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Solutions Manual

Auditingand
AssuranceServices
FourteenthEdition

AlvinA.Arens
RandalJ.Elder
MarkS.Beasley

Prentice Hall
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10 9 8 7 6 5 4 3 2 1

ISBN13: 978-0-13-257607-9
ISBN10: 0-13-257607-4
CONTENTS

I. THE AUDITING PROFESSION


1 The Demand for Audit and Other Assurance Services....................... 1-1
2 The CPA Profession........................................................................... 2-1
3 Audit Reports..................................................................................... 3-1
4 Professional Ethics............................................................................. 4-1
5 Legal Liability..................................................................................... 5-1

II. THE AUDIT PROCESS


6 Audit Responsibilities and Objectives................................................. 6-1
7 Audit Evidence................................................................................... 7-1
8 Audit Planning and Analytical Procedures.......................................... 8-1
9 Materiality and Risk............................................................................ 9-1
10 Section 404 Audits of Internal Control and Control Risk..................... 10-1
11 Fraud Auditing.................................................................................... 11-1
12 The Impact of Information Technology on the Audit Process.............. 12-1
13 Overall Audit Plan and Audit Program................................................ 13-1

III. APPLICATION OF THE AUDIT PROCESS TO THE SALES AND


COLLECTION CYCLE
14 Audit of the Sales and Collection Cycle: Tests of Controls
and Substantive Tests of Transactions............................................... 14-1
15 Auditing Sampling for Tests of Controls
and Substantive Tests of Transactions............................................... 15-1
16 Completing the Tests in the Sales and Collection Cycle:
Accounts Receivable.......................................................................... 16-1
17 Audit Sampling for Tests of Details of Balances................................. 17-1

IV. APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES


18 Audit of the Acquisition and Payment Cycle:
Tests of Controls, Substantive Tests of Transactions,
and Accounts Payable........................................................................ 18-1
19 Completing the Tests in the Acquisition and Payment Cycle:
Verification of Selected Accounts....................................................... 19-1
20 Audit of the Payroll and Personnel Cycle........................................... 20-1
21 Audit of the Inventory and Warehousing Cycle................................... 21-1
22 Audit of the Capital Acquisition and Repayment Cycle....................... 22-1
23 Audit of Cash Balances...................................................................... 23-1

V. COMPLETING THE AUDIT


24 Completing the Audit.......................................................................... 24-1

VI. OTHER ASSURANCE AND NONASSURANCE SERVICES


25 Other Assurance Services.................................................................. 25-1
26 Internal and Governmental Financial Auditing
and Operational Auditing.................................................................... 26-1

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