Efnisyfirlit

• Digital Resources for Students
• Title Page
• Copyright
• Pearson’s Commitment to Diversity, Equity, and Inclusion
• Continuing The Legacy of Alvin A. Arens
• About the Authors
• Contents
• Preface
• CPA Exam Review Designe For You
• Part 1: The Auditing Profession
• Chapter 1. The Demand For Audit And Other Assurance Services
• Learning Objectives
• Nature of Auditing
• Distinction Between Auditing and Accounting
• Economic Demand for Auditing
• Assurance Services
• Types of Audits
• Types of Auditors
• Certified Public Accountant
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Chapter 2. The CPA Profession
• Learning Objectives
• Certified Public Accounting Firms
• Structure of CPA Firms
• Sarbanes–Oxley Act and Public Company Accounting Oversight Board
• Securities and Exchange Commission
• American Institute of Certified Public Accountants (AICPA)
• International and U.S. Auditing Standards
• Organization of U.S. Auditing Standards
• Quality Control
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Chapter 3. Audit Reports
• Learning Objectives
• Standard Unmodified Opinion Audit Report for Nonpublic Entities
• Conditions for Standard Unmodified Opinion Audit Report
• Standard Audit Report and Report on Internal Control over Financial Reporting Under PCAOB Auditing S
• Unmodified Opinion Audit Report with Emphasis-of-Matter Explanatory Paragraph or Nonstandard Report
• Modifications to the Opinion in the Audit Report
• Materiality
• Discussion of Conditions Requiring a Modification of Opinion
• Auditor’s Decision Process for Audit Reports
• International Accounting and Auditing Standards
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Chapter 4. Professional Ethics
• Learning Objectives
• What Are Ethics?
• Ethical Dilemmas
• Special Need for Ethical Conduct in Professions
• Code of Professional Conduct
• Independence Rule
• Sarbanes–Oxley and Related Independence Requirements
• Other Rules of Conduct
• Enforcement
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Cases
• Chapter 5. Legal Liability
• Learning Objectives
• Legal Environment for CPAs
• Distinguishing Business Failure, Audit Failure, and Audit Risk
• Legal Concepts Affecting Liability
• Liability to Clients
• Liability to Third Parties Under Common Law
• Civil Liability Under the Federal Securities Laws
• Criminal Liability
• The Profession’s Response to Legal Liability
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Part 2: The Audit Process
• Chapter 6. Audit Responsibilities And Objectives
• Learning Objectives
• Objective of Conducting an Audit of Financial Statements
• Management’s Responsibilities
• Auditor’s Responsibilities
• Professional Skepticism
• Professional Judgment
• Financial Statement Cycles
• Setting Audit Objectives
• Management Assertions
• Transaction-Related Audit Objectives
• Balance-Related Audit Objectives
• How Audit Objectives Are Met
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Chapter 7. Audit Evidence
• Learning Objectives
• Nature of Evidence
• Audit Evidence Decisions
• Persuasiveness of Evidence
• Types of Audit Evidence
• Analytical Procedures
• Use of Data Analytics and Other Advanced Technologies
• Common Financial Ratios
• Audit Documentation
• Contents and Organization
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Chapter 8. Audit Planning And Materiality
• Learning Objectives
• Planning
• Accept Client and Perform Initial Audit Planning
• Understand the Client’s Business and Industry
• Perform Preliminary Analytical Procedures
• Materiality
• Materiality for Financial Statements as a Whole
• Determine Performance Materiality
• Estimate Misstatement and Compare with Preliminary Judgment
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Integrated Case Application—Pinnacle Manufacturing: Part I
• Chapter 9. Assessing The Risk Of Material Misstatement
• Learning Objectives
• Audit Risk
• Risk Assessment Procedures
• Considering Fraud Risk
• Identification of Significant Risks
• Audit Risk Model
• Assessing Acceptable Audit Risk
• Assessing Inherent Risk
• Relationship of Risks to Evidence and Factors Influencing Risks
• Relationship of Risk and Materiality to Audit Evidence
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Integrated Case Application—Pinnacle Manufacturing: Part II
• Chapter 10. Assessing And Responding To Fraud Risks
• Learning Objectives
• Types of Fraud
• Conditions for Fraud
• Assessing the Risk of Fraud
• Corporate Governance Oversight to Reduce Fraud Risks
• Responding to the Risk of Fraud
• Specific Fraud Risk Areas
• Responsibilities When Fraud Is Suspected
• Documenting the Fraud Assessment
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Integrated Case Application—Pinnacle Manufacturing: Part III
• Chapter 11. Internal Control And COSO Framework
• Learning Objectives
• Internal Control Objectives
• Management and Auditor Responsibilities for Internal Control
• COSO Components of Internal Control
• Internal Controls Specific to Information Technology
• Impact of IT Infrastructure on Internal Control
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Chapter 12. Assessing Control Risk And Reporting On Internal Controls
• Learning Objectives
• Obtain and Document Understanding of System of Internal Control
• Assess Control Risk
• Tests of Controls
• Decide Planned Detection Risk and Design Substantive Tests
• Auditor Reporting on Internal Control
• Evaluating, Reporting, and Testing Internal Control for Nonpublic and Smaller Public Companies
• Impact of IT Environment on Control Risk Assessment and Testing
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Integrated Case Application—Pinnacle Manufacturing: Part IV
• Chapter 13. Overall Audit Strategy And Audit Program
• Learning Objectives
• Types of Tests
• Selecting Which Types of Tests to Perform
• Evidence Mix
• Design of the Audit Program
• Summary of Key Evidence-Related Terms
• Summary of the Audit Process
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Cases
• Part 3: Application Of The Audit Process To The Sales And Collection Cycle
• Chapter 14. Audit Of The Sales And Collection Cycle: Tests Of Controls And Substantive Tests Of Tran
• Learning Objectives
• Accounts and Classes of Transactions in the Sales and Collection Cycle
• Business Functions in the Cycle and Related Documents and Records
• Methodology for Designing Tests of Controls and Substantive Tests of Transactions for Sales
• Sales Returns and Allowances
• Methodology for Designing Tests of Controls and Substantive Testsof Transactions for Cash Receipts
• Audit Tests for Uncollectible Accounts
• Effect of Results of Tests of Controls and Substantive Tests of Transactions
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Integrated Case Application—Pinnacle Manufacturing: Part V
• Chapter 15. Audit Sampling For Tests Of Controls And Substantive Tests Of Transactions
• Learning Objectives
• Representative Samples
• Statistical Versus Nonstatistical Sampling and Probabilistic Versus Nonprobabilistic Sample Selectio
• Sample Selection Methods
• Sampling for Exception Rates
• Application of Nonstatistical Audit Sampling
• Statistical Audit Sampling
• Application of Statistical Attributes Sampling
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Integrated Case Application—Pinnacle Manufacturing: Part VI
• Chapter 16. Completing The Tests In The Sales And Collection Cycle: Accounts Receivable
• Learning Objectives
• Methodology for Designing Tests of Details of Balances
• Designing Tests of Details of Balances
• Confirmation of Accounts Receivable
• Developing Tests of Details Audit Program
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions From Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Integrated Case Application—Pinnacle Manufacturing: Part VII
• Chapter 17. Audit Sampling For Tests Of Details Of Balances
• Learning Objectives
• Comparisons of Audit Sampling for Tests of Details of Balances and for Tests of Controls and Substan
• Nonstatistical Sampling
• Monetary Unit Sampling
• Variables Sampling
• Illustration Using Difference Estimation
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA and CIA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Cases
• Part 4: Application Of The Audit Process To Other Cycles
• Chapter 18. Audit Of The Acquisition And Payment Cycle: Tests Of Controls, Substantive Tests Of Tran
• Learning Objectives
• Accounts and Classes of Transactions in the Acquisition and Payment Cycle
• Business Functions in the Cycle and Related Documents and Records
• Methodology for Designing Tests of Controls and Substantive Tests of Transactions
• Methodology for Designing Tests of Details of Balances for Accounts Payable
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Chapter 19. Completing The Tests In The Acquisition And Payment Cycle: Verification Of Selected Acco
• Learning Objectives
• Types of Other Accounts in the Acquisition and Payment Cycle
• Audit of Property, Plant, and Equipment
• Audit of Prepaid Expenses
• Audit of Accrued Liabilities
• Audit of Income and Expense Accounts
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Cases
• Chapter 20. Audit Of The Payroll And Personnel Cycle
• Learning Objectives
• Accounts and Transactions in the Payroll and Personnel Cycle
• Business Functions in the Cycle and Related Documents and Records
• Methodology for Designing Tests of Controls and Substantive Tests of Transactions
• Methodology for Designing Substantive Analytical Procedures and Tests of Details of Balances
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Chapter 21. Audit Of The Inventory And Warehousing Cycle
• Learning Objectives
• Business Functions in the Cycle and Related Documents and Records
• Parts of the Audit of Inventory
• Audit of Cost Accounting
• Substantive Analytical Procedures
• Physical Observation of Inventory
• Audit of Pricing and Compilation
• Integration of the Tests
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Chapter 22. Audit Of The Capital Acquisition And Repayment Cycle
• Learning Objectives
• Accounts in the Cycle
• Notes Payable
• Owners’ Equity
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Chapter 23. Audit Of Cash And Financial Instruments
• Learning Objectives
• Types of Cash and Financial Instruments Accounts
• Cash in the Bank and Transaction Cycles
• Audit of the General Cash Account
• Fraud-Oriented Procedures
• Audit of Financial Instruments Accounts
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Part 5: Completing The Audit
• Chapter 24. Completing The Audit
• Learning Objectives
• Perform Additional Tests for Presentation and Disclosure
• Review for Contingent Liabilities and Commitments
• Review for Subsequent Events
• Final Evidence Accumulation
• Evaluate Results
• Issue the Audit Report
• Communicate with the Audit Committee and Management
• Subsequent Discovery of Facts
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Case
• Part 6: Other Assurance And Nonassurance Services
• Chapter 25. Other Assurance Services
• Learning Objectives
• Review, Compilation, and Preparation Services
• Review of Interim Financial Information for Public Companies
• Attestation Engagements
• Reports on Controls at Service Organizations (SOC Reports)
• Prospective Financial Statements
• Agreed-Upon Procedures Engagements
• Other Audits or Limited Assurance Engagements
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Chapter 26. Internal And Governmental Financial Auditing And Operational Auditing
• Learning Objectives
• Internal Financial Auditing
• Governmental Financial Auditing
• Operational Auditing
• Summary
• Essential Terms
• Review Questions
• Multiple Choice Questions from CPA, CIA, and CMA Examinations
• Multiple Choice Questions from Becker CPA Exam Review*
• Discussion Questions and Problems
• Index
• A
• B
• C
• D
• E
• F
• G
• H
• I
• J
• K
• L
• M
• N
• O
• P
• Q
• R
• S
• T
• U
• V
• W
• X
• Y
• Credits