Auditing Developments (Currently Unavailable)

Author: Steven C. Fustolo

CPE Credit:  16 hours for CPAs

The latest developments affecting audit engagements are addressed in this course. Part of planning an audit involves consideration of the business and economic environment in which the client operates. Thus, auditors need to be aware of the various types of fraud that clients and employees may be committing, especially in light of the recent myriad of lawsuits against auditors and accountants. In addition to applying techniques to limit their liability to their clients and third parties, auditors are confronting other major problems facing the accounting field, including compliance with the Sarbanes-Oxley Act. The Peer Review Comments and new auditing statements provide further guidance on current issues. To deal with the volatility in the business climate, auditors should focus their efforts in key areas and should take lessons from litigation. Additionally, in this course, auditors will learn how to perform more efficient engagements, assess going concern, advise clients on insurance, audit lease agreements, and much, much more.

Publication Date: March 2013

Number of Pages: 399

QAS Approved Course Sponsor: National Tax Institute
NASBA Sponsor Number: 103075/QAS Sponsor Number: 005

Designed For
Auditors and accountants in public practice and industry who want to keep up-to-date.

Topics Covered

  • Developments (Including the Audit Risk Alerts)
  • Implications of the Current Economic Environment
  • Status of the U.S. Economy in 2012 and Its Impact on Auditors
  • Client and Employee Fraud
  • 2010 Report to the Nations on Occupational Fraud and Abuse
  • Types of Fraud
  • Evaluating an Entity's Fraud Environment
  • Employee Background Checks and Credit Reports
  • Time Theft
  • The Auditor's Role in Dealing with Fraud
  • Specific Fraud Issues
  • Anti-Fraud Measures
  • A Fraud Scorecard
  • Computer Crime and Theft
  • Integrity Survey
  • Correlation Between Bankruptcy and Fraud
  • The CFO Perspective on Their Outside Auditors and Fraud
  • Madoff and the Single Auditor Issue
  • Attempting to Limit Auditor's Liability
  • The Viability of the Big Four
  • PCAOB Audit Rotation Proposal
  • Retaliation Against Auditors Who Issue Adverse Opinions
  • AICPA's Top 10 Technology Issues-2011
  • Anti-Sarbanes-Oxley Continues After Ten Years
  • The Impact of Dodd-Frank on Auditors
  • Whistleblowing- The New Profession Acts Like to Oldest Profession
  • SSAE No. 16: Report on Controls at a Service Organization
  • Accounting and Auditing in Volatile Times
  • Accounting and Auditing in Volatile Times
  • The ASB's Clarity Project

Learning Objectives

  • Identify the factors that an auditor may consider in assessing overall business risks.
  • Explain specific risks that are important to the auditor.
  • Explain the types of fraud and the three conditions in the fraud triangle.
  • Discuss the primary types of fraudulent cash receipts and cash disbursements.
  • List the symptoms of a high- and low-fraud environment and the specific signs of fraud.
  • Understand the specific audit requirements that deal with fraud that are found in SAS No. 99.
  • Discuss the specific recommendations made by the Chamber of Commerce to save the audit profession.
  • Explain the recommendations made by the Big Four report on how to change to global financial reporting and public company audit procedures.
  • List the AICPA's top 10 technology issues affecting auditors.
  • Identify the problems growing with Sarbanes including the significant costs, proposed changes, and its specific impact on small businesses.
  • Discuss the impact changes made by Dodd-Frank will have on auditors.
  • Understand how new laws are driving a new profession of whistleblowers.
  • List the key deficiencies found in peer review.
  • Identify key areas in which an auditor should focus to deal with volatility in the business climate.
  • Compute the four working capital ratios on which an auditor should focus.
  • List the common pitfalls that continue to expose accountants to loss in litigation.
  • Identify the top ten actions to minimize the risk of being sued.
  • Apply suggestions on how a firm can reduce time and increase audit efficiency in an audit engagement.
  • Identify factors that might raise doubt about an entity's ability to continue as a going concern.
  • Understand provisions in a commercial lease that should be eliminated from the tenant's perspective.
  • Discuss the auditors' responsibility for subsequent events.
  • List the requirements that should be followed in a reaudit engagement.
  • Apply to requirements of SAS No. 84 in changing auditors.
  • Understand the public's perception of accountants and auditors.
  • Discuss the changes to auditors of service organizations made by SSAE No. 16.
  • Review the major changes made to auditing standards by the issuance of SAS Nos. 122-125.
  • Understand the new audit opinion.
  • Learn about the new modified opinion rules.
  • Identify special purpose financial statements.
  • Use the new engagement letter and management representation letter.
  • Understand the new rules for group audit engagements.

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (16 hours)

Program Prerequisites
None

Advance Preparation
None

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