Major Changes Made to the Auditing Standards: The Clarity Project SAS Nos. 122-126 (Currently Unavailable)

Author: Steven C. Fustolo

This course explains the significant changes made to auditing standards by the Auditing standards Board's Clarity Project that resulted in the issuance of SAS Nos. 122-125.

Number of Pages: 214

Publication Date: July 2013

Designed For
Accountants looking for an update on the major changes made to the auditing standards concerning the clarity project.

Topics Covered

• New SASS with Substantive Changes
• Consideration of Laws and Regulations in an Audit of Financial Statements
• Communicating Internal Control Related Matters Identified in an Audit
• Forming an Opinion and Reporting on Financial Statements
• Modifications to the Opinion in the Independent Auditor's Report
• Emphasis of Matter Paragraphs and Other matter Paragraphs in the Independent Auditor's Report
• Special Considerations-Audits of Group Financial Statements
• Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks
• Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards
• Terms of Engagement
• Quality Control for an Engagement Conducted
• Opening Balances-Initial Audit Engagements, Including Re-audit Engagements
• Written Representations
• Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
• External Confirmations
• Other Selected New SASS-Formatting Changes Only
• Related Parties
• Using the Work of an Auditor's Specialist
• Alert as to the Intended Use of the Auditor's Written Communication
• Consistency of Financial Statements
• Financial Statements Prepared in Accordance with a Financial reporting Framework Generally Accepted in Another Country
• Consideration of Fraud in a Financial Statement Audit
• Audit Considerations Relating to an Entity Using a Service Organization
• Audit Evidence-Specific Considerations for Selected Items

Learning Objectives

• Recognize the structure of the new ASB Clarity Project and how each new standard is segregated
• Identify categories of laws and regulations that are found in AU-C 250.
• Identify the scope of communications an auditor should make with respect to noncompliance with laws and regulations
• Recognize the different types of deficiencies in internal control found in a financial statement audit
• Identify the indicators that may suggest there is a material weakness in internal control
• Identify the information that should be included in a communication of certain deficiencies in internal control
• Recognize the new audit report title
• Identify examples of headings that should be in the new auditor report
• Recognize the types of modified opinion headings found in the new audit report
• Identify the new type of paragraph that is permitted in the audit report
• Review examples where an emphasis-of-matter paragraph is required in the audit report
• Identify the new group auditor rules including the responsibilities of parties involved, and the procedures to be performed
• Identify the different types of special purpose frameworks permitted under the new auditing standards
• Identify some of the elements that are required in the different types of special purpose reports
• Identify the general types of disclosures requires in special purpose framework financial statements
• Identify how an auditor can evaluate "professional judgment"
• Recognize some of the elements that must be in an engagement letter
• Identify the requirements that a successor auditor must satisfy in an initial audit engagement involving opening balances
• Identify an instance in which it may be necessary for an auditor to obtain a positive confirmation
• Recognize when an auditor may not required to use external confirmation procedures
• Define fraud
• Identify the new term for a user organization
• Recognize the procedures an auditor should design and perform to identify litigation, claims and assessment

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (8 hours)

Program Prerequisites
None

Advance Preparation
None