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Auditing and
Assurance Services,
ST
17th Edition
UV
SOLUTIONS
IA
_A
MANUAL
PP
RO
Alvin A. Arens Randal J. Elder Mark S. Beasley Chris E. Hogan
Comprehensive Solution Manual for Instructors and
VE
Students
||| ||| || ||| || | || ||| | || ||| |
D?
9780134897431
© Alvin A. Arens, Randal J. Elder, Mark S. Beasley & Chris E. Hogan. All rights reserved.
Reproduction or distribution without permission is prohibited.
© MEDCONNOISSEUR
, TABLE OF CONTENTS
Solution Manual – Auditing and Assurance Services (17th Ed.)
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, and Chris E. Hogan
ISBN: 9780134897431
ST
PART 1: THE AUDITING PROFESSION
Chapter 1: The Demand for Audit and Other Assurance Services
Chapter 2: The CPA Profession
UV
Chapter 3: Audit Reports
Chapter 4: Professional Ethics
Chapter 5: Legal Liability
PART 2: THE AUDIT PROCESS
IA
Chapter 6: Audit Responsibilities and Objectives
Chapter 7: Audit Evidence
Chapter 8: Audit Planning and Materiality
Chapter 9: Assessing the Risk of Material Misstatement
_A
Chapter 10: Assessing and Responding to Fraud Risks
Chapter 11: Internal Control and COSO Framework
Chapter 12: Assessing Control Risk and Reporting on Internal Controls
Chapter 13: Overall Audit Strategy and Audit Program
PP
PART 3: APPLICATION OF THE AUDIT PROCESS TO THE SALES AND COLLECTION CYCLE
Chapter 14: Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of
Transaction
Chapter 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions
RO
Chapter 16: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable
Chapter 17: Audit Sampling for Tests of Details of Balances
PART 4: APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES
Chapter 18: Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of
VE
Transactions, and Accounts Payable
Chapter 19: Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected
Accounts
Chapter 20: Audit of the Payroll and Personnel Cycle
Chapter 21: Audit of the Inventory and Warehouse Cycle
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Chapter 22: Audit of the Capital Acquisition and Repayment Cycle
Chapter 23: Audit of Cash and Financial Instruments
PART 5: COMPLETING THE AUDIT
Chapter 24: Completing the Audit
, PART 6: OTHER ASSURANCE AND NONASSURANCE SERVICES
Chapter 25: Other Assurance Services
Chapter 26: Internal and Governmental Financial Auditing and Operational Auditing
ST
UV
IA
_A
PP
RO
VE
D?
, Chapter 1
The Demand for Audit and Other Assurance Services
Concept Checks
ST
P. 8
1. To do an audit, there must be information in a verifiable form and some
standards (criteria) by which the auditor can evaluate the information.
UV
Determining the degree of correspondence between information and
established criteria is determining whether a given set of information is in
accordance with the established criteria. For an audit of a company’s
financial statements the criteria are U.S. generally accepted accounting
principles or International Financial Reporting Standards.
IA
2. The four primary causes of information risk are remoteness of information,
biases and motives of the provider, voluminous data, and the existence of
complex exchange transactions.
The three main ways to reduce information risk are:
_A
1. User verifies the information.
2. User shares the information risk with management.
3. Audited financial statements are provided.
PP
P. 16
1. The three main types of audits are operational audits, compliance audits, and
financial statement audits. The table below summarizes the purposes and
nature of each type of audit.
RO
AUDITS OF
OPERATIONAL COMPLIANCE FINANCIAL
AUDITS AUDITS STATEMENTS
VE
PURPOSE To evaluate To determine To determine
whether whether the client is whether the
operating following specific overall financial
procedures are procedures set by a statements are
D?
efficient and higher authority presented in
effective accordance with
specified criteria
(usually GAAP)
1-1
Auditing and
Assurance Services,
ST
17th Edition
UV
SOLUTIONS
IA
_A
MANUAL
PP
RO
Alvin A. Arens Randal J. Elder Mark S. Beasley Chris E. Hogan
Comprehensive Solution Manual for Instructors and
VE
Students
||| ||| || ||| || | || ||| | || ||| |
D?
9780134897431
© Alvin A. Arens, Randal J. Elder, Mark S. Beasley & Chris E. Hogan. All rights reserved.
Reproduction or distribution without permission is prohibited.
© MEDCONNOISSEUR
, TABLE OF CONTENTS
Solution Manual – Auditing and Assurance Services (17th Ed.)
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, and Chris E. Hogan
ISBN: 9780134897431
ST
PART 1: THE AUDITING PROFESSION
Chapter 1: The Demand for Audit and Other Assurance Services
Chapter 2: The CPA Profession
UV
Chapter 3: Audit Reports
Chapter 4: Professional Ethics
Chapter 5: Legal Liability
PART 2: THE AUDIT PROCESS
IA
Chapter 6: Audit Responsibilities and Objectives
Chapter 7: Audit Evidence
Chapter 8: Audit Planning and Materiality
Chapter 9: Assessing the Risk of Material Misstatement
_A
Chapter 10: Assessing and Responding to Fraud Risks
Chapter 11: Internal Control and COSO Framework
Chapter 12: Assessing Control Risk and Reporting on Internal Controls
Chapter 13: Overall Audit Strategy and Audit Program
PP
PART 3: APPLICATION OF THE AUDIT PROCESS TO THE SALES AND COLLECTION CYCLE
Chapter 14: Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of
Transaction
Chapter 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions
RO
Chapter 16: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable
Chapter 17: Audit Sampling for Tests of Details of Balances
PART 4: APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES
Chapter 18: Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of
VE
Transactions, and Accounts Payable
Chapter 19: Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected
Accounts
Chapter 20: Audit of the Payroll and Personnel Cycle
Chapter 21: Audit of the Inventory and Warehouse Cycle
D?
Chapter 22: Audit of the Capital Acquisition and Repayment Cycle
Chapter 23: Audit of Cash and Financial Instruments
PART 5: COMPLETING THE AUDIT
Chapter 24: Completing the Audit
, PART 6: OTHER ASSURANCE AND NONASSURANCE SERVICES
Chapter 25: Other Assurance Services
Chapter 26: Internal and Governmental Financial Auditing and Operational Auditing
ST
UV
IA
_A
PP
RO
VE
D?
, Chapter 1
The Demand for Audit and Other Assurance Services
Concept Checks
ST
P. 8
1. To do an audit, there must be information in a verifiable form and some
standards (criteria) by which the auditor can evaluate the information.
UV
Determining the degree of correspondence between information and
established criteria is determining whether a given set of information is in
accordance with the established criteria. For an audit of a company’s
financial statements the criteria are U.S. generally accepted accounting
principles or International Financial Reporting Standards.
IA
2. The four primary causes of information risk are remoteness of information,
biases and motives of the provider, voluminous data, and the existence of
complex exchange transactions.
The three main ways to reduce information risk are:
_A
1. User verifies the information.
2. User shares the information risk with management.
3. Audited financial statements are provided.
PP
P. 16
1. The three main types of audits are operational audits, compliance audits, and
financial statement audits. The table below summarizes the purposes and
nature of each type of audit.
RO
AUDITS OF
OPERATIONAL COMPLIANCE FINANCIAL
AUDITS AUDITS STATEMENTS
VE
PURPOSE To evaluate To determine To determine
whether whether the client is whether the
operating following specific overall financial
procedures are procedures set by a statements are
D?
efficient and higher authority presented in
effective accordance with
specified criteria
(usually GAAP)
1-1
