CPA Auditing
Term Pages SG Page Module Definition
Module 1 - The Auditing and Assurance Framework
ISAEs 3 1 developed by IAASB
IESBA 3 1 developed by IESBA
Main regulartory agencies impact on auditing 3 1 IFAC, IFIAR, IESBA, IAASB
Regulation of Auditing in Australia body 4 1 ASIC, APESB, AUASB, CALDB, ASX
Types of Assurance engagement
Audit assurance 3 1 ISAs 100 - 999
Elements of an assurance engagement 6 1
Other Assurance engagements 3 1 ISAEs 3000 - 3699
Review engagement 3 1 Only 2 international standard covers review engagement
- ISRE 2410
- ISRE 2400
Ethics Principles
Codes of ethical principle 6 1 devided into 4 parts
Conflict of interest 14 8 1
Definition of Professional scepticism 53 2 Critical assessment, a questioning mind, alertness
Fundamental Principles 6 1 Integrity, objectivity, confidentiality, professional competence and due care, professional behaviour
Professional judgement 26 1 Ability to use, diagnoses and solves
Professional scepticism 26 1 Figure 1.6 - characteristics, attitudes and behaviours of scepticism
52-53 Example 2.3 - P.54
Second Opinions 9 1 intimidation | when a client succeeds in obtaining a 2nd opinion favourable to their position
Threats and Safeguards 8 1 Self interest, self-review, advocacy, familiarity, intimidation
Quality Control Standards
10 contextual factors 17 1 the audit quality framework
6 Elements of Quality control 18 11 1 6 Elements of Quality control (p.18)
Acceptance and Continuance of Client Relationships 13 1 Risk checklists, Risk score
Engagement Performance 14 1 includes supervision and review, consultation
Ethical requirements 12 1
Framework of Audit Quality 16 1 Figure 1.3 - includes Part 1 and part 2 | input, output, process, contextual
Human Resources 13 1 ISQC 1 para A24
Key interactions within the FR supply chain 17 1 Management, TCWG, users, regulators
Leadership Responsibility 11 1 ISQC 1, para 18-19 and A4-A6
Reviews' work 15 1 ISQC 1 para A35
Supervision Examples 15 1 ISA 220 para 16
Engagement related
Attestation engagement 19 1 management prepare and the practitioner examines - (e.g. audit and review of fs)
Direct engagement 19 1 practitioner examines and report
Reasonable Assurance Engagements 26 20 1 obtained sufficient evidence to reduce audit risk to an acceptably low level
Limited Assurance Engagements 27 20-21 1
Review engagement 32 1 ISREs 2000-2699 (International Standards on Review Engagements)
Materiality 28 1
1
, Engagement Risk 28 1 3 components includes: Inherent risk, Control risk and Detection risk
Risk of material misstatement = Inherent risk + Control risk
Most common types of assurance engagements 29 1 List in study guide
True and fair view 30 1 consistent and faithful application of accounting standards
Limitations of an audit 31 1
Elements of an Assurance Engagement 35 22 1 5 elements
3 party relationship 29 22-23 1 Practitioner, Responsible party, Intended users
Suitable Criteria 23-24 1 Table 1.7 - Relevance, Completeness, Reliability, Neutrality, Understandability
Example of intended users 23 1 Table 1.5
Underlying Subject Matter 23 1 Table 1.6 - historical financial information, an internal control system, key indicators of the effectiveness of a process
M5 - Other type of assurance
Historial non-financial report assurance 32 1 includes CSR, GHG, sustainability reports, water accounting reports etc
Future-oriented information assurance 32 1
Assurance on systems and processes 32 1 includes Internal audits, internal control audit, continuous auditing
Continuous Auditing 33 1
Compliance Engagement 33 1
Performance engagement 34 1 ASAE 3500 Performance Engagements para 7 | ISAE 3000 for (outside Australia)
5 core types of other assurance engagement 38 1 that can be conducted either as reasonable or limited assurance engagement
Changing Environment
Artificial Intellgence 42 1
Audit innovation continuum 41 1 Figure 1.8 | basic, intermediate, advanced innovation
Big data 42 1 4 Vs of big data
Blockchain 42 provides greater transparency and traceability
Climate-Risk Disclosure 40 1 Task Force on Climate-related Financial Disclosures (TCFD)
Transition risks and Phyiscal risks
Robotic process automation 56 41 1 Automation -> Auditor more time -> better professional judgement
Smart contract 43 1
Laws and Regulation
APESB 34 1 Australian ethics standard setter
Application of ISAEs 38 1
Application of ISRSs 38 1 Agreed-upon proceudres (No assurance provided)
Application of standards 34 1 ISQC, ASRE, IESBA, ISA, ISREs, ISRSs
ASA - Australian auditing standards 1 both ASRE 2410 and ASQC 1 are included in ASA 101
ASA 101 39 1 Australia only standards that outline ISA
Auditing and assurance standards 31 1 APES 210
IESBA 34 1 international ethics standard setter
ISA They apply to both private and public sector audits
ISA - International Standards on Auditing 34, 35 1 applied to audit engagement
ISA 200 35 1 General principles and responsiblities
ISA 300 and 400 35 1 Risk assessment and response to assessed risks
ISA 500 35 1 Audit evidence
ISA 600 35 1 Using the work of others
ISA 700 35 1 Audit conclusions and reporting
ISA 800 35 1 Specialised area
ISA for SME 36 1 A number of ISAs are likely to be less relevant on SME
If an ISA is relevant to an SME, not all requirements of that ISA may be applicable in full during the audit.
2
Term Pages SG Page Module Definition
Module 1 - The Auditing and Assurance Framework
ISAEs 3 1 developed by IAASB
IESBA 3 1 developed by IESBA
Main regulartory agencies impact on auditing 3 1 IFAC, IFIAR, IESBA, IAASB
Regulation of Auditing in Australia body 4 1 ASIC, APESB, AUASB, CALDB, ASX
Types of Assurance engagement
Audit assurance 3 1 ISAs 100 - 999
Elements of an assurance engagement 6 1
Other Assurance engagements 3 1 ISAEs 3000 - 3699
Review engagement 3 1 Only 2 international standard covers review engagement
- ISRE 2410
- ISRE 2400
Ethics Principles
Codes of ethical principle 6 1 devided into 4 parts
Conflict of interest 14 8 1
Definition of Professional scepticism 53 2 Critical assessment, a questioning mind, alertness
Fundamental Principles 6 1 Integrity, objectivity, confidentiality, professional competence and due care, professional behaviour
Professional judgement 26 1 Ability to use, diagnoses and solves
Professional scepticism 26 1 Figure 1.6 - characteristics, attitudes and behaviours of scepticism
52-53 Example 2.3 - P.54
Second Opinions 9 1 intimidation | when a client succeeds in obtaining a 2nd opinion favourable to their position
Threats and Safeguards 8 1 Self interest, self-review, advocacy, familiarity, intimidation
Quality Control Standards
10 contextual factors 17 1 the audit quality framework
6 Elements of Quality control 18 11 1 6 Elements of Quality control (p.18)
Acceptance and Continuance of Client Relationships 13 1 Risk checklists, Risk score
Engagement Performance 14 1 includes supervision and review, consultation
Ethical requirements 12 1
Framework of Audit Quality 16 1 Figure 1.3 - includes Part 1 and part 2 | input, output, process, contextual
Human Resources 13 1 ISQC 1 para A24
Key interactions within the FR supply chain 17 1 Management, TCWG, users, regulators
Leadership Responsibility 11 1 ISQC 1, para 18-19 and A4-A6
Reviews' work 15 1 ISQC 1 para A35
Supervision Examples 15 1 ISA 220 para 16
Engagement related
Attestation engagement 19 1 management prepare and the practitioner examines - (e.g. audit and review of fs)
Direct engagement 19 1 practitioner examines and report
Reasonable Assurance Engagements 26 20 1 obtained sufficient evidence to reduce audit risk to an acceptably low level
Limited Assurance Engagements 27 20-21 1
Review engagement 32 1 ISREs 2000-2699 (International Standards on Review Engagements)
Materiality 28 1
1
, Engagement Risk 28 1 3 components includes: Inherent risk, Control risk and Detection risk
Risk of material misstatement = Inherent risk + Control risk
Most common types of assurance engagements 29 1 List in study guide
True and fair view 30 1 consistent and faithful application of accounting standards
Limitations of an audit 31 1
Elements of an Assurance Engagement 35 22 1 5 elements
3 party relationship 29 22-23 1 Practitioner, Responsible party, Intended users
Suitable Criteria 23-24 1 Table 1.7 - Relevance, Completeness, Reliability, Neutrality, Understandability
Example of intended users 23 1 Table 1.5
Underlying Subject Matter 23 1 Table 1.6 - historical financial information, an internal control system, key indicators of the effectiveness of a process
M5 - Other type of assurance
Historial non-financial report assurance 32 1 includes CSR, GHG, sustainability reports, water accounting reports etc
Future-oriented information assurance 32 1
Assurance on systems and processes 32 1 includes Internal audits, internal control audit, continuous auditing
Continuous Auditing 33 1
Compliance Engagement 33 1
Performance engagement 34 1 ASAE 3500 Performance Engagements para 7 | ISAE 3000 for (outside Australia)
5 core types of other assurance engagement 38 1 that can be conducted either as reasonable or limited assurance engagement
Changing Environment
Artificial Intellgence 42 1
Audit innovation continuum 41 1 Figure 1.8 | basic, intermediate, advanced innovation
Big data 42 1 4 Vs of big data
Blockchain 42 provides greater transparency and traceability
Climate-Risk Disclosure 40 1 Task Force on Climate-related Financial Disclosures (TCFD)
Transition risks and Phyiscal risks
Robotic process automation 56 41 1 Automation -> Auditor more time -> better professional judgement
Smart contract 43 1
Laws and Regulation
APESB 34 1 Australian ethics standard setter
Application of ISAEs 38 1
Application of ISRSs 38 1 Agreed-upon proceudres (No assurance provided)
Application of standards 34 1 ISQC, ASRE, IESBA, ISA, ISREs, ISRSs
ASA - Australian auditing standards 1 both ASRE 2410 and ASQC 1 are included in ASA 101
ASA 101 39 1 Australia only standards that outline ISA
Auditing and assurance standards 31 1 APES 210
IESBA 34 1 international ethics standard setter
ISA They apply to both private and public sector audits
ISA - International Standards on Auditing 34, 35 1 applied to audit engagement
ISA 200 35 1 General principles and responsiblities
ISA 300 and 400 35 1 Risk assessment and response to assessed risks
ISA 500 35 1 Audit evidence
ISA 600 35 1 Using the work of others
ISA 700 35 1 Audit conclusions and reporting
ISA 800 35 1 Specialised area
ISA for SME 36 1 A number of ISAs are likely to be less relevant on SME
If an ISA is relevant to an SME, not all requirements of that ISA may be applicable in full during the audit.
2
