Exam 1 Study Guide

Based on - Auditing & Assurance Services: A Systematic Approach (7th edition)

EXAM CHAPTERS: 1, 2, 7, 18, 19, 20 and 21

EXAM REQUIREMENTS:
- Closed-book exam (no text, notes, etc.)
- Limited to 90 minutes
- Pencils and erasers (no calculator required)

EXAM POINT DISTRIBUTION:
Total Points 150 (50 Multiple-Choice questions)

By Chapter:
Chapter 1 = 15 points
Chapter 2 = 21 points
Chapter 7 = 6 points
Chapters 18, 19, 20 and 21 = 27 points each

EXAM STUDY APPROACH:
1. Carefully review ALL of your homework assignments and listen to recorded lectures.
2. Listen to recorded lectures and make additional notes on the PowerPoint slides.
3. Plan on additional study efforts for the specific topics noted on the study guide.
4. Establish a personal study schedule so that you can “adequately prepare” for the exam.

STUDY GUIDE:

CHAPTER 1
Homework assignments: Audit Necessity, Contrasting Assurance Services and Audit Phases
Specific areas:
Auditing, attest, and assurance services
Major audit phases

CHAPTER 2
Homework assignments: Auditing Standards, Contrasting Assurance Services and Internal Auditing
Specific areas:
Auditing standards (ten)
Authoritative bodies
Other audit services

CHAPTER 7
Homework assignments: Special Reports
Specific areas:
Management and auditor responsibilities

CHAPTER 18
Homework assignments: Comparison of Audit Report Opinions, and Special Reports
Specific areas:
Unqualified, qualified, disclaimer, and adverse opinions
OCBOA and compliance reports
Consistency changes

CHAPTER 19
Homework assignments: Code of Professional Conduct, and Auditing Ethical Dilemmas
Specific areas:
Professional conduct principles
Application of the Rules of Conduct (text of the rule)

CHAPTER 20
Homework assignments: Auditor’s Legal Liability to Clients, and Auditor’s Legal Liability to Third Parties
Specific areas:
Common law –clients ( breach of contract,