Auditing Developments 2022

COURSE DESCRIPTION

The objective of this course is to address the latest developments affecting 2021 and 2022 audit engagements, including the impact of COVID-19 on audit engagements.

In this course, auditors will learn about the new auditors report, auditing estimates and audit evidence, and changes made to the auditors understanding of the entity, its environment, and risk assessment procedures, and the guidance
on using the work of specialists as audit evidence. These changes are found in newly issued SAS Nos. 134-145, and the new attestation standards found in SSAE Nos. 19-22.(Items 20 and 20E)

The course focuses on recalling, recognizing, and identifying rules related to auditing standards including new developments about those standards.

Topics include:

• Addressing the auditors consideration of the business and economic environment in which the client operates;
• Accounting and auditing engagement issues during COVID-19 including the impact of the pandemic on an entitys ability to continue as a going concern;
• Client and employee fraud;
• Specific accounting risks for auditors to consider limiting auditor's liability key audit focus areas during volatile times lessons from litigation efficiency engagements to reduce auditor time;
• Various practice issues related to audits;
• Dealing with DOL audits of employee benefit plans; and more...

Learning Objectives:

After reading Section 1 of the course material, you will be able to:

• Identify an example of a concentration that might require disclosure
• Recall the definition of near term
• Identify the most obvious approach to account for a PPP loan under GAAP
• Recall how an entity should account for PPP loan forgiveness
• Identify a scenario in which it would be impracticable for an auditor to attend a physical inventory
• Recognize an advantage of remote auditing
• Recognize a behavioral trait of most occupational fraudsters
• Recognize the difference between fraud and an error
• Recall the three conditions of the fraud triangle
• Identify common types of financial statement fraud noted by the FBI
• Recognize an example of a misappropriation of assets
• Identify an additional procedure required to deal with the risk of management override of internal controls
• Recognize a factor to consider in evaluating the going concern of an entity
• Recall how an investment in equity security should be accounted for under GAAP
• Recognize the new sales tax rules in the wake of the Wayfair decision
• Recognize an example of a coverage ratio
• Recall the timeframe within which most lawsuits against auditors occur
• Identify a recommendation to tighten up auditor work papers

After reading Section 2 of the course material, you will be able to:

• Identify a suggestion for an auditor reducing time and increasing audit efficiency
• Recognize when negative accounts receivable confirmations should not be used
• Identify the form of a comfort letter that would be appropriate for an accountant to make to a lender
• Recall the rule for an auditor presenting his or her city and state on the audit report
• Identify the rules for an auditor communicating deficiencies found in an audit
• Recognize an example of a result that can occur if there is a problem with a DOL employee benefit plan audit
• Identify a type of fraudster
• Recall the location of certain sections in the auditors report
• Recognize the categorization of an adverse opinion
• Identify a change that SAS No. 136 makes to the limited-scope ERISA audit
• Recognize one of the changes made by AU-C 703 to ERISA audits
• Recall the reporting requirement when an auditor obtains other information in an audit
• Identify a reference that is made in the new definition of materiality
• Recognize the definition of certain types of paragraphs made by SAS No. 139
• Recognize an example of an attribute of information obtained as audit evidence per SAS No. 142
• Identify how inherent and control risk should be assessed under the SAS No. 143 requirements
• Recall the three approaches that an auditor can use to perform further audit procedures required by SAS No. 143
• Identify some instances in which an auditor may conclude that a specialists work is not adequate
• Identify a type of risk assessment procedure that an auditor can use in accordance with SAS No. 145
• Recall examples of risk assessment procedures that an auditor may perform in SAS No. 145
• Recognize how to perform risk assessment procedures when relying on information obtained from previous experience with an entity
• Identify examples of risk assessment procedures to obtain audit evidence in accordance with SAS No. 145
• Recognize a new requirement made by SAS No. 145 in connection with assessing inherent risk and control risk in an audit
• Identify how an auditor should respond if the auditor does not plan to test the operating effectiveness of an entitys controls.
• Identify a change made by SSAE No. 19
• Recognize one of the four types of engagements within SSAE No. 21s new definition of attestation engagement
• Identify an example of subject matter that is within the scope of SSAE No. 22s review

Who Should Attend:

• All Certified Public Accountants (CPAs)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorships: