Following table summarizes the key aspects of what will be covered on
the midterm exam. There may be a small portion of the exam that covers areas not listed below. Class 1 Overview of Auditing Definition, CAS Different Levels of Assurance Audits, reviews, compilations Audit of Financial Information other than F/S (5805) Audit for compliance with a Contract, Agreement (5815) Class 2 Auditor Reporting Components Types of Audit Reports 5 types Ethics & Rules/Code of Professional Conduct listed in lecture notes and covered in homework 5 facets/pillars of independence Class 3 Legal liability Focus on lecture notes Due Care Business Failure, Audit Failure, Audit Risk Negligence Assertions Class 4 Evidence Tree of SAAE Analytical Procedures Class 5 Audit Risk Model Class 6 Materiality Audit Planning I Client Acceptance Issues Preplanning Risk assessment, Tests of Controls, Substantive Tests Class 7 Midterm Class 8 Internal Controls & Control Risk Definition of Internal Control Practical/Inherent Limitations Components of Internal Control Control Environment Substantive Procedures Audit Approaches Class 9 Fraud Fraud versus Error Fraud Triangle Auditors Role, Responsibilities, Responses Sampling Concepts Considerations for sample size Methodologies Class 10 Business Functions and Documents in the RRR Cycle Sales Class Cash Receipts Class Class 11 RRR Cycle continued Receivables Link between Classes of Transactions and Account Balances Confirmation Process Alternative Procedures
Business Functions and Documents in the PPP Cycle
Acquisitions Class Cash Disbursements Class
Class 12 Inventory Cycle
Class 13 Completing the Audit Quantitative and Qualitative considerations Summarize errors, compare to materiality 1. Multiple Choice 2. Short Answer 3. Longer Answer