Objectives: The objective of this course is to review three recently issued auditing standards: SAS Nos. 146-148.
The first section reviews the requirements found in SAS No. 146 related to quality management of an audit engagement. This section identifies the key elements of quality management, the important role and responsibilities of the engagement partner in managing the audit, the importance of quality to all members of the audit engagement team.
The section informs the reader of the various changes made to AU-C 210, Terms of Engagement, by SAS No. 147 in connection with fraud and noncompliance with laws and regulations. Topics including clarifying requirements and guidance related to a successor auditor’s inquiries of a predecessor auditor, responsibilities of the predecessor auditor to respond to successor auditor inquiries when authorized by management, and more.
Finally, the section discuss amendments made to AU-C 935, Compliance Audits, by SAS No. 148, to reflect changes made by recently issued auditing standards SAS No. 142 and 145. Topics include identifying the specific amendments made to AU-C 935 that are part of AU-C 315, Understanding the
Entity and Its Environment and Assessing the Risks of Material Misstatement. The course also identifies amendments to the appendix to AU-C 935 that identifies AU-C sections that are specific excluded from application to compliance audits.
After reading the course
material, you will be able to:
Recall the date by which an engagement partner must take responsibility for determining that ethical requirements are fulfilled
Identify certain requirements an engagement partner must satisfy in performing an audit engagement
Identify a type of unconscious bias defined in SAS No. 146
Recall a possible action that an engagement team may take to mitigate impediments to exercise professional skepticism
Identify when a successor auditor should request management to authorize a predecessor auditor’s response to the successor auditor’s inquiry
Recognize one of the new inquiries a successor auditor should make of a predecessor auditor by SAS No. 147
Recall the extent of a predecessor auditor’s response to a successor auditor’s inquiries when there are certain restrictions on the predecessor auditor.
Identify an example of a recently issued auditing standard that SAS No. 148 incorporates into amendments to AU-C 935, Compliance Audits.
Recall examples of inherent risk factors related to identifying and assessing risks of material misstatement in a compliance audit.
Presentation Method: Self-Study
Category: Auditing
CPE credit: 2 Hours
Program Level: Basic to intermediate
Prerequisites: Basic understanding of auditing standards
Advance Preparation: None
Exam expiration date: Participants must submit exams for grading within one year from the date of purchase
I am very positively impressed with the American CPE program. I just started my first course and found it to be very user friendly. Now taking the Compilation and Review Update. Love having the 500+ pages of the program saved on my hard drive. No need to print it all out! The control "F" feature allowing me to go to specific words or phrases is super helpful. The program is well written and has many useful charts, example reports and letters. I recommend this program to all CPAs.
Paul J Card
10/02/2020
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Smith & Co., CPAs, PLC
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ACCOUNTING FOR TAX REFORM
Undoubtedly very well explained. Lots of information which is not found in other courses or in IRS publications. Every accountant should take this course.