AUDIT – Memorization notes

After going through Becker lectures twice, here are the notes I made for myself.

These are the items I am memorizing.  Feel free to use them for your own studying.  These still have my own personal typos and everything.  I hope it helps!

 

 

 

 

1.)General Standards – TIP General TIP

 

Training

Independence

Due Professional Care 

 

2.) Standards of Fieldwork – PIE Field of Pie.  Pie field

 

Planning and Supervision

Internal Control, Entity and Environment

Evidence

 

3.) Standards of Reporting – ACDO  The Report Acts like a Doe.  ACDO (holds very still in headlights)

 

A – Accounting GAAP

C – Consistency

D – Disclosure

O – Opinion

 

4.) Memorize This

 

Independent Auditor’s Report

 

We have audited the accompanying balance sheet of ABC as of December 31, 200x and the related statements of income, retained earnings, and cash flows for the year then ended.  These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance with auditing standards generally accepted in the United States of America.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ABC Company as of December 31, 200x and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

 

Signed

Date

 

5.) Independent Auditors Report

RRAAPPMMEEMM

 

Responsibility Responsibility

Audit Accordance

Plan Perform

Material Misstatement

Examining Evidence

Made Management

 

5.) GAAS – Scope SSSSSSSSSSSSSS GASS Scope

 

6.) Assumption of Responsibility (if there is no mention of other CPA) I’m going to RIPP a new CPA

 

R Reputation

I Independence

P Professional Competence

P program steps

 

7.) Going concern issue – He ADMITS there might be a problem

 

A Analytical procedures

D Debt compliance

M Minutes from board

I Inquiry of legal counsel

T Third parities

S subsequent events

 

Is the Client FINE?

 

F Financial difficulties

I Internal Maters

N Negative trends – recurrent losses, negative cash flow

E External Matters – loss of business, natural disaster

 

8.) Emphasis of a matter – Emphasize when the company is a rec

R Related Party transaction

E Event, subsequent

C component of a larger business or enterprise

C comparability of financial statements

 

8.) Changing Prior opinions – oops, what DORCS we are, we missed something

D Date4 of report

O Opinion

R Reasons

C Changes that have occurred

S Statement that the opinion is different

 

Updated / changed opinion when now in conformity with GAAP

 

9.) Auditor’s Responsibility for Subsequent events

 

P Post balance sheet transactions

R Representation letter from management

I Inquiry (contingent liabilities, change in debt or capitalization, unusual adjustments, legal consul

M Minutes of meetings

E Examine latest available interim financial statements

 

Subsequent to the year, I want some PRIME rib

 

 

 

Questions:

 

Generally accepted auditing standards

-         General Standards

-         Standards of Fieldwork

-         Standards of reporting

---

Possibly related posts: (automatically generated)

• Lovebug Lovebug – Jonas Brothers Titled you for the first time …
• The bullying of Wendy Portillo