Wiley Practitioner's Guide to GAAS 2018: Covering all SASs, SSAEs, SSARSs, PCAOB Auditing Standards, and Interpretations

850 Pages·2018·7.38 MB·English

by  Joanne M. Flood

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GA’ AS
Practitioner s Guide to
2018
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’
PGractitAioner As GuidSe to
2018
Covering All SASs,
SSAEs, SSARSs,
and Interpretations
Joanne M. Flood
FFIRS 02/24/2018 17:5:49 Pageiv
Coverdesignandimage:Wiley
Copyright2018byJohnWiley&Sons,Inc.Allrightsreserved.
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The book contains numerous excerpts taken from the Statements on Auditing Standards, the Statements on
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CONTENTS
Preface—OrganizationandKeyChanges ix
AbouttheAuthor xi
AU-C200 OverallObjectivesoftheIndependentAuditorandtheConductofan
AuditinAccordancewithGenerallyAcceptedAuditingStandards 1
AU-C210 TermsofEngagement 9
AU-C220 QualityControlforanEngagementConductedinAccordancewith
GenerallyAcceptedAuditingStandards 15
AU-C230 AuditDocumentation 21
AU-C240 ConsiderationofFraudinaFinancialStatementAudit 33
AU-C250 ConsiderationofLawsandRegulationsinanAuditof
FinancialStatements 61
AU-C260 TheAuditor’sCommunicationwithThoseCharged
withGovernance 67
AU-C265 CommunicatingInternalControlRelatedMatters
IdentifiedinanAudit 73
AU-C300 PlanninganAudit 83
AU-C315 UnderstandingtheEntityandItsEnvironmentand
AssessingtheRisksofMaterialMisstatement 89
AU-C320 MaterialityinPlanningandPerforminganAudit 117
AU-C330 PerformingAuditProceduresinResponsetoAssessed
RisksandEvaluatingtheAuditEvidenceObtained 121
AU-C402 AuditConsiderationsRelatingtoanEntityUsinga
ServiceOrganization 151
AU-C450 EvaluationofMisstatementsIdentifiedduringtheAudit 161
AU-C500 AuditEvidence 165
AU-C501 AuditEvidence—SpecificConsiderationsforSelectedItems 169
AU-C505 ExternalConfirmations 203
AU-C510 OpeningBalances—InitialAuditEngagements,
IncludingReauditEngagements 219
AU-C520 AnalyticalProcedures 227
AU-C530 AuditSampling 241
v
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vi Contents
AU-C540 AuditingAccountingEstimates,IncludingFairValueAccounting
EstimatesandRelatedDisclosures 265
AU-C550 RelatedParties 277
AU-C560 SubsequentEventsandSubsequentlyDiscoveredFacts 289
AU-C570 TheAuditor’sConsiderationofanEntity’sAbilityto
ContinueasaGoingConcern 303
AU-C580 WrittenRepresentations 319
AU-C585 ConsiderationofOmittedProceduresaftertheReportReleaseDate 333
AU-C600 SpecialConsiderations—AuditsofGroupFinancialStatements
(IncludingtheWorkofComponentAuditors) 339
AU-C610 UsingtheWorkofInternalAuditors 359
AU-C620 UsingtheWorkofanAuditor’sSpecialist 373
AU-C700 ForminganOpinionandReportingonFinancialStatements 383
AU-C705 ModificationstotheOpinionintheIndependentAuditor’sReport 397
AU-C706 Emphasis-of-MatterParagraphsandOther-MatterParagraphsin
theIndependentAuditor’sReport 415
AU-C708 ConsistencyofFinancialStatements 423
AU-C720 OtherInformationinDocumentsContainingAudited
FinancialStatements 427
AU-C725 SupplementaryInformationinRelationtoTheFinancial
StatementsasaWhole 431
AU-C730 RequiredSupplementaryInformation 437
AU-C800 SpecialConsiderations—AuditsofFinancialStatements
PreparedinAccordancewithSpecialPurposeFrameworks 443
AU-C805 SpecialConsiderations—AuditsofSingleFinancialStatementsand
SpecificElements,Accounts,orItemsofaFinancialStatement 453
AU-C806 ReportingonCompliancewithAspectsofContractualAgreements
orRegulatoryRequirementsinConnectionwithAudited
FinancialStatements 463
AU-C810 EngagementstoReportonSummaryFinancialStatements 471
AU-C905 AlertThatRestrictstheUseoftheAuditor’sWritten
Communication 481
AU-C910 FinancialStatementsPreparedinAccordancewithaFinancial
ReportingFrameworkGenerallyAcceptedinAnotherCountry 487
AU-C915 ReportsonApplicationofRequirementsofanApplicable
FinancialReportingFramework 493
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Contents vii
AU-C920 LettersforUnderwritersandCertainOtherRequestingParties 499
AU-C925 FilingswiththeUSSecuritiesandExchangeCommission
undertheSecuritiesActof1933 537
AU-C930 InterimFinancialInformation 543
AU-C935 ComplianceAudits 571
AU-C940 AnAuditofInternalControloverFinancialReporting
ThatIsIntegratedWithanAuditofFinancialStatements 583
AU-C945 AuditorInvolvementWithExemptOfferingDocuments 609
AT-C Preface 613
AT-C105 ConceptsCommontoAllAttestationEngagements 627
AT-C205 ExaminationEngagements 633
AT-C210 ReviewEngagements 655
AT-C215 Agreed-UponProceduresEngagements 671
AT-C305 ProspectiveFinancialInformation 685
AT-C310 ReportingonProFormaFinancialInformation 697
AT-C315 ComplianceAttestation 711
AT-C320 ReportingonanExaminationofControlsataService
OrganizationRelevanttoUserEntities’Internal
ControloverFinancialReporting 721
AT-C (DesignatedforATSection701)Management’sDiscussion
Section395 andAnalysis(MD&A)—ASummary 737
AR-C60 GeneralPrinciplesforEngagementsPerformedinAccordancewith
StatementsonStandardsforAccountingandReviewServices 745
AR-C70 PreparationofFinancialStatements 753
AR-C80 CompilationEngagements 761
AR-C90 ReviewofFinancialStatements 785
AR-C120 CompilationofProFormaFinancialInformation 823
AppendixA Cross-ReferencestoSASs,SSAEs,andSSARSs 829
AppendixB ListofAICPAAuditandAccountingGuidesandAICPA
StatementsofPosition—AuditingandAttestation 831
AppendixC OtherAuditingPublications 833
Index 835
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FLAST 02/24/2018 0:39:14 Pageix
PREFACE—ORGANIZATION AND KEY CHANGES
This book reduces the official language of Statements on Auditing Standards (SASs),
Statements on Standards for Attestation Engagements (SSAEs), Statements on Standards for
AccountingandReviewServices(SSARSs),andtheinterpretationsofthosestandardsintoeasy-to-
readandunderstandableadvice.ItisdesignedtohelpCPAsintheapplicationof,andcompliance
with,authoritative standards.
CLARIFIED AUDITING STANDARDS
TheAICPA’sclarifiedauditingstandardsarenowfullyimplemented.ThisPrefacecontains
additional informationon the clarity project.
This book follows the sequence of sections of the AICPA Codification of Statements on
AuditingStandards,theCodificationofStatementsonStandardsforAttestationEngagements,and
the Codification of Statements on Standards for Accounting and Review Services. Sections are
divided into thefollowingeasy-to-understand parts:
Original Pronouncement. A handy, brief identification of the original standard for the
Section.
DefinitionsofTerms.Aglossaryofofficialdefinitionsthatgathersinoneplaceexplanations
ofterms that are ordinarilyscattered throughout astandard.
ObjectivesofSection.Abehind-the-scenesexplanationofthereasonsforthepronouncement
anda capsule explanation ofthe most basic ideas of thesection.
Requirements.Conciselistinganddescriptionsofthosethingsspecificallymandatedbythe
section, and helpful techniques for complying with the fundamental requirements of the
section.
Interpretations. Abrief summary ofeach Interpretation.
Since the last edition ofWileyGAASwas published, theASB issued two SASs:
(cid:129) SASNo.132,onauditorinvolvementwithexemptofferingdocuments.CodifiedinAU-C
945.
(cid:129) SASNo. 133,onan auditor’sconsiderationofanentity’sability tocontinue asa going
concern (AU-C 570). This guidance better aligns the AICPA with the FASB, the
Governmental Accounting Standards Board(GASB),and International guidance.
More information onboth these standards can be found intherelevant chapters.
CLARIFIED ATTESTATION STANDARDS
SSAE18supersedesallexistingATsectionsandiseffectiveforreportsdatedafterApril30,
2017. The guidance from SSAE 18 is codified in the AT-C sections of AICPA professional
standards and appears inthe AT-C chapters ofthis book.
ix