CPA AUD International Auditing Standards, Government Auditing Standards, and Information Technology — Flashcards

The CPA AUD exam (Auditing and Attestation) focuses on auditing procedures, GAAS, AICPA Code of Professional Conduct, and IT implications in audits. Key areas include risk assessment (25-35%), evidence gathering (30-40%), and compliance with GAO and International Standards. Key topics include Internal Controls, SSAE engagements, and governmental audit reports. 

Core Audit Components (CPA AUD)
AICPA Standards (GAAS): Governs audits of non-issuers (private companies), focusing on planning, evidence, and report issuance.
PCAOB Standards: Governs audits of issuers (public companies), focusing on Sarbanes-Oxley Act requirements.
International Standards on Auditing (ISA): Standards issued by the IAASB that apply to international audit engagements. 

Governmental Auditing Standards
Yellow Book (GAO): Government Auditing Standards (GAGAS) provided by the GAO apply to audits of government entities, programs, and grants.
Key Requirements: Focus on compliance with laws, regulations, contracts, and fraud reporting, often in addition to GAAS. 

Information Technology (IT) in Auditing 
IT Controls: Evaluates General Controls (ITGC) and Application Controls (input, processing, output).
Audit Procedures: Uses Computer-Assisted Audit Techniques (CAATs) to test data, systems, and security.
Service Organizations: Evaluates controls at service organizations (e.g., cloud providers) using SSAE reports (SOC 1, SOC 2). 

Key Exam Areas
Ethics/Independence: AICPA Code, SEC/PCAOB regulations, and DOL regulations.
Risk Assessment: Assessing risk of material misstatement (inherent vs. control risk).
Evidence: Substantive procedures, audit documentation, and sampling methods.
Reporting: Types of opinions (unmodified, modified) and report formatting.