Taxation II: Corporate Income Tax

Auditor Purpose and Conduct

Examine the purpose and responsibilities of auditors including AICPA Code of Professional Conduct application and regulatory frameworks. Analyze the Sarbanes-Oxley Act, PCAOB standards, and professional requirements while developing frameworks for addressing ethical dilemmas in audit practice.

Audit Risk Assessment and Planning

Master risk assessment and materiality determination as part of comprehensive audit planning. Evaluate client business risks, assess internal control environments, determine materiality thresholds, and develop risk-responsive audit strategies that efficiently allocate resources.

Internal Control Evaluation

Test and document internal controls through walkthroughs, control tests, and deficiency assessments. Analyze design and operating effectiveness while documenting control understanding, identifying key control points, and determining appropriate reliance strategies.

Testing of Financial Statement Accounts

Perform substantive audit procedures across diverse account balances and transaction classes. Design and execute analytical procedures, substantive sampling, and detailed transaction tests while evaluating evidence sufficiency and appropriateness for audit conclusions.

Audit Documentation and Reports

Prepare comprehensive audit documentation including working papers, misstatement summaries, and management representations. Draft appropriately formatted audit reports with proper opinions based on evidence gathered while demonstrating compliance with documentation standards.

Professional Skepticism and Judgment

Apply professional skepticism and judgment throughout audit planning, evidence gathering, and conclusion formation. Develop questioning approaches essential for detecting material misstatements, identify fraud risk factors, and evaluate unusual relationships that may indicate fraudulent reporting.