Audit and Assurance Essentials for Professional Accountancy Exams + Website

<p>Introduction 1</p>
<p>1 Auditors, Audits and Other Types of Assurance and Passing the Exam First Time 3</p>
<p>1.1 The Need for Audit and Other Types of Assurance 4</p>
<p>1.2 Passing the Exam First Time 13</p>
<p>2 Taking on Professional Work and Maintaining Standards 23</p>
<p>2.1 Introduction to Professional Standards 24</p>
<p>2.2 Fundamental Principles, Threats and Safeguards 26</p>
<p>2.3 Changes in a Professional Appointment 32</p>
<p>2.4 Obtaining Professional Work 34</p>
<p>2.5 Professional Ethics: Fees 39</p>
<p>2.6 Professional Ethics: Confl icts of Interest and Hospitality 43</p>
<p>2.7 Professional Ethics: Independence and Objectivity 45</p>
<p>2.8 Appointing and Removing Auditors 57</p>
<p>2.9 Agreeing Engagement Terms 61</p>
<p>3 Housekeeping: Planning, Materiality and Documentation 67</p>
<p>3.1 Planning 68</p>
<p>3.2 Materiality 73</p>
<p>3.3 Audit Documentation 77</p>
<p>4 The Core of the Audit 87</p>
<p>4.1 Risk Assessments 87</p>
<p>4.2 Audit Evidence 113</p>
<p>4.3 Responding to Risk 128</p>
<p>4.4 Audit Tools 152</p>
<p>4.5 More Audit Tools: Using the Work of Others 196</p>
<p>4.6 Related Parties, Initial Engagements, Opening Balances and Comparative Information 228</p>
<p>5 Corporate Governance, Professional Liability, Regulation and Other Current Issues 237</p>
<p>5.1 Corporate Governance 237</p>
<p>5.2 Professional Liability, Regulation and Other Current Issues 250</p>
<p>6 Audit Reporting 265</p>
<p>6.1 Audit Finalisation 265</p>
<p>6.2 Modified and Unmodified Audit Opinions 275</p>
<p>6.3 Emphasis of Matter and Other Matter Paragraphs, Going Concern 288</p>
<p>6.4 Communications with Management and those Charged with Governance 299</p>
<p>6.5 Other Information 306</p>
<p>7 Fraud, Money Laundering, Forensic Accounting, Financial Instruments 311</p>
<p>7.1 Fraud: Auditors Responsibilities 312</p>
<p>7.2 Laws and Regulations: Auditors Responsibilities 322</p>
<p>7.3 Money Laundering 325</p>
<p>7.4 Forensic Accounting 331</p>
<p>7.5 Financial Instruments 335</p>
<p>8 The Wider Framework: Assurance, Other Engagements, Audit Quality and Quality Control 343</p>
<p>8.1 International Standards 345</p>
<p>8.2 Overall Objectives of Audits, the Framework For Assurance Engagements, ISAE 3000 353</p>
<p>8.3 Audit Quality and Quality Control 371</p>
<p>9 Smaller Entity Audits, Reviews, Compilations, Agreed–Upon Procedures Engagements, Not–For–Profit Engagements 383</p>
<p>9.1 Smaller Entity Audits 384</p>
<p>9.2 Overview of Reviews, Agreed–Upon Procedures and Compilation Engagements 387</p>
<p>9.3 Review Engagements 389</p>
<p>9.4 Compilation Engagements 398</p>
<p>9.5 Agreed–Upon Procedures Engagements 402</p>
<p>9.6 Not–For–Profit Engagements 406</p>
<p>10 Other Assurance Engagements 415</p>
<p>10.1 Introduction to Other Assurance Engagements 416</p>
<p>10.2 Assurance or Agreed–Upon Procedures: Key Performance Indicators 418</p>
<p>10.3 Social and Environmental Reporting and ISAE 3410 Assurance Engagements of Greenhouse Gas Statements 421</p>
<p>10.4 Prospective Financial Information 428</p>
<p>10.5 ISAE 3420 Reporting on the Compilation of Pro–Forma Financial Information in Prospectuses 433</p>
<p>IAASB Standards and Related Guidance Covered in This Publication 437</p>
<p>Answers 439</p>
<p>Abbreviations 487</p>
<p>Index 489</p>