审计学一种整合的方法3

1、8 - 1Audit Planning andAnalytical ProceduresChapter 8Learning Objective 1Discuss why adequate auditplanning is essential.Three Main Reasons for Planning1. To obtain sufficient competent evidencefor the circumstances2. To help keep audit costs reasonable3. To avoid misunderstanding with the clientRis

2、k Terms Acceptable audit risk Inherent riskPlanning an Audit and Designing an Audit ApproachAccept client and perform initial audit planning.Understand the clients business and industry.Assess client business risk.Perform preliminary analytical procedures.Planning an Audit and Designing an Audit App

3、roachSet materiality and assess acceptable audit riskand inherent risk.Understand internal control and assess control risk.Gather information to assess fraud risks.Develop overall audit plan and audit program.Learning Objective 2Make client acceptance decisionsand perform initial audit planning.Init

4、ial Audit Planning Client acceptance and continuance Identify clients reasons for audit Obtain an understanding with the client Develop overall audit strategyLearning Objective 3Gain an understanding of theclients business and industry.Understanding of the Clients Business and IndustryFactors that h

5、ave increased theimportance of understanding theclients business and industry: Global operations Information technology Human capitalUnderstanding of the Clients Business and IndustryIndustry and external environmentBusiness operations and processesManagement and governanceObjectives and strategiesM

6、easurement and performanceUnderstand clients business and industryIndustry and External EnvironmentReasons for obtaining an understanding of theclients industry and external environment:1. Risks associated with specific industries2. Inherent risks common to all clients incertain industries3. Unique

7、accounting requirementsBusiness Operationsand ProcessesFactors the auditor should understand: Major sources of revenue Key customers and suppliers Sources of financing Information about related partiesTour the Plant and OfficesBy viewing the physical facilities, the auditor can asses physical safegu

8、ards over assets and interpretaccounting data related to assets.Identify Related PartiesA related party is defined as an affiliatedcompany, a principal owner of the clientcompany, or any other party with whichthe client deals, where one of the partiescan influence the management orpolicies of the ot

9、her.Management and GovernanceManagement establishes the strategies andprocesses followed by the clients business.Governance includes the clients organizationalstructure, as well as the activities of the boardof directors and the audit committee. Corporate charter and bylaws Meeting minutes Code of e

10、thicsCode of EthicsIn response to the Sarbanes-Oxley Act, the SECnow requires each public company to disclosewhether is has adopted a code of ethics thatapplies to senior management.The SEC also requires companies to discloseamendments and waivers to the code of ethics.Client Objectives and Strategi

11、esStrategies are approaches followed by theentity to achieve organizational objectives.Auditors should understand client objectives. Effectiveness and efficiency of operations Financial reporting reliability Compliance with laws and regulationsMeasurement and PerformanceThe clients performance measu

12、rement systemincludes key performance indicators. Examples: market share sales per employee unit sales growth Web site visitors same-store sales sales/square footPerformance measurement includes ratio analysisand benchmarking against key competitors.Learning Objective 4Assess client business risk.As

13、sess Client Business RiskClient business risk is the risk that theclient will fail to achieve its objectives. What is the auditors primary concern? Material misstatements in the financialstatements due to client business riskClients Business, Risk, andRisk of Material MisstatementUnderstand clientsb

14、usiness and industryIndustry and external environmentBusiness operations and processesManagement and governanceObjectives and strategiesMeasurement and performanceAssess client businessriskAssess risk of materialmisstatementsSarbanes-Oxley (new title)The Sarbanes-Oxley Act requires thatmanagement ce

15、rtify it has designeddisclosure controls and procedures toensure that material information aboutbusiness risks is made known to them.It also requires that management certifyit has informed the auditor and auditcommittee of any significant deficienciesin internal control.Enterprise Risk ManagementEnt

16、erprise risk management (ERM) hasemerged as a new paradigm for managing risk.ERM integrates and coordinates riskmanagement across the entire enterprise.Learning Objective 5Perform preliminary analyticalprocedures.Preliminary Analytical ProceduresComparison of client ratios to industryor competitor b

17、enchmarks provides anindication of the companys performance.Preliminary tests can reveal unusualchanges in ratios. Examples of Planning Analytical ProceduresLiquidity activity ratio:Inventory turnover3.365.20Ability to meet long-term obligations:Debt to equity1.732.51Profitability ratio:Profit margi

18、n0.050.07Short-term debt-paying ability:Current ratio3.865.20Summary of the Partsof Auditing PlanningA major purpose is to gain an understanding of the clients business and industry.Key Parts of PlanningAccept client and perform initial planning New client acceptance and continuance Identify clients

19、 reasons for audit Obtain an understanding with client Staff the engagementKey Parts of PlanningUnderstand the clients business and industry Understand clients industry and externalenvironment Understand clients operations, strategies,and performance systemKey Parts of Planning Assess client busines

20、s risk Evaluate management controlsaffecting business risk Assess risk of material misstatementsKey Parts of PlanningPerform preliminary analytical proceduresLearning Objective 6State the purposes of analyticalprocedures and the timingof each purpose.Analytical ProceduresRequired in the planning pha

21、seOften done during the testing phaseRequired during the completion phaseSAS 56 emphasizes the expectationsdeveloped by the auditor.Timing and Purposes of Analytical Procedures(Required)PlanningPhasePurposeUnderstand clientsindustry and businessPrimarypurposeAssess going concernSecondarypurposeIndic

22、ate possiblemisstatements(attention directing)PrimarypurposeReduce detailed testsSecondarypurposeSecondarypurposePrimarypurposeSecondarypurposePrimarypurposeTestingPhase(Required)CompletionPhaseLearning Objective 7Select the most appropriateanalytical procedure fromamong the five major types.Five Ty

23、pes of Analytical ProceduresCompare client data with:1. Industry data2. Similar prior-period data3. Client-determined expected results4. Auditor-determined expected results5. Expected results using nonfinancial data.Compare Client and Industry DataInventory turnover 3.4 3.5 3.9 3.4Gross margin26.3%2

24、6.4%27.3%26.2%2007200620072006Compare Client Data with Similar Prior Period DataNet sales$143,086 100.0$131,226100.0Cost of goods sold 103,241 72.1 94,876 72.3Gross profit$ 39,845 27.9$ 36,350 27.7Selling expense 14,810 10.3 12,899 9.8Administrative expense 17,665 12.4 16,757 12.8Other 1,689 1.2 2,0

25、35 1.6Earnings before taxes$ 5,681 4.0$ 4,659 3.5Income taxes 1,747 1.2 1,465 1.1Net income$ 3,934 2.8$ 3,194 2.4Learning Objective 8Compute common financial ratios.Common Financial Ratios Short-term debt-paying ability Liquidity activity ratios Ability to meet long-term debt obligations Profitabili

26、ty ratiosShort-term Debt-paying AbilityCurrent ratioCurrent assetsCurrent liabilities=Cash ratio(Cash + Marketable securities)Current liabilities=Quick ratio(Cash + Marketable securities+ Net accounts receivable)Current liabilities=Liquidity Activity RatiosAccounts receivableturnoverNet salesAverage gross receivables=Days to collectreceivableAccounts receivable turnover=InventoryturnoverAverage inventory=Days t