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Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

Book Description

The clearest, easiest-to-use guide to understanding all the clarified standards, including the new attestation standards—fully updated!

This comprehensive guide to understanding Generally Accepted Auditing Standards (GAAS) is not just about auditing. It addresses the toughest part of an accountant's job—identifying, interpreting, and applying the many audit, attest, review, compilation, and preparation standards relevant to a particular engagement.

Wiley Practitioner's Guide to GAAS 2018 offers a clear and accessible distillation of the official language of GAAS, Statements on Standards for Attestation Engagements (SSAEs), and Statements on Standards for Accounting and Review Services (SSARSs)—as well as advice on exactly how to remain fully compliant with each.

Wiley Practitioner's Guide to GAAS 2018 is organized according to the logical arrangement of the clarified standards, presenting each section individually, and explaining how it is related to the engagement process. Guidance is offered on the entire process, in the form of practice notes, checklists, questionnaires, and real-world examples, illustrating how the fundamental requirements of each section are applied.

Other key features include:

  • A brief identification of each auditing, SSAE, and SSARS section, with effective dates and tips on how to apply it
  • Highlights of new requirements in the clarified attestation standards
  • Concise listing and descriptions of each section's specific mandates, including definitions
  • Easy-to-read capsule summary of interpretations, plus selected technical alerts
  • Helpful techniques for remaining compliant with each standard

Table of Contents

  1. Cover
  2. Become a Subscriber!
  3. Title Page
  4. Copyright
  5. Preface—Organization and Key Changes
    1. Clarified Auditing Standards
    2. Resources
    3. On the Horizon
  6. About the Author
  7. 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 Original Pronouncements
    2. AU-C 200 Definitions of Terms
    3. Objectives of AU-C Section 200
    4. Requirements
    5. Complying with GAAS
  8. AU-C 210 Terms of Engagement
    1. AU-C Original Pronouncement
    2. Applicability
    3. AU-C 210 Definitions of Terms
    4. Objectives of AU-C Section 210
    5. Fundamental Requirements
    6. Illustration
  9. AU-C 220 Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards
    1. AU-C Original Pronouncements
    2. Applicability
    3. AU-C 220 Definitions of Terms
    4. Objective of AU-C Section 220
    5. Requirements
  10. AU-C 230 Audit Documentation
    1. AU-C Original Pronouncements
    2. AU-C 230 Definitions of Terms
    3. Objective of AU-C Section 230
    4. Requirements
    5. Interpretations
    6. AU-C Illustrations
  11. AU-C 240 Consideration of Fraud in a Financial Statement Audit
    1. AU-C Original Pronouncements
    2. AU-C 240 Definitions of Terms
    3. Objectives Of AU-C Section 240
    4. Requirements
    5. AU-C Illustrations
  12. AU-C 250 Consideration of Laws and Regulations in an Audit of Financial Statements
    1. AU-C Original Pronouncement
    2. AU-C 250 Definition of Term
    3. Objectives of AU-C Section 250
    4. Requirements
  13. AU-C 260 The Auditor's Communication with Those Charged with Governance
    1. AU-C Original Pronouncements
    2. AU-C Definitions of Terms
    3. Objectives of AU-C Section 260
    4. Requirements
  14. AU-C 265 Communicating Internal Control Related Matters Identified in an Audit
    1. AU-C Original Pronouncements
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 265
    4. Requirements
    5. Interpretations
    6. AU-C 265 Illustrations
  15. AU-C 300 Planning an Audit
    1. AU-C Original Pronouncements
    2. Objective of AU-C Section 300
    3. Requirements
  16. AU-C 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
    1. AU-C Original Pronouncements
    2. Definitions of Terms
    3. Objective of AU-C Section 315
    4. Overview
    5. Requirements
    6. Illustrations
  17. AU-C 320 Materiality in Planning and Performing an Audit
    1. AU-C Pronouncement
    2. Definition of Term
    3. Objective of AU-C Section 320
    4. Overview
    5. Requirements
  18. AU-C 330 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained
    1. AU-C Original Pronouncement
    2. Definitions of Terms
    3. Objective of AU-C Section 330
    4. Overview
    5. Requirements
  19. AU-C 402 Audit Considerations Relating to an Entity Using a Service Organization
    1. AU-C Original Pronouncements
    2. Definitions of Terms
    3. Objectives of AU-C Section 402
    4. Overview
    5. Scope
    6. Requirements
  20. AU-C 450 Evaluation of Misstatements Identified during the Audit
    1. AU-C Original Pronouncement
    2. Definitions of Terms
    3. Objective of AU-C Section 450
    4. Requirements
  21. AU-C 500 Audit Evidence
    1. AU-C Original Pronouncements
    2. Definitions of Terms
    3. Objective of AU-C Section 500
    4. Scope
    5. Requirements
    6. Interpretations
  22. AU-C 501 Audit Evidence—Specific Considerations for Selected Items
    1. AU-C Original Pronouncement
    2. Definitions of Terms
    3. Objectives of AU-C Section 501
    4. Requirements—Investments in Securities and Derivative Instruments
    5. Illustrations—Investments in Securities and Derivative Instruments
    6. Requirements—Inventory Existence and Condition
    7. AU-C Illustrations—Inventory Observation
    8. Requirements—Litigation, Claims, and Assessments Involving the Entity
    9. AU-C Illustration—Litigation, Claims, and Assessments
    10. Requirements—Segment Reporting
  23. AU-C 505 External Confirmations
    1. AU-C Original Pronouncement
    2. Definitions of Terms
    3. Objective of AU-C Section 505
    4. Requirements
    5. AU-C Illustrations
  24. AU-C 510 Opening Balances—Initial Audit Engagements, Including Reaudit Engagements
    1. AU-C Original Pronouncement
    2. Applicability
    3. Definitions of Terms
    4. Objective of AU-C Section 510
    5. Requirements
    6. Illustrations
  25. AU-C 520 Analytical Procedures
    1. AU-C Original Pronouncement
    2. AU-C Definition of Term
    3. Objectives of AU-C Section 520
    4. Overview
    5. Requirements
    6. AU-C Illustrations
  26. AU-C 530 Audit Sampling
    1. AU-C Original Pronouncement
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 530
    4. Overview
    5. Requirements
    6. Nonsampling Techniques
    7. Nonstatistical Audit Sampling Techniques 1
    8. Statistical Audit Sampling Techniques
  27. AU-C 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures
    1. AU-C Original Pronouncement
    2. Definitions of Terms
    3. Objective of AU-C Section 540
    4. Overview
    5. Requirements
    6. Illustration
  28. AU-C 550 Related Parties
    1. AU-C Original Pronouncements
    2. Definitions of Terms
    3. Objectives of AU-C Section 550
    4. Requirements
    5. Illustration
  29. AU-C 560 Subsequent Events and Subsequently Discovered Facts
    1. AU-C Original Pronouncement
    2. Definitions of Terms
    3. Objectives of AU-C Section 560
    4. Overview
    5. Requirements
    6. Illustration
  30. AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern
    1. AU-C Original Pronouncement
    2. Technical Alert
    3. AU-C Definition of Term
    4. Objectives of AU-C Section 570
    5. Scope
    6. Responsibility for the Evaluation of the Entity's Ability to Continue as a Going Concern
    7. Requirements
    8. Illustration
  31. AU-C 580 Written Representations
    1. AU-C Original Pronouncement
    2. AU-C Definition of Term
    3. Objectives of AU-C Section 580
    4. Requirements
    5. AU-C 580 Illustrations2
  32. AU-C 585 Consideration of Omitted Procedures after the Report Release Date
    1. AU-C Original Pronouncement
    2. Definition of Term
    3. Overview
    4. Objectives of AU-C Section 585
    5. Scope
    6. Requirements
    7. Illustration
  33. AU-C 600 Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
    1. AU-C Original Pronouncements
    2. Introduction
    3. AU-C 600 Definitions of Terms
    4. Objectives of AU-C Section 600
    5. Overview
    6. Requirements
    7. Interpretations
    8. Illustrations
  34. AU-C 610 Using the Work of Internal Auditors
    1. AU-C Original Pronouncement
    2. OBJECTIVES OF AU-C SECTION 610
    3. Applicability of AU-C Section 610
    4. Definitions of Terms
    5. Overview
    6. Requirements
    7. Illustrations
  35. AU-C 620 Using the Work of an Auditor's Specialist
    1. AU-C Original Pronouncement
    2. AU-C Definitions of Terms
    3. Objectives of AU-C Section 620
    4. Requirements
    5. AU-C Interpretations
    6. Illustrations
  36. AU-C 700 Forming an Opinion and Reporting on Financial Statements
    1. AU-C Original Pronouncement
    2. AU-C Definitions of Terms
    3. Objectives of AU-C Section 700
    4. Requirements: Forming an Opinion
    5. Requirements: Auditor's Standard Report
    6. Requirements: Reports on Comparative Financial Statements
    7. Interpretations
    8. AU-C 700 Illustrations (Source: AU-C 700.58)
  37. AU-C 705 Modifications to the Opinion in the Independent Auditor's Report
    1. AU-C Original Pronouncements
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 705
    4. Requirements
    5. AU-C 705 Illustrations (Source: AU-C 705.A32)
  38. AU-C 706 Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report
    1. AU-C Original Pronouncement
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 706.04
    4. Requirements
    5. AU-C 706 Illustrations
  39. AU-C 708 Consistency of Financial Statements
    1. AU-C Original Pronouncement
    2. AU-C Definition of Term
    3. Objectives of AU-C Section 708
    4. Requirements
  40. AU-C 720 Other Information in Documents Containing Audited Financial Statements
    1. AU-C Original Pronouncements
    2. AU-C Effective Date and Summary of Changes
    3. AU-C Definitions of Terms
    4. Objective of AU-C Section 720
    5. Requirements
    6. Illustration
  41. AU-C 725 Supplementary Information in Relation to The Financial Statements as a Whole
    1. AU-C Original Pronouncements
    2. AU-C Definition of Term
    3. Objectives of AU-C Section 725
    4. Requirements
    5. Interpretation
    6. AU-C 725 Illustrations
  42. AU-C 730 Required Supplementary Information
    1. AU-C Original Pronouncements
    2. AU-C Definitions of Terms
    3. Objectives of AU-C Section 730
    4. Requirements
    5. AU-C 730 Illustrations
  43. AU-C 800 Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks
    1. AU-C Original Pronouncements
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 800
    4. Scope
    5. Requirements
    6. AU-C 800 Illustrations (Source: AU-C 800.A36)
  44. AU-C 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement
    1. AU-C Original Pronouncement
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 805
    4. Scope
    5. Requirements
    6. Interpretation
    7. Illustrations of Auditor's Reports on a Single Financial Statement and a Specific Element of a Financial Statement (Source: AU-C 805.25)
  45. AU-C 806 Reporting on Compliance with Aspects of Contractual Agreements or Regulatory Requirements in Connection with Audited Financial Statements
    1. AU-C Original Pronouncements
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 806
    4. Scope
    5. Requirements
    6. AU-C 806 Illustrations (Source: AU-C 806.A8)
  46. AU-C 810 Engagements to Report on Summary Financial Statements
    1. AU-C Original Pronouncement
    2. Definitions of Terms
    3. Objectives of AU-C Section 810
    4. Scope
    5. Requirements
    6. AU-C 810 Illustrations (Source: AU-C 810.A22)
  47. AU-C 905 Alert That Restricts the Use of the Auditor's Written Communication
    1. AU-C Original Pronouncement
    2. AU-C Definition of Term
    3. Objective of AU-C Section 905
    4. Requirements
    5. AU-C 905 Illustrations
  48. AU-C 910 Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country
    1. AU-C Original Pronouncement
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 910
    4. Scope
    5. Requirements
    6. AU-C 910 Illustrations (Source: AU-C 910.A11)
  49. AU-C 915 Reports on Application of Requirements of an Applicable Financial Reporting Framework
    1. AU-C Original Pronouncements
    2. Applicability
    3. AU-C Definitions of Terms
    4. Objective of AU-C Section 915
    5. Requirements
    6. AU-C 915 Illustration (Source: AU-C 915.A8)
  50. AU-C 920 Letters for Underwriters and Certain Other Requesting Parties
    1. AU-C Original Pronouncements
    2. Applicability
    3. AU-C Definitions of Terms
    4. Objectives of AU-C Section 920
    5. Scope
    6. Requirements: General
    7. Requirements: Format and Contents of Comfort Letters
    8. Requirements: Commenting in a Comfort Letter on Information Other Than Audited Financial Statements
    9. Requirements: Other Matters
    10. AU-C 920 Illustrations
  51. AU-C 925 Filings with the US Securities and Exchange Commission under the Securities Act of 1933
    1. AU-C Original Pronouncement
    2. AU-C Definitions of Terms
    3. Objective of AU-C Section 925
    4. Requirements
    5. AU-C 925 Illustration
  52. AU-C 930 Interim Financial Information
    1. AU-C Original Pronouncement
    2. AU-C Definition of Term
    3. Objective of AU-C Section 930
    4. Scope
    5. Requirements: Review Procedures
    6. Techniques for Application
    7. Requirements: Communication with Management and Those Charged with Governance
    8. Requirements: Auditor's Report
    9. Requirements: Interim Financial Information Accompanying Audited Financial Statements
    10. AU-C 930 Illustrations
  53. AU-C 935 Compliance Audits
    1. AU-C Original Pronouncements
    2. AU-C 935 Definitions of Terms
    3. Objectives of AU-C Section 935
    4. Scope
    5. Requirements
    6. AU-C Illustrations
  54. AU-C 940 An Audit of Internal Control over Financial Reporting That Is Integrated With an Audit of Financial Statements
    1. AU-C Original Pronouncement
    2. AU-C 940 Definitions of Terms
    3. Objectives of AU-C 940
    4. Scope
    5. Requirements
    6. Reporting Requirements
    7. Illustrations
  55. AU-C 945 Auditor Involvement With Exempt Offering Documents
    1. AU-C Original Pronouncement
    2. Technical Alert
    3. AU-C 945 Definitions of Terms
    4. Objectives of AU-C 945
    5. Scope
    6. Requirements
  56. AT-C Preface
    1. Technical Alert
    2. AT-C Preface
    3. Appendix
  57. AT-C 105 Concepts Common to All Attestation Engagements
    1. Original Pronouncement
    2. Technical Alert
    3. Applicability and Written Assertion
    4. Objectives
    5. Definitions of Terms
    6. Requirements
    7. Interpretations
  58. AT-C 205 Examination Engagements
    1. Overview
    2. Objectives
    3. Definitions of Terms
    4. Requirements
    5. Interpretations
    6. Illustrations (AT-C 205.A121)
  59. AT-C 210 Review Engagements
    1. Original Pronouncement
    2. Applicability
    3. Definitions of Terms
    4. Objectives of Section 215
    5. Requirements
    6. Illustrations—Illustrative Practitioner's Review Reports
  60. AT-C 215 Agreed-Upon Procedures Engagements
    1. Original Pronouncement
    2. Applicability
    3. Definitions of Terms
    4. Objectives of AT-C Section 215
    5. Requirements
    6. Interpretation
    7. Illustrations
  61. AT-C 305 Prospective Financial Information
    1. Original Pronouncement
    2. Applicability
    3. Definitions of Terms
    4. Objectives—Examination Engagements
    5. Objectivies—Agreed-Upon Procedures Engagements
    6. Requirements: Examination of Prospective Financial Statements
    7. Requirements: Applying Agreed-Upon Procedures to Prospective Financial Statements
    8. Illustration
  62. AT-C 310 Reporting on Pro Forma Financial Information
    1. Original Pronouncement
    2. Applicability
    3. Definition of Terms
    4. Objectives of an Examination Engagement
    5. Objectives of a Review Engagement
    6. Requirements
    7. Illustrations
  63. AT-C 315 Compliance Attestation
    1. Original Pronouncement
    2. Applicability
    3. Definitions of Terms
    4. Objectives of an Examination Engagement
    5. Objectives of an Agreed-Upon Procedures Engagement
    6. Requirements—Examination Engagements
    7. Illustration
    8. Requirements: Agreed-Upon Procedures Engagement
    9. Illustrations
  64. AT-C 320 Reporting on an Examination of Controls at a Service Organization Relevant to User Entities' Internal Control over Financial Reporting
    1. Original Pronouncement
    2. Applicability
    3. Definitions of Terms
    4. Objectives of AT-C Section 320
    5. Requirements
    6. Illustration
  65. AT-C Section 395 (Designated for AT Section 701) Management's Discussion and Analysis (MD&A)—A Summary1,2
    1. Original Pronouncement
    2. Applicability
    3. Definition of Term
    4. Objectives of at Section 395
    5. Requirements: Examination
    6. Requirements: Review
    7. Illustrations
  66. AR-C 60 General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services
    1. Original Pronouncement
    2. Technical Alert
    3. Objectives and Limitations of SSARS Engagements
    4. Fundamental Requirements
    5. Appendix—Definitions of Terms for AR-C Sections 60 Through 90 (Source: AR-C 60–90)
  67. AR-C 70 Preparation of Financial Statements
    1. Original Pronouncement
    2. Technical Alert
    3. Objectives and Limitations of Preparation Engagements
    4. Definitions of Terms
    5. Determining the Type of Engagement
    6. Requirements
    7. Illustration (AR-C 70.A22)
  68. AR-C 80 Compilation Engagements
    1. Original Pronouncements
    2. Objectives and Limitations of Preparation Engagements
    3. Technical Alert
    4. Definitions of Terms
    5. Requirements
    6. Illustrations
  69. AR-C 90 Review of Financial Statements
    1. Original Pronouncement
    2. Objectives and Limitations of Review Engagements
    3. Applicability
    4. Technical Alert
    5. Definitions of Terms
    6. Requirements
    7. Illustrations: Review Engagement
  70. AR-C 120 Compilation of Pro Forma Financial Information
    1. Original Pronouncements
    2. Applicability
    3. Objectives of AR-C Section 120
    4. Requirements
    5. Illustrations
  71. Appendix A: Cross-References to SASs, SSAEs, and SSARSs
  72. Appendix B: List of AICPA Audit and Accounting Guides and AICPA Statements of Position—Auditing and Attestation1
    1. Statements of Position—Auditing and Attestation
  73. Appendix C: Other Auditing Publications1
  74. Index
  75. End User License Agreement