PART I: INTRODUCTION AND FOUNDATIONS

In this section

• Chapter 1: The Auditing Profession and Exam Overview
  • Defining the Role of the External Auditor
    Explore the primary objectives of the external auditor, their key responsibilities, independence, and professional skepticism, along with practical examples and frameworks that guide their work.
  • Evolution of Auditing Standards (AICPA, PCAOB, GAO)
    Explore the historical development of auditing standards in the United States, highlighting the roles of the AICPA, PCAOB, and GAO, and how these standards have evolved to meet the needs of private companies, public companies, and governmental agencies.
  • CPA Exam Overview for the AUD Section
    Explore the structure, content weighting, question formats, and essential skills required for success in the Auditing and Attestation (AUD) section of the CPA Exam.
  • Key Exam Strategies and Study Techniques
    Learn essential strategies for tackling the CPA AUD Exam, including time management, practice with simulations, and proven study techniques to enhance your comprehension and recall.
• Chapter 2: Ethics, Professional Responsibilities, and Independence
  • Legal Liability and Malpractice Considerations
    An in-depth exploration of auditors’ legal responsibilities, common law and statutory liabilities, and strategies to mitigate malpractice risks through best practices and professional diligence.
  • AICPA Code of Professional Conduct
    Explore the foundational ethical principles, rules, and interpretations guiding CPAs in safeguarding public interest and maintaining professional integrity.
  • Professional Skepticism and Judgment
    A comprehensive exploration of skepticism, biases, and critical thinking in auditing, showcasing how auditors exercise professional judgment within ethical boundaries.
  • Ethics in Practice: Real-World Dilemmas and Case Studies
    Explore real-world ethical decision-making frameworks, whistleblowing considerations, and case studies that underscore the CPA's professional responsibilities and consequences for failure to meet ethical standards.
  • Independence Requirements (AICPA, PCAOB, SEC, GAO, DOL)
    Explore independence requirements for auditors under AICPA, PCAOB, SEC, GAO, and DOL standards, including key rules, prohibited services, and practical guidance for ensuring objectivity and compliance.
• Chapter 3: Engagement Acceptance and General Principles
  • Quality Control at the Firm and Engagement Levels
    Explore firm-wide quality control systems, leadership responsibilities, and engagement-specific measures to uphold auditing standards and ethics.
  • Engagement Economics (Staffing, Budgets, and Scheduling)
    Optimize audit engagements by effectively allocating resources, planning budgets, and scheduling critical tasks for maximum efficiency and quality.
  • Engagement Letters: Scope, Objectives, Responsibilities
    Learn how well-crafted engagement letters help define responsibilities, scope, timing, fees, and other essential terms for successful audit engagements.
  • Communication with Predecessor Auditors and Management
    Explore best practices, common challenges, and crucial procedures for establishing contact with predecessor auditors and management when considering a new audit engagement.
  • Documentation Requirements and Retention
    Explore the essential principles, standards, and best practices for audit documentation, including completeness, clarity, retention policies, and confidentiality requirements for both public and private audits.
  • Audit Engagement Prerequisites
    Explore the critical steps before accepting an audit engagement, including client integrity checks, independence evaluations, engagement risks, and professional competence assessments.