Audit and Accounting Manual: Nonauthoritative Practice Aid 2020

How Audit and Accounting Manual is Organized 1

AAM 1000 Introduction 3

1100 Introduction

AAM 2000 How to Use the Audit and Accounting Manual 9

2100 How to Use the Audit and Accounting Manual

AAM 3000 Engagement Planning and Administration 15

3100 Understanding the Assignment

3105 Planning the Engagement

3110 Assigning Personnel to the Engagement and Supervision

3115 Independence

3120 Obtaining an Understanding of the Entity and Its Environment

3125 Obtaining an Understanding of Internal Control

3130 Assessing the Risks of Material Misstatement

3140 Materiality and Misstatements Identified During the Audit

3145 Fraud

3150 Illegal Acts

3155 Analytical Procedures

3160 Audit Budget Samples

3165 Sample Engagement Letters

AAM 4000 Internal Control 195

4100 Introduction

4200 Internal Control Framework

AAM 5000 Designing and Performing Further Audit Procedures 225

5100 Audit Evidence and Designing Further Audit Procedures

5200 Performing Tests of Controls

5300 Performing Substantive Procedures

5400 Audit Sampling Considerations

5500 Suggested Supplemental Reference Materials

AAM 6000 Audit Documentation 295

6100 Audit Documentation —General

6200 Form, Content, and Extent of Audit Documentation

6300 Organization and Filing (Indexing)

AAM 7000 Correspondence, External Confirmations, and Written Representations 317

7100 External Confirmations and Correspondence

7200 Requests for External Confirmations and Related Materials

7300 Litigation, Claims, and Assessments and Inquiries to Legal Counsel

7400 Written Representations and Representation Letters

7500 Communication With Management and Those Charged With Governance

7600 Reliance Letter

7700 Proposal Letter

AAM 8000 Alerts 427

8012 General Accounting and Auditing Developments —2019/20

[8013] [Reserved]

[8015] [Reserved]

[8030] [Reserved]

[8040] [Reserved]

[8050] [Reserved]

[8060] [Reserved]

[8070] [Reserved]

[8090] [Reserved]

[8100] [Reserved]

[8120] [Reserved]

[8220] [Reserved]

[8240] [Reserved]

[8290] [Reserved]

[8300] [Reserved]

[8320] [Reserved]

AAM 9000 Auditors’ Reports 497

9010 Overview — Auditor’s Report

9020 Unmodified Opinions

9030 Modified Opinions

9040 Material Misstatements

9050 Inability to Obtain Sufficient Appropriate Audit Evidence

9060 Additional Communications in the Auditor’s Report — Emphasis-of-Matter Paragraphs

9070 Additional Communications in the Auditor’s Report — Other-Matter Paragraphs

9080 Special Considerations in the United States

9090 Special Purpose Frameworks

9100 Comparative Financial Statements

9110 Initial Audit Engagements

9120 Single Financial Statement and Specific Elements, Accounts, or Items

9130 Reporting on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements

9140 Engagements to Report on Summary Financial Statements

9150 Group Audits

AAM10,000 Quality Control 613

10,100 Quality Control —General

10,200 Practice Aid Establishing and Maintaining a System of Quality Control for a CPA Firm’s Accounting and Auditing Practice — For Small- and Medium-Sized Firms

10,210 Practice Aid Establishing and Maintaining a System of Quality Control for a CPA Firm’s Accounting and Auditing Practice — For Sole Practitioners

10,250 Statement on Quality Control Standards

10,280 “Alternative Practice Structures” Interpretation of the “Independence Rule”

10,300 Sample Quality Control Forms

Appendix A New Auditing Standards to Change the Auditor’s Report 777

The American Institute of CPAs (AICPA) is the world's largest member association representing the CPA profession, with more than 429,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the procession.