1. Introduction to Financial Accounting and Reporting
- definitions and objectives of financial accounting and reporting
- Generally Accepted Accounting Principles (GAAP)
- financial statement elements
- principles of accounting and basic accounting rules
- sample financial statements

2. Financial Auditing and the Attestation Process
- definition of financial auditing
- auditing, attestation, and assurance
- Generally Accepted Auditing Standards (GAAS)
- the financial auditing process
- management’s representation letter
- types of external audit financial statement audit opinions
- the SEC 10-K Report

3. Risk Assessment and Materiality
- risk assessment and the business risk environment
- risk factors
- internal control risk
- the risk of fraud
- audit risk and the financial audit risk model
- materiality and materiality concepts
- SEC Staff Accounting Bulletin (SAB) No. 99: Materiality

4. The Financial Auditing Approach
- the financial auditing approach
- relationship between the financial statements, management assertions, audit  objectives, audit procedures, and audit programs
- the audit planning process
- financial statement assertions
- audit evidence
- compliance and substantive audit tests
- financial skills for auditors
- audit programs
- audit fieldwork
- audit workpapers

5. External Audit Support
- SAS No. 65: The Auditor’s Consideration of the Internal Audit Function in an  Audit of Financial Statements (AU322)
- audit assistance and coordination with the external auditors
- steps for effective coordination of audit effort
- working paper requirements and guidelines

6. Audit Sampling
- audit sampling and sampling concepts
- statistical sampling
- important audit sampling terminology and techniques
- audit sampling for tests of controls (attribute sampling)
- audit sampling for substantive tests
- probability-proportional-to-size (dollar-unit) sampling
- judgment sampling techniques

7. Analytical Procedures and Accounting Estimates
- analytical procedure methodology
- expectation sources
- analytical procedure pitfalls
- accounting estimates
- financial ration analysis
- selected analytical procedures for the audit cycles

8. Introduction to Internal Control and Integrated Framework
- types of internal controls
- SAS Nos. 55 and 78: Consideration of Internal Control in a Financial Statement  Audit
- management assertions and the internal control structure
- basic elements, definitions, and goals of the Integrated Framework matrix
- evaluation tools
- reporting on internal control
- benefits and criticism of the Integrated Framework

9. Specific Internal Control Auditing Issues
- consideration of internal control in a financial statement audit
- techniques to obtain and document an understanding of the internal control  structure
- attributes testing workpapers
- process flow, separation of duties and key documents for the six audit cycles
- internal control objectives and control tests for the six audit cycles
- computer control activities
- financial auditing internal control questionnaire (ICQ)

10. The Risk of Fraud in Financial Reporting
- fraudulent financial reporting
- the current business environment and fraudulent financial reporting
- the COSO Report:  Fraudulent Financial Reporting, 1987-1997 – An Analysis of  U.S. Public Companies
- fraud awareness
- SAS No. 99: Consideration of Fraud in a Financial Statement Audit
- SAS No. 54: Illegal Acts
- a fraud audit approach
- accounting gimmicks
- SEC and fraudulent financial reporting
- where to look for fraud in the six auditing cycles
- fraud prevention
- audit case:  MiniScribe, Inc., Fort Collins, Colorado

11. Substantive Tests for the Revenue Cycle
- definition of substantive tests
- auditing the income statement account in conjunction with the balance sheet  accounts
- relationship of the management assertions, audit objectives and audit actions  (procedures)
- revenue recognition
- FASB Concept Statement No. 5: Recognition and Measurement in Financial  Statements
- SEC Staff Accounting Bulletin (SAB) No. 101: Revenue Recognition in Financial  Statements
- revenue Recognition accounting gimmicks
- potential misstatements for sales and cash receipts
- specific substantive tests for sales, accounts receivable, cash receipts, and  cash
- selected revenue cycle disclosures

12. Substantive Tests for the Acquisition Cycle
- potential misstatements for purchases|
- specific substantive tests for accounts payable, accrued expenses, and cash  disbursements
- acquisition cycle disclosures
- purchase commitments and contingent liabilities
- transactions that keep expenses and debt off the books

13. Substantive Tests for the Payroll Cycle
- payroll cycle potential misstatements
- specific substantive tests for the payroll cycle
- payroll cycle disclosure

14. Substantive Tests for the Conversion Cycle
- specific significance of inventory audits
- significant risks and issues for inventory
- inventory and costs of goods sold audit objectives
- potential misstatements for the conversion cycle
- inventory cost flow assumptions
- observing physical inventory
- specific substantive tests for raw materials, work-in-process, and finished  goods inventories
- conversion cycle disclosure

15 Substantive Tests for the Financing Cycle
- auditing long-term debt and stockholders’ equity
- internal control over long-term debt and stockholders’ equity
- specific substantive tests for long-term debt and stockholders’ equity
- long-term debt and stockholders’ equity disclosures
- auditing retained earnings

16. Substantive Tests for the Investment Cycle
- accounting for marketable securities and derivatives
- internal control over investments
- potential misstatements for marketable securities
- specific substantive tests for marketable securities
- auditing prepaid and intangible assets and natural resources
- accounting and internal control for property, plant, and equipment
- potential misstatements for property, plant, and equipment
- property, plant, and equipment disclosures

17. Important Financial Auditing Resources
- text reference for financial auditing and accounting research
- Web site addresses for financial auditing and accounting research
- Web site addresses for benchmarking internal audit department standards and  professional practices
- Web site addresses for developing audit programs

18. The Sarbanes-Oxley Act of 2002