Homework

 will be covering AS 2305, 2310 and 2315.  Please begin reading these as soon as possible. 

Resources
 
Access and briefly review PCAOB Auditing Standards 2200 Auditing Internal Control Over Financial Reporting, 2300 Audit Procedures in Response to Risks, and 2400 Audit Procedures for Specific Aspects of the Audit to build your foundation knowledge of the activities related to assessing and auditing internal control, using substantive tests, audit sampling, and analytical procedures. Topics including sampling, confirmations, consideration of fraud, illegal acts by the client, and consideration of the issue of going concern as it relates to the entity.
https://pcaobus.org/Standards/Auditing/Pages/ReorgStandards.aspx 

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Consider the concept of Generally Accepted Government Auditing Standards (GAGAS). For all Federal Agencies, the guide for audits is in the Yellow Book http://gao.gov/products/GAO-12-331G Access the podcast overview of the Yellow Book at http://www.gao.gov/multimedia/podcasts/656740 (transcript provided).
Federal Government also presents Standard for Internal Control as the Green Book at http://www.gao.gov/greenbook/overview
purpose is to make you aware of these resources and their relation to the standards and principles used by non-government entities.
 
PCAOB Auditing Standards Link

AS No. 15: Audit Evidence 

 Instructions
A new auditor is assigned to the allowance for doubtful accounts and perform the analytical procedures detailed in the chart. There have been no significant changes during the year in either the client’s credit policies or customer base. Are there any auditing concerns about adjusting the allowance for doubtful accounts based on the information shown below?
                                                2018                            2017                            2016
                                                Client/Industry            Client/Industry            Client/Industry                                   
Allowance/AR                                    8.3/7.2                         8.5/7.4                         8.3/7.4
Days AR Outstanding                        32.4/23.8                     28.6/25.1                     28.3/24.7
 

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