审计学一种整合方法Chapter09ppt课件.ppt

MaterialityandRisk Chapter9 LearningObjective1 Applytheconceptofmaterialitytotheaudit Materiality Itisamajorconsiderationindeterminingtheappropriateauditreporttoissue Materiality Theauditor sresponsibilityistodeterminewhetherfinancialstatementsaremateriallymisstated Ifthereisamaterialmisstatement theauditorwillbringittotheclient sattentionsothatacorrectioncanbemade StepsinApplyingMateriality Planningextentoftests Step1 Setpreliminaryjudgmentaboutmateriality Step2 Allocatepreliminaryjudgmentaboutmaterialitytosegments StepsinApplyingMateriality Evaluatingresults Step3 Estimatetotalmisstatementinsegment Step4 Estimatethecombinedmisstatement Comparecombinedestimatewithjudgmentaboutmateriality Step5 LearningObjective2 Makeapreliminaryjudgmentaboutwhatamountstoconsidermaterial SetPreliminaryJudgmentAboutMateriality Thispreliminaryjudgmentisthemaximumamountbywhichtheauditorbelievesthestatementscouldbemisstatedandstillnotaffectthedecisionsofreasonableusers Auditorsdecideearlyintheauditthecombinedamountofmisstatementsofthefinancialstatementsthatwouldbeconsideredmaterial FactorsAffectingJudgment Materialityisarelativeratherthananabsoluteconcept Basesareneededforevaluatingmateriality Qualitativefactorsalsoaffectmateriality Guidelines Accountingandauditingstandardsdonotprovidespecificmaterialityguidelinestopractitioners Professionaljudgmentistobeusedatalltimesinsettingandapplyingmaterialityguidelines LearningObjective3 Allocatepreliminarymaterialitytosegmentsoftheauditduringplanning AllocatePreliminaryJudgmentAboutMaterialitytoSegments Thisisnecessarybecauseevidenceisaccumulatedbysegmentsratherthanforthefinancialstatementsasawhole Mostpractitionersallocatematerialitytobalancesheetaccounts SAS107 AU312 LearningObjective4 Usematerialitytoevaluateauditfindings EstimatedTotalMisstatementandPreliminaryJudgment CashAccountsreceivableInventoryTotalestimatedmisstatementamountPreliminaryjudgmentaboutmateriality 4 00020 00036 000 50 000 2 00012 00031 500 45 500 N A6 00015 750 16 800 2 00018 00047 250 62 300 TolerableMisstatement KnownMisstatementandDirectProjection SamplingError Total Account EstimatedMisstatementAmount N A NotapplicableCashaudited100percent EstimatedTotalMisstatementandPreliminaryJudgment Netmisstatementsinthesample 3 500 Totalrecordedpopulationvalue 450 000 Totalsampled 50 000 Directprojectionestimateofmisstatement 31 500 LearningObjective5 Defineriskinauditing Risk Auditorsacceptsomelevelofriskinperformingtheaudit Aneffectiveauditorrecognizesthatrisksexist aredifficulttomeasure andrequirecarefulthoughttorespond Respondingtorisksproperlyiscriticaltoachievingahigh qualityaudit RiskandEvidence Auditorsgainanunderstandingoftheclient sbusinessandindustryandassessclientbusinessrisk Auditorsusetheauditriskmodeltofurtheridentifythepotentialformisstatementsandwheretheyaremostlikelytooccur IllustrationofDifferingEvidenceAmongCycles Salesandcollectioncycle Acquisitionandpaymentcycle Payrollandpersonnelcycle Inherentrisk A Medium High Low Controlrisk B Medium Low Low Acceptableauditrisk C Low Low Low Planneddetectionrisk D Medium Medium High IllustrationofDifferingEvidenceAmongCycles Inventoryandwarehousingcycle Capitalacquisitionandrepaymentcycle Inherentrisk A High Low Controlrisk B High Medium Acceptableauditrisk C Low Low Planneddetectionrisk D Low Medium LearningObjective6 Describetheauditriskmodelanditscomponents AuditRiskModelforPlanning PDR AAR IR CR PDR Planneddetectionrisk AAR Acceptableauditrisk IR Inherentrisk CR Controlrisk where LearningObjective7 Considertheimpactofengagementriskonacceptableauditrisk ImpactofEngagementRiskonAcceptableAuditRisk Auditorsdecideengagementriskandusethatrisktomodifyacceptableauditrisk Engagementriskcloselyrelatestoclientbusinessrisk FactorsAffectingAcceptableAuditRisk Thedegreetowhichexternalusersrelyonthestatements Thelikelihoodthataclientwillhavefinancialdifficultiesaftertheauditreportisissued Theauditor sevaluationofmanagement sintegrity MethodsPractitionersUsetoAssessAcceptableAuditRisk MethodsUsedtoAssessAcceptableAuditRisk Externalusers relianceonfinancialstatements ExaminefinancialstatementsReadminutesoftheboardExamineform10KDiscussfinancingplanswithmanagement Factors MethodsPractitionersUsetoAssessAcceptableAuditRisk Likelihoodoffinancialdifficulties AnalyzefinancialstatementsfordifficultiesusingratiosExamineinflowsandoutflowsofcashflowstatements Managementintegrity SeeChapter8forclientacceptanceandcontinuance MethodsUsedtoAssessAcceptableAuditRisk Factors LearningObjective8 Considertheimpactofseveralfactorsontheassessmentofinherentrisk FactorsAffectingInherentRisk Natureoftheclient sbusinessResultsofpreviousauditsInitialversusrepeatengagementRelatedpartiesNonroutinetransactionsJudgmentrequiredtocorrectlyrecordaccountbalancesandtransactionsMakeupofthepopulationFactorsrelatedtofraudulentfinancialreportingFactorsrelatedtomisappropriationofassets LearningObjective9 Discusstherelationshipofriskstoauditevidence RelationshipofFactorsInfluencingRiskstoRisksandRiskstoPlannedEvidence D Directrelationship I Inverserelationship Factorsinfluencingrisks Acceptableauditrisk Planneddetectionrisk Plannedauditevidence Inherentrisk Controlrisk I D I I D I D RelationshipofFactorsInfluencingRiskstoRisksandRiskstoPlannedEvidence Theengagementmayrequiremoreexperiencedstaff Theengagementwillbereviewedmorecarefullythanusual Auditorscanchangetheaudittorespondtorisks AuditRiskforSegments Bothcontrolriskandinherentriskaretypicallysetforeachcycle eachaccount andofteneveneachauditobjective notfortheoverallaudit TolerableMisstatement Risks andBalance relatedAuditObjectives Itiscommontoassessinherentandcontrolriskforeachbalance relatedauditobjective Itisnotcommontoallocatematerialitytoobjectives MeasurementLimitations Onemajorlimitationintheapplicationoftheauditriskmodelisthedifficultyofmeasuringthecomponentsofthemodel RelationshipsofRisktoEvidence Acceptableauditrisk Inherentrisk Controlrisk Planneddetectionrisk Amountofevidencerequired Situation HighLowLowMediumHigh LowLowHighMediumLow LowLowHighMediumMedium HighMediumLowMediumMedium LowMediumHighMediumMedium 12345 TestsofDetailsofBalancesEvidencePlanningWorksheet Auditorsdevelopvarioustypesofworksheetstoaidinrelatingtheconsiderationsaffectingauditevidencetotheappropriateevidencetoaccumulate LearningObjective10 Discusshowmaterialityandriskarerelatedandintegratedintotheauditprocess RelationshipofTolerableMisstatementandRiskstoPlannedEvidence D Directrelationship I Inverserelation