AUD Master Review Sheet

Last-Minute High-Yield Facts

• Audit risk = Inherent Risk × Control Risk × Detection Risk.
• Lower acceptable audit risk requires more persuasive evidence.
• Professional skepticism is required throughout every engagement.
• Preparation and compilation provide no assurance.
• Reviews provide limited assurance.
• Audits and SSAE examinations provide reasonable assurance.
• Material weaknesses lead to adverse ICFR opinions.
• Recognized subsequent events require adjustment; nonrecognized events generally require disclosure.
• Forecasts use expected assumptions; projections use hypothetical assumptions.
• Qualified means material but not pervasive; adverse means material and pervasive; disclaimer means insufficient evidence with pervasive possible effects.

Understand the concepts, trust the process, and think like an auditor.