Wiley Practitioner′s Guide to GAAS 2016

Joanne Flood, MBA, CPA, Rockville Center, NY has accounting experience within both a Big 4 international firm and a small firm. She has worked as a senior manager in the AICPA′s Professional Development group. Joanne received her MBA in Accounting Summa Cum Laude from Adelphi University. While in public accounting, she worked on major clients in retail, manufacturing, and finance and on small business clients in construction, manufacturing, and professional services. At the AICPA, she managed the development and wrote courses in the accounting and auditing product line. She also wrote and produced training materials in a wide variety of media, including print, video, and audio, and pioneered the AICPA′s elearning product line.

Preface ix
About the Author xi


Organization and Key Changes xiii


AU–C 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards 1


AU–C 210 Terms of Engagement 9


AU–C 220 Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards 15


AU–C 230 Audit Documentation 21


AU–C 240 Consideration of Fraud in a Financial Statement Audit 31


AU–C 250 Consideration of Laws and Regulations in an Audit of Financial Statements 59


AU–C 260 The Auditor�s Communication with Those Charged with Governance 65


AU–C 265 Communicating Internal Control Related Matters Identified in an Audit 71


AU–C 300 Planning an Audit 81


AU–C 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement 87


AU–C 320 Materiality in Planning and Performing an Audit 115


AU–C 330 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained 121


AU–C 402 Audit Considerations Relating to an Entity Using a Service Organization 151


AU–C 450 Evaluation of Misstatements Identified During the Audit 159


AU–C 500 Audit Evidence 165


AU–C 501 Audit Evidence�Specific Considerations for Selected Items 169


AU–C 505 External Confirmations 203


AU–C 510 Opening Balances�Initial Audit Engagements, Including Reaudit Engagements 219


AU–C 520 Analytical Procedures 227


AU–C 530 Audit Sampling 241


AU–C 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures 265


AU–C 550 Related Parties 277


AU–C 560 Subsequent Events and Subsequently Discovered Facts 289


AU–C 570 The Auditor�s Consideration of an Entity�s Ability to Continue as a Going Concern 303


AU–C 580 Written Representations 319


AU–C 585 Consideration of Omitted Procedures After the Report Release Date 333


AU–C 600 Special Considerations�Audits of Group Financial Statements (Including the Work of Component Auditors) 339


AU–C 610 Using the Work of Internal Auditors 359


AU–C 620 Using the Work of an Auditor�s Specialist 373


AU–C 700 Forming an Opinion and Reporting on Financial Statements 383


AU–C 705 Modifications to the Opinion in the Independent Auditor�s Report 397


AU–C 706 Emphasis–of–Matter Paragraphs and Other–Matter Paragraphs in the Independent Auditor�s Report 415


AU–C 708 Consistency of Financial Statements 423


AU–C 720 Other Information in Documents Containing Audited Financial Statements 427


AU–C 725 Supplementary Information in Relation to Financial Statements as a Whole 431


AU–C 730 Required Supplementary Information 437


AU–C 800 Special Considerations�Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks 443


AU–C 805 Special Considerations�Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement 455


AU–C 806 Reporting on Compliance with Aspects of Contractual Agreements or Regulatory Requirements in Connection with Audited Financial Statements 467


AU–C 810 Engagements to Report on Summary Financial Statements 475


AU–C 905 Alert That Restricts the Use of the Auditor�s Written Communication 485


AU–C 910 Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country 491


AU–C 915 Reports on Application of Requirements of an Applicable Financial Reporting Framework 497


AU–C 920 Letters for Underwriters and Certain Other Requesting Parties 503


AU–C 925 Filings with the US Securities and Exchange Commission Under the Securities Act of 1933 543


AU–C 930 Interim Financial Information 549


AU–C 935 Compliance Audits 575


AT 20 Defining Professional Requirements in Statements on Standards for Attest Engagements 587


AT 50 SSAE Hierarchy 589


AT 101 Attest Engagements 591


AT 201 Agreed–Upon Procedures Engagements 615


AT 301 Financial Forecasts and Projections 627


AT 401 Reporting on Pro Forma Financial Information 655


AT 501 An Examination of an Entity�s Internal Control Over Financial Reporting That Is Integrated with an Audit of Its Financial Statements 667


AT 601 Compliance Attestation 691


AT 701 Management�s Discussion and Analysis (MD&A)�A Summary 705


AT 801 Reporting on Controls at a Service Organization 713


AR–C 60 General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services 735


AR–C 70 Preparation of Financial Statements 743


AR–C 80 Compilation Engagements 751


AR–C 90 Review of Financial Statements 773


AR 120 Compilation of Pro Forma Financial Information 807


PCAOB 1 References in Auditors� Reports to the Standards of the Public Company Accounting Oversight Board 813


PCAOB 3 Audit Documentation 817


PCAOB 4 Reporting on Whether a Previously Reported Material Weakness Continues to Exist 823


PCAOB 5 An Audit of Internal Control Over Financial Reporting That Is Integrated with an Audit of Financial Statements 837


PCAOB 6 Evaluating Consistency of Financial Statements 857


PCAOB 7 Engagement Quality Review 861


PCAOB 8 Audit Risk 865


PCAOB 9 Audit Planning 867


PCAOB 10 Supervision of the Audit Engagement 871


PCAOB 11 Consideration of Materiality in Planning and Performing an Audit 873


PCAOB 12 Identifying and Assessing Risks of Material Misstatement 877


PCAOB 13 The Auditor�s Responses to the Risks of Material Misstatement 891


PCAOB 14 Evaluating Audit Results 899


PCAOB 15 Audit Evidence 905


PCAOB 16 Communicating with Audit Committees 909


PCAOB 17 Auditing Supplemental Information Accompanying Audited Financial Statements 915


PCAOB 18 Related Parties 919


Appendix A: Cross–References to SASs, SSAEs, and SSARSs 927


Appendix B: List of AICPA Audit and Accounting Guides and AICPA Statements of Position�Auditing and Attestation 929


Appendix C: Other Auditing Publications 931


Index 933