PART IV: CONCLUSIONS, REPORTING, AND OTHER ENGAGEMENTS

In this section

• Chapter 13: Audit Reporting
  • Types of Opinions: Unmodified/Unqualified, Qualified, Adverse, Disclaimer
    A detailed exploration of the four main types of audit opinions—Unmodified/Unqualified, Qualified, Adverse, and Disclaimer—including practical scenarios, real-world examples, and decision-making flowcharts.
  • Emphasis-of-Matter and Other-Matter (Explanatory) Paragraphs
    Explore the significance and proper application of Emphasis-of-Matter and Other-Matter (Explanatory) paragraphs in the auditor’s report, with examples, diagrams, and best practices.
  • Comparative Financial Statements, Predecessor Auditors
    Explore the reporting requirements for comparative financial statements, the reissuance of predecessors’ audit reports, and best practices in referencing prior-year audits under AICPA and SEC guidance.
  • Supplementary and Other Information in Documents Containing Audited Financial Statements
    Explore the requirements and best practices for evaluating and reporting on supplementary and other information (RSI, OI) in documents that include audited financial statements.
  • Omission or Inconsistency of Required Disclosures
    Comprehensive guidance on addressing missing or misleading footnotes, disclosure deficiencies, and policy inconsistencies, focusing on audit reporting modifications and best practices.
• Chapter 14: Reporting on Internal Control Over Financial Reporting
  • PCAOB Requirements for Issuers (Public Companies)
    Explore how PCAOB standards guide integrated audits of public companies—covering internal control reporting requirements under Sarbanes-Oxley Section 404, the top-down approach in AS 2201, material weaknesses, and the resulting dual auditor opinions.
  • Separate vs. Integrated Reporting on Financial Statements and Internal Control
    Comprehensive overview of how auditors can present opinions on both financial statements and internal control over financial reporting, analyzing the differences and best practices for either combined or separate reporting formats.
  • Communicating Deficiencies: Significant vs. Material Weaknesses
    A thorough guide to classifying and reporting control deficiencies, focusing on significant deficiencies and material weaknesses with best practices for remediation.
  • Use of Separate or Combined Reports for the Audit of an Entity’s Financial Statements and the Audit of Internal Control
    Explore the considerations, benefits, and best practices when deciding between issuing a combined or separate report for an audit of financial statements and internal control over financial reporting.
• Chapter 15: Other Reporting Considerations
  • Reporting on Summarized Financial Statements
    Explore how auditors address condensed or summarized financial statements, procedures for verifying the condensed data, and the unique pitfalls associated with abbreviated presentations.
  • Special-Purpose Frameworks (Cash, Tax, Regulatory Basis)
    Explore the key considerations, audit procedures, and reporting requirements for financial statements prepared under a basis of accounting other than GAAP or IFRS. Learn about cash-basis, tax-basis, and regulatory-basis frameworks, common pitfalls, and best practices for auditors.
  • Interim Reviews of Public Companies (SAS vs. PCAOB Standards) Best Practices
    In-depth coverage of interim reviews for public companies under SAS and PCAOB standards, focusing on limited assurance, negative assurance, and key procedures.
  • Consistency, Changes in Accounting Principles, and Corrections of Errors
    Comprehensive guidance on consistency of financial statements, accounting principle changes, error corrections, and their impacts on audit reporting for the CPA Exam.
• Chapter 16: Review, Compilation, and Preparation Engagements
  • Standards for Accounting and Review Services (SSARS)
    A comprehensive guide to SSARS engagements, including compilation, review, and preparation services for nonpublic entities, covering AR-C Sections 60, 70, 80, and 90.
  • Form, Content, and Limitations of a Review Report
    Learn the essentials of review engagements, focusing on limited assurance, key procedures, report structure, and professional standards under AR-C Section 90.
  • Compilation Reports and Disclaimers of Assurance
    Understand how CPAs conduct compilation engagements, the nature of disclaimers of assurance, regulatory requirements, and how compilation reports differ from audit or review engagements under SSARS regulations.
  • Preparation Engagements and No Assurance Provided
    Explore how CPAs prepare financial statements under AR-C Section 70, delineating responsibilities, highlighting differences from compilation engagements, and underscoring the 'no assurance' requirement. Ideal for small businesses and practitioners seeking guidance on cost-effective, limited-scope engagements.
• Chapter 17: Attestation Services
  • Examinations, Reviews, and Agreed-Upon Procedures (SSAE Standards)
    Explore the fundamentals of SSAE engagements, including examinations, reviews, and agreed-upon procedures, and discover how CPAs apply AT-C Sections 105–370 to provide assurance services on non-financial subject matters.
  • Prospective Financial Information (Forecasts and Projections)
    Understand financial forecasts versus projections, examination or agreed-upon procedures engagements, and the CPA’s responsibilities when reporting on prospective financial statements.
  • Compliance Attestation and Other Special Reports
    Explore the intricacies of CPA compliance engagements, from identifying regulatory criteria to issuing specialized attestation reports, focusing on best practices and professional guidance.
  • Service Organization Controls (SOC) Reports: Understanding SOC 1, SOC 2, and SOC 3
    Explore the fundamentals of Service Organization Controls (SOC) Reports, including SOC 1, SOC 2, and SOC 3 engagements, the nature of the CPA examination, and Type 1 vs. Type 2 reporting for efficient risk management and compliance.
• Chapter 18: Governmental Audits, Single Audits, and Other Specialized Engagements
  • Audits of Entities Receiving Federal Awards (Single Audits)
    Learn about essential Single Audit requirements under 2 CFR 200 Subpart F, combining financial statement and compliance audits for entities expending significant federal awards.
  • Government Auditing Standards (the “Yellow Book”): Chapter 18.1
    An in-depth exploration of the Yellow Book’s origin, ethical and independence requirements, and unique reporting considerations under Government Auditing Standards (GAS). Learn how these standards ensure consistent and transparent audits of government programs and entities receiving federal funds.
  • Other Specialized Governmental Engagements
    Explore performance audits, audits of state and local departments, compliance engagements, and program-specific reviews under governmental auditing frameworks.
  • Restricted Use Reports and Compliance with Laws and Regulations
    Discover the key aspects of restricted use reports, material noncompliance, and legal obligations essential for governmental audits and specialized engagements.
• Chapter 19: Audits of Employee Benefit Plans (EBP)
  • Types of Employee Benefit Plans (Defined Contribution, Defined Benefit)
    Explore defined contribution and defined benefit plans, their distinct audit focal points, and key compliance requirements.
  • DOL and ERISA Requirements
    Comprehensive overview of Department of Labor (DOL) and ERISA Requirements for Employee Benefit Plans (EBP) audits, focusing on Form 5500 filing, fiduciary responsibilities, limited-scope audits, and compliance with regulatory mandates under DOL and ERISA guidelines.
  • EBP-Specific Audit Procedures
    Explore specialized audit procedures for employee benefit plans, including participant data validation, contributions accuracy, investments valuation, and compliance testing under ERISA.
  • Reporting and Disclosures in EBP Audits
    Explore key reporting formats, supplemental schedules, and auditor responsibilities for Employee Benefit Plan audits, including disclosures, footnotes, and ERISA considerations.