a 734-398!) IRENEO/ESPENILI.

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tTel. No. 735-9807

AUDITING PROBLEMS PREWEEK MATERIALS

TABLE OF SPECIFICATION (TOS) FOR AUDITING

Subiects in the Board Licensure Examinatian for CPAs
1.0 AUDITING THEORY
1.I (5 ltems)
1.1.1 Identify and describe the oblectives, nature, elements and types of assurance engagements.
Differentiate between assurance and attestation services'
1.1.2 Identify and describe the nature, philosophy, and objectives of audit and differentiate among
the types of audit End audltors.
L.,2 (5 ltems)
pre-
1.2.t Describe the audit process, identify and explain the procedures that comprise
engagement, audit planning, supervision and review'
r.2.2 Perform analytical procedures, calculate materiality and assess audit risks.
1.3 (5Items)
1.3.1 Identify industry, regulatory and other external factors, including the applicable financial
reporting framework, affecting the business entity under audit'
1.3.2 Identify and descrrbe the basic concepts and elements of internal control and assess and
evaluate control risks.
I.J.J Identify and evaluate risk or material misstatment due to fraud and errors.
1.4 (4 Items)
1.4.1 Explain the nature ard signrficance of audii evrdence and descrie the driferent aud't
procedures and techiriques r^ gathering evrdential matters'
1 5 (4 items)
Identify the steps rr-, prepsrrng an audit repcn,

I .5.2 Exolain the varrous revie!' anc evaluatlon prccedures :na: 3-e :3'j-:i=:
aud t reoort such as overari e.lalyticai r€,'€'!, identrf ca: 3' :'
-€i3:?: :31'
:,SCC./e1' Cf SubseqUent evel:S, aSSeSS:l.lent Cf gC r; ::^Cei- =SS;-:: Ci
1.D.1 Identify and describe the elements of an audtt -eport resulting to and airOit cprnron
L.6.2 Differentiate between unqualified and modified auditors' report'
1.6.3 Identify matters that influence the auclitors' opinion in a modified auditors' report.
(4 It€ms)
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:S fe9:-:€ ::.:- ass---, :e anc nc.-3ss.i'ance serv.ces sJ:i as speclal purpose audtt
e:rga:e-€:is, aud:t t. a co!'npo:eir: sf frnancial statements. 'epots on compliance wth
ccnt:a3..ial agreements. reports or summarizec financ'a, s:ate-'en'6, examination cr
prospectrve financial rnformation, engagements to rev e,'. 'rararal Statements, perforir''
agi.eec-upon procedures regarding r,ranciat informatio-, anc comprlatron of financiaI
information.

2.0 EVTDENCE ACCUMULATTON AND EVALUATTON -JUBgIAllllVE ILSI OF TRATISACTIONS AND BALANCES
2.1 AUDIT OF THE REVENUE AND RECEIPT CYCLE (7 Items)
2,1.1
Audit of sales and revenue transactions
2.1.2
Audit of receivable balances
2.1.3
Audit of cash receipt trbsnactions/ Audit of cash balances
2.2 AUDIT OF EXPENDITURE AND DISBURSEMENT CYCLE (7 ltems)
2.2.1 Audit of acquisition and purchases
2.2.2 Audit of payroll transactions
2.2.3 Audit of cash disbursement transactions/ Audit of cash balances
2.2.4 Audit of inventory baiances
2.2.5 Audit of trade payable balances
2.2.6 Audit of prepaid expenses and accrued liabilities
2,3 AUDIT OF PRODUCTION CYCLE (7 Items)
2.3.L Audit of conversion activities
2.3.2 Audit of inventory balances: work in-process and finished goods
2.3.3 Audit of cost of goods sold balance
,2.4 AUDIT OF THE FINANCING CYCLE (7 ITCMS)
1
2.4.1 Audit of financing cycle transactions
2.4.2 Audit of non-trade liability balances
2.4.3 Audit of interst expense and rinance cost balances
. 2.4.4 Audit of equitY accounts
. 2.5 AUDIT OF INVESTING CYCLE (7 ltems)
2.5.1 Audit of investing transactrons
2.5.2 Audrt cf ii'rvestn:eni accou^: ra 3.:es
2.5.3 ArClt cq prcDe-tv llar::-c ea- 3re':.:acJrt balarces
2.).4 A-,: : l' 1f l^: : a a:a - -': : : i- :=;