Audit and Assurance Essentials

Introduction 1
 
1 Auditors, Audits and Other Types of Assurance and Passing the Exam First Time 3
 
1.1 The Need for Audit and Other Types of Assurance 4
 
1.2 Passing the Exam First Time 13
 
2 Taking on Professional Work and Maintaining Standards 23
 
2.1 Introduction to Professional Standards 24
 
2.2 Fundamental Principles, Threats and Safeguards 26
 
2.3 Changes in a Professional Appointment 32
 
2.4 Obtaining Professional Work 34
 
2.5 Professional Ethics: Fees 39
 
2.6 Professional Ethics: Confl icts of Interest and Hospitality 43
 
2.7 Professional Ethics: Independence and Objectivity 45
 
2.8 Appointing and Removing Auditors 57
 
2.9 Agreeing Engagement Terms 61
 
3 Housekeeping: Planning, Materiality and Documentation 67
 
3.1 Planning 68
 
3.2 Materiality 73
 
3.3 Audit Documentation 77
 
4 The Core of the Audit 87
 
4.1 Risk Assessments 87
 
4.2 Audit Evidence 113
 
4.3 Responding to Risk 128
 
4.4 Audit Tools 152
 
4.5 More Audit Tools: Using the Work of Others 196
 
4.6 Related Parties, Initial Engagements, Opening Balances and Comparative Information 228
 
5 Corporate Governance, Professional Liability, Regulation and Other Current Issues 237
 
5.1 Corporate Governance 237
 
5.2 Professional Liability, Regulation and Other Current Issues 250
 
6 Audit Reporting 265
 
6.1 Audit Finalisation 265
 
6.2 Modifi ed and Unmodifi ed Audit Opinions 275
 
6.3 Emphasis of Matter and Other Matter Paragraphs, Going Concern 288
 
6.4 Communications with Management and those Charged with Governance 299
 
6.5 Other Information 306
 
7 Fraud, Money Laundering, Forensic Accounting, Financial Instruments 311
 
7.1 Fraud: Auditors' Responsibilities 312
 
7.2 Laws and Regulations: Auditors' Responsibilities 322
 
7.3

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