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Matters that need special consideration

AUD Chapter 23 · Area III · Blueprint III.E

Six areas get their own audit rules because ordinary procedures are not enough: accounting estimates, investments in securities, inventory, litigation, going concern and federal awards in a single audit. Between them they carry tasks at every skill level, including two of the few evaluation tasks on the exam. Each one is a common simulation subject.

In this chapter

1. Accounting estimates: three ways to test
2. Accounting estimates: ranges and conclusions
3. Investments in securities
4. Inventory: attending the count
5. Inventory: when attendance is difficult, and stock held by others
6. Litigation, claims and assessments
7. Going concern
8. Testing federal awards in a single audit

This chapter has 8 lessons, 50 practice MCQs with explanations and 10 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Accounting estimates and fair value
• investments in securities
• inventory observation and inventory held by others
• litigation and lawyer letters
• going concern
• testing federal awards in a single audit

Chapter 22: External confirmations · Chapter 24: Misstatements and internal control deficiencies