AICPA审计复习要点摘录

A1-audit reports1. Difference under ISAa) Requirements in ISAs and Not in US GAAS: Under ISAs: the preparation of FS gives a true and fair view; require the introductory paragraph to refer to the summary of significant accounting policies and other explanatory information; require in the auditors responsibility paragraph that auditors comply with ethical requirementsUnder U.S. GAAS: Managements responsibilities for the FS should not be referenced to a separate statement by management about such responsibilities if such a statement is included in a document containing the auditors report.b) ISA require the auditor to obtain written representations from management regarding its plans for future actionc) ISA requires the auditor to withdraw when unable to obtain sufficient appropriate audit evidence due to a manager-imposed scope limitation. USGAAS : consider not required) Amends after the date of the report but before FS are issued. ISA: new report dated no earlier than the date of approval of the amended FS all events to the new date! US. GAAS: Duel date the report to extend responsibility only for the particular subsequent event.2. P51 summary3. When reporting on comparative FS, an auditor should change the previously issued opinion on the prior years FS if the prior years FS are restated to conform with GAAP.4. P54 PRIME5. An auditor ay draft an entitys financial statements based on information from managements accounting system6. The AICPA provides Statement on Auditing Standards, which provides a measure of conventions, rules and procedures governed by AICPA.7. Requirement for audit evidence: appropriate! Not reasonable or adequate8. PCAOB was established by the SOX of 20029. Group engagement partner Assume responsibility for the work of the component auditor: no reference made; unable to review the component auditors audit documentation: make reference!10. Consistency is implicit in report and explicit in emphasis-of-a-matter paragraph.11. An auditor may not issue a qualified opinion when the auditor lacks independence with respect to the audited entity. Rather, must disclaim an opinion12. Omission of required supplementary information result in an additional paragraph added to an unmodified opinion.13. An unjustified accounting change may cause the auditor to issue a qualified or adverse opinion rather than an unmodified opinion with an emphasis-of-matter paragraph.14. Going concern: discussion with lenders would not be a mitigating factor. Actual agreements would be required15. Removal of going concern in current period: the emphasis-of-matter paragraph included in the prior period should not be repeated, and no description of the reasons or plans for recovery need be included16. Substantial doubt of going concern: disclaimer of opinion or unmodified opinion with emphasis17. An audit procedure that may identify doubts about an entitys ability to continue as a going concern: Confirm with third parties the details of arrangements to maintain financial support;Review compliance with terms of debt agreements18.19.20. Solely based on the report of the other auditors: indicate a division of responsibility21. When an auditor qualifies his opinion because of a scope limitation, the wording in the opinion paragraph should indicate that the qualification pertains to the possible effects on the FS and not to the scope limitation itself22. Accounting change has no material effect on FS in the current year, but a material future effect, the auditor must ensure the change is disclosed in the footnotes, but does not have to recognize the change in the current years audit report23. FS omits the statement of cash flows: inadequate disclosure qualified opinion, not disclaimer of opinion!24. An entity changes method of accounting, in emphasis of matter paragraph: identify the nature of the change and refer to the financial statement note that discusses the change in details.25. Under U.S. GAAS, if among other requirements, the group engagement partner is satisfied as to the independence and the professional reputation of the component auditor, the group engagement partner may express an opinion on the financial statements taken as a whole without making reference to the audit of the component auditor26. Auditors sends an engagement letter to the client, not vice versa27. GAAP problem: fail to contain adequate disclosure of related party transactios28. GAAS problem: auditor unable to determine the amounts associated with illegal acts committed by the clients management29. Make reference to the audit of a component auditor no need of an emphasis of matter paragraph30. Omit one of the FSs : qualified!31. Audit report for an issuer: In auditors responsibility paragraph: conducted in accordance with PCAOB standardsIn opinion paragraph: refer to GAAP32. The predecessor auditor who audited the prior-period FS generally should obtain a letter of representation from the management and successor; but the successor is not required to obtain a letter from predecessor33. If the FS of a prior period have been audited and the report is not presented, the successor should indicate in an other-matter paragraph of the audit reporta) The FS of prior period were audited by a predecessor auditorb) The type of opinion expressed and whyc) The nature of any emphasis-of-matter or other-matter paragraph included in prior reportd) The date of the prior report34. Subsequent events: inquiry about:(1) New commitments, borrowings, or guarantees(2) Sales or acquisitions of assets35. Dual dated for a subsequent event (original date of report, issuance of related FS): responsibility limited to the specific event referenced36. 37. 38. Report on the application of the requirements of an applicable financial reporting framework should include a statement that should any facts or circumstances differ from presented to the reporting accountant, the accountants report may change.39. The auditor would not perform a review or express negative assurance on supplementary information required by GAAP40. If information accompanying the basic FS has been subjected to auditing procedures, in the report it is stated: the accompanying information is fairly stated in all material respects in relation to the basic FS taken as a whole.41. Report on application of the requirements of an applicable financial reporting framework to a specific transaction, the CPAs responsible for proper accounting treatment rests with（取决于） the preparers of the financial statements42. Presentation of selected financial data is not a form of prospective FS43. 顺序很重要！ Basis of opinionopinionemphasis-of-matter paragraphA2 other engagements, reports, and accounting services1. Emphasis-of-matter paragraph: FS are prepared in accordance with a special purpose frameworkOther-matter paragraph: restricts the use of the auditors report2. Cash basis FS auditing:Statements of income and retained earnings are accrual basis FS. The report should refer to “the related statements of revenue collected and expenses paid for the years then ended”The basis of accounting should be explicitly identified3. SSARS(statement on standards for accounting and review services ) issued by AICPAAn accountant is required to comply with the provisions of SSARS when submitting unaudited FS. Submission is defined as: presenting to a client or third parties FS the accountant has prepared.Review is in accordance with SSARS, non-issuers onlyFor issuers: SAS or PCAOB standardsNo scope paragraph under SSARS; the reference to professional standards is included in the accountants responsibility paragraph4. Compilation doesnt need representation letter;Review needs representation letter5. Review requires independence, compilation doesnt6. Review: U LIAR CPA7. Down grade and upgrade audit 再看一遍， P50-P568. P66-689. Prospective FS10. If the auditor has disclaimed an opinion on the financial statements taken as a whole, the auditor may express an opinion on an entitys accounts receivable balance only if the special report on accounts receivable is presented separately from the disclaimer of opinion on the FS and the accounts receivable balance does not constitute a major portion of the entitys complete set of FS.11. To express an opinion on an employees profit participation in net income, the CPA may accept the engagement only if he also audits and expresses an opinion on the entitys I/S and B/S12. The auditors report on FS prepared on the cash receipt and disbursements basis of accounting would include a statement that the basis is a comprehensive basis of accounting other than GAAPIn this circumstance, the accountant should modify the review report to reflect the fact that the FS were presented on another comprehensive basis of accouning13. Summary FS14. Special purpose framework report includes an emphasis-of-matter and other-matter paragraphs.15. Positive assurance16. A report on a clients compliance with a regulatory requirement, assuming the report is prepared based on a financial statement audit of the complete financial statements, would contain restricted us language.17. Written representations should be addressed to the accountant. The letter should be signed by members of management whom the accountant believes are responsible for and knowledgeable about the matters covers in the representation letter.18. The accountant may decline to issue a compilation report provided that each page of the financial statements is clearly marked to restrict its use and a written engagement letter is used to document the understanding with the client.19. Compiled financial statements may be used to obtain credit. Prohibition on using compiled FS: to obtain credit relates to personal FS when the accountant would like to exempted from the requirement of SSARS20. If the accountant believes that modification of the standard report is not adequate to indicate the deficiencies in the FS taken as a whole, the accountant should withdraw from the review engagement and provide no further services with respect to those FS.21. If the accountant concludes that there is reasonable justification to change the engagement, the accountants review report should not include reference to the original engagement22. Compilation: if the accountant is not independent, he should specifically disclose the lack of independence. Otherwise, independence is implied23. Review: substantial doubt as to going concern, not required to modify the accountants review report. But can choose to emphasize this issue in the reportShould state that a review includes primarily applying analytical procedures to managements financial data and making inquiries of company management24. Written documentation from other types of engagements(compilation) may be used to provide support for the review report25. Recalculation of depreciation expense is an audit procedure not in a review26. A review provides limited assurance that there are on material modifications that should be made to the financial statements in order to be in conformity with generally accepted accounting principles.A compilation provides no assurance27. Before issuing a compilation report, accountants should read the compiled FS and consider whether they are appropriate in form and free from obvious material errors.28. Compilation report shouldnt include words like: “accountants have no responsibility to update the report for events and circumstances occurring after the date of the report”. It is on prospective FS29. Representation letter30. Audit procedure not in review: observing a year-end inventory count; examining subsequent cash receipts; assessing the internal control31. To determine whether the change in engagement is justified: accountants should consider the additional audit effort and cost required.32. Inconsistencies in the application of accounting principles do not require modification of the review report as long as the FS include adequate disclosure33. An accountant must express an opinion on the FS taken as a whole in an audit, not a review34. When audited FS are presented in comparative form with unaudited FS from a prior year, the auditor should either reissue report or include a separate paragraph in the current year report describing the responsibility assumed for the unaudited statements35. Before reissuing a compilation report on the FS of a non-issuer for the prior year, the predecessor accountant is required to:36. Review of interim financial information: aware of a significant change in the control activitiesresult in further inquiry of management37. Audit affect reviews:38. The objective of a review of interim financial information is to provide the accountant, through inquiries and analytical procedures, with a basis for reporting whether material modifications should be made to such information to conform with generally accepted accounting principles.39. The accountants review of interim financial information is performed in accordance with PCAOB standard.40. A review of public entitys interim financial information requires an evaluation of internal control; requires communication with the predecessor auditor; requires inquiry of the clients attorney regarding litigation, claims and assessments; does not provide an opinion on the FS; provides negative assurance; the reference to 41. To update the accountants knowledge of the client during planning stage: Considering the results of audit procedures that have previously been performed and how they correspond to the current years FSAnalytical procedures are after planning stage(understand-learn-inquiry)42. Comfort letter:The accountants express an opinion concerning in the FSs compliance with the pertinent accounting requirements of the SECNegative assurance is provided regarding unaudited condensed financial informationAddressed to the underwriters of the securitiesSigned by independent auditor43. 使用SSAE（statement on standards for attestation engagement）的服务:44. No requirement of restricted to specified parties when reporting on an assertion about the subject matter instead of reporting directly on the subject matter.45. Report on agreed-upon procedures related to managements assertion about an entitys compliance with specified requirements contains a statement that the sufficiency of the procedures is solely the responsibility of the parties specifying the procedures and a disclaimer of responsibility on the part of the account46. A financial forecast may be issued for general use; a financial projection can only be issued for restricted use(e.g. a bank with which the entity is negotiating for a loan)47. An attest engagement may be part of a larger engagement: such as a business acquisition study or a feasibility study; attestation standards include two standards that parallel GAAS: planning/supervision and evidence48. A sufficient understanding of internal control is not required to be obtained in an attestation engagement49. An accountants compilation report on a financial forecast should include a statement that the compilation does not include evaluation of the support of the assumptions underlying the forecast50. A management consulting engagement to provide EDP(electronic data processing) advice to a client is not an attest engagement51. Negative assurance may be expressed on review of managements assertion52. Whether an entity is in compliance with the provisions of Foreign Corrupt Practices Act: accountant may perform an examination of an agreed-upon procedures engagement but NO REVIEW53. When an accountant examines a financial forecast that fails to disclose significant assumptions used to prepare the forecast -adverse opinion!54. Partial presentations are presentations of prospective financial information which would not ordinarily be appropriate for general use because they omit one or more of these essential elements: sales or gross revenue, gross profit or cost of sales, unusual or infrequently occurring items, provision for income taxes, discontinued operations or extraordinary items, income from continuing operations, net income, EPS, significant changes in financial position55. Attest engagement: WebTrust&SysTrustA3-Engagement acceptance, planning, and risk assessment1. Materiality: tolerable errorAn auditor considers materiality for the FS as a whole in terms of the largest aggregate level of misstatements that could be material to any one of the FSMaterial judgments are made in light of surrounding circumstances and necessarily involve both quantitative and qualitative considerations2. Independent auditors may not share any responsibility involving judgments, including the assessment of inherent and control risk3. Audit Risk = Risk of Material Misstatement(Inherent Risk * Control Risk) * Detection Risk4. Knowledge about the design and implementation of relevant internal controls should be used to identify types of misstatements that could occur5. Analytical procedures and risk assessment procedures are necessary in FS; test of the effectiveness of control is not.6. In obtaining an understanding of the entity and its environment, including its internal control, an auditor is required to obtain knowledge about the design of relevant internal controls pertaining to financial reporting in each of the five internal control components7. Segregation of duties in IT:Control group, operators, programmers, analyst, librarian8. A review of predecessors audit documentation related to matters of continuing accounting and auditing significance would be permitted. This include contingencies and internal controls9