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Wiley Practitioner's Guide to GAAS 2022

Name: Wiley Practitioner's Guide to GAAS 2022
Author: Joanne M. Flood
ISBN: 9781119875017

by Joanne M. Flood

April 2022

Intermediate to advanced

1056 pages

34h 59m

English

Wiley

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COVER
TITLE PAGE
COPYRIGHT
PREFACE—ORGANIZATION AND KEY CHANGES
RESOURCESATTESTATION STANDARDSACCOUNTING AND REVIEW STANDARDSPUBLICATION CURRENCY
ABOUT THE AUTHOR
1 AU-C 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 200REQUIREMENTSCOMPLYING WITH GAASNOTES
2 AU-C 210 Terms of Engagement
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 210FUNDAMENTAL REQUIREMENTSAU-C 210 ILLUSTRATIONNOTES
3 AU-C 220 Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 220REQUIREMENTS
4 AU-C 230 Audit Documentation
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 230REQUIREMENTSINTERPRETATIONSAU-C 230 ILLUSTRATIONSNOTE
5 AU-C 240 Consideration of Fraudin a Financial Statement Audit
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 240REQUIREMENTSAU-C 240 ILLUSTRATIONSNOTES

6 AU-C 250 Consideration of Laws and Regulations in an Audit of Financial Statements
SCOPEDEFINITION OF TERMOBJECTIVES OF AU-C SECTION 250REQUIREMENTS
7 AU-C 260 The Auditor's Communication with Those Charged with Governance
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 260REQUIREMENTS
8 AU-C 265 Communicating Internal Control Related Matters Identified in an Audit
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 265REQUIREMENTSMANAGEMENT RESPONSEINTERPRETATIONSAU-C 265 ILLUSTRATIONS
9 AU-C 300 Planning an Audit
SCOPEOBJECTIVE OF AU-C SECTION 300REQUIREMENTS
10 AU-C 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
SCOPETECHNICAL ALERTDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 315OVERVIEWREQUIREMENTSAU-C 315 ILLUSTRATIONS
11 AU-C 320 Materiality in Planning and Performing an Audit
SCOPEDEFINITION OF TERMOBJECTIVE OF AU-C SECTION 320OVERVIEWREQUIREMENTS
12 AU-C 330 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 330OVERVIEWREQUIREMENTS
13 AU-C 402 Audit Considerations Relating to an Entity Using a Service Organization
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 402REQUIREMENTSAU-C 402 ILLUSTRATION—AUDIT PROGRAM FOR AN AUDITOR'S REVIEW OF A SERVICE AUDITOR'S REPORT
14 AU-C 450 Evaluation of Misstatements Identified during the Audit
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 450REQUIREMENTS
15 AU-C 500 Audit Evidence
TECHNICAL ALERTSCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 500REQUIREMENTSINTERPRETATIONS
16 AU-C 501 Audit Evidence—Specific Considerations for Selected Items
TECHNICAL ALERTSCOPEOBJECTIVES OF AU-C SECTION 501DEFINITION OF TERMREQUIREMENTS—INVESTMENTS IN SECURITIES AND DERIVATIVE INSTRUMENTSILLUSTRATIONS—INVESTMENTS IN SECURITIES AND DERIVATIVE INSTRUMENTSREQUIREMENTS—INVENTORY EXISTENCE AND CONDITIONAU-C 501 ILLUSTRATIONS—INVENTORY OBSERVATIONREQUIREMENTS—LITIGATION, CLAIMS, AND ASSESSMENTS INVOLVING THE ENTITYAU-C 501 ILLUSTRATION—LITIGATION, CLAIMS, AND ASSESSMENTSREQUIREMENTS—SEGMENT REPORTINGREQUIREMENTS—USING MANAGEMENT'S SPECIALISTSNOTES
17 AU-C 505 External Confirmations
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 505REQUIREMENTSAU-C 505 ILLUSTRATIONS
18 AU-C 510 Opening Balances—Initial Audit Engagements, Including Reaudit Engagements
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 510REQUIREMENTSAU-C 510 ILLUSTRATIONS
19 AU-C 520 Analytical Procedures
SCOPEDEFINITION OF TERMOBJECTIVES OF AU-C SECTION 520OVERVIEWREQUIREMENTSAU-C 520 ILLUSTRATIONS
20 AU-C 530 Audit Sampling
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 530OVERVIEWREQUIREMENTSNONSAMPLING TECHNIQUESNONSTATISTICAL AUDIT SAMPLING TECHNIQUESSTATISTICAL AUDIT SAMPLING TECHNIQUESNOTES
21 AU-C 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
TECHNICAL ALERTSCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 540OVERVIEWREQUIREMENTS
22 AU-C 550 Related Parties
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 550OVERVIEWREQUIREMENTSAU-C 550 ILLUSTRATION—RELATED-PARTY CHECKLIST
23 AU-C 560 Subsequent Events and Subsequently Discovered Facts
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 560OVERVIEWREQUIREMENTSAU-C 560 ILLUSTRATION—SUBSEQUENT EVENTS CHECKLIST
24 AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern
SCOPEDEFINITION OF TERMOBJECTIVES OF AU-C SECTION 570RESPONSIBILITY FOR THE EVALUATION OF THE ENTITY'S ABILITY TO CONTINUE AS A GOING CONCERNREQUIREMENTSAU-C 570 ILLUSTRATION—GOING CONCERN CHECKLIST
25 AU-C 580 Written Representations
TECHNICAL ALERTSCOPEDEFINITION OF TERMOBJECTIVES OF AU-C SECTION 580REQUIREMENTSAUDITOR'S RELATIONSHIP WITH A SMALL OR NONPUBLIC CLIENTAU-C 580 ILLUSTRATIONSNOTE
26 AU-C 585 Consideration of Omitted Procedures after the Report Release Date
SCOPEDEFINITION OF TERMOVERVIEWOBJECTIVES OF AU-C SECTION 585REQUIREMENTSDETERMINING IMPORTANCE OF OMITTED PROCEDURESAU-C 585 ILLUSTRATION—APPLYING THE OMITTED PROCEDURE
27 AU-C 600 Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
SCOPEINTRODUCTIONDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 600OVERVIEWREQUIREMENTSINTERPRETATIONSAU-C 600 ILLUSTRATIONS
28 AU-C 610 Using the Work of Internal Auditors
SCOPEOBJECTIVES OF AU-C SECTION 610DEFINITIONS OF TERMSOVERVIEWREQUIREMENTSAU-C 610 ILLUSTRATIONS
29 AU-C 620 Using the Work of an Auditor's Specialist
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 620REQUIREMENTSQUALIFICATIONS OF A SPECIALIST—COMPETENCE, CAPABILITIES, OBJECTIVITYINTERPRETATIONSAU-C 620 ILLUSTRATIONS
30 AU-C 700 Forming an Opinion and Reporting on Financial Statements
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 700REQUIREMENTS: FORMING AN OPINIONREQUIREMENTS: AUDITOR'S REPORTREQUIREMENTS: REPORTS ON COMPARATIVE FINANCIAL STATEMENTSINTERPRETATIONSAU-C 700 ILLUSTRATIONS
31 AU-C 701 Communicating Key Audit Matters in the Independent Auditor's Report
SCOPEDEFINITION OF TERMREQUIREMENTSOBJECTIVES OF AU-C SECTION 701COMMUNICATING KEY AUDIT MATTERS IN THE AUDITOR'S REPORT
32 AU-C 703 Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA
OVERVIEWSCOPEOBJECTIVESREQUIREMENTSEVALUATION OF REPORTABLE FINDINGSAU-C 703 ILLUSTRATIONS
33 AU-C 705 Modifications to the Opinion in the Independent Auditor's Report
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 705REQUIREMENTSAU-C 705 ILLUSTRATIONS
34 AU-C 706 Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report
SCOPEDEFINITIONS OF TERMSOBJECTIVEREQUIREMENTSAU-C 706 ILLUSTRATIONS
35 AU-C 708 Consistency of Financial Statements
SCOPEDEFINITION OF TERMOBJECTIVES OF AU-C SECTION 708REQUIREMENTS
36 AU-C 720 Other Information in Documents Containing Audited Financial Statements
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 720REQUIREMENTSILLUSTRATIONS: OTHER INFORMATION SECTIONS TO BE INCLUDED IN AUDITOR'S REPORTS RELATING TO OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT
37 AU-C 725 Supplementary Information in Relation to the Financial Statements as a Whole
SCOPEDEFINITION OF TERMOBJECTIVES OF AU-C SECTION 725REQUIREMENTSINTERPRETATIONAU-C 725 ILLUSTRATIONS
38 AU-C 730 Required Supplementary Information
SCOPEDEFINITIONS OF TERMSOBJECTIVESREQUIREMENTSAU-C 730 ILLUSTRATIONS
39 AU-C 800 Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 800REQUIREMENTSILLUSTRATIONS OF AUDITOR'S REPORTS ON SPECIAL PURPOSE FINANCIAL STATEMENTS
40 AU-C 805 Special Considerations— Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 805REQUIREMENTSINTERPRETATIONILLUSTRATIONS OF AUDITOR'S REPORTS ON A SINGLE FINANCIAL STATEMENT AND A SPECIFIC ELEMENT OF A FINANCIAL STATEMENTNOTES
41 AU-C 806 Reporting on Compliance with Aspects of Contractual Agreements or Regulatory Requirements in Connection with Audited Financial Statements
SCOPEDEFINITIONS OF TERMSOBJECTIVE OF AU-C SECTION 806REQUIREMENTSAU-C 806 ILLUSTRATIONS
42 AU-C 810 Engagements to Report on Summary Financial Statements
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C 810REQUIREMENTSAU-C 810 ILLUSTRATIONS
43 AU-C 905 Alert That Restricts the Use of the Auditor's Written Communication
SCOPEDEFINITION OF TERMOBJECTIVE OF AU-C SECTION 905REQUIREMENTSAU-C 905 ILLUSTRATIONS
44 AU-C 910 Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country
SCOPEAU-C DEFINITIONS OF TERMSOBJECTIVE OF AU-C 910REQUIREMENTSILLUSTRATIONS OF AUDITOR'S REPORTS ON FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH A FINANCIAL REPORTING FRAMEWORK GENERALLY ACCEPTED IN ANOTHER COUNTRY
45 AU-C 915 Reports on Application of Requirements of an Applicable Financial Reporting Framework
SCOPEDEFINITIONS OF TERMSOBJECTIVEREQUIREMENTSILLUSTRATION: ILLUSTRATIVE WRITTEN REPORT TO THE REQUESTING PARTY
46 AU-C 920 Letters for Underwriters and Certain Other Requesting Parties
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 920OVERVIEWREQUIREMENTS: GENERALREQUIREMENTS: FORMAT AND CONTENTS OF COMFORT LETTERSREQUIREMENTS: COMMENTING IN A COMFORT LETTER ON INFORMATION OTHER THAN AUDITED FINANCIAL STATEMENTSREQUIREMENTS: OTHER MATTERSAU-C 920 ILLUSTRATIONS
47 AU-C 925 Filings with the U.S. Securities and Exchange Commission under the Securities Act of 1933
SCOPEDEFINITIONS OF TERMSOBJECTIVEREQUIREMENTSILLUSTRATION: ILLUSTRATIVE DISCLOSURES AND REPORTS (AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, AU-C 925.A15)
48 AU-C 930 Interim Financial Information
SCOPEDEFINITION OF TERMOBJECTIVE OF AU-C SECTION 930REQUIREMENTSAUDITOR'S REPORTINTERIM FINANCIAL INFORMATION ACCOMPANYING AUDITED FINANCIAL STATEMENTSDOCUMENTATIONAU-C 930 ILLUSTRATIONS
49 AU-C 935 Compliance Audits
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C SECTION 935REQUIREMENTSAU-C 935 ILLUSTRATIONS
50 AU-C 940 An Audit of Internal Control over Financial Reporting That Is Integrated with an Audit of Financial Statements
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C 940REQUIREMENTSREPORTING REQUIREMENTSAU-C 940 ILLUSTRATIONS—ILLUSTRATIVE REPORTSNOTES
51 AU-C 945 Auditor Involvement with Exempt Offering Documents
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AU-C 945REQUIREMENTS
52 AT-C Preface
AT-C ORGANIZATIONAT-C PREFACE
53 AT-C 105 Concepts Common to All Attestation Engagements
TECHNICAL ALERTSCOPE AND WRITTEN ASSERTIONOBJECTIVESDEFINITIONS OF TERMSREQUIREMENTSINTERPRETATIONSAT-C 105 ILLUSTRATIONS—PRACTITIONER'S AGREED-UPON PROCEDURES REPORTS
54 AT-C 205 Assertion-Based Examination Engagements
OVERVIEWOBJECTIVESDEFINITIONS OF TERMSREQUIREMENTSILLUSTRATION: PRACTITIONER'S EXAMINATION REPORT ON SUBJECT MATTER; UNMODIFIED OPINIONINTERPRETATIONSILLUSTRATIONS (AT-C 205.A121)
55 AT-C 206 Direct Examination Engagements
TECHNICAL ALERTSCOPEOBJECTIVES OF AT-C 206REQUIREMENTSEXHIBIT—ILLUSTRATIVE DIRECT EXAMINATION REPORTS (STATEMENT ON STANDARDS FOR ATTESTATION ON ENGAGEMENTS)
56 AT-C 210 Review Engagements
TECHNICAL ALERTSCOPEDEFINITIONS OF TERMSOBJECTIVES OF SECTION 215REQUIREMENTSILLUSTRATIONS—ILLUSTRATIVE PRACTITIONER'S REVIEW REPORTS
57 AT-C 215 Agreed-Upon Procedures Engagements
TECHNICAL ALERTSCOPEOBJECTIVES OF AT-C SECTION 215REQUIREMENTSSTATEMENT OF POSITION 21-1ILLUSTRATIONS—ILLUSTRATIVE PRACTITIONER'S AGREED-UPON PROCEDURES REPORTS (AT-C 215.A77)NOTE
58 AT-C 305 Prospective Financial Information
SCOPEDEFINITIONS OF TERMSOBJECTIVESOBJECTIVESREQUIREMENTSREPORTSNOTE
59 AT-C 310 Reporting on Pro Forma Financial Information
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AN EXAMINATION ENGAGEMENTOBJECTIVES OF A REVIEW ENGAGEMENTREQUIREMENTSILLUSTRATIONSNOTE
60 AT-C 315 Compliance Attestation
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AN EXAMINATION ENGAGEMENTOBJECTIVES OF AN AGREED-UPON PROCEDURES ENGAGEMENTREQUIREMENTS—EXAMINATION ENGAGEMENTSREQUIREMENTS: AGREED-UPON PROCEDURES ENGAGEMENTNOTE
61 AT-C 320 Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting
SCOPEDEFINITIONS OF TERMSOBJECTIVES OF AT-C SECTION 320REQUIREMENTSILLUSTRATION: TYPE 1 SERVICE AUDITOR'S REPORT (ASSOCIATION OF INTERNATIONAL CERTIFIED PROFESSIONAL ACCOUNTANTS, AT-C 320.75)
62 AT-C 395 Management's Discussion and Analysis
SCOPEDEFINITION OF TERMOBJECTIVESREQUIREMENTS: EXAMINATIONREQUIREMENTS: REVIEWILLUSTRATIONSNOTES
63 AR-C 60 General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services
SCOPEDEFINITIONS OF TERMSOBJECTIVES AND LIMITATIONS OF SSARS ENGAGEMENTSFUNDAMENTAL REQUIREMENTS
64 AR-C 70 Preparation of Financial Statements
SCOPEOBJECTIVES AND LIMITATIONS OF PREPARATION ENGAGEMENTSDEFINITIONS OF TERMSDETERMINING THE TYPE OF ENGAGEMENTREQUIREMENTSILLUSTRATION—AN ENGAGEMENT LETTER FOR AN ENGAGEMENT TO PREPARE FINANCIAL STATEMENTS IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA
65 AR-C 80 Compilation Engagements
SCOPEOBJECTIVES AND LIMITATIONS OF COMPILATION ENGAGEMENTSDEFINITIONS OF TERMSREQUIREMENTSILLUSTRATION—CHECKLIST FOR A COMPILATION ENGAGEMENTILLUSTRATIVE ENGAGEMENT LETTERS (BASED ON AR-C 80.A51)ILLUSTRATIVE EXAMPLES OF THE ACCOUNTANT'S COMPILATION REPORT ON FINANCIAL STATEMENTSILLUSTRATIVE REPORT PARAGRAPHS—REQUIRED SUPPLEMENTARY INFORMATION (ADAPTED FROM AT-C 80)NOTE
66 AR-C 90 Review of Financial Statements
SCOPEOBJECTIVESDEFINITIONS OF TERMSREQUIREMENTSILLUSTRATIONS: REVIEW ENGAGEMENTNOTES
67 AR-C 100 Special Considerations—International Reporting Issues
SCOPEOBJECTIVEDEFINITIONSREQUIREMENTSREPORTING
68 AR-C 120 Compilation of Pro Forma Financial Information
SCOPEDEFINITION OF TERMOBJECTIVES OF AR-C SECTION 120REQUIREMENTSILLUSTRATIONS
APPENDIX A: DEFINITIONS OF TERMS—AU-C STANDARDS
NOTES
APPENDIX B: DEFINITIONS OF TERMS—AT-C STANDARDS
APPENDIX C: DEFINITIONS OF TERMS—AR-C STANDARDS
APPENDIX D: INTERPRETIVE PUBLICATIONS AND OTHER AUDITING PUBLICATIONS
NOTE
INDEX
END USER LICENSE AGREEMENT

Content preview from Wiley Practitioner's Guide to GAAS 2022

22AU-C 550 Related Parties

Scope
Definitions of Terms
Objectives of AU-C Section 550
Overview
Requirements
- Responsibilities of the Auditor
- Risk Assessment Procedures
AU-C 550 Illustration—Related-Party Checklist

SCOPE

AU-C 550 applies to all audits of financial statements and requires that auditors evaluate related parties and relationships and transactions and their effect on risks of material misstatements. This Section also requires that the auditor evaluate whether related-party disclosures beyond those required by the specialized framework are necessary. (AU-C 550.01 and .02)

DEFINITIONS OF TERMS

Source: AU-C 550.10. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Arm's-length transaction, Related party.

OBJECTIVES OF AU-C SECTION 550

The objectives of the auditor are to

obtain an understanding of related-party relationships and transactions sufficient to be able to

recognize fraud risk factors, if any, arising from related-party relationships and transactions that are relevant to the identification and assessment of the risks of material misstatement due to fraud.

conclude, based on the audit evidence obtained, whether the financial statements, insofar as they are affected by those relationships and transactions, achieve fair presentation.

obtain sufficient appropriate audit evidence about whether related-party relationships and transactions have been appropriately identified, accounted for, and disclosed in the financial ...

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