PART III: PERFORMING FURTHER PROCEDURES AND OBTAINING EVIDENCE

In this section

• Chapter 8: Gathering Sufficient Appropriate Evidence
  • Audit Sampling and Engagement Efficiency
    Learn how effective audit sampling techniques enhance evidence gathering and boost engagement efficiency, balancing risk assessment, cost, and thoroughness.
  • Working Papers and Documentation of Results
    Explore the critical role of audit documentation in ensuring compliance with GAAS, supporting audit conclusions, and fostering efficient workpaper assembly and retention processes.
  • Evidence Collection: Observation, Inquiry, Inspection, Confirmation
    Deep dive into auditor evidence collection techniques, including observation, inquiry, inspection, and confirmation, ensuring thorough audit evidence for the Uniform CPA Examination AUD section.
  • Tests of Controls vs. Substantive Procedures in Auditing
    Understand how audit professionals use tests of controls and substantive procedures to obtain sufficient appropriate evidence, reduce risk, and ensure the integrity of financial statements.
  • Analytical Procedures and Data Analytics in Testing: A Comprehensive Guide
    Learn how to apply analytical procedures and harness the power of data analytics in auditing, detect anomalies, investigate variances, and gather sufficient appropriate evidence.
• Chapter 9: Internal Control Testing and Evaluation
  • Testing Internal Control Over Financial Reporting in Public Companies (Integrated Audits)
    A comprehensive exploration of SOX Section 404 requirements, top-down approaches, control design vs. operating effectiveness, and reporting on ICFR within an integrated audit framework for public companies.
  • Assessing Deviations and Impact on Risk Assessment
    Explore why internal control deviations matter in the audit process, how auditors determine their severity, and how deviations influence overall risk assessment and substantive testing approaches.
  • Performing Walkthroughs, Reperformance, and Inspection
    A comprehensive guide to effectively conducting walkthroughs, reperformance, and inspection as part of internal control testing and evaluation.
  • Communicating Deficiencies to Management and Those Charged with Governance
    Learn how to identify, classify, and communicate internal control deficiencies to management and those charged with governance. Discover best practices for timing, delivery, and remediation steps in accordance with AU-C Section 265 and PCAOB AS 1305.
• Chapter 10: Substantive Testing of Account Balances and Transactions
  • Purchases, Expenditures, and Payroll Cycles
    Master key auditing procedures to identify risks, perform tests of details, and apply analytical techniques for purchases, expenditures, and payroll cycles.
  • Revenue and Receipts Cycles: Substantive Testing Strategies
    Learn how to identify and address key risks in revenue and receipts cycles for CPA AUD. Explore best practices for substantive testing, cut-off testing, confirmations, and more.
  • Fixed Assets, Depreciation, and Impairment
    Comprehensive coverage of auditing fixed assets, verifying depreciation methods, and identifying impairment triggers under the CPA Exam blueprint.
  • Financial Investments and Fair Value Measurements
    Explore essential audit procedures for financial investments, including fair value measurement techniques, valuation hierarchies, and disclosures.
  • Inventory Observations and Costing Issues: Best Practices and Key Audit Strategies
    Explore physical inventory observation requirements, costing methodologies (FIFO, LIFO, Weighted Average), and strategies to identify excess or obsolete inventory. Learn auditing best practices, common pitfalls, real-world examples, and reference resources for mastering inventory audits.
• Chapter 11: Auditing Specific Matters and Estimates
  • Accounting Estimates, Provisions, and Contingencies
    Explore the nature, challenges, and audit approaches for accounting estimates, provisions, and contingencies, including real-world examples, diagrams, and best practices for the Uniform CPA Examination.
  • Evaluating Going Concern Issues
    Learn how to assess an entity's ability to continue as a going concern and explore factors that indicate substantial doubt, management responsibilities, and auditor reporting considerations.
  • Related Parties: Identification and Disclosure Requirements
    A comprehensive guide to auditing related party transactions, covering identification procedures, substance over form, and disclosure requirements.
  • Legal and Litigation Liabilities
    Explore key auditing considerations, risk assessments, and practical procedures for identifying and evaluating legal contingencies and litigation liabilities as part of the audit process.
  • Using the Work of an Auditor’s Specialist: Best Practices and Key Considerations
    Explore the critical role of specialists in auditing complex valuations, actuarial computations, and other technical matters to ensure robust, compliant audit engagements.
• Chapter 12: Evaluating Misstatements and Concluding on Results
  • Aggregating Identified Misstatements
    Explore how auditors identify, accumulate, and evaluate misstatements, including factual, judgmental, and projected misstatements. Learn about the Schedule of Unadjusted Misstatements, how to address overlapping errors, and key references guiding auditors in determining if adjustments are necessary.
  • Qualitative Factors Affecting Materiality
    A deep dive into how non-quantitative considerations can shape materiality judgments, covering circumstances, trends, and fraud indicators in auditing.
  • Reviewing Engagement Quality and Final Analytical Review: Ensuring Audit Quality
    Learn the critical final steps in an audit, focusing on engagement quality review (EQR) for public companies and final analytical procedures, to ensure accurate, fair financial statements and an effective audit conclusion.
  • Final Steps Before Drafting the Auditor’s Report
    A comprehensive guide to the critical final procedures—management representation, review of subsequent events, and final archiving—that auditors must complete before issuing their audit report.