Wiley Advantage Audit:
User Instructions

This product is a planning document and an audit program, hereafter referred to as Advantage Audit Quality Control Materials (QCM).

These QCM are designed to assist professionals in performing audits, specifically with:
  • Planning an audit in accordance with professional standards,
  • Providing an audit program. Documentation in an audit program provides places to indicate who performed audit procedures, date performed, reference to workpaper index and conclusions.

Since this product is only a planning document and an audit program, other resources or professional standards should be consulted for:
  • Reporting examples or financial statement disclosures,
  • Guidance on accounting or industry-specific accounting matters,
  • Templates for confirmations, and communication with clients including engagement, representation, those charged with governance, and other matters (some of these items are separately available in our Confirmation Manual, which has not been peer reviewed)

Completed planning and audit program materials for a sample company (Sample Company materials) to help guide you through the audit are also separately available; they have not been peer reviewed.

These QCM are designed for “low-complexity” audits of non-public companies, which Advantage Audit defines as engagements that are generally smaller in size, with one operating location, less complex accounting and auditing issues, smaller internal accounting departments, with no consolidated and/or multinational operations; the audit approach generally includes more substantive auditing procedures and less reliance on controls. These materials are generally intended for use by smaller firms. However, firms of all sizes can use these materials, if adequate firm controls exist to limit use to the appropriate engagement.

The intended users of these QCM are professionals with substantial accounting, auditing, and specific industry experience and knowledge. These QCM include references to professional standards and all users are required to use appropriate professional standards reference material (whether referenced or not) as a supplement when they are using these QCM. If these QCM are used by professionals with less experience, supervisory professionals must meet all AICPA supervisory standards and adequately instruct, train and supervise the professional staff on the use of the quality control material and all work performed. These QCM are not intended as teaching or learning tools for the user. Professionals are reminded to tailor these QCM as appropriate and use professional judgment in its application based on facts and circumstances.

Users should consult with professional standards to ensure that its working papers, memoranda, and other documentation meet professional standards. Users should tailor audit assertions listed in the audit program to the specific engagements. Auditors need to consider both basic and further audit procedures in the execution of their audit.

These QCM are updated for all pronouncements, including Statements on Auditing Standards (SAS) through #132.

These QCM are designed to include many possible audit areas, but cannot include all types of transactions and balances. Users should consult professional standards when they encounter areas not addressed in these materials.

Limit of Liability/Disclaimer of Warranty: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
—From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.

We welcome your feedback. Please e-mail us at advantageaudit@wiley.com with any suggestions.

Practice Aids

Advantage Audit Non-Core products include sample answers on risk-based planning documents and audit programs, as well as a confirmation manual (practice aids) and communications (practice aids) on review and compilation engagements. The Wiley GAAS guide, GAAP guide, IFRS guide, and disclosure checklist are also Non-Core products. Note that this guide does not include communications with predecessor auditors.

It is imperative that the user of Non-Core products understand that these products have not been peer reviewed and do not include all the requirements of Quality Control Materials established by the American Institute of Certified Public Accountants (AICPA). Additionally, our sample answers are limited to a specific company in each industry and do not include all possible types of companies, risks, or procedures. The users should use their own professional judgment and experience, research all matters included in these documents, and read the instructions in the Advantage Audit Core product. The Advantage Audit is not providing any form of assurance on this material.
These are a general guide for confirmations and other correspondence applicable to engagements. It is not intended to be all inclusive, and auditors should, where appropriate, tailor the correspondence to the requirements of the engagement. The following should also be taken into consideration:
  • This is a general guide, and auditors should refer to professional standards.
  • Auditors should decide the selection criteria for mailing of confirmations.
  • Auditors should always control the mailing of independent confirmations.