如何成为合格的审计咨询师18.ppt

Completing the Audit,Chapter 18,Learning Objective 1,Conduct a review for contingent liabilities and commitments.,Summary of the Audit Process,Phase IV Completing the Audit,Review for contingent liabilities,Review for subsequent events,Accumulate final evidence,Evaluate results,Issue audit report,Communicate with audit committee and management,A contingent liability is potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place.,Contingent Liabilities,Likelihood of Occurrence and Financial Statement Treatment,Likelihood of Financial Statement Occurrence of Event Treatment,Remote (slight chance) No disclosure necessary,Reasonably possible Footnote disclosure,Probable Adjust financial statements OR footnote disclosure,Audit Procedures for Finding Contingencies,Inquire of management (orally and in writing) about the possibility of unrecorded contingencies.,Review current and previous years internal revenue reports for income tax settlements.,Review the minutes of directors and stockholders meetings for indications of lawsuits.,Audit Procedures for Finding Contingencies,Analyze legal expenses and review invoices and statements from legal counsel.,Obtain a letter from each major attorney of the client as to the status of pending litigation.,Examine letters of credit in force.,Review audit documentation for any information that may indicate a potential contingency.,Learning Objective 2,Obtain and evaluate letters from the clients attorneys.,A list including (1) pending threatened litigation and (2) asserted or unasserted claims or assessments with which the attorney has had involvement.,A request that the attorney furnish information or comment about the progress of each item listed.,Inquiry of Clients Attorneys,A request for the identification of any unlisted pending or threatened legal action or a statement that the clients list is complete.,A statement informing the attorney of the attorneys responsibility to inform management of legal matters requiring disclosure in the financial statements and to respond directly to the auditor.,Inquiry of Clients Attorneys,Learning Objective 3,Conduct a post-balance-sheet review for subsequent events.,Period Covered by Subsequent Events Review,Those that have a direct effect on the financial statements and require adjustment,Those that have no direct effect on the financial statements but for which disclosure is advisable,Types of Subsequent Events,Declaration of bankruptcy by a customer with an accounts receivable balance. Settlement of a litigation at an amount different from the amount recorded on the books,Requiring Adjustment,Disposal of equipment not being used in operations at a price below the current book value Sale of investments at a price below recorded cost,Requiring Adjustment,Advisability of Disclosure,Decline in the market value of securities held for temporary investment or resale Issuance of bonds or equity securities Decline in the market value of inventory as consequence of government action barring further sale of a product Uninsured loss of inventories as a result of fire A merger or an acquisition,Inquiry of management Correspond with attorneys Review internal statements prepared subsequent to the balance sheet date Review records prepared subsequent to the balance sheet date Examine minutes issued subsequent to the balance sheet date Obtain a letter of representation,Audit Tests,The first date is the date for the completion of field work except for a specific exception.,The second date, which is always later, deals with the exception.,Dual Dating,Learning Objective 4,Design and perform the final steps in the evidence-accumulation segment of the audit.,Perform final analytical procedures. Evaluate the going-concern assumption. Obtain a management representation letter. Consider information accompanying the basic financial statements. Read other information in the annual report,Final Evidence Accumulation,Information Accompanying Basic Financial Statements,Balance sheet,Income statement,Statement of cash flows,Footnotes,Information Accompanying Basic Financial Statements,Detailed comparative statements,Statistical data,Schedule of insurance coverage,Learning Objective 5,Integrate the audit evidence gathered, and evaluate the overall audit results.,Sufficiency of evidence,Evidence supports auditors opinion,Financial statement disclosures,Audit documentation review,Independent review,Evaluate Results,Evaluating Results and Reaching Conclusions,Actual audit evidence (by cycle, account, and objective) Audit procedures Sample size Items to select Timing,Evaluate results (by account and cycle) Estimated misstatement (by account) Achieved audit risk (by account and cycle),Evaluating Results and Reaching Conclusions,Evaluate overall financial statements Estimated misstatement (overall statements) Achieved audit risk (overall statements),Issue audit report,The audit report is the only thing that most users see in the audit process and the consequences of issuing an inappropriate report can be severe.,Issue the Audit Report,Learning Objective 6,Communicate effectively with the audit committee and management.,Communicate fraud and illegal acts Communicate reportable conditions Other communication with au