Wiley Practitioner's Guide to GAAS 2023: Covering All SASs, SSAEs, SSARSs, and Interpretations (Wiley Regulatory Reporting)

The most comprehensive and up-to-date guide to critical auditing standards, practices, and procedures for 2023 The American Institute of Certified Public Accountants (AICPA) sets the Generally Accepted Auditing Standards―or GAAS―under which U. S. audits are conducted. Auditors must comply with and understand every aspect of GAAS to comply with AICPA standards. As a result, it is crucial for CPAs to be up to date on all applicable guidelines, rules, and regulations. Wiley Practitioner’s Guide to GAAS 2023 delivers a thorough description and analysis of not only auditing standards―SASs―but also SSAEs, SSARSs, and the Interpretations necessary to fully understand all the latest professional standards. The 2023 Guide offers the most recent revisions to the standards, including those on: Audit evidence Auditing accounting estimates Use of pricing evidence Inquiries of predecessor auditors Quality management Materiality, SSAE direct examination engagements, and Practitioner’s review reports. Practical direction on the steps necessary to help you comply with GAAS Comprehensive guidance on the entire auditing process, from start to finish Explanations of all attestation and review, compilation, and preparation standards A glossary of relevant terminology for each subject It explains the standards clearly and accurately, providing explicit information on how to conduct your engagements efficiently, effectively, and properly―all in one resource. In addition, Wiley Practitioner’s Guide to GAAS 2023 provides readers with: A crucial resource for accountants and auditors who are looking for a comprehensive explanation of the information used daily, Wiley Practitioner’s Guide to GAAS 2023 is an invaluable resource written to save you time and simplify your compliance with professional standards. Cover Title Page Copyright Page Contents Preface—Organization and Key Changes About the Author Chapter 1 AU-C 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards Technical Alert Scope Definitions of Terms Objectives of AU-C200 Requirements Management’s Responsibilities Auditor’s Objectives Materiality Ethical Requirements Professional Judgment and Skepticism Complying With Gaas GAAS and the GAAS Hierarchy Chapter 2 AU-C 210 Terms of Engagement Technical Alert Scope Definitions of Terms Objectives of AU-C 210 Fundamental Requirements Engagement Acceptance AU-C 210 Illustration Chapter 3 AU-C 220 Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards Technical Alert Scope Definitions of Terms Objectives of AU-C 220 Requirements Quality Control Standards Role of the Engagement Team System of Quality Control Elements of Quality Control Independence Acceptance and Continuance of Client Relationships Assignment of Engagement Teams Direction, Supervision, and Performance Engagement Performance Documentation Chapter 4 AU-C 230 Audit Documentation Scope Definitions of Terms Objectives of AU-C 230 Requirements Requirement for Audit Documentation Form, Content, and Extent of Audit Documentation Ownership and Confidentiality Standardization of Audit Documentation Preparation of Audit Documentation Quality of Audit Documentation Audit Documentation Deficiencies Documentation Requirements in Other Sections Interpretations Providing Access to or Copies of Audit Documentation to a Regulator AU-C 230 Illustrations Chapter 5 AU-C 240 Consideration of Fraud in a Financial Statement Audit Technical Alert Scope Definitions of Terms Objectives of AU-C 240 Requirements Description and Characteristics of Fraud Responsibilities of the Auditor Professional Skepticism Engagement Team Discussion about Fraud (Brainstorming) Obtaining Information Needed to Identify Fraud Risks Inquiries of Internal Auditors Inquiries of Others within the Organization Inquiries of Those Charged with Governance Considering the Results of Analytical Procedures Considering Fraud Risk Factors Identifying Fraud Risks Assessing Identified Risks Responding to the Results of the Assessment of Risk of Material Misstatement Evaluating Audit Evidence Communication about Possible Fraud to Management and Those Charged with Governance Documentation Antifraud Programs and Controls AU-C 240 Illustrations Chapter 6 AU-C 250 Consideration of Laws and Regulations in an Audit of Financial Statements Scope Definition of Term Objectives of AU-C 250 Requirements Management’s Responsibilities Auditor’s Responsibilities Categories of Laws and Regulations Audit Procedures Response to Identified or Suspected Noncompliance with Laws and Regulations Evaluation of Detected or Suspected Noncompliance with Laws and Regulations Reporting Identified or Suspected Noncompliance Documentation Chapter 7 AU-C 260 The Auditor’s Communication with Those Charged with Governance Scope Definitions of Terms Objectives of AU-C 260 Requirements Those Charged with Governance Matters to Be Communicated Communication Process Qualitative Aspects of Accounting Practices Other AU-C Sections Chapter 8 AU-C 265 Communicating Internal Control Related Matters Identified in an Audit Scope Definitions of Terms Objectives of AU-C 265 Requirements Determining Whether Deficiencies in Internal Control Have Been Identified Considerations Specific to Smaller, Less Complex Entities Indicators of Material Weakness Communication of Internal Control Related Matters Management Response Interpretations Communication of Significant Deficiencies and Material Weaknesses Prior to the Completion of the Compliance Audit for Participants in Office of Management and Budget Single-Audit Pilot Project Communication of Significant Deficiencies and Material Weaknesses Prior to the Completion of the Compliance Audit for Auditors Who Are Not Participants in Office of Management and Budget Pilot Project Appropriateness of Identifying No Significant Deficiencies or No Material Weaknesses in an Interim Communication AU-C 265 Illustrations Chapter 9 AU-C 300 Planning an Audit Technical Alert Scope Objectives of AU-C 300 Requirements Preliminary Engagement Activities Documentation Matters to Consider in Developing an Audit Strategy Chapter 10 AU-C 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement Scope Technical Alert Definitions of Terms Objectives of AU-C 315 Overview Requirements Step 1. Perform Risk Assessment Procedures Step 2. Identification of Significant Risks Step 3. Assessing the Risk of Material Misstatement Documentation Examples of Matters to Consider When Obtaining an Understanding of the Entity and Its Environment The Economy The Client’s Industry The Client’s Business: New Client The Client’s Business: Continuing Client Using a Risk-Based, Top-Down Approach to Evaluate Internal Control Effect of IT on Internal Control AU-C 315 Illustrations Chapter 11 AU-C 320 Materiality in Planning and Performing an Audit Scope Definition of Term Objectives of AU-C 320 Overview Materiality and Audit Risk Requirements Determining Materiality and Performance Materiality Revision of Materiality Documentation Requirements Chapter 12 AU-C 330 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained Scope Definitions of Terms Objectives of AU-C 330 Overview Requirements Overall Responses Designing Further Audit Procedures Tests of Controls Substantive Procedures Evaluating the Sufficiency and Appropriateness of the Audit Evidence Obtained Documentation Testing at Interim Dates Misstatements Detected at Interim Dates Designing Audit Procedures Tests of Internal Control Operating Effectiveness Types of Tests Chapter 13 AU-C 402 Audit Considerations Relating to an Entity Using a Service Organization Scope Definitions of Terms Objectives of AU-C 402 Requirements Types of Service Auditor’s Reports Considerations in Using a Service Auditor’s Report AU-C 402 Illustration—Audit Program for an Auditor’s Review of a Service Auditor’s Report Chapter 14 AU-C 450 Evaluation of Misstatements Identified during the Audit Scope Definitions of Terms Objective of AU-C 450 The Nature and Causes of Misstatements Requirements Accumulation of Misstatements Communication and Correction of Misstatements to Management Evaluating the Effect of Uncorrected Misstatements The Qualitative Characteristics of Misstatements Prior Period Misstatements Misstatement Worksheet Documentation Requirements Chapter 15 AU-C 500 Audit Evidence Technical Alert Scope Definitions of Terms Objectives of AU-C 500 Requirements General Guides to the Relevance and Reliability of Evidence General Guides to Sufficiency of Evidence Audit Procedures for Obtaining Audit Evidence Sources of Information Using Automated Tools Interpretations The Effect of an Inability to Obtain Evidential Matter Relating to Income Tax Accruals Auditor of Participating Employer in a Governmental Cost-Sharing Multiple-Employer Pension Plan Auditor of Participating Employer in a Governmental Agent Multiple-Employer Pension Plan Chapter 16 AU-C 501 Audit Evidence—Specific Considerations for Selected Items Technical Alert Scope Objectives of AU-C 501 Definition of Term Requirements—Investments in Securities and Derivative Instruments Valuation Requirements—Inventory Existence and Condition Practice Alert Timing and Extent of Inventory Observation Inventory Held by a Third Party Steps in the Observation of Inventory Planning the Physical Inventory Taking the Physical Inventory External Inventory-Taking Firm Inventory Observation Checklist AU-C 501 Illustrations—Inventory Observation Requirements—Litigation, Claims, and Assessments Involving the Entity Accounting Considerations Audit Procedures Other Than Inquiry of Lawyers Inquiry of Client’s Lawyer Evaluation of Lawyer’s Response Refusal of Attorney to Respond Lawyer on Board of Directors Litigation Not Investigated by Lawyer Litigation with Insurance Company Reliance on House or Inside Counsel Review of Interim Financial Information Au-C 501 Illustration—Litigation, Claims, and Assessments REQUIREMENTS—SEGMENT REPORTING Requirements—Management’s Specialist Chapter 17 AU-C 505 External Confirmations Scope Definitions of Terms Objective of AU-C 505 Requirements Requirements in Other AU-C Sections Results of Confirmation Procedures Management’s Refusal to Allow Confirmations Designing the Confirmation Request The Respondent Timing of Confirmation Request Confirming Prior to Year-End Use of Negative Confirmation Requests Steps in Confirmation of Accounts Receivable Step 3. Prepare and Mail Confirmation Requests Control of Confirmations Nonresponse to Confirmation Requests Nondelivery of Confirmation Request Confirmation Responses Not Expected Evaluating the Results Confirmation Checklist AU-C 505 Illustrations Chapter 18 AU-C 510 Opening Balances—Initial Audit Engagements, Including Reaudit Engagements Scope Definitions of Terms Objective of AU-C 510 Requirements Material Misstatement in Prior-Year Financial Statements Audit Conclusions and Reporting AU-C 510 Illustrations Chapter 19 AU-C 520 Analytical Procedures Scope Definition of Term Objectives of AU-C 520 Overview How to Use Analytical Procedures Requirements Analytical Procedures Common-Size Financial Statements Substantive Tests Overall Review Documentation Permanent File for Analytical Procedures AU-C 520 Illustrations Chapter 20 AU-C 530 Audit Sampling Scope Definitions of Terms Objective of AU-C 530 Overview Requirements Examined 100% Sample Selection Stratification Unexamined Sample Items Sample Size: Substantive Test Sample Size: Test of Controls Projection of Misstatements Aggregation of Misstatements Qualitative Aspects Relating Balance Sheet and Income Statement Sampling NONSAMPLING TECHNIQUES Distinguishing Sampling from Other Audit Tests Nonstatistical Audit Sampling Techniques1 Introduction Methods of Sample Selection Tests of Controls Substantive Tests Statistical Audit Sampling Techniques Introduction Calculating Sample Size Risk and Confidence in Substantive Tests of Details Statistical Evaluation of a Sample in Substantive Tests of Details Calculating Confidence Limits Equal-Probability Sampling: Attributes Evaluation Dollar Value Evaluation Equal-Probability Sampling: Variables Evaluation Chapter 21 AU-C 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures Technical Alert Scope Definitions of Terms Objective of AU-C 540 Overview Requirements Risk Assessment Procedures Chapter 22 AU-C 550 Related Parties Scope Definitions of Terms Objectives of AU-C 550 Overview Requirements Responsibilities of the Auditor Risk Assessment Procedures AU-C 550 Illustration—Related-Party Checklist Chapter 23 AU-C 560 Subsequent Events and Subsequently Discovered Facts Scope Definitions of Terms Objectives of AU-C 560 Overview Subsequently Discovered Events and Facts Requirements Subsequent Events Subsequently Discovered Facts Known to the Auditor before the Report Release Date Subsequently Discovered Facts Known to the Auditor after the Report Release Date Reissuance of Predecessor Auditor’s Report AU-C 560 Illustration—Subsequent Events Checklist Chapter 24 AU-C 570 The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern Scope Definition of Term Objectives of AU-C 570 Responsibility for the Evaluation of the Entity’s Ability to Continue as a Going Concern Management’s Responsibility Auditor’s Responsibility Requirements Specific Audit Procedures Indications of Going Concern Problems Consideration of Management’s Evaluation and the Auditor’s Evaluation Additional Procedures When Events or Conditions Are Identified Written Representations Auditor Conclusion—Substantial Doubt Exists Auditor Conclusion—Substantial Doubt Has Been Alleviated Effects on the Auditor’s Report Communication with Those Charged with Governance Eliminating a Going Concern Section from a Reissued Report Significant Delay in the Issuance of Financial Statements Documentation Requirements AU-C 570 Illustration—Going Concern Checklist Chapter 25 AU-C 580 Written Representations Technical Alert Scope Definition of Term Objectives of AU-C 580 Requirements Reliance on Management Representations Obtaining Written Representations Financial Statements Completeness of Information Fraud Recognition, Measurement, and Disclosure Subsequent Events Tailoring the Representation Letter Materiality Considerations Addressing and Dating the Letter Signing the Letter Doubt about Reliability of Written Representation Requested Representation Letter Not Provided Representations Required by Other AU-C Sections Auditor’s Relationship with a Small or Nonpublic Client Procedures during the Year Procedures at End of Year AU-C 580 Illustrations1 Chapter 26 AU-C 585 Consideration of Omitted Procedures after the Report Release Date Scope Definition of Term Overview Professional Disagreements No Substitute for Omitted Procedures Objectives of AU-C 585 Requirements Assessing the Effect of Omitted Procedures Applying Omitted Procedures Inability to Apply Omitted Procedures Determining Importance of Omitted Procedures Review of Audit Documentation Discussions with Audit Personnel Review of Subsequent Period Audit Documentation AU-C 585 Illustration—Applying the Omitted Procedure Chapter 27 AU-C 600 Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) Scope Introduction Definitions of Terms Objectives of AU-C 600 Overview Requirements Identifying Components Engagement Acceptance and Continuance Risk Assessment Standards Involvement with Component Auditors Materiality Responding to Assessed Risks Communication with Others Responsibilities When Assuming Responsibility for the Work of a Component Auditor Documentation Interpretations Interpretation No. 1, “Auditor of Participating Employer in a Governmental Pension Plan,” of AU-C Section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) AU-C 600 Illustrations Chapter 28 AU-C 610 Using the Work of Internal Auditors Scope Objectives of AU-C 610 Definitions of Terms Overview Requirements Uses of the Internal Audit Function Determining Whether the Internal Audit Function Can Be Used to Obtain Evidence Procedures When Using the Internal Audit Function Determining Whether Internal Audit Can Be Used to Provide Direct Assistance Determining the Nature and Extent of Work That Can Be Assigned to Internal Auditors Providing Direct Assistance Communicating with Those Charged with Governance Regarding Internal Auditors Providing Direct Assistance Managing the Internal Audit Function When It Is Providing Direct Assistance Evaluating and Testing Effectiveness of Internal Auditors’ Work Procedures for Evaluating the Work Performed by Internal Audit Documentation AU-C 610 Illustrations Chapter 29 AU-C 620 Using the Work of an Auditor’s Specialist Scope Definitions of Terms Objectives of AU-C 620 Requirements Qualifications of a Specialist—Competence, Capabilities, Objectivity Understanding the Work of a Specialist Agreement with the Specialist Evaluating Findings Effect on Audit Report Report Reference to Specialist Specialist Employed by CPA Firm Interpretations The Use of Legal Interpretations as Audit Evidence to Support Management’s Assertion That a Transfer of Financial Assets Has Met the Isolation Criterion in Paragraphs 7–14 of Financial Accounting Standards Board Codification 860-10-40 AU-C 620 Illustrations Chapter 30 AU-C 700 Forming an Opinion and Reporting on Financial Statements Scope Definitions of Terms Objectives of AU-C 700 Requirements: Forming An Opinion Requirements: Auditor’s Report Components of Auditor’s Report Basis for Opinion Going Concern Communicating Key Audit Matters Responsibilities of Management Auditor’s Responsibilities for the Audit of the Financial Statements (AU-C 700.34) Requirements: Reports on Comparative Financial Statements General Reissuance of Predecessor Auditor’s Report Predecessor Auditor’s Report Not Reissued Interpretations Interpretation No. 1, “Reporting on Financial Statements Prepared on a Liquidation Basis of Accounting” Interpretation No. 2, “Sustainability Financial Statements under Federal Financial Accounting Standards—Auditor Reporting” Interpretation No. 3, “Reporting on Audits Conducted in Accordance with Auditing Standards Generally Accepted in the United States of America and International Standards on Auditing” Interpretation No. 4, “Reporting on Audits Conducted in Accordance with Auditing Standards Generally Accepted in the United States of America and the Standards of the PCAOB” AU-C 700 Illustrations Chapter 31 AU-C 701 Communicating Key Audit Matters in the Independent Auditor’s Report Scope Definition of Term Requirements Determining Key Audit Matters Objectives of AU-C 701 Communicating Key Audit Matters in the Auditor’s Report KAMs Are Not a Substitute for a Modified Opinion Descriptions of Individual KAMs Circumstances in Which a Matter Determined to Be a KAM Is Not Communicated in the Auditor’s Report Form and Content of the “Key Audit Matters” Section in Other Circumstances Documentation Chapter 32 AU-C 703 Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA Overview ERISA Section 103(a)(3)(C) Audits Scope Objectives of AU-C 703 Requirements Engagement Acceptance Audit Risk Assessment and Response Plan Tax Status Prohibited Transactions Evaluation of Reportable Findings Documentation Communication with Management or Those Charged with Governance ERISA Section 103(a)(3)(C) Audit Procedures Written Representations Forming an Opinion Form of Opinion Auditor’s Report for an ERISA Section 103(a)(3)(C) Audit Reporting on Supplemental Schedules ERISA-Required Supplemental Schedules Reporting on ERISA-Required Supplemental Schedules When Reporting under an ERISA Section 103(a)(3)(C) Audit AU-C 703 Illustrations Illustrations of Auditor’s Reports on Financial Statements of Employee Benefit Plans Subject to ERISA Chapter 33 AU-C 705 Modifications to the Opinion in the Independent Auditor’s Report Scope Definitions of Terms Objectives of AU-C 705 Requirements Where Modified Opinions Are Required Types of Modified Opinions Lack of Independence Modified Opinion Format AU-C 705 Illustrations Chapter 34 AU-C 706 Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor’s Report Scope Definitions of Terms Objectives of AU-C 706 Requirements Emphasis-of-Matter Paragraph Other Matters in the Auditor’s Report Communication AU-C 706 Illustrations Chapter 35 AU-C 708 Consistency of Financial Statements Scope Definition of Term Objectives of AU-C 708 Requirements Consistency Implication of Auditor’s Standard Report Periods to Which Consistency Standard Relates Changes Affecting Consistency Changes Not Affecting Consistency First-Year Audits Chapter 36 AU-C 720 Other Information in Documents Containing Audited Financial Statements Scope Definitions of Terms Objectives of AU-C 720 Requirements Responding to a Material Misstatement of Other Information Reporting Documentation Illustrations: Other Information Sections to be Included in Auditor’s Reports Relating to Other Information Included in the Annual Report Chapter 37 AU-C 725 Supplementary Information in Relation to the Financial Statements as a Whole Scope Definition of Term Objectives of AU-C 725 Requirements Conditions Management’s Responsibilities Procedures Report Opinion on Supplementary Information Interpretation Supplementary Information in Relation to the Financial Statements as a Whole: Auditing Interpretations of AU-C 725 AU-C 725 Illustrations Chapter 38 AU-C 730 Required Supplementary Information Scope Definitions of Terms Objectives of AU-C 730 Requirements Procedures Coordination with Other Audit Areas Reporting on Supplementary Information AU-C 730 Illustrations Chapter 39 AU-C 800 Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks Scope Definitions of Terms Objectives of AU-C 800 Requirements Precondition for an Audit Auditor’s Going Concern Responsibilities Forming an Opinion and Components of Auditor’s Standard Report Illustrations of Auditor’s Reports on Special Purpose Financial Statements Chapter 40 AU-C 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement Scope Definitions of Terms Objectives of AU-C 805 Requirements Examples and Other Services Application of GAAS Financial Reporting Framework Scope of Audit and Level of Materiality The Auditor’s Report Interpretation Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement: Auditing Interpretations of AU-C 805 Illustrations of Auditor’s Reports on a Single Financial Statement and a Specific Element of a Financial Statement Chapter 41 AU-C 806 Reporting on Compliance with Aspects of Contractual Agreements or Regulatory Requirements in Connection with Audited Financial Statements Scope Definitions of Terms Objectives of AU-C 806 Requirements Request for Assurance Separate Auditor’s Report Assurance Included in Auditor’s Report on the Financial Statements AU-C 806 Illustrations Chapter 42 AU-C 810 Engagements to Report on Summary Financial Statements Scope Definitions of Terms Objectives of AU-C 810 Requirements Engagement Acceptance Procedures Written Representations Auditor’s Report Restriction on Use or Alerting Readers to the Basis of Accounting Unaudited Information Presented with Summary Financial Statements Information in Documents Containing Summary Financial Statements Auditor Association AU-C 810 Illustrations Chapter 43 AU-C 905 Alert That Restricts the Use of the Auditor’s Written Communication Scope Definition of Term Objectives of AU-C 905 Requirements Reports Required to Be Restricted Limiting Report Distribution Required Restricted-Use Report Language Adding Other Specified Parties Inclusion of a Separate Restricted-Use Communication and a Separate General-Use Communication in the Same Document Combined Communication Covering Both Restricted-Use and General-Use Subject Matter or Presentations AU-C 905 Illustrations Chapter 44 AU-C 910 Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country Scope AU-C Definitions of Terms Objectives of AU-C 910 Requirements Terms of Engagement Compliance with Foreign Auditing Standards Reporting Illustrations of Auditor’s Reports on Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country Chapter 45 AU-C 915 Reports on Application of Requirements of an Applicable Financial Reporting Framework Scope Definitions of Terms Objectives of AU-C 915 Requirements Applicability to Proposals Engagement Acceptance Engagement Planning and Performance Reporting Standards Documentation Illustration: Illustrative Written Report to the Requesting Party Chapter 46 AU-C 920 Letters for Underwriters and Certain Other Requesting Parties Scope Definitions of Terms Objectives of AU-C 920 Overview Requirements: General Engagement Acceptance Representation Letter Reports to Other Parties Communications with Underwriter Draft Comfort Letter Auditor of the Group Financial Statements Shelf Registration Issuance of Letters or Reports under Other Standards Requirements: Format and Contents of Comfort Letters Dating of Comfort Letter Addressee Introductory Paragraph Independence Compliance as to Form with SEC Requirements Requirements: Commenting In A Comfort Letter On Information Other Than Audited Financial Statements General Knowledge of Internal Control Requirements: Other Matters Concluding Paragraph Disclosure of Subsequently Discovered Matters AU-C 920 Illustrations Chapter 47 AU-C 925 Filings with the U.S. Securities and Exchange Commission under the Securities Act of 1933 Scope Definitions of Terms Objectives of AU-C 925 Requirements Accountant’s Responsibility Accountant’s Report: Review of Interim Financial Information Subsequent Events Procedures Response to Subsequent Events and Subsequently Discovered Facts: Audited Financial Statements Response to Subsequent Events and Subsequently Discovered Facts: Unaudited Financial Statements or Unaudited Interim Financial Information Illustration: Illustrative Disclosures and Reports (American Institute of Certified Public Accountants, AU-C 925.A15) Chapter 48 AU-C 930 Interim Financial Information Scope Definition of Term Objectives of AU-C 930 Requirements Determining Appropriateness of the Financial Reporting Framework Establishing an Understanding with Client Engagement Letter Knowledge of the Entity’s Business and Internal Control Required Review Procedures Inquiries Concerning Litigation, Claims, and Assessments Inquiries Concerning Going Concern Issues Extension of Interim Review Procedures Timing of Review Procedures and Coordination with the Audit Evaluating the Results of Interim Review Procedures Written Representations from Management Required Communications Subsequent Discovery of Facts Existing at the Date of Report Auditor’s Report Form of Auditor’s Review Report Reference to Report of Another Auditor Modification of the Review Report Client Representation about Auditor’s Review Interim Financial Information Accompanying Audited Financial Statements Presentation of Interim Financial Information The Auditor’s Report Documentation AU-C 930 Illustrations Exhibit A—Illustrative Management Representation Letters for a Review of Interim Financial Information Exhibit B—Illustrations of Auditor’s Review Reports on Interim Financial Information Exhibit C—Illustrations of Example Modifications to the Auditor’s Review Report Due to Departures from the Applicable Financial Reporting Framework Exhibit D—Illustrations of Separate Sections Regarding Going Concern in the Auditor’s Review Report Chapter 49 AU-C 935 Compliance Audits Scope Definitions of Terms Objectives of AU-C 935 Requirements Application of AU-C Sections to a Compliance Audit Sources of Information Regarding Compliance Requirements Suggested Audit Procedures Management’s Responsibilities The Compliance Audit Process Flow Material Noncompliance Risks Reporting Requirements Documentation Reissuance of the Compliance Report AU-C 935 Illustrations Chapter 50 AU-C 940 An Audit of Internal Control over Financial Reporting That Is Integrated with an Audit of Financial Statements Scope Definitions of Terms Objectives of AU-C 940 Requirements Required Conditions for Engagement Acceptance Evidence Supporting Management’s Assessment Integrating the Controls Examination with the Financial Statement Audit Risk Assessment Using the Work of Others Planning the Engagement Use a Top-Down Approach Testing Controls Evaluating Control Deficiencies Forming an Opinion Reporting Requirements Report Modifications Other Topics AU-C 940 Illustrations—Illustrative Reports Chapter 51 AU-C 945 Auditor Involvement with Exempt Offering Documents Scope Definitions of Terms Objectives of AU-C 945 Requirements Chapter 52 AT-C Preface AT-C Organization Organization of Each Section Structure of the Attestation Standards AT-C Preface Attestation Engagement Purpose and Premise Responsibilities of the Responsible Party Responsibilities of the Practitioner Types of Engagements Chapter 53 AT-C 105 Concepts Common to All Attestation Engagements Technical Alert Scope and Written Assertion Objectives of AT-C 105 Definitions of Terms Requirements Quality Management Compliance with Relevant AT-C Sections Report Format Dictated by Law or Regulation Professional Requirements in the Attestation Standards Preconditions for an Attestation Engagement Change in Terms of Engagement Using the Work of Another Practitioner Assignment of the Engagement Team and the Practitioner’s Specialists Documentation Engagement Quality Control Review Professional Skepticism and Professional Judgment Interpretations 1. Responding to Requests for Reports on Matters Relating to Solvency 2. Applicability of Attestation Standards to Litigation Services 3. Providing Access to or Copies of Engagement Documentation to a Regulator 4. Performing and Reporting on an Attestation Engagement Under Two Sets of Attestation Standards AT-C 105 Illustrations—Practitioner’s Agreed-Upon Procedures Reports Chapter 54 AT-C 205 Assertion-Based Examination Engagements Overview Objectives of AT-C 205 Definitions of Terms Requirements Independence Written Assertion Planning the Engagement Risk Assessment Procedures Materiality Identifying Risks of Material Misstatement Responding to Risk of Material Misstatement Tests of Controls Other Procedures Analytical Procedures Procedures Regarding Estimates Sampling Fraud, Laws, and Regulations Responding to Fraud or Noncompliance Evaluating the Reliability of the Entity’s Information Using the Work of a Practitioner’s Specialist Using Internal Auditors Evaluate the Results of the Procedures Considering Subsequent Events and Subsequently Discovered Facts Written Representations Other Information Forming an Opinion The Report Illustration: Practitioner’s Examination Report on Subject Matter; Unmodified Opinion Modified Opinions Communicating with the Responsible and Engaging Partners Documentation Interpretations Reporting on Attestation Engagements Performed in Accordance with Government Auditing Standards Reporting on the Design of Internal Control Illustrations (AT-C 205.A121) Chapter 55 AT-C 206 Direct Examination Engagements Technical Alert Scope Objectives of AT-C 206 Requirements Acceptance and Continuance of a