审计学一种整合方法第英文Chapter.pptx

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1、审计学一种整合方法第英文审计学一种整合方法第英文ChapterLearning Objective 1Explain the objective ofconducting an audit offinancial statements andan audit of internal controls.第1页/共42页Objective of Conducting an Audit of Financial StatementsThe objective of the ordinary audit of financialstatements is the expression of an op

2、inion ofthe fairness with which they present fairly,inall respects,financial position,result ofoperations,and its cash flows inconformity with GAAP.第2页/共42页Steps to Develop Audit Objectives1.Understand objectives andresponsibilities for the audit.2.Divide financial statements into cycles.3.Know mana

3、gementassertions aboutaccounts.第3页/共42页Steps to Develop Audit Objectives4.Know general audit objectives forclasses of transactions and accounts.5.Know specific audit objectives forclasses of transactions and accounts.第4页/共42页Learning Objective 2Distinguish managementsresponsibility for the financial

4、statements and internal controlfrom the auditors responsibilityfor verifying the financialstatements and effectivenessof internal control.第5页/共42页 Managements ResponsibilitiesManagement is responsible for the financialstatements and for internal control.The Sarbanes-Oxley Act increases managementsre

5、sponsibility for the financial statements.It requires the CEO and the CFO of publiccompanies to certify the quarterly and annualfinancial statements submitted to the SEC.第6页/共42页 Managements ResponsibilitiesThe Sarbanes-Oxley Act provides for criminalpenalties for anyone who knowingly falselycertifi

6、es the statements.第7页/共42页Learning Objective 3Explain the auditorsresponsibility for discoveringmaterial misstatements.第8页/共42页Auditors ResponsibilitiesMaterial versus immaterial misstatements Reasonable assurance Errors versus fraud Professional skepticism Fraud resulting from fraudulent financialr

7、eporting versus misappropriation of assets第9页/共42页Auditors Responsibilities for Discovering Illegal Acts Direct-effect illegal acts Indirect-effect illegal acts Evidence accumulation when there is no reasonto believe indirect-effect illegal act exists第10页/共42页Auditors Responsibilities for Discoverin

8、g Illegal Acts Evidence accumulation and other actionswhen there is reason to believe direct-orindirect-effect illegal acts may exist Actions when the auditor knows of an illegal act第11页/共42页Learning Objective 4Classify transactions and accountbalances into financial statementcycles and identify ben

9、efits of acycle approach to segmentingthe audit.第12页/共42页Financial Statements CyclesAudits are performed by dividing the financialstatements into smaller segments or components.第13页/共42页Transaction Flow ExampleLedgers,Trial Balance,and FinancialStatementsGeneral ledgerand subsidiaryrecordsGeneral le

10、dgertrial balanceFinancialstatementsAcquisitionof goodsand servicesSalesCashreceiptsTransactionsCash receiptsjournalSalesjournalAcquisitionsjournalJournals第14页/共42页Transaction Flow ExampleAllocationandadjustmentsCashdisbursementsPayrollservices anddisbursementsLedgers,Trial Balance,and FinancialStat

11、ementsGeneral ledgerand subsidiaryrecordsGeneral ledgertrial balanceFinancialstatementsTransactionsPayrolljournalCashdisbursementsjournalGeneraljournalJournals第15页/共42页Relationships Among Transaction CyclesGeneralcashCapital acquisitionand repayment cycleSales andcollectioncycleAcquisitionand paymen

12、tcyclePayroll andpersonnelcycleInventory andwarehousingcycle第16页/共42页Learning Objective 5Describe why the auditor obtainsa combination of assurance byauditing classes of transactionsand ending balances in accounts,including presentation anddisclosure.第17页/共42页Balance and Transactions Affecting Balan

13、ces ExampleBeginning balanceSales$17,521$144,328$137,087Cash receipts$1,242Sales returnsand allowancesCharge-off ofuncollectibleaccountsEnding balance$20,197$3,323Accounts Receivable(in thousands)第18页/共42页Learning Objective 6Distinguish among the threecategories of managementassertions about financi

14、alinformation.第19页/共42页Management Assertions1.Assertions about classes of transactions andevents for the period under audit2.Assertions about account balances a period end3.Assertions about presentation and disclosure第20页/共42页Management Assertions forEach Category of AssertionsAssertions About Class

15、es Assertions About Classes of Transactions and Eventsof Transactions and EventsAssertions About Assertions About Account BalancesAccount BalancesAssertions About Assertions About Presentation and DisclosurePresentation and DisclosureOccurrenceExistenceOccurrence and rightsand obligationsCompletenes

16、sCompletenessCompletenessAccuracyValuation andallocationAccuracy andvaluationClassificationClassification andunderstandabilityCutoffRights andobligations第21页/共42页Learning Objective 7Link the six general transaction-related audit objectives tomanagement assertionsfor classes of transaction.第22页/共42页O

17、ccurrenceRecorded transactionsexistCompletenessExisting transactionsare recordedAccuracyRecorded transactionsare stated at thecorrect amountsGeneral Transactions-related Audit ObjectivesGeneral Transactions-related Audit Objectives第23页/共42页ClassificationTransactions are properlyclassified.TimingTran

18、sactions are recordedon the correct dates.Posting andsummarizationTransactions are includedin the master files andare correctly summarized.General Transactions-related Audit ObjectivesGeneral Transactions-related Audit Objectives第24页/共42页Management Assertions andManagement Assertions andTransaction-

19、related Audit ObjectivesTransaction-related Audit ObjectivesManagement AssertionsManagement AssertionsAbout Classes ofAbout Classes ofTransactions and EventsTransactions and EventsGeneral Transaction-General Transaction-related Auditrelated AuditObjectivesObjectivesSpecific Sales Transaction-Specifi

20、c Sales Transaction-related Audit Objectivesrelated Audit ObjectivesOccurrenceOccurrenceRecorded sales are forshipments made tononfictitious customersCompletenessCompletenessExisting salestransactions are recordedAccuracyAccuracyRecorded sales are forthe amount of goodsshipped and are correctlybille

21、d and recordedHillsburg Hardware Company:Hillsburg Hardware Company:As Applied to Sales TransactionsAs Applied to Sales Transactions第25页/共42页Management Assertions andManagement Assertions andTransaction-related Audit ObjectivesTransaction-related Audit ObjectivesAccuracyPosting andsummarizationSales

22、 transactions areproperly included in themaster file and arecorrectly summarizedClassificationClassificationSales transactions areproperly classifiedCutoffTimingSales transactions arerecorded on the correctdates.Management AssertionsManagement AssertionsAbout Classes ofAbout Classes ofTransactions a

23、nd EventsTransactions and EventsGeneral Transaction-General Transaction-related Auditrelated AuditObjectivesObjectivesSpecific Sales Transaction-Specific Sales Transaction-related Audit Objectivesrelated Audit ObjectivesHillsburg Hardware Company:Hillsburg Hardware Company:As Applied to Sales Transa

24、ctionsAs Applied to Sales Transactions第26页/共42页Learning Objective 8Link the eight general balance-related audit objectives tomanagement assertionsfor account balances.第27页/共42页ExistenceAmounts included existCompletenessExisting amounts areincludedAccuracyAmounts included arestated at the correctamou

25、ntsGeneral Balance-relatedAudit Objectives第28页/共42页ClassificationAmounts are properlyclassifiedCutoffTransactions are recordedin the proper periodDetail tie-inAccount balances agreewith master file amounts,and with the general ledgerGeneral Balance-relatedAudit Objectives第29页/共42页RealizablevalueAsse

26、ts are included atestimated realizable valueRights andobligationsAssets must be ownedGeneral Balance-relatedAudit Objectives第30页/共42页Management Assertions andManagement Assertions andTransaction-related Audit ObjectivesTransaction-related Audit ObjectivesManagement AssertionsManagement AssertionsAbo

27、ut Account BalancesAbout Account BalancesGeneral Balance-General Balance-related Auditrelated AuditObjectivesObjectivesSpecific Balance-related AuditSpecific Balance-related AuditObjectives Applied to InventoryObjectives Applied to InventoryExistenceExistenceAll recorded inventory existsat the balan

28、ce sheet dateCompletenessCompletenessAll existing inventory hasbeen counted and includedin the inventory summaryHillsburg Hardware Company:Hillsburg Hardware Company:As Applied to InventoryAs Applied to Inventory第31页/共42页Management Assertions andManagement Assertions andTransaction-related Audit Obj

29、ectivesTransaction-related Audit ObjectivesManagement AssertionsManagement AssertionsAbout Account BalancesAbout Account BalancesGeneral Balance-General Balance-related Auditrelated AuditObjectivesObjectivesValuation andallocationAccuracyInventory quantities on the clients perpetual records agree wi

30、th items physically on handPrices used to value inventories are materially correctExtensions of price times quantity are correct and details are correctly addedHillsburg Hardware Company:Hillsburg Hardware Company:As Applied to InventoryAs Applied to InventorySpecific Balance-related AuditSpecific B

31、alance-related AuditObjectives Applied to InventoryObjectives Applied to Inventory第32页/共42页Management Assertions andManagement Assertions andTransaction-related Audit ObjectivesTransaction-related Audit ObjectivesManagement AssertionsManagement AssertionsAbout Account BalancesAbout Account BalancesG

32、eneral Balance-General Balance-related Auditrelated AuditObjectivesObjectivesValuation andallocationClassificationCutoffInventory items are properly classified as to raw materials,work in process,and finished goodsPurchase cutoff at year end is properSales cutoff at year end is properHillsburg Hardw

33、are Company:Hillsburg Hardware Company:As Applied to InventoryAs Applied to InventorySpecific Balance-related AuditSpecific Balance-related AuditObjectives Applied to InventoryObjectives Applied to Inventory第33页/共42页Management Assertions andManagement Assertions andTransaction-related Audit Objectiv

34、esTransaction-related Audit ObjectivesManagement AssertionsManagement AssertionsAbout Account BalancesAbout Account BalancesGeneral Balance-General Balance-related Auditrelated AuditObjectivesObjectivesValuation andallocationDetail tie-inRealizablevalueTotal of inventory items agrees with general le

35、dgerInventories have been written down where net realizable value is impaired Hillsburg Hardware Company:Hillsburg Hardware Company:As Applied to InventoryAs Applied to InventorySpecific Balance-related AuditSpecific Balance-related AuditObjectives Applied to InventoryObjectives Applied to Inventory

36、Rights and obligations Rights andobligationsThe company has title to all inventory items listedInventories are not pledged as collateral第34页/共42页Learning Objective 9Link the four presentation anddisclosure-related audit objectivesto management assertions forpresentation and disclosure.第35页/共42页Manag

37、ement Assertions and Presentation and Disclosure-Management Assertions and Presentation and Disclosure-related Audit Objectivesrelated Audit ObjectivesHillsburg Hardware Company:Hillsburg Hardware Company:As Applied to Notes PayableAs Applied to Notes PayableManagementManagementAssertions AboutAsser

38、tions AboutPresentation andPresentation andDisclosureDisclosureSpecific Presentation andSpecific Presentation andDisclosure-related Audit ObjectivesDisclosure-related Audit ObjectivesApplied to Notes PayableApplied to Notes PayableOccurrenceand rights andobligationsOccurrenceand rights andobligation

39、sNotes payable as described in thefootnotes exist and areobligations of the companyCompletenessCompletenessAll required disclosures relatedto notes payable are included inthe financial statement footnotesGeneralGeneralPresentation-Presentation-and Disclosure-and Disclosure-related Auditrelated Audit

40、ObjectivesObjectives第36页/共42页Management Assertions and Presentation and Disclosure-Management Assertions and Presentation and Disclosure-related Audit Objectivesrelated Audit ObjectivesHillsburg Hardware Company:Hillsburg Hardware Company:As Applied to Notes PayableAs Applied to Notes PayableManagem

41、entManagementAssertions AboutAssertions AboutPresentation andPresentation andDisclosureDisclosureSpecific Presentation andSpecific Presentation andDisclosure-related Audit ObjectivesDisclosure-related Audit ObjectivesApplied to Notes PayableApplied to Notes PayableValuation andallocationValuation an

42、dallocationFootnote disclosures related tonotes payable are accurate.ClassificationandunderstandabilityClassificationandunderstandabilityNotes payable are appropriatelyclassified as to short-term andlong-term obligations andrelated financial statementdisclosures are understandableGeneralGeneralPrese

43、ntation-Presentation-and Disclosure-and Disclosure-related Auditrelated AuditObjectivesObjectives第37页/共42页Learning Objective 10Explain the relationship betweenaudit objectives and theaccumulation of audit evidence.第38页/共42页How Audit Objectives Are MetThe auditor must obtain sufficient appropriateaud

44、it evidence to support all managementassertions in the financial statements.An audit process has four specific phases第39页/共42页Four Phases of a Financial Statement AuditPhase IPlan and designan audit approachPhase IIPerform tests ofcontrols andsubstantive testsof transactionsPhase IIIPerform analyticalprocedures andtests of detailsof balancesPhase IVComplete theaudit and issuean audit report第40页/共42页End of Chapter 6第41页/共42页感谢您的观看。感谢您的观看。第42页/共42页