AUDITING STANDARDS WILEY. The Complete Guide to AND OTHER PROFESSIONAL STANDARDS FOR ACCOUNTANTS Marc H. Levine Joel G.

Transcription

1 WILEY The Complete Guide to AUDITING STANDARDS AND OTHER PROFESSIONAL STANDARDS FOR ACCOUNTANTS 2008 Nick A. Dauber Anique Ahmed Qureshi Marc H. Levine Joel G. Siegel WILEY JOHN WILEY & SONS, INC.

2 CONTENTS Page Iitk jya Parti Auditing Standards of the PCAOB 1 1 References in Auditor's Reports to the Standards of the Public Company Accounting Oversight Board 3 3 Audit Documentation 5 4 Reporting on Whether a Previously Reported Material Weakness Continues to Exist 7 5 An Audit of Internal Control over Financial Reporting That Is Integrated with an Audit of Financial Statements 15 Part 2 Auditing Responsibilities and Functions of the Independent Auditor Defining Professional Requirements in Statements on Auditing Standards Generally Accepted Auditing Standards The Relationship of Generally Accepted Auditing Standards to Quality Control Standards Nature pf the General Standards Training and Proficiency of the Independent Auditor Independence Due Professional Care in the Performance of Work Appointment of the Independent Auditor Planning and Supervision Audit Risk and Materiality Communications between Predecessor and Successor Auditors Consideration of Fraud in a Financial Statement Audit Illegal Acts by Clients Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained Consideration of Internal Control in a Financial Statement Audit The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements Service Organizations Communication of Internal Control Related Matters Noted in an Audit Evidential Matter Auditing Fair Value Measurements and Disclosures 131

3 329 Analytical Procedures , The Confirmation Process Inventories Auditing Derivative Instruments, Hedging Activities, and Investments in Securities Management Representation Related Parties Using the Work of a Specialist Inquiry of Client's Lawyer Concerning Litigation, Claims, and Assessments Audit Documentation Ability of the Entity to Continue as a Going Concern Auditing Accounting Estimates Audit Sampling Communication with Audit Committees Consideration of Omitted Procedures After the Report Date The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting Principles" Consistency of Application of Generally Accepted Accounting Principles Adequacy of Disclosure in Financial Statements Association with Financial Statements Reports on Audited Financial Statements Dating of the Independent Auditor's Report Restricting the Use of an Auditor's Report Reporting on Financial Statements Prepared for Use in Other Countries Part of Audit Performed by Other Independent Auditors Lack of Conformity with Generally Accepted Accounting Principles Other Information in Documents Containing Audited Financial Statements Reporting on Information Accompanying the Basic Financial Statements in Auditor-Submitted Documents Reporting on Condensed Financial Statements and Selected Financial Data Required Supplementary Information Subsequent Events Subsequent Discovery of Facts Existing at the Date of the Auditor's Report 305

4 623 Special Reports Reports on the Application of Accounting Principles Letters for Underwriters and Certain Other Requesting Parties Filings under Federal Securities Statutes Interim Financial Information Compliance Auditing Considerations in Audits of Governmental Entities and Recipients of Governmental Financial Assistance Public Warehouses: Controls and Auditing Procedures for Goods Held 339 Part 3 Attestation Defining Professional Requirements in Statements on Standards for Attestation Engagements SSAE Hierarchy Attestation Engagements Agreed-Upon Procedures Engagements Financial Forecasts and Projections Reporting on Pro Forma Financial Information Reporting on an Entity' s Internal Control over Financial Reporting Compliance Attestation Management's Discussion and Analysis 401 Part 4 Accounting and Review Services Standards for Accounting and Review Services Compilation and Review of Financial Statements Compilations of Specified Elements, Accounts, or Items of a Financial Statement Compilation of Pro Forma Financial Information Reporting on Comparative Financial Statements Compilation Reports on Financial Statements Included in Certain Prescribed Forms Communications between Predecessor and Successor Accountants Reporting on Personal Financial Statements Included in Written Personal Financial Plans 447 Part5 Consulting Services Consulting Services: Definitions and Standards 451

5 Part 6 Quality Control System of Quality Control for a CPA Firm's Accounting and Auditing Practice Monitoring a CPA Firm's Accounting and Auditing Practice The Personnel Management Element of a Firm's System of Quality Control Competencies Required by a Practitioner in Charge of an Attest Engagement 461 Part 7 Tax Services 463 Preface Tax Return Positions Answers to Question on Tax Returns Certain Procedural Aspects of Preparing Returns Use of Estimates Departure from a Position Previously Concluded in an Administrative Proceeding or Court Decision Knowledge of Error: Return Preparation Knowledge of Error: Administrative Proceeding Form and Content of Advice to Taxpayers 481 Part 8 Personal Financial Planning Basic Personal Financial Planning Engagement Functions and Responsibilities Working with Other Advisors Implementation Engagement Functions and Responsibilities Monitoring and Updating Engagements Functions and Responsibilities Developing a Basis for Recommendations 495 Part 9 Statement on Standards for Valuation Services 497 Statement 1 Valuation of a Business, Business Ownership Interest, Security, or Intangible Assets 499 Appendix A: Cross-References to Statements on Auditing Standards 511 Appendix B: Cross-References to Statements on Standards for Attestation Engagements 515 Appendix C: Cross-References to Statements on Standards for Accounting and Review Services 517 Index 519