审计学232页精美管理.ppt

1,An Integrated Approach,Eighth Edition,2,The primary emphasis in this text is on the auditors decision-making process, such as determining the nature and amount of evidence.,The purpose of the author is to integrate the most important concepts of auditing as well as certain practical aspects in a logical manner to assist us in understanding audit decision making and evidence accumulation. (e.g. audit sampling),The text is divided into 6 parts,3,Part I THE AUDITING PROFESSION,(Chapters 1-5),Much of charter 1 emphasizes new assurance services being offered by CPA firms such as CPA WebTrust and ElderCare Plus. Chapter 2 covers the CPA profession including organization of CPA firms, the AICPA, and the SEC. In Charter 3, there is a detailed discussion of audit reports. Charter 4 explains professional ethics and the AICPA Code of Professional Conduct. Charter 5 ends this part with an investigation of auditors legal liability.,4,Part II THE AUDIT PROCESS,(Chapters 6-12),The first two of these chapters deal with auditors and managements responsibilities, audit objectives, and general concepts of evidence accumulation. Chapter 8 deals with planning the engagement and the preparation of audit working papers. Chapter 9 introduces materiality and risk and shows their effect on the audit. The study of internal control and assessment of control risk are discussed in Chapter 10. ,5,Part III APPLICATION OF THE AUDIT PROCESS TO THE SALES AND COLLECTION CYCLE (Chapters 13-16) Part IV APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES (Chapters 17-22) Part V COMPLETING THE AUDIT (Chapters 23) Part VI OTHER ASSURANCE AND NONASSURANCE SERVICES(Chapters 24 and 25),6,PART I (Chapters 1-5),THE AUDITING PROFESSION,These first five chapters provide background for performing financial audits, which is our primary focus. This background will help you understand why auditors perform audits the way they do. This presentation begins with a description of assurance services, including auditing, and the role of certified public accounting (CPA) firms and other organizations in doing audits. Part I emphasizes the regulation and control of CPA firms through auditing and ethical standards as well as the legal responsibilities of auditors. We also present a detailed discussion of audit reports, which are the final products of audits.,7,Indonesia - 1993 and Bre-X Minerals, Ltd.,THE DEMAND FOR AUDIT AND ASSURANCE SERVICES,1,ALL THAT GLITTERS ISNT GOLD,Each chapters opening vignette illustrates important auditing principles based on realistic situations. Some vignettes are based on public information about the audits of real companies, whereas others are fictitious. Any resemblance in the latter vignettes to real firms, companies or individuals is unintended and purely coincidental.,1849 - The California Gold Rush Sutters Mill,“After Bre-X, the Glow is Gone”,8,Assurance services Economic demand for auditing Nature of auditing Distinction between auditing and accounting Types of audits Types of auditors Certified public accountant,Main Contents,9,ASSURANCE SERVICES,Assurance services are independent professional services that improve the quality of information for decision makers. (reliability and relevance),Assurance services can be performed by CPAs or by a variety of other professionals.,CPAs have provided many assurance services for years, particularly assurances about historical financial statement information.,10,Attestation Services,An attestation service is a type of assurance service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party.,11,Audit of Historical Financial Statements,Is a form of attestation service in which the auditor issues a written report expressing an opinion about whether the financial statements are in material conformity with generally accepted accounting principles.,12,Review of Historical Financial Statements,A review of historical financial statements is another type of attestation service performed by CPAs. This type of review is often adequate to meet users needs and can be provided by the CPA firm at a much lower fee than an audit.(moderate amount of assurance, less evidence),13,Other Attestation Services,e.g. 1: banks require debtors to engage CPAs to provide assurance about the debtors compliance with certain financial covenant provisions stated in the loan agreement. e.g. 2: CPAs provide assurance about the effectiveness of a clients internal controls over financial reporting. e.g. 3: CPAs can attest to the information in a clients forecasted financial statements.,14,Audit, Attestation and Assurance,Audit: Written report on whether financial statements are in accordance with generally accepted accounting principles ( Auditing Standards) Attestation: Written report on reliability of an assertion (Attestation Standards) Assurance: Service to improve the quality of information(Assurance Standards),15,Other Assurance Services,“AND THE OSCAR GOES TO” “THERE SHE IS, MISS AMERICA” “WELCOME TO THE NEW YORK STATE LOTTERY”,You probably recognize these statements from the Academy Awards, the Miss America Pageant, and the New York State Lottery drawing. What you may not recognize is what these well-known event have to do with assurance services. Each event is observed by CPAs from a major accounting firm to assure viewers that the contests were fairly conducted. So when you become a member of a CPA firm, you might not win an Oscar - but you could be on the Oscars!,Example: Oscar Awards, Miss America Pageant, Lottery,16,Differences between Attestation Services and Other Assurance Services,a. The potential competition is faced by CPA firms when performing other assurance services. b. The CPA is not required to issue a written report. c. The assurance does not have to be about the reliability of another partys written assertion about compliance with specified criteria. d. The assurance is about the reliability and relevance of information, which may or may not have been asserted by another party.,17,Elliott Committee Report,The Elliott Committee was charged with researching and developing new assurance services opportunities for CPAs to provide to business and individual clients who need relevant and reliable information for critical decision making.,Assurance Services on Information Technology,There is even greater demand for assurance about computer controls surrounding information transacted electronically and the security of the information related to the transactions.,CPAs can help provide assurance about these functions.,Two examples: 1. Assurances over Web site controls 2. Assurances about information system reliability,18,CPA WebTrust,CPA firms that are licensed by the AICPA to perform this service provide assurance to users of Web sites through the CPAs electronic WebTrust seal affixed to the Web site.,This seal assures the user that the Web site owner has met established criteria related to business practices, transaction integrity, and information processes.,WebTrust is an attestation service, and the WebTrust seal is a symbolic representation of the CPAs report on managements assertions about its disclosure of electronic commerce practices.,19,Nonassurance Services,Accounting and bookkeeping Tax services Management consulting services,20,FIGURE 1 -1,ASSURANCE SERVICES,NONASSURANCE SERVICES,ATTESTATION SERVICES,Other Attestation Services (e.g., CPA WebTrust),Other Assurance Services (e.g., ElderCare Plus),Certain Management Consulting,Other Management Consulting,Accounting and Bookkeeping,Tax Services,Relationship among Assurance Services, Attestation Services, and Nonassurance Services,21,Figure 1- 1,Reflects the relationship between assurance and nonassurance services. Audits, reviews, and other attestation services are all examples of attestation services, which fall under the scope of assurance services.,22,ECONOMIC DEMAND FOR AUDITING,Objective 1-2,Explain the importance of auditing in reducing information risk.,Information Risk reflects the possibility that the information upon which the business risk decision was made was inaccurate.,Auditing can have a significant effect on information risk. If the bank manager is satisfied that there is minimal information risk because a borrowers financial statements are audited, the risk is substantially reduced and the overall interest rate to the borrower can be reduced.,23,Objective 1-3,List the causes of information risk, and explain how this risk may be reduced.,Causes of Information Risk,1. Remoteness of Information 2. Biases and Motives of the Provider Voluminous Data Complex transactions,Reducing Information Risk,For larger businesses, it is usually practical to incur costs to reduce information risk. There are three main ways to do this.,1. User Verifies Information 2. User Shares Information Risk with Management 3. Audited Financial Statements are Provided,24,NATURE OF AUDITING,25,To do an audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information.,Evidence is any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria.,26,Competent, Independent Person,The auditor must be qualified to understand the criteria used and must be competent to know the types and amount of evidence to accumulate to reach the proper conclusion after the evidence has been examined.,The competence of the individual performing the audit is of little value if he or she is biased in the accumulation and evaluation of evidence.,Reporting,The final stage in the auditing process is preparing the AUDIT REPORT which is the communication of the auditors findings to users.,27,FIGURE 1 -2,Audit of a Tax Return,Internal revenue agent,Examines cancelled checks and other supporting records,Federal tax returns filed by taxpayer,Internal Revenue Code and all interpretations,Report on tax deficiencies,Competent, independent person,Accumulates and evaluates evidence,Established criteria,Report on results,Information,Determines correspondence,28,DISTINCTION BETWEEN AUDITING & ACCOUNTING,Objective 1-5,Distinguish between auditing and accounting.,ACCOUNTING - is the recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making.,AUDITING - is auditing accounting data, determining whether recorded information properly reflects the economic events that occurred during the accounting period.,The auditor must possess expertise in the accumulation and interpretation of audit evidence. It is this expertise that distinguishes auditors from accountants.,29,TYPES of AUDITS,Objective 1-6,Differentiate the three main types of audits.,1. Financial Statement Audit - is conducted to determine whether the overall financial statements (the information being verified) are stated in accordance with specified criteria(GAAP ).,2. Operational Audit - is a review of any part of an organizations operating procedures and methods for the purpose of evaluating efficiency and effectiveness.,3. Compliance Audit - is to determine whether the auditee is following specific procedures, rules, or regulations set by some higher authority.,30,TABLE 1 - 2: Examples of the Three Types of Audits,Types of Audit Example Information Established Criteria Available Evidence,Financial Statement Annual Audit of General General Motors Financial Generally accepted Documents, records, and Audit Motors financial statement Statement Accounting principles outside sources of evidence,Operational Audit Evaluate whether the Number of payroll records Company standards for Error reports, payroll records computerized payroll processed in a month, efficiency and and payroll processing processing for subsidiary H costs of the department,and effectiveness in payroll costs is operating efficiently and number of errors made department effectively,Compliance Audit Determine whether bank Company records Loan agreement provisions Financial statements and requirements for loan calculations by the continuation have been met auditor,31,TYPES OF AUDITORS,Objective 1-7,Identify the primary types of auditors.,Certified Public Accounting Firms,General Accounting Office Auditors,Internal Revenue Agents,Internal Auditors,32,Objective 1-8,Describe the requirements for becoming a CPA.,Three Requirements for Becoming a CPA,CERTIFIED PUBLIC ACCOUNTANT,FIGURE 1 - 3,Educational Requirement,Uniform CPA Examination Requirement,Experience Requirement,Normally, an undergraduate degree with a major in accounting including a minimum number of accounting credits. Some states require 150 semester credits (225 quarter credits) before taking the examination; others mandate fewer credits before taking the examination but require 150 semester credits before receiving the certificate.,CPA Computer-Based Examination (start on April 5, 2004) Auditing & Attestation Financial Accounting & Reporting Regulation Business Environment & Concepts.,Varies widely from no experience to 2 years, including auditing. Some states include experience working for governmental units or in internal auditing.,33,2,THE CPA PROFESSION,OOD AUDITING INCLUDES GOOD CLIENT SERVICE,34,Certified public accounting firms Activities of CPA firms Structure of CPA firms AICPA Generally accepted auditing standards Statements on auditing standards Quality control Securities and Exchange Commission,Main Contents,35,Objective 2 - 1,Describe the nature of CPA firms, what they do, and their structure.,CERTIFIED PUBLIC ACCOUNTING FIRMS,The legal right to perform audits is granted to CPA firms by regulation of each state. CPA firms also provide many other services to their clients, such as tax and consulting services.,1. Big Four International Firms - The four largest CPA firms in the United States are called the “Big Four” international CPA firms.,2. National Firms - Three CPA firms in the United States are called national firms because they have offices in most major cities.,3. Regional and Large Local Firms - There are only approximately 100 CPA firms with professional staffs of more than 50 people.,4. Small Local Firms - More than 95 percent of all CPA firms have fewer than 25 professionals in a single-office firm.,36,Activities of CPA firms other than assurance service,Management Consulting Services,Tax Services,Accounting and Bookkeeping Services,37,STRUCTURE OF CPA FIRMS,Three main factors influence the organizational structure of all firms:,1. The need for independence from clients. 2. The importance of a structure to encourage competence. 3. The increased litigation risk faced by auditors.,38,Organizational Structures,39,监督管理,表示在业务中有过失或欺诈,有限责任 无限连带责任 A合伙人 B合伙人 C D E(审计人员)F G H,有 限 责 任 合 伙制,40,Hierarchy of Typical CPA Firm,Staff Levels and Responsibilities,Staff Level Average Experience Typical Responsibilities,Staff Assistant 0 - 2 years Performs most of the detailed audit work.,Senior or in-charge 2 - 5 years Coordinates and is responsible for the audit field work, auditor including supervising and reviewing staff work.,Manager 5 - 10 years Helps the in-charge plan and manage the audit, reviews the in-charges work, and manages relations with the client. A manager may be responsible for more than one engagement at the same time.,Partner 10 + years Reviews the overall audit work and is involved in significant audit decisions. A partner is an owner of the firm, and therefore has the ultimate responsibility for conducting the audit and serving the client.,TABLE 2-2,41,Objective 2 - 2,Describe the key functions performed by the AICPA.,The AICPA sets professional requirements for CPAs, conducts research, and publishes materials on many different subjects related to accounting, auditing, attestation and assurance services, management consulting services, and taxes.,(330,000 members, voluntary organization),42,VISION FOR THE FURURE,CPA Vision Project,The AICPA has established the CPA Vision Project to provide a core purpose and a vision for the CPA profession in the year 2011 and beyond. The core purpose of the CPA Vision Project is “CPAs.making sense of a changing and complex world.” The future success of the CPA profession relies a great deal on public perceptions of CPAs abilities and roles. CPAs must become market driven and not dependent on regulations to keep them in business. The market demands less audit and accounting and more value-adding consulting services. Specialization is critical for the future of the CPA profession. The market demands that CPAs be conversant in global business practices and strategies.,43,The AICPA is empowered to set standards (guidelines) and rules that all members and other practicing CPAs must follow.,The requirements are set by committees made up of AICPA members.,44,There are four major areas in which the AICPA has authority to set standards and make rules.,1. Auditing Standards（SASs, GAAS） 2. Compilation and Review Standards(SSARS) 3. Other Attestation Standards(SSAE) 4. Code of Professional Conduct,45,the Act creates a five-member Public Company Accounting Oversight Board (PCAOB), which has the authority to set and enforce auditing, attestation, quality control and ethics (including independence) standards for auditors of public companies. It also is empowered to inspect the auditing operations of public accounting firms that audit public companies as well as impose disciplinary and remedial sanctions for violations of the boards rules, securities laws and professional auditing and accounting standards.,the Sa