Auditing and assurance services 12th edition
By Arens
Email: richard@qwconsultancy.com
TABLE OF CONTENTS I.
THE AUDITING PROFESSION. 1. The Demand for Audit and Other Assurance Services. 2. The CPA Profession. 3. Audit Reports. 4. Professional Ethics. 5. Legal Liability.
II.
THE AUDIT PROCESS. 6. Audit Responsibilities and Objectives. 7. Audit Evidence. 8. Audit Planning and Analytical Procedures. 9. Materiality and Risk. 10. Internal Control and Control Risk. 11. Fraud Auditing 12. The Impact of Information Technology on the Audit Process. 13. Overall Audit Plan and Audit Program.
III.
APPLICATION OF THE AUDIT PROCESS TO THE SALES AND COLLECTION CYCLE. 14. Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions. 15. Audit Sampling for Tests of Controls and Substantive Tests of Transactions. 16. Completing the Tests in the Sales and Collection Cycle: Accounts Receivable. 17. Audit Sampling for Tests of Details of Balances.
IV.
APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES. 18. Audit of the Payroll and Personnel Cycle. 19. Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable. 20. Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts. 21. Audit of the Inventory and Warehousing Cycle. 22. Audit of the Capital Acquisition and Repayment Cycle. 23. Audit of Cash Balances.
V.
COMPLETING THE AUDIT. 24. Completing the Audit.
VI.
OTHER ASSURANCE AND NONASSURANCE SERVICES. 25. Other Assurance Services. 26. Internal and Governmental Financial Auditing and Operational Auditing.
CHAPTER 1 Multiple-Choice Questions 1. easy c
Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called: a. finance. b. auditing. c. accounting. d. economics.
2. easy c
In the audit of historical financial statements, which of the following accounting bases is the most common? a. Regulatory accounting principles. b. Cash basis of accounting. c. Generally accepted accounting principles. d. Liquidation basis of accounting.
3. easy b
Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n): a. accounting and bookkeeping service. b. attestation service. c. assurance service. d. tax service.
4. easy a
Three common types of attestation services are: a. audits, reviews, and “other” attestation services. b. audits, verifications, and “other” attestation services. c. reviews, verifications, and “other” attestation services. d. audits, reviews, and verifications.
5. (SOX) easy d
The organization that is responsible for providing oversight for auditors of public companies is called the ________. a. Auditing Standards Board. b. American Institute of Certified Public Accountants. c. Public Oversight Board. d. Public Company Accounting Oversight Board.
6. (SOX) easy c
The Sarbanes-Oxley Act applies to which of the following companies? a. All companies. b. Privately held companies. c. Public companies. d. All public companies and privately held companies with assets greater than $500 million.
7. medium d
Providing quantitative information that management and others can use to make decisions is the function of: a. management information systems. b. auditing. c. finance. d. accounting.
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