审计学一种整合方法第12版英文版Chapter07课件

AuditEvidenceChapter7LearningObjective1Contrastauditevidencewithevidenceusedbyotherprofessions.NatureofEvidence

Theuseofevidenceisnotuniquetoauditors

Evidenceisalsousedbyscientists,lawyers, andhistoriansLearningObjective2Identifythefourauditevidencedecisionsthatareneededtocreateanauditprogram.AuditEvidenceDecisions1.Whichauditprocedurestouse2.Whatsamplesizetoselectforagivenprocedure3.Whichitemstoselectfromthepopulation4.Whentoperformtheprocedures(timing)AuditProgramItincludesalistoftheauditprocedurestheauditorconsidersnecessary.Mostauditorsusecomputerstofacilitatethepreparationofauditprograms.SamplesizesItemstoselectTimingofthetestsLearningObjective3Specifythecharacteristicsthatdeterminethepersuasivenessofevidence.PersuasivenessofEvidenceAppropriatenessSufficiencyTwodeterminants:SixCharacteristicsofReliableEvidence1. Independenceofprovider2. Effectivenessofclient’s internalcontrols3. Auditor’sdirectknowledgeSixCharacteristicsofReliableEvidence4. Qualificationofindividuals providingtheinformation5. Degreeofobjectivity6. TimelinessRelationshipsAmongAuditEvidenceandPersuasivenessAuditEvidenceDecisionsQualitiesAffectingPersuasivenessofEvidenceAuditproceduresandtimingAppropriatenessRelevanceReliabilityIndependenceofproviderEffectivenessofinternalcontrolsAuditor'sdirectknowledgeQualificationsofproviderObjectivityofevidenceTimelinessWhenproceduresareperformedPortionofperiodbeingauditedSamplesizeanditemstoselectSufficiencyAdequatesamplesizeSelectionofproperpopulationitemsPersuasivenessandCostInmakingdecisionsaboutevidenceforagivenaudit,bothpersuasivenessandcostmustbeconsidered.Theauditor’sgoalistoobtainasufficientamountofappropriateevidenceatthelowesttotalcost.LearningObjective4Identifyandapplytheeighttypesofevidenceusedinauditing.TypesofAuditEvidence1.Physicalexamination2.Confirmation3.Documentation4.Analyticalprocedures5.Inquiriesoftheclient6.Recalculation7.Reperformance8.ObservationRelationshipsAuditingstandardsEvidenceaccumulationTypesofevidenceAuditproceduresQualificationsandconductSamplesizeanditemstoselectTimingoftestsReportingPhysicalexaminationConfirmationDocumentationAnalyticalproceduresInquiriesoftheclientRecalculationReperformanceObservationBroadguidelinesconcerningauditorqualificationsandconduct,evidenceaccumulation,andreportingBroadcategoriesofevidenceavailablefortheauditor’saccumulationSpecificinstructionsfortheaccumulationoftypesofevidenceFOURAUDITEVIDENCEDECISIONSPhysicalExaminationItistheinspectionorcountbytheauditorofatangibleasset.Thistypeofevidenceismostoftenassociatedwithinventoryandcash.ConfirmationInformationSourceAssetsCashinbankAccountsreceivableNotesreceivableOwnedinventoryoutonconsignmentInventoryheldinpublicwarehousesCashsurrendervalueoflifeinsuranceBankCustomerMakerConsigneePublicwarehouseInsurancecompanyConfirmationInformationSourceLiabilitiesAccountspayableNotespayableAdvancesfromcustomersMortgagespayableBondspayableCreditorLenderCustomerMortgagorBondholderConfirmationInformationSourceOwners’EquitySharesoutstandingRegistrarandtransferagentOtherInformationInsurancecoverageContingentliabilitiesBondindentureagreementsCollateralheldbycreditorsInsurancecompanyBank,lender,andclient’slegalcounselBondholderCreditorDocumentationItistheauditor’sinspectionoftheclient’sdocumentsandrecords.InternaldocumentsExternaldocumentsAnalyticalProceduresUnderstandtheclient’sindustryandbusinessAssesstheentity’sabilitytocontinueasa goingconcernIndicatethepresenceofpossiblemisstatements inthefinancialstatementsReducedetailedaudittestsInquiriesoftheClientItistheobtainingofwrittenororalinformationfromtheclientinresponsetoquestionsfromtheauditor.RecalculationItinvolvesrecheckingasampleofcalculationsmadebytheclient.ReperformanceItistheauditor’sindependenttestsofclientaccountingproceduresorcontrolsthatwereoriginallydone.ObservationItistheuseofthesensestoassessclientactivities.Theauditormaytourtheplanttoobtainageneralimpressionoftheclient’sfacilities.AppropriatenessofTypesofEvidenceTypeofevidenceIndependenceofproviderEffectivenessofclient’sinternalcontrolsAuditor’sdirectknowledgeQualificationsofproviderObjectivityofevidenceTermsandTypesofEvidenceTermsTypeofEvidenceExamineScanReadComputeRecomputeFootTraceCompareCountObserveInquireVouchDocumentationAnalyticalproceduresDocumentationAnalyticalproceduresRecalculationRecalculationDocumentation/ReperformanceDocumentationPhysicalexaminationObservationInquiriesofclientDocumentationLearningObjective5Understandthepurposesofauditdocumentation.AuditDocumentationAuditdocumentationistheprincipalrecordofauditingproceduresapplied,evidenceobtained,andconclusionsreachedbytheauditorintheengagement.AuditDocumentation

Purposesofauditdocumentation

Ownershipofauditfiles

ConfidentialityofauditfilesSarbanes-OxleyActTheSarbanes-OxleyActrequiresauditorsofpubliccompaniestoprepareandmaintainauditworkingpapersforaperiodofnolessthansevenyears.LearningObjective6Prepareorganizedauditdocumentation.AuditandOrganizationRobinsonAssociatesTrialBalance12/31/07Cash $165,237AccountsReceivable 275,050PrepaidInsurance 37,795InterestReceivable 20,493FinancialStatementsandAuditReportFinancialStatementsandAuditReportFinancialStatementsandAuditReportWorkingTrialBalanceFinancialStatementsandAuditReportAdjustingJournalEntriesFinancialStatementsandAuditReportContingentLiabilitiesFinancialStatementsandAuditReportOperationsFinancialStatementsandAuditReportLiabilitiesandEquityFinancialStatementsandAuditReportAssetsFinancialStatementsandAuditReportAnalyticalProceduresFinancialStatementsandAuditReportTestsofControlsandSubstantiveTOTFinancialStatementsandAuditReportInternalControlFinancialStatementsandAuditReportGeneralInformationFinancialStatementsandAuditReportAuditProgramsFinancialStatementsandAuditReportPermanentFilesPermanentFilesThesefilesareintendedtocontaindataofahistoricalorcontinuingnaturepertinenttothecurrentaudit.CurrentFiles

Auditprogram

Generalinformation

Workingtrialbalance

Adjustingandreclassificationentries

SupportingschedulesRelationshipofAuditDocumentation

toFinancialStatementsFINANCIALSTATEMENTSCash 122Acc.WORKINGTRIALBALANCE Prelim. AJE’s FinalCash 212 (90) 122 AJE’sExpense 90 Cash 90LEADSCHEDULE–CASH A-1 PerG/L AJE’s Final PettyCashA-2 5 5 CashinBank: GeneralA-3 186 (90) 96 PayrollA-4 21 21 212 (90) 122 RelationshipofAuditDocumentation

toFinancialStatements A-3/1Confirmation A-3/2O/SCheckListA-4/2O/SCheckList A-4/1Confirmation A-2CashCountSheet A-3BankReconciliation A-4BankReconciliationLEADSCHEDULE–CASH A-1 PerG/L AJE’s Final PettyCashA-2 5 5 CashinBank: GeneralA-3 186 (90) 96 PayrollA-4 21 21 212 (90) 122 TypesofSupportingSchedules

Analysis

Trialbalanceorlist

Reconciliationofamounts

TestsofreasonablenessTypesofSupportingSchedules

Summaryofprocedures

Examinationofsupportingdocuments

Informational

Outsidedoc