 45 days from completion of report date
nonissuers= 5yrs and 60 days from report date
permanant file and current file.

report release dsate= date on which auditor grants client permission to review the report,
begining of retention period,date of delivery of report to the client.

audit evidence... reliability .. personal observatuon,external evidence,internal evidence,


oral evoidence....

cost cannot be a reason to omit a test

audit eveidene=substatative testin/audit procedures= FIVECARROTS

chap 5

sampling(onli the tyable)


govt auditing= additional reporting std wrt I/C and compliance with laws and regn
and assesment of control risk

IT-general