Preparing for Phase Two or Fieldwork of an Audit: Gathering Audit Evidence and Sampling

• Specify the characteristics that determine the persuasiveness of evidence.
• Apply the eight types of evidence used in auditing.
• Explain the purposes of audit documentation and prepare organized audit documentation.
• Distinguish between statistical and non-statistical sampling and between probabilistic and non-probabilistic sample selection.
• Differentiate audit sampling for tests of details of balances and for tests of controls and substantive tests of transactions.

Auditing Key Accounts and Business Cycles: Cash, Sales, and Receivables

• Perform audit tests of the general cash account.
• Perform tests of controls and substantive tests of transactions for cash receipts.
• Perform tests of controls and substantive tests of transactions for sales.
• Perform audit procedures for the audit of accounts receivable.

Key Accounts and Business Cycles: Cash, Sales, and Receivables

• Explain the five parts of the audit of the inventory and warehousing cycle.
• Apply analytical procedures to the accounts in the inventory and warehousing cycle.
• Integrate the various parts of the audit of the inventory and warehousing cycle.
• Perform tests of controls and substantive tests of transactions for the payroll and personnel cycle.

Auditing Key Accounts and Business Cycles: Accounts Payable, PPE, Prepaid Expense, Accrued Liabilities, and Owners Equity

• Perform audit tests of property, plant and equipment; prepaid expenses; and accrued liabilities.
• Perform audit tests of notes payable and related accounts and transactions.
• Identify the primary concerns in the audit of owners’ equity transactions.

Completing the Audit

• Conduct a review for contingent liabilities, letters from the client’s lawyers, and post-balance-sheet review for subsequent events.
• Specify the conditions required to issue the standard unqualified audit report.
• Explain reporting on financial statements and internal control under PCAOB auditing standards.