Auditing Developments - v11 (Course Id 1820)

Auditing - Auditing for Course Id 1820

The objective of this course is to address the latest developments affecting 2020 and 2021 audit engagements, including the impact of COVID-19 on audit engagements.

Topics include: addressing the auditor’s consideration of the business and economic environment in which the client operates; accounting and auditing engagement issues during COVID-19 including the impact of the pandemic on an entity’s ability to continue as a going-concern;  client and employee fraud;  specific accounting risks for auditors to consider;  limiting auditor’s liability; key audit focus areas during volatile times; lessons from litigation; efficiency engagements to reduce auditor time; various practice issues related to audits; dealing with DOL audits of employee benefit plans; and more.

Additionally, in this course, auditors will learn about the new auditor’s report, auditing estimates and audit evidence guidance found in SAS Nos. 134-143,  and  the new attestation standards found in SSAE No. 19-22.  

The course focuses on recalling, recognizing and identifying rules related to auditing standards including new developments pertaining to those standards. 

NASBA QAS - Text - Technical - NASBA Registry - 1820

Section 1
Auditing Developments - Part 1 to Part 9

• Identify an example of a concentration which might require disclosure
• Recall the definition of near term
• Identify the net operation loss rules under the CARES Act
• Recognize a key characteristic of a multi-employer pension plan
• 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 Developments - Part 10 to Part 17

• 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
• Recall the location of certain sections in the auditor’s report
• Recognize the categorization of an adverse opinion
• Identify a change that SAS No. 136 makes to the limited-scope ERISA audit
• Recognize one of the changes made by AU-C 703 to ERISA audits
• Recall the reporting requirement when an auditor obtains other information in an audit
• Identify a reference that is made in the new definition of materiality
• Recognize the definition of certain types of paragraphs made by SAS No. 139
• Recognize an example of an attribute of information obtained as audit evidence per SAS No. 142
• Identify an attribute of audit evidence referenced in 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 a change made by SSAE No. 19
• 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

SAS No. 140:  Amendments to AU-C Sections 725, 730, 930, 935, and 940

SAS No. 141:  Amendment to the Effective Dates of SAS Nos. 134–140

Review Questions

SAS No. 142: Audit Evidence

Review Questions

SAS No. 143: Auditing Accounting Estimates and Related Disclosures

XXIII. Recent Attestation Standards

SSAE  No. 19: Agreed-Upon Procedure Engagements

SSAE  No. 20: Amendments to the Description of the Concept of Materiality

SSAE  No. 21: Direct Examination Engagements

SSAE  No. 22: Review Engagements

Review Questions

Glossary