Auditing and Assurance Services 4th edition solution c12
审计方面的经典书籍
审计方面的经典书籍When it comes to classic books on auditing, "Principles of Auditing and Other Assurance Services" by Ray Whittington and Kurt Pany is a must-read. This comprehensive book covers all the essential concepts and principles of auditing.在审计领域，雷·惠廷顿和库尔特·潘尼合著的《审计原理和其他保证服务》是一本必读的经典书籍。
这本综合性的书籍涵盖了审计的所有基本概念和原则。
Another highly recommended book is "Auditing and Assurance Services" by Alvin Arens, Randal Elder, and Mark Beasley. This book provides a practical approach to auditing and assurance services, making it a valuable resource for both students and professionals in the field.另一本备受推荐的书籍是艾尔文·阿伦斯、兰德尔·埃尔德和马克·比斯利合著的《审计与保证服务》。
这本书提供了对审计和保证服务的实用方法，对于这一领域的学生和专业人士来说是一本宝贵的资源。
For those looking to delve deeper into the world of auditing, "Auditing: A Risk-Based Approach to Conducting a Quality Audit" by Karla Johnstone, Audrey Gramling, and Larry Rittenberg is a great choice. This book explores the risk-based approach to auditing, providing valuable insights into how to conduct a quality audit.对于那些希望深入了解审计领域的人来说，卡拉·约翰斯顿、奥黛丽·格兰林和拉里·里滕伯格合著的《审计：基于风险的质量审计方法》是一个很好的选择。
内部审计-科龙审计报告作业 精品
PSB ACADEMYDMAAuditing and Assurance ServicesCourseworkLecturer: Li, XinTeam member:Jiang, Chuanqin F00039728Zheng, Wenpo F00039787Ren, Shishuai F00039746Ren, Shishuai F00039746You, Chunhui F00039773Tang, Xiao F00039750 ----- November 16, 20XX-----ⅠEngagement (1)According to the mission Kelon Electrical Board of Directors, we Hisense Kelon Electrical Co., Ltd. in accordance with Accounting Standards and the "Enterprise Accounting System" prepared by December 31, 20XX balance sheet, ine statement and cash in 20XX flow statement and the audit of financial statements. Through the implementation of the audit work, whether the financial statements in accordance with Accounting Standards and the "enterprise accounting system" be prepared, whether fairly in all material respects, Wuhan Zhongyuan pany's financial position, operating results and cash flows of the audit opinion. The Audit Department of the statutory audit of annual financial statements.Under the "Accounting Law" and "Enterprise Financial Statements Regulations", Hisense Kelon Electrical Co., Ltd. and Hisense Kelon Electrical Co., Ltd. Leader has the responsibility to ensure the authenticity and integrity of accounting information. To this end, Hisense Kelon Electrical Co., Ltd. has the responsibility to keep the management and delivery of accounting records (including but not limited to accounting documents, books and other accounting data), these records must be true and plete reflection of Hisense Kelon Electrical Holdings Co., Ltd. financial position, operating results and cash flows. In accordance with Accounting Standards and the "enterprise accounting system" for preparing financial statements Hisense Kelon Electrical Co., Ltd. management's responsibility, this responsibility includes: (1) design, implementation and maintenance of related financial statements and internal control so that the financial statements do not exist as a result of fraud or error free of material misstatement; (2) selecting and applying appropriate accounting policies and make reasonable accounting estimates.According to China Securities Regulatory mission and China Association of the relevant provisions of the Certified Public Accountant in the audit process, our responsibilities are: (1) in the implementation of audit work based on the Hisense Kelon Electrical Holdings pany Limited on the financial statements audit opinion. Certified Public Accountant in accordance with auditing standards in China (hereinafter referred to as Auditing Standards) shall be audited. (2) An audit involves performing audit procedures to obtain the amounts and disclosures in the financial statements of the audit evidence. (3) We need a reasonable plan and perform the audit to enable the audit to obtain sufficient appropriate audit evidence, for Hisense Kelon Electrical Co., Ltd. financial statements are free of material misstatement to obtain reasonable assurance. (4) we have the responsibility specified in the audit report found Hisense Kelon Electrical Corporation in a material respects, in pliance with corporate accounting standards and "enterprise accounting system," the preparation of financial statements and failure to adjust our remendations on matters. (5) the nature of the testing and auditing of the other inherentlimitations, and the inherent limitations of internal control, there is inevitably some material misstatement may remain undiscovered in the audit risk. (6) Our audit does not replace, reduce or waive Hisense Kelon Electrical Holdings Co., Ltd. and Hisense Kelon Electrical Co., Ltd. management's responsibility.Ⅱ Preliminary Assessment (2-3)2.1 Nature of business, customer base, petition and products.Guangdong Kelon Electrical Co., Ltd is currently the largest enterprise groups, one refrigeration appliances, refrigerators with an annual output of 800 million units annual output of 400 million units of air conditioners, refrigerators and air conditioners in the domestic markets play an important role, especially in the refrigerator market share of first in the country for ten years.2.2 Range and plexity of products and services. Product RangeKelon brand is currently the largest enterprise groups, one refrigeration appliances, refrigerators and air conditioners in the domestic markets play an important role, especially in the refrigerator market share first in the country for ten years. China Kelon Group is headquartered in Shunde District of Foshan City, Guangdong Province, began production of refrigerators in 1984, is one of the first production of refrigerator. Following the issue of H shares in 1996 and listed in Hong Kong after 1999, Kelon has successfully issued A shares in Shenzhen, in the same year also by "the World Economic Forum organization" nominated for the 1999 Best Global Emerging Markets, one of 100; 2001 was "Fortune" magazine as hundred enterprises of Chinese listed panies.Kelon consistent focus on leading technology, fluorine-free refrigerators in 1996 due to technical access to a handful of countries within the industry and technological progress award in 2000, hydrocarbon substances for manufacturing systems re-CFC alternatives within the industry the only country with the type of technological progress awards . 2001, Kelon has been the core of the ten leading position in domestic refrigerators, of which there are five more world leader. In 20XX, the Global Environment Facility (GEF) organized the "energy star refrigerator," petition, Kelon and took first place, was "energy star" award, marking the Kelon refrigerator energy saving has reached world leading level. March 20XX, Kelon refrigerator landmark independent research and development division multi-cycle refrigeration technology and the technology applied to a free multi-temperature refrigerator, the world's first successful implementation of the refrigerator and freezer independently loop and sharing control system; September 20XX, Kelon for design and development of all ten children, cartoon fridge, a listing on the highly regarded. Subsequently, Kelon Greencool refrigerant using energy-efficient air-conditioning, "King of double effect" and the "king of the digital double effect" have been published, the digital king of the double-effect heating and cooling energy efficiency ratio of 5.3 and 5.4, respectively, reached world leading level .In December 20XX an international industrial design petition held in King of Block 237AK Kelon refrigerator, king of the second generation of Kelon air-conditioned double-effect with the gold medal, a cross-sectional household appliances so far the only gold medal today, but also be a business with two the sole representative of Gold Awards. Also, may sound "Love Baby" Child Development refrigerator was "Product Innovation Award" Excellence Award. Kelon at the end of 2001 transfer of shares by way of legal person shares, the successful introduction of high-tech and international background of the "Green Cole" has bee the largest shareholder, Kelon has established the development of profit-center direction, the "Pilot for create value for customers "as the concept of enterprise development, established the" world major appliance manufacturers, "the strategic objectives.2.3 Trends and development of the pany relative to its industry or market sector2.3.1 The development of the industryChina's white goods production in 20XX was 148.78 million units (units), pared with 5.0% growth in 20XX. Among them, the production of household washing machines 33,720,000 units (units), an increase of 6.0%; the production of household refrigerators 43,560,000 units (units), an increase of 12.1%; production was 71.5 million air-conditioning units (units), growth rate of 0.6%.White goods in 20XX also led to growth in the size of white upstream pressor production capacity, along with China's growing white scale of production, the mainstream brands have white expansion by starting the pressor can plan, professional pressor production to increase overall business is also not far behind, Panasonic, Hitachi, Samsung and many other foreign panies line the pressor is also dispute to China. Statistics show that China's 20XX production of air-conditioning pressor units to 84.2 million, an increase of 6.3% over 20XX; refrigerator pressor production reached 49.7 million units, up 8.3% over 20XX.2.3.2 The impact of favorable and unfavorable development of the industry factors(1) The favorable factorsA. Industrial policy support: National impact of macroeconomic policies for the industry: the state's new energy efficiency standards to be announced, and subsidies for energy-efficient air-conditioning market share will gradually increase, in which energy-efficient air-conditioning sales in developed countries accounted for more than 90% less than 20% and domestic;B. Since the reform and opening up the last century, the development of China's national economy has maintained a high growth rate, which is the early nineties to nine years of rapid development, GDP (gross domestic product) growth rate highest reached 13.5%, while during this time was also asignificant inflation. In 1998, the role of national macro-control, the national economy to achieve a "soft landing." However, from 2000 to 20XX, the national economy gradually showing a trend of deflation, however, China's GDP growth rate during this period remained at 7% to 8%. The last two years, with the continuous expansion of the scale of investment, the national economy once again showing a continuing trend of rapid development, the 20XX GDP growth of 9.1%, while the first quarter of 20XX GDP growth over the same period the previous year 9.7% (see Figure 1).C. State to address the financial crisis of the 4 trillion in investment programs to stimulate economic growthBy the financial crisis, since the second half of 20XX global economic slowdown, decreased external demand, China's economic growth has slowed but still maintained a 20XX growth rate of 9.00% is still the world's fastest growing economies. Because China is in the urbanization and industrialization process in the country's new rural construction, the western development and the northeast under the macro-economic policy, bined with the State Council promulgated in response to financial crisis, the expansion of domestic demand and promote economic growth, investment plans 4 trillion , China's national economy still maintained a good overall development, infrastructure investment is expected to maintain rapid growth, sustained growth in demand for electricity grid to form a favorable support.D. national high-speed, healthy and stable development for the white goods industry provides a good external macro-environment. On the one hand to promote the development of the white goods industry has a good environment for industrial investment, on the other hand the development of the consumer market to provide a stable foundation.(2) adverse factorsContinuous price war so that the economic benefits of the industry to continueto run low. Mature market economy, price wars tend to bee strong and effective business integration tools market resources. But China's price war is the main focus of local enterprises, while not making money or losing money, but consider for a variety of non-enterprise, the local government is still trying to let this business to continue operating so that have lost petitiveness, the should be kept out of business petition, corporate retreat no, not the industry's supply and demand balance for a long time to achieve. Supply exceeds demand in the market environment, panies only through lower prices to expand market share in this process, the high cost of business will be eliminated to achieve a basic balance between supply and demand for the further development of petitive enterprises create the conditions and the provision of power, and our long-term existence of a large number of inferior enterprises, making the face of market dominant enterprises can do nothing to give priority to capture the market, the result is industry-wide industry-wide cut-throat petition and low efficiency.2.4 Performance of pany / products relative to industry peers2.4.1 Market Share parisonAir-conditioning industry is the main product Kelon Corporation, pared with the same industry:According to recent State Council Development Research Center of Market Economy Research Institute, "from 20XX to 20XX air conditioner market Market research report, "shows, this year's top three all e into the air conditioner market in Guangdong, Midea, Kelon points Home second place, third overall.It is understood that the survey covering 54 cities, 553 distributors and 21,300 Urban households. The findings show that this year, Gree, Midea, Kelon's market share were 13.76 , 12.91%, 11.02%, pared with last year, both by increased market share, three of whichKelon rapid growth, a net increase of more than 2 percentage points, to industry experts, to promote its "three-year power 2,000 yuan, "the efficient air-conditioning on.Overall, this year's petition in the domestic air conditioner market has been decentralized to centralized, Gree, Midea, Kelon,Haier 10 top-ranking brand market share as high as 85.47%, an increase of nearly 1 0 percent, and the remaining 14.53% by the more than 200 small and medium-name brands and segmentation, market petitionpetition presents "the strong stronger and the weak weaker," the pattern.In this year's air war, Gree, Midea, Kelon and other brands battle through technology, channel war, priceBattle grid to take the initiative to promote the industry "shuffle." Gree adhere to professional refrigeration line this year, the main push of cool air-conditioned king, driven by demand in the market as A touch of bright high-end market; and Kelon air-conditioning should be efficient to sell the initiative to give full play to their account for the energy efficiency industryAdvantages over high ground, pushing the "double effect King" air-conditioning, inverter air conditioner at the arena with the game, signed hundreds of expertsName for sale and other activities, achieved remarkable success. Contention in the channel, and Kelon brands with large distributors such as close cooperation with each other to make "a conspiracy of silence" in the shopping guide, promotions, etc. to provide services for them, "consultant" type of marketing that many small brands to enter the city's channel was blocked; the same time, strengthen the construction of its own network of dealers to rely solely on small shipments exert tremendous pressure on the brand. Kelon introduced this year, "the interests of dealers management" greatly dealers wele this year's biggest winner in the war channel. State Council Development Research Center of Market Economy Institute deputy director of the that, Gree, Midea, Kelon,Haier brand, reputation, strength, occupy a significant advantage on the face of raw material prices, with upstream suppliers have a bargaining chip, the product cost control ability, and business risk is relatively small; On this basis, with the downstream distribution business and establish a stable relationship. The second and third tier brands do not have these conditions, which is distributed to the market this year by the concentration of the main reason. State Council Development Research Center of the top three air-conditioning experts to punctuate the year, each winning the Road: Gree by the unique Channels; the United States by the flexible marketing; Kelon by technology leader.It is worth mentioning that the State Council Development Research Center, Institute of Market Economy Research shows that this year, Gree, Midea, Kelon brand value have been greatly improved. In the consumer "awareness, the quality of identity, technologyTechnical leadership, service satisfaction, brand loyalty, "Evaluation of 5, not far from the whole three, Kelon receivedThe "quality of identity, technology leadership, brand loyalty," the three first, as the survey was "the first "Most of the brand.Ⅲ Fraud Conditions (2-3)3.1 Brief explanation and analysis of the alleged fraud schemeThe end of 2001, Kelon through the EGM, the resolution adopted by the Board election. The new board of directors of the CPC nine directors, including five executive directors all e from Greencool. At a time from April 20XX led Greencool Gu Chujun transferee Kelon shares some time. The Board represents the interests of shareholders, and so the design does not represent the board the interests of shareholders, but the interests of major shareholders Greencool.Slow growth in household appliances industry, but there is a very high rate of Kelon. Kelon 2001 operating ine of 4.38 billion yuan only, but20XX,20XX,20XX, respectively, reached 4.88 billion, 61.7 billion, 8.436 billion. pared with 2001, Kelon 20XX revenues increased by 4.06 billion, an increase of 93%, three-year average annual growth rate of about 30%.Kelon's consolidated financial statements from the parent pany statements and we can see that there are substantial sums of money Kelon occupied by a parent. In 20XX, Kelon parent pany statements of other receivables amounted to 16 billion giant, and consolidated statements of the project is only 1.3 billion; 20XX Kelon parent pany statements of other receivables at 17 billion, while consolidated statements of the project only 12 billion.According to Kelon published report shows that the year 2000 Kelon huge loss of 8.3 billion reached in 2001 is 1.476 billion yuan, an instant to achieve 20XX net profit of 100 million yuan actually. Under such a huge contrast, the hidden field is not unmon in big bath smelting financial means, that the huge losses in 20XX, "contributions" from the huge loss in 2001. Kelon 2001, the total cost of 2.1 billion is huge, pared to just 900 million yuan in 20XX.(1) 20XX to 20XX, Kelon Electrical taken fictional main business ine, less about bad debt .Equipment, less about litigation and other means of pensation make up a false financial report, leading to inflated its 20XX profit of 11,996.31 million in annual report, 20XX annual report inflated profits 11,847.05 million, inflated profits in 20XX Annual Report 14 , 8.7591 million yuan.(2) Kelon Electrical 20XX annual report significant cash flow disclosure of false information. In 20XX, Kelon Electrical product and its subsidiaries in the sale of each other.Promissory notes issued by banks trading background and mercial acceptance bills to the bank discount, access to large amounts of cash. Kelon's cash flow summary did not accurately reflect the cash flow. The statistics, Kelon Electrical 20XXConsolidated Cash Flow Statement Annual Report total borrowings less cash received 302,550 yuan, less provision for repayment of the debt paid in cash 213,573 million dollars more than the cash flow from operating activities, net 88,976 million dollars.(3) Kelon Electrical 20XX to 20XX did not disclose accounting policy changes and other major issues, but also with related parties not disclosed joint venture, purchase of goods and other related transactions.Greencool, Gu Lang dispute, Kelon big four international accounting firms is mon in the case of customs fraudKey words, government supervision, the weakening of internal controls, independent audit of default and other factors contributed to the occurrence of Kelon fraud.3.2 Potential conditions for the alleged fraud to perpetrateAfter the Enron Case, the financial fraud bees the focus of the world capital market.Western accouting academics have achieved great results in the research on financial fraud.However, the research achievements are based on paratively sound external manager markets and external director markets, without concerning the present economic and legal environment of our country. Under the current economic environment of China the cause of the listed panies' financial frauds is the lack of governance mechanisms, mainly for four aspects as follow: the unreasonable corporate governance system, the deficient government supervision, the unscientific audit relationship, and the powerless legal punishmentThe end of 2001, Kelon through the EGM, the resolution adopted by the Board election. The new board of directors of the CPC nine directors, including five executive directors all e from Greencool. The Extraordinary General Meeting on behalf of shareholders attending the pany's total equity capital of only 37% of Greencool has been elected member is to be expected. Decided to vote by the directors, the Board has determined by the major shareholders, major shareholders in essence, the decision Gu Chujun one case, the probability of occurrence of financial fraud must be greatly increased. Science fraud triangle theory that the pressure generated by the fraud, opportunity and an excuse for the three elements work together.20XX-20XX, Kelon Electrical taken fictional main business ine, less provision for bad debts, less provision for litigation and other means of pensation make up a false financial reports.Greencool, Gu Lang dispute, the big four international accounting firms is the key point of Kelon fraud.1, weak government regulationThis is the exposure of fraud an important reason for the delay.2, weakening the internal controlThis is the main breeding ground of fraud to the soil.3, the independent audit of defaultThis is a certified public accountant audit the direct cause of failureThis led to Kelon 1,2,3 point mon occurrence of fraud.。
课程标准模板-会计专业英语
课程标准模板-会计专业英语Course Standard Template - Accounting Major in EnglishIntroductionAccounting is a fundamental discipline in the field of business and finance. It plays a crucial role in providing financial information for decision-making and ensuring the accuracy and transparency of financial records. To meet the needs of the accounting profession and produce competent accounting professionals, a comprehensive course standard template for the accounting major in English is essential.Course Objectives1. Develop a solid foundation in accounting principles and concepts.2. Enhance communication skills in English within the context of accounting.3. Acquire knowledge and understanding of international accounting standards.4. Develop analytical and critical thinking skills for problem-solving in accounting.5. Apply ethical principles and professional standards in accounting practice.Course Structure and Content1. Core Courses1.1 Financial Accounting1.1.1 Introduction to Financial Accounting1.1.2 Financial Statements Preparation and Analysis 1.1.3 Revenue Recognition and Measurement1.1.4 Asset Measurement and Valuation1.1.5 Liabilities and Equity Measurement and Valuation 1.1.6 Financial Reporting and Disclosure1.2 Managerial Accounting1.2.1 Introduction to Managerial Accounting1.2.2 Cost Concepts and Behavior1.2.3 Cost-Volume-Profit Analysis1.2.4 Budgeting and Variance Analysis1.2.5 Performance Measurement and Reporting1.2.6 Decision Making and Relevant Information2. Professional Courses2.1 Auditing and Assurance Services2.1.1 Auditing Theory and Practice2.1.2 Audit Planning and Risk Assessment2.1.3 Internal Control Evaluation and Documentation2.1.4 Audit Evidence and Sampling Techniques 2.1.5 Audit Reporting and Communication2.2 Taxation2.2.1 Introduction to Taxation2.2.2 Individual Income Taxation2.2.3 Business Taxation2.2.4 Tax Planning and Compliance2.2.5 International Taxation2.3 Financial Management2.3.1 Introduction to Financial Management2.3.2 Financial Analysis and Planning2.3.3 Capital Budgeting and Investment Decisions 2.3.4 Financing and Capital Structure2.3.5 Risk Management and Derivatives3. Elective Courses3.1 Advanced Financial Accounting3.2 Forensic Accounting3.3 International Accounting3.4 Accounting Information Systems3.5 Ethics in Accounting3.6 Contemporary Issues in AccountingAssessment Methods1. Written Examinations: Assessing theoretical knowledge and understanding of accounting concepts and principles.2. Case Studies and Problem Solving: Assessing analytical and critical thinking skills in applying accounting concepts to real-world scenarios.3. Individual and Group Presentations: Assessing communication skills in effectively conveying accounting information to different stakeholders.4. Assignments and Projects: Assessing practical application of accounting principles and ethical considerations in accounting practice.ConclusionThe course standard template for the accounting major in English provides a comprehensive and structured curriculum to ensure students' acquisition of essential knowledge and skills in accounting. By following this template, educational institutions can develop a rigorous and standardized accounting program that prepares students for the challenges and demands of the accounting profession. With a strong foundation in accounting principles, effective communication skills, and adherence to ethical standards, graduates of this program will be equipped to succeed in diverse accounting roles in the global business environment.。
国际审计准则与相关服务准则 IAASB (International Auditing and
International Standards on Assurance Engagements (ISAEs)
利用其他專家
ISA 600查核集團財務報表其他審計人員
ISA 610利用內部審計工作
ISA 620利用專家工作
其他相關服務準則(已發布數號準則)
品質管制之相關準則International Standards on Quality Control (ISQCs)
核閱歷史性財務資訊之相關準則(已發布數號準則)
International Standards on Review Engagements (ISREs)
International Standards on Related Service (ISRS)
審計總結及查核報告
ISA 700為財務報表而發出的查核報告
ISA 710比較資訊
ISA 720其他有關財務報表審計的資訊
特殊目的獨立審計
ISA 800 The Auditor’s Report on Special Purpose Audit Engagements
ISA 310對企業瞭解
ISA 315瞭解被審計單位及其環境並評估重大錯報風險
ISA 320查核規劃及執行重大性
ISA 330會計師針對風險評估水準應採取的程序
內部控制
ISA 400風險評估和內部控制
ISA 401電腦資訊系統環境下的審計
ISA 402對受查單位之委外服務機構之審計考量
審計證據
ISA 500審計證據
責任分工
ISA 200財務報表審計220R審計工作的品質控制
ISA 230審計工作底稿
audit and assurance
ALL FIVE questions are compulsory and MUST be attempted1DinZee Co assembles fridges, microwaves, washing machines and other similar domestic appliances from partsprocured from a large number of suppliers. As part of the interim audit work two weeks prior to the company year-end, you are testing the procurement and purchases systems and attending the inventory count.Procurement and purchases systemParts inventory is monitored by the stores manager. When the quantity of a particular part falls below re-order level,an e-mail is sent to the procurement department detailing the part required and the quantity to order. A copy of the e-mail is filed on the store manager’s computer.Staff in the procurement department check the e-mail, allocate the order to an authorised supplier and send the order to that supplier using Electronic Data Interchange (EDI). A copy of the EDI order is filed in the order database by the computer system. The order is identified by a unique order number.When goods are received at DinZee, the stores clerk confirms that the inventory agrees to the delivery note and checks the order database to ensure that the inventory were in fact ordered by DinZee. (Delivery is refused where goods do not have a delivery note.)The order in the order database is updated to confirm receipt of goods, and the perpetual inventory system updated to show the receipt of inventory. The physical goods are added to the parts store and the paper delivery note is stamped with the order number and is filed in the goods inwards department.The supplier sends a purchase invoice to DinZee using EDI; invoices are automatically routed to the accounts department. On receipt of the invoice, the accounts clerk checks the order database, matches the invoice details with the database and updates the database to confirm receipt of invoice. The invoice is added to the purchases database,where the purchase day book (PDB) and suppliers individual account in the payables ledger are automatically updated.Required:(a)List SIX audit procedures that an auditor would normally carry out on the purchases system at DinZee Co,explaining the reason for each procedure.(12 marks)(b)List FOUR audit procedures that an auditor will normally perform prior to attending the client’s premises onthe day of the inventory count. (2 marks)(c)On the day of the inventory count, you attended depot nine at DinZee. You observed the following activities:1.Prenumbered count sheets were being issued to client’s staff carrying out the count. The count sheets showed the inventory ledger balances for checking against physical inventory.2.All count staff were drawn from the inventory warehouse and were counting in teams of two.3.Three counting teams were allocated to each area of the stores to count, although the teams were allowedto decide which pair of staff counted which inventory within each area. Staff were warned that they had toremember which inventory had been counted.rmation was recorded on the count sheets in pencil so amendments could be made easily as required.5.Any inventory not located on the pre-numbered inventory sheets was recorded on separate inventory sheets– which were numbered by staff as they were used.6.At the end of the count, all count sheets were collected and the numeric sequence of the sheets checked;the sheets were not signed.Required:(i)List the weaknesses in the control system for counting inventory at depot nine. (3 marks)(ii)For each weakness, explain why it is a weakness and state how that weakness can be overcome.(9 marks)7 87 8(d)(i)State the aim of a test of control and the aim of a substantive procedure.(ii)In respect of your attendance at DinZee Co’s inventory count, state one test of control and one substantive procedure that you should perform.(4 marks)(30 marks)2(a)Explain each of the FIVE fundamental principles of ACCA’s Code of Ethics and Conduct.(5 marks)(b)ISA 570 Going Concern provides guidance to auditors in respect of ensuring that an entity can continue as agoing concern.Required:Explain the actions that an auditor should carry out to try and ascertain whether an entity is a going concern.(5 marks)(10 marks)3Matalas Co sells cars, car parts and petrol from 25 different locations in one country. Each branch has up to 20 staff working there, although most of the accounting systems are designed and implemented from the company’s head office. All accounting systems, apart from petty cash, are computerised, with the internal audit department frequentlyadvising and implementing controls within those systems.Matalas has an internal audit department of six staff, all of whom have been employed at Matalas for a minimum of five years and some for as long as 15 years. In the past, the chief internal auditor appoints staff within the internal audit department, although the chief executive officer (CEO) is responsible for appointing the chief internal auditor.The chief internal auditor reports directly to the finance director. The finance director also assists the chief internal auditor in deciding on the scope of work of the internal audit department.You are an audit manager in the internal audit department of Matalas. You are currently auditing the petty cash systems at the different branches. Your initial systems notes on petty cash contain the following information:1.The average petty cash balance at each branch is $5,000.2.Average monthly expenditure is $1,538, with amounts ranging from $1 to $500.3.Petty cash is kept in a lockable box on a bookcase in the accounts office.4.Vouchers for expenditure are signed by the person incurring that expenditure to confirm they have received re-imbursement from petty cash.5.Vouchers are recorded in the petty cash book by the accounts clerk; each voucher records the date, reason for the expenditure, amount of expenditure and person incurring that expenditure.6.Petty cash is counted every month by the accounts clerk, who is in charge of the cash. The petty cash balanceis then reimbursed using the ‘imprest’ system and the journal entry produced to record expenditure in the general ledger.7.The cheque to reimburse petty cash is signed by the accountant at the branch at the same time as the journal entry to the general ledger is reviewed. Required:(a)Explain the issues which limit the independence of the internal audit department in Matalas Co. Recommenda way of overcoming each issue.(8 marks)(b)Explain the internal control weaknesses in the petty cash system at Matalas Co. For each weakness,recommend a control to overcome that weakness. (12 marks)(20 marks)7 87 87 84Delphic Co is a wholesaler of furniture (such as chairs, tables and cupboards). Delphic buys the furniture from six major manufacturers and sells them to over 600 different customers ranging from large retail chain stores to smaller owner-controlled businesses. The receivables balance therefore includes customers owing up to $125,000 to smallerbalances of about $5,000, all with many different due dates for payments and credit limits. All information is stored on Delphic’s computer systems although previous audits have tended to adopt an ‘audit around the computer’approach.You are the audit senior in charge of the audit of the receivables balance. For the first time at this client, you have decided to use audit software to assist with the audit of the receivables balance. Computer staff at Delphic are happy to help the auditor, although they cannot confirm completeness of systems documentation, and warn that the systems have very old operating systems in place, limiting file compatibility with more modern programs.The change in audit approach has been taken mainly to fully understand Delphic’s computer systems prior to new internet modules being added next year. T o limit the possibility of damage to Delphic’s computer files, copy files will be provided by Delphic’s computer staff for the auditor to use with their own audit software.Required:(a)Explain the audit procedures that should be carried out using audit software on the receivables balance atDelphic Co. For each procedure, explain the reason for that procedure.(9 marks)(b)Explain the potential problems of using audit software at Delphic Co. For each problem, explain how it canbe resolved. (8 marks)(c)Explain the concept of ‘auditing around the computer’ and discuss why this increases audit risk for theauditor.(3 marks)(20 marks)7 85(a)You are the audit manager in JonArc & Co. One of your new clients this year is Galartha Co, a company having net assets of $15 million. The audit work has been completed, but there is one outstanding matter you are currently investigating; the directors have decided not to provide depreciation on buildings in the financialstatements, although International Accounting Standards suggest that depreciation should be provided.Required:State the additional audit procedures and actions you should now take in respect of the above matter.(6 marks)(b)Unfortunately, you have been unable to resolve the matter regarding depreciation of buildings; the directors insiston not providing depreciation. You have therefore drafted the following extracts for your proposed audit report.1.‘We conducted our audit in accordance with International Standards on Auditing. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement (remaining words are the sameas a normal unmodified report).2.As discussed in Note 15 to the financial statements, no depreciation has been provided in the financialstatements which practice, in our opinion, is not in accordance with International Accounting Standards.3.The charge for the year ended 30 September 2007, should be $420,000 based on the straight-linemethod of depreciation using an annual rate of 5% for the buildings.4.Accordingly, the non-current assets should be reduced by accumulated depreciation of $1,200,000 andthe profit for the year and accumulated reserve should be decreased by $420,000 and $1,200,000,respectively.5.In our opinion, except for the effect on the financial statements of the matter referred to in the precedingparagraph, the financial statements give a true and fair view ... (remaining words are the same as for anunmodified opinion paragraph).’The extracts have been numbered to help you refer to them in your answer.Required:Explain the meaning and purpose of each of the above extracts in your draft audit report.(10 marks)(c)State the effect on your audit report of the following alternative situations:(i)Depreciation had not been provided on any non-current asset for a number of years, the effect of whichif corrected would be to turn an accumulated profit into a significant accumulated loss.(ii)JonArc & Co were appointed auditors after the end of the financial year of Galartha Co. Consequently,the auditors could not attend the year end inventory count. Inventory is material to the financialstatements.Note: you are not required to draft any audit reports.(4 marks)(20 marks)End of Question Paper 7 8。
美国大学审计学Auditing and Assurance Services习题解
Review Questions
8-1 There are three primary benefits from planning audits: it helps the auditor obtain sufficient appropriate evidence for the circumstances, helps keep audit costs reasonable, and helps avoid misunderstandings with the client. 8-2 Eight major steps in planning audits are: 1. 2. 3. 4. 5. 6. 7. 8. Accept client and perform initial planning Understand the client’s business and industry Assess client business risk Perform preliminary analytical procedures Set materiality, and assess acceptable audit risk and inherent risk Understand internal control and assess control risk Gather information to assess fraud risks Develop overall audit plan and audit program
8-3 The new auditor (successor) is required by AU 315 to communicate with the predecessor auditor. This enables the successor to obtain information about the client so that he or she may evaluate whether to accept the engagement. Permission must be obtained from the client before communication can be made because of the confidentiality requirement in the Code of Professional Conduct. The predecessor is required to respond to the successor’s request for information; however, the response may be limited to stating that no information will be given. The successor auditor should be wary if the predecessor is reluctant to provide information about the client. 8-4 Prior to accepting a client, the auditor should investigate the client. The auditor should evaluate the client’s standing in the business community, fina ncial stability, and relations with its previous CPA firm. The primary purpose of new client investigation is to ascertain the integrity of the client and the possibility of fraud. The auditor should be especially concerned with the possibility of fraudulent financial reporting since it is difficult to uncover. The auditor does not want to needlessly expose himself or herself to the possibility of a lawsuit for failure to detect such fraud. 8-5 Auditing standards require auditors to document their understanding of the terms of the engagement with the client in an engagement letter. The engagement letter should include the engagement’s objectives, the responsibilities of the auditor and management, and the engagement’s limitations. An engagement letter is an agreement between the CPA firm and the client concerning the conduct of the audit and related services. It should state what services will be provided, whether any restrictions will be imposed on the auditor’s work, deadlines
AUD 考试经验分享-孟圆圆
（扫面二维码获得更多资料信息）AUD 考试经验分享-孟圆圆[零基础学员必看]从不懂借贷，到98分通过考试，高顿学员第一励志考经第一次考AUD 是7月1号，8月份出成绩是74分，着实是伤心了一阵，11月11日考第二次，98分通过。
通过我的这个经历，我想告诉大家，不要因为一次的不顺利，就失去信心，甚至放弃。
像我这样一个零基础的学员都可以通过，我也相信只要努力，每个人都通过这个考试。
首先说下我对AUD 这门课的感觉。
这门课不同于FAR 跟BEC(REG 我没考，没有发言权)，考察的知识非常细致，细到你看第一遍，会忽略大部分的考点，但是考察的重点又很突出。
怎样让自己留意到这些考点呢？我个人的经验是做题，尤其是总结自己的错题，并在书上做好标记，同时将这个知识点涉及到的所有细节看一遍。
如果有些知识点实在不懂，就Google 搜索，查找相关的文献，一定要弄懂，保证彻底理解。
这样标记完之后，看第二遍，就会有所侧重的多，而且不会遗落重点细节。
下面，我分别从教材的使用，网络课程，做题训练，考经使用，论坛使用跟考试心态上分享我的经验，因为每个人的基础不同，所以我个人的经验，也就仅供大家参考了。
教材使用。
第一次复习我看的是Becker 的教材，相对其他几门，感觉这门教材够精炼，但是对于没有会计基础的人来说，看起来也确实费劲。
我刚开始看书的时候，firm ，client ，company ，光这几个词着实就让我摸不着头脑了，查字典也没有任何帮助。
所以看书的进度非常慢，我估计看了有三周，才对基本的术语有所了解，才知道原来firm 指会计事务所，client 专指审计客户。
当然这三周也伴着我鼻涕一把泪一把的过来的。
所以Becker 的教材不太适合零基础同学直接看。
后来看到transaction cycle 时，实在是看不懂了，万般无奈之下，我找陈老师沟通了一下，陈老师给我推荐了一门审计的基础教材--Auditing and Assurance Services 15th edition 。
常用会计英语词汇大全
常用会计英语词汇大全IntroductionIn the field of accounting, it is essential to have a good command of the English language as many of the terms and concepts are expressed in English. This comprehensive list of commonly used accounting terms in English will help you build your vocabulary and enhance your understanding of the subject. Whether you are an accounting professional or a student, this list will be a valuable resource in your work or studies.1. Basic Accounting Terms1.1 AssetsAssets refer to the economic resources owned or controlled by a company. These can include cash, accounts receivable, inventory, and property.1.2 LiabilitiesLiabilities are the obligations or debts that a company owes to external parties. This can include loans, accounts payable, and accrued expenses.1.3 EquityEquity represents the owners’ clm to the assets of a company. It is calculated as the difference between assets and liabilities.1.4 RevenueRevenue refers to the income generated from the sale of goods or services. It is also known as sales or turnover.1.5 ExpensesExpenses are the costs incurred in the process of generating revenue. This can include salaries, rent, utilities, and depreciation.1.6 ProfitProfit is the financial gn obtned when revenue exceeds expenses. It is often referred to as net income or earnings.1.7 Balance SheetA balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. It lists the assets, liabilities, and equity of the company.1.8 Income StatementAn income statement, also known as a profit and loss statement, shows the revenues and expenses incurred over a specific period of time. It provides a summary of a company’s financial performance.1.9 Cash Flow StatementA cash flow statement shows the inflows and outflows of cash during a specific period. It provides information about a company’s cash position and its ability to generate cash.2. Financial Reporting and Analysis2.1 Generally Accepted Accounting Principles (GAAP)GAAP refers to the standards and guidelines that companies are required to follow when preparing their financial statements. These principles ensure consistency and comparability in financial reporting.2.2 International Financial Reporting Standards (IFRS)IFRS is a global accounting framework used in many countries. It provides a common set of accounting standards to facilitate international financial reporting and analysis.2.3 Financial RatiosFinancial ratios are used to analyze a company’s financial performance and its ability to meet its financial obligations. Some common financial ratios include liquidity ratios, profitability ratios, and solvency ratios.2.4 Financial Statement AnalysisFinancial statement analysis involves examining a company’s financial statements to assess its financial health and performance. This analysis is used by investors, creditors, and other stakeholders to make informed decisions.3. Auditing and Assurance3.1 AuditingAuditing is the process of examining a company’s financial records, transactions, and statements to ensure their accuracy and compliance with relevant laws and regulations.3.2 Internal ControlInternal control refers to the systems and procedures implemented by a company to safeguard its assets, ensure the accuracy of its financial records, and prevent fraud.3.3 External AuditAn external audit is conducted by an independent auditor to provide an objective opinion on the frness and reliability of a company’s financial statements.3.4 Assurance ServicesAssurance services are professional services that improve the quality and reliability of information used by investors, creditors, and other stakeholders. These services include financial statement audit, review, and other related services.ConclusionThis comprehensive list of commonly used accounting terms in English covers the basic accounting principles, financial reporting and analysis, and auditing and assurance. By familiarizing yourself with these terms, you will be well-equipped to navigate the world of accounting and contribute to the financial success of your organization or business.。
阿伦斯审计学：一种整合方法课后习题答案ch01
Chapter 1The Demand for Audit and Other Assurance Services Review Questions1-1 The relationship among audit services, attestation services, and assurance services is reflected in Figure 1-3 on page 13 of the text. An assurance service is an independent professional service to improve the quality of information for decision makers. An attestation service is a form of assurance service in which the CPA firm issues a report about the reliability of an assertion that is the responsibility of another party. Audit services are a form of attestation service in which the auditor expresses a written conclusion about the degree of correspondence between information and established criteria.The most common form of audit service is an audit of historical financial statements, in which the auditor expresses a conclusion as to whether the financial statements arepresented in conformity with generally accepted accounting principles. An example of an attestation service is a report on the effe ctiveness of an entity’s internal control over financial reporting. There are many possible forms of assurance services, including services related to business performance measurement, health care performance, and information system reliability.1-2 An independent audit is a means of satisfying the need for reliable information on the part of decision makers. Factors of a complex society which contribute to this need are:1.Remoteness of informationa.Owners (stockholders) divorcedfrom managementb.Directors not involved in day-to-day operations or decisionsc.Dispersion of the business amongnumerous geographic locationsand complex corporate structures2.Biases and motives of providerrmation will be biased infavor of the provider when his orher goals are inconsistent withthe decision maker's goals.3.Voluminous dataa.Possibly millions of transactionsprocessed daily via sophisticatedcomputerized systemsb.Multiple product linesc.Multiple transaction locationsplex exchange transactionsa.New and changing businessrelationships lead to innovativeaccounting and reportingproblemsb.Potential impact of transactionsnot quantifiable, leading toincreased disclosures1-3 1. Risk-free interest rate This is approximately the rate the bankcould earn by investing in U.S.treasury notes for the same length oftime as the business loan.2.Business risk for the customer Thisrisk reflects the possibility that thebusiness will not be able to repay itsloan because of economic or businessconditions such as a recession, poormanagement decisions, orunexpected competition in theindustry.rmation risk This risk reflects thepossibility that the information uponwhich the business risk decision wasmade was inaccurate. A likely causeof the information risk is thepossibility of inaccurate financialstatements.Auditing has no effect on either the risk-free interest rate or business risk. However, auditing can significantly reduce information risk.1-4 The four primary causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and the existence of complex exchange transactions.The three main ways to reduce information risk are:er verifies the information.er shares the information risk withmanagement.3.Audited financial statements areprovided.The advantages and disadvantages of each are as follows:1-5 To do an audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information. Examples of established criteria include generally accepted accounting principles and the Internal Revenue Code. Determining the degree of correspondence between information and established criteria is determining whether a given set of information is in accordance with the established criteria. The information for Jones Company's tax return is the federal tax returns filed by the company. The established criteria are found in the Internal Revenue Code and all interpretations. For the audit of Jones Company's financial statements the information is the financial statements being audited and the established criteria are generally accepted accounting principles.1-6 The primary evidence the internal revenue agent will use in the audit of the Jones Company's tax return include allavailable documentation and other information available in Jones' office or from other sources. For example, when the internal revenue agent audits taxable income, a major source of information will be bank statements, the cash receipts journal and deposit slips. The internal revenue agent is likely to emphasize unrecorded receipts and revenues. For expenses, major sources of evidence are likely to be cancelled checks, vendors' invoices and other supporting documentation.1-7 This apparent paradox arises from the distinction between the function of auditing and the function of accounting. The accounting function is the recording, classifying and summarizing of economic events to provide relevant information to decision makers. The rules of accounting are the criteria used by the auditor for evaluating the presentation of economic events for financial statements and he or she must therefore have an understanding ofgenerally accepted accounting principles (GAAP), as well as auditing standards. The accountant need not, and frequently does not, understand what auditors do, unless he or she is involved in doing audits, or has been trained as an auditor.1-81-9 Five examples of specific operational audits that could be conducted by an internal auditor in a manufacturing company are:1.Examine employee time cards andpersonnel records to determine ifsufficient information is available tomaximize the effective use ofpersonnel.2.Review the processing of salesinvoices to determine if it could bedone more efficiently.3.Review the acquisitions of goods,including costs, to determine if theyare being purchased at the lowestpossible cost considering the qualityneeded.4.Review and evaluate the efficiency ofthe manufacturing process.5.Review the processing of cashreceipts to determine if they aredeposited as quickly as possible.1-10 When using a strategic systems auditing approach in an audit of historical financial statements, an auditor must have a thorough understanding of the client and its environment. This knowledge should include the client’s regulatory and operating environment, business strategies and processes, and measurement indicators. The strategic systems approach is also useful in other assurance or consulting engagements. For example, an auditor who is performing an assurance service on information technology would need to understand the client’s business strategies and processes related to information technology, including such things as purchases and sales via the Internet. Similarly, a practitioner performinga consulting engagement to evaluate the efficiency and effectiveness of a cli ent’s manufacturing process would likely start with an analysis of various measurement indicators, including ratio analysis and benchmarking against key competitors.1-11 The major differences in the scope of audit responsibilities are:1.CPAs perform audits in accordancewith auditing standards of publishedfinancial statements prepared inaccordance with generally acceptedaccounting principles.2.GAO auditors perform compliance oroperational audits in order to assurethe Congress of the expenditure ofpublic funds in accordance with itsdirectives and the law.3.IRS agents perform complianceaudits to enforce the federal tax lawsas defined by Congress, interpretedby the courts, and regulated by theIRS.4.Internal auditors perform complianceor operational audits in order toassure management or the board ofdirectors that controls and policiesare properly and consistentlydeveloped, applied and evaluated.1-12 The four parts of the Uniform CPA Examination are: Auditing and Attestation, Financial Accounting and Reporting, Regulation, and Business Environment and Concepts.1-13 It is important for CPAs to be knowledgeable about e-commerce technologies because more of their clients are rapidly expanding their use of e-commerce. Examples of commonly used e-commerce technologies include purchases and sales of goods through the Internet, automatic inventory reordering via direct connection to inventory suppliers, and online banking. CPAs who perform audits or provide other assurance services about information generated with thesetechnologies need a basic knowledge and understanding of information technology and e-commerce in order to identify and respond to risks in the financial and other information generated by these technologies. Multiple Choice Questions From CPA Examinations1-14 a. (3) b. (2) c. (2) d. (3)1-15 a. (2) b. (3) c. (4) d. (3)Discussion Questions And Problems1-16 a. The relationship among audit services, attestation services andassurance services is reflected inFigure 1-3 on page 13 of the text.Audit services are a form ofattestation service, and attestationservices are a form of assuranceservice. In a diagram, audit servicesare located within the attestationservice area, and attestation services are located within the assurance service area.b. 1. (1) Audit of historical financial statements2.(2) An attestation service otherthan an audit service; or(3) An assurance service that isnot an attestation service(WebTrust developed fromthe AICPA Special Committeeon Assurance Services, butthe service meets the criteriafor an attestation service.)3.(2) An attestation service otherthan an audit service4.(2) An attestation service otherthan an audit service5.(2) An attestation service otherthan an audit service6.(2) An attestation service that isnot an audit service (Reviewservices are a form ofattestation, but areperformed according toStatements on Standards forAccounting and ReviewServices.)7.(2) An attestation service otherthan an audit service8.(2) An attestation service otherthan an audit service9.(3) An assurance service that isnot an attestation service1-17 a. The interest rate for the loan that requires a review report is lowerthan the loan that did not require areview because of lower informationrisk. A review report providesmoderate assurance to financialstatement users, which lowersinformation risk. An audit reportprovides further assurance and lowerinformation risk. As a result ofreduced information risk, the interestrate is lowest for the loan with theaudit report.b.Given these circumstances, Vial-tekshould select the loan from City FirstBank that requires an annual audit. In this situation, the additional cost of the audit is less than the reduction in interest due to lower information risk. The following is the calculation of total costs for each loan:1-17 (continued)c. Vial-tek may desire to have an auditbecause of the many other positivebenefits that an audit provides. Theaudit will provide Vial-tek’smanagement with assurance aboutannual financial information used fordecision-making purposes. The auditmay detect errors or fraud, andprovide management withinformation about the effectivenessof controls. In addition, the auditmay result in recommendations tomanagement that will improveefficiency or effectiveness.d. Under a strategic systems auditapproach, the auditor must have athorough understanding of the clientand its environment, including theclient’s e-commerce technologies,industry, regulatory and operatingenvironment, suppliers, customers,creditors, and business strategies andprocesses. This thorough analysishelps the auditor identify risksassociated with the client’s strategiesthat may affect whether the financialstatements are fairly stated. Whenapplying the strategic systems auditapproach, the auditor often discoversways to help the client improvebusiness operations, therebyproviding added value to the auditfunction.1-18 a. The services provided by Consumers Union are very similar toassurance services provided by CPAfirms. The services provided byConsumers Union and assuranceservices provided by CPA firms aredesigned to improve the quality ofinformation for decision makers.CPAs are valued for theirindependence, and the reportsprovided by Consumers Union arevalued because Consumers Union isindependent of the products tested.b.The concepts of information risk forthe buyer of an automobile and forthe user of financial statements areessentially the same. They are both concerned with the problem of unreliable information being provided. In the case of the auditor, the user is concerned about unreliable information being provided in the financial statements.The buyer of an automobile is likely to be concerned about the manufacturer or dealer providing unreliable information.c.The four causes of information riskare essentially the same for a buyer of an automobile and a user of financial statements:(1)Remoteness of information It isdifficult for a user to obtain muchinformation about either anautomobile manufacturer or theautomobile itself withoutincurring considerable cost. Theautomobile buyer does have theadvantage of possibly knowingother users who are satisfied ordissatisfied with a similar automobile.(2)Biases and motives of providerThere is a conflict between the automobile buyer and the manufacturer. The buyer wants to buy a high quality product at minimum cost whereas the seller wants to maximize the selling price and quantity sold.(3)Voluminous data There is a largeamount of available information about automobiles that users might like to have in order to evaluate an automobile. Either that information is not available or too costly to obtain.1-18 (continued)(4)Complex exchange transactionsThe acquisition of an automobileis expensive and certainly acomplex decision because of allthe components that go intomaking a good automobile andchoosing between a largenumber of alternatives.d.The three ways users of financialstatements and buyers of automobilesreduce information risk are also similar:(1)User verifies information him orherself That can be obtained bydriving different automobiles,examining the specifications ofthe automobiles, talking to otherusers and doing research invarious magazines.(2)User shares information risk withmanagement The manufacturerof a product has a responsibilityto meet its warranties and toprovide a reasonable product.The buyer of an automobile canreturn the automobile forcorrection of defects. In somecases a refund may be obtained.(3)Examine the informationprepared by Consumer ReportsThis is similar to an audit in thesense that independentinformation is provided by anindependent party. Theinformation provided byConsumer Reports is comparableto that provided by a CPA firmthat audited financial statements. 1-19a. T he following parts of the definition of auditing are related to the narrative:(1)Virms is being asked to issue areport about qualitative andquantitative information fortrucks. The trucks are thereforethe information with which theauditor is concerned.(2)There are four establishedcriteria which must be evaluatedand reported by Virms: existenceof the trucks on the night of June 30, 2005, ownership of each truck by Regional Delivery Service, physical condition of each truck and fair market value of each truck.(3)Susan Virms will accumulate andevaluate four types of evidence:(a)Count the trucks todetermine their existence.(b)Use registrations documentsheld by Oatley forcomparison to the serialnumber on each truck todetermine ownership.(c)Examine the trucks todetermine each truck'sphysical condition.(d)Examine the blue book todetermine the fair marketvalue of each truck.(4)Susan Virms, CPA, appearsqualified, as a competent, independent person. She is a CPA, and she spends most of her timeauditing used automobile and truck dealerships and has extensive specialized knowledge about used trucks that is consistent with the nature of the engagement.1-19(continued)(5)The report results are to include:(a)which of the 35 trucks areparked in Regional's parkinglot the night of June 30.(b)whether all of the trucks areowned by Regional DeliveryService.(c)the condition of each truck,using established guidelines.(d)fair market value of eachtruck using the current bluebook for trucks.b.The only parts of the audit that willbe difficult for Virms are:(1)Evaluating the condition, usingthe guidelines of poor, good, andexcellent. It is highly subjective todo so. If she uses a differentcriterion than the "blue book,"the fair market value will not bemeaningful. Her experience willbe essential in using thisguideline.(2)Determining the fair marketvalue, unless it is clearly definedin the blue book for eachcondition.1-20a. T he major advantages and disadvantages of a career as an IRSagent, CPA, GAO auditor, or an internalauditor are:1-20 (continued)EMPLOYMENT ADVANTAGES DISADVANTAGESINTERNAL AUDITOR 1.Extensive exposure to allsegments of the enterprisewith which employed.2.Constant exposure to oneindustry presentingopportunity for expertise inthat industry.3.Likely to have exposure tocompliance, financial andoperational auditing.1.Little exposure to taxationand the audit thereof.2.Experience is limited to oneenterprise, usually withinone or a limited number ofindustries.(b)Other auditing careers that areavailable are:Auditors within many of thebranches of the federalgovernment ., Atomic EnergyCommission)Auditors for many state and localgovernment units ., stateinsurance or bank auditors)1-21 The most likely type of auditor and the type of audit for each of the examples are:1-22 a. The conglomerate should either engage the management advisoryservices division of a CPA firm or itsown internal auditors to conduct theoperational audit.b.The auditors will encounter problemsin establishing criteria for evaluatingthe actual quantitative events and insetting the scope to include alloperations in which significantinefficiencies might exist. In writingthe report, the auditors must chooseproper wording to state that nofinancial audit was performed, thatthe procedures were limited in scopeand that the results reported do notnecessarily include all theinefficiencies that might exist.1-23 a. The CPA firm for the Internet company described in this problemcould address these customerconcerns by performing a WebTrustattestation engagement. TheWebTrust assurance service wascreated by the profession to respondto the growing need for assuranceresulting from the growth of businesstransacted over the Internet.b.The appropriate WebTrust principlefor each of the customer concernsnoted in the problem is as follows:1.Accuracy of product descriptionsand adherence to stated returnpolicies: (3) Processing Integrity.2.Credit card and other personalinformation: (1) Online Privacyand (2) Security.3.Selling information to othercompanies: (1) Online Privacyand (2) Security.4.System failure: (4) Availability.Internet Problem Solution: Assurance Services1-1 This problem requires students to work with the AICPA assurance services Web site.1.Considering the assurance needs ofcustomers and the capabilities ofCPAs, the Special Committee onAssurance Services developedbusiness plans for six assuranceservices. Chapter 1 of the textbookdiscussed several of these services.Go to the service description for theassurance service that most interestsyou (any one of the six). What arethe major aspects or sections of theassociated business plan ., does theplan address market potential,competition, etc.)Answer:Each business plan providesbackground information, describesthe service, assesses marketpotential, discusses issues such ascompetition and why CPAs shouldoffer the service, identifies practice tools available and steps that CPAs must take to begin offering the services.2.The Special Committee's report onAssurance Services discusses competencies needed by assurance providers today and in the coming decade. Briefly describe the 5 general competencies needed in the next decade (Hint: See the “About Assurance Services” link. Then follow the “Assurance Services and Academia” link.)Answer:The Committee identified the following five major imperatives regarding future competencies, each of which implies increasing emphasis on the competencies noted:1-1 (continued)Customer focus.Assurance serviceproviders need to understand userdecision processes and howinformation should enter into thoseprocesses. Increased emphasis isneeded on: understanding userneeds, communication skills,relationship management,responsiveness and timeliness.Migration to higher value-addedinformation activities. To providemore value to client/decision makersand others, assurance serviceproviders need to focus less onactivities involved in the conversionof business events into information .,collecting, classifying, andsummarizing activities) and more onactivities involved in thetransformation of information intoknowledge ., analyzing, interpreting,and evaluating activities) thateffectively drives decision processes.This will require: analytical skills,business advisory skills, business knowledge, model building (including sensitivity analysis), understanding the client’s business processes, measurement theory (development of operational definitions of concepts, design of appropriate measurement techniques, etc.).Information technology (IT). Assurance services deal in information. Hence, the profound changes occurring in information technology will shape virtually all aspects of assurance services. As information specialists, assurance service providers need to embrace information technology in all of its complex dimensions. Embracing IT means understanding how it is transforming all aspects of business. It also means learning how to effectively use new developments in hardware, software, communications, memory, encryption, etc., ineverything assurance service providers do as information specialists, not only in dealing with clients, but also in dealing with each other as individuals, teams, firms, state societies, and national professional organizations.Pace of change and complexity. Assurance services will take place in an environment of rapid change and increasing complexity. Assurance service providers need to invest heavily in life-long learning in order to maintain up-to-date knowledge and skills. They will require: intellectual capability, learning and rejuvenation.Competition.Growth in new assurance services will depend less on franchise/regulation and more on market forces. Assurance service providers need to develop their marketing skills —the ability to seeclients’ latent information andassurance needs and rapidly designand deploy cost-effective services tomeet those needs —in order toeffectively compete for market-driven assurance services. Requiredskills include: marketing and selling,understanding customer needs,designing and deploying effectivesolutions.1-1 (continued)(Note: Internet problems address current issues using Internet sources. Because Internet sites are subject to change, Internet problems and solutions are subject to change. Current information on Internet problems is available at。
Auditing and Assurance Services (9)
Mod A-14
Other Issues
• • • • • • • Reviews, compilations and fraud Comparative financial statements Different levels of service Prescribed forms Predecessor accountants Additional paragraphs Personal financial plans
Mod A-5
Financial Forecasts and Projections (AT 301)
• Prospective Financial Information (PFI) – Financial information representing the financial position, results of operations, and cash flows for some period of time in the future. • Types of PFI – Financial projection – Financial forecast • Distribution
Mod A-8
Compliance Attestation (AT 601) • Examples
– – – – dividend limitations loan limitations prescribed debt/equity ratios limitations on geographic operations
Mod A-2
Types of Attestation Engagements— Levels of Assurance • Examination • Review • Agreed upon procedures
国际审计中文准则
国际审计中文准则国际审计准则（International Standards on Auditing，ISA）是由国际审计和财务报告准则委员会（International Auditing and Assurance Standards Board，IAASB）制定和发布的国际性准则，旨在指导审计师在进行审计工作时遵循的原则和规范。
这些准则的制定旨在提高全球范围内的审计质量，并为用户提供对财务报告的可靠度及审计意见的依赖性。
国际审计准则的目的是确保审计师在审计过程中遵循一致的方法，并提供公正、可靠的审计意见，以评估企业财务报告的真实性和公允性。
国际审计准则涵盖了审计的各个方面，包括审计计划、风险评估、证据收集、审计程序和报告等。
下面将详细介绍几个国际审计准则的主要内容。
首先，国际审计准则第200号《总则和责任》规定了审计师的总体职责和责任。
它要求审计师采取适当的措施，以获得对财务报告的合理保证，并确保报告符合审计准则的要求。
审计师需要保持独立性和职业操守，并采用专业判断，以评估企业内部控制的效力和财务报告的真实性。
其次，国际审计准则第300号《风险评估与内部控制》强调了审计师在审计过程中应对风险进行评估，并检查企业的内部控制制度。
审计师需要了解企业的业务环境和运营，识别可能存在的风险，并设计相应的审计程序来应对这些风险。
另外，审计准则还要求审计师对企业的内部控制制度进行评估，以确定其有效性和适用性。
第三，国际审计准则第500号《证据的收集与评估》提供了指导审计师收集及评估证据的方法和原则。
审计师需要采集充足、适当的证据来支持其审计意见，确保财务报告的真实性和公允性。
审计师还应评估证据的可靠性、充分性和相关性，并提供充分的文档记录，以便其他审计师能够理解和复核审计程序的执行过程。
最后，国际审计准则第700号《审计报告》规定了审计师在完成审计工作后应向企业提供的审计报告的要求和内容。
审计报告是审计工作的最终成果，它应包括审计师对财务报告的意见、审计所遵循的准则和审计师对财务报告真实性的保证。
美国大学审计学Auditing and Assurance Services习题解
Nonaudit services that are not prohibited by the Sarbanes–Oxley Act and the SEC rules must be pre-approved by the company’s audit committee. In addition, an accountant is not independent of an audit client if an audit partner received compensation based on selling engagements to that client for services other than audit, review and attest services. Companies are required to disclose in their proxy statement or annual filings with the SEC the total amount of audit and nonaudit fees paid to the audit firm for the two most recent years. Four categories of fees are to be reported: (1) audit fees; (2) audit-related fees; (3) tax fees; and (4) all other fees. Companies are also required to provide further breakdown of the “other fees” category, and provide qualitative information on the nature of the services provided. 4-8 The rules concerning stock ownership by partners and professional staff: A partner in the office of the partner responsible for an audit engagement cannot own stock in that audit client. A partner can own stock in an audit client, as long as (1) he or she cannot influence the audit engagement and (2) he or she is not in the same office as the partner responsible for the audit engagement. A professional staff member cannot own stock in an audit client if he or she is assigned to the engagement or if he or she becomes a partner in the office of the partner responsible for the audit engagement. A professional staff member can own stock in a firm’s audit client as long as he or she does not participate in the audit engagement. Partner violation: A partner in the San Francisco office owns one share of stock of a client whose audit is conducted by a different partner in the San Francisco office. Professional staff violation: An audit manager owns stock in a client whose audit is performed by the office where the audit manager works. The manager is promoted to partner mid-year. As soon as the manager becomes a partner, there is a violation of Rule 101. 4-9 Ways to reduce the appearance of the lack of independence are: the use of an audit committee to select auditors made up of directors who are not a part of management; a requirement that all changes of auditors and reasons therefore be reported to the SEC or other regulatory agency; and approval of the CPA firm by stockholders at the annual meeting. The Sarbanes–Oxley act requires that the audit committee of a public company consist only of independent members and be responsible for the appointment, termination, and compensation of the audit firm. 4-3
澳大利亚国际会计制度完整
澳大利亚国际会计制度完整介绍澳大利亚是一个兴旺国家，具有完善的国际会计制度。
澳大利亚会计准那么委员会〔Australian Accounting Standards Board，AASB〕是负责公布和修订澳大利亚国际会计准那么的机构。
本文将详细介绍澳大利亚国际会计制度的主要内容和特点。
国际会计准那么采用情况澳大利亚采用了国际财务报告准那么〔International Financial Reporting Standards，IFRS〕作为其国际会计准那么的主要依据。
澳大利亚的国际会计准那么与国际财务报告准那么保持高度一致，以确保澳大利亚企业的财务报告具有国际可比性。
根据澳大利亚公司法，澳大利亚上市公司和其他特定类型的企业必须遵守国际会计准那么。
此外，大多数非上市企业和一些非营利组织也选择自愿采用国际会计准那么。
这使得澳大利亚的会计准那么适用范围更加广泛，增强了财务报告的透明度和可靠性。
国际会计准那么的执行和监管澳大利亚国际会计准那么的执行和监管主要由澳大利亚证券投资委员会〔Australian Securities and Investments Commission，ASIC〕负责。
ASIC负责监督和促进澳大利亚公司法的执行，包括国际会计准那么的遵守。
为了确保国际会计准那么的正确应用，澳大利亚还建立了会计职业组织，如澳大利亚会计师公会〔CPA Australia〕和澳大利亚特许公认会计师协会〔Chartered Accountants Australia and New Zealand〕。
这些组织负责提供会计专业知识培训和指导，以帮助会计师正确理解和应用国际会计准那么。
此外，澳大利亚的审计师也需要遵守国际审计准那么〔International Standards on Auditing，ISA〕。
澳大利亚审计准那么委员会〔Auditing and Assurance Standards Board，AUASB〕是负责公布和修订澳大利亚国际审计准那么的机构。
国外会计书籍
国外会计书籍
以下是一些国外会计学的经典书籍：
《Accounting Principles》 by author Kothari，这本书是国外会计学专
业的经典教材之一，全面系统地介绍了会计学的基础知识和技能。
《Financial Accounting》 by author Jerry J. Weygandt，这本书是美国大学会计学专业广泛使用的教材之一，主要介绍了财务会计的基本概念、原则、方法和技巧。
《Auditing and Assurance Services》 by author Charles T. Horngren，这本书是关于审计和鉴证服务的经典教材，详细介绍了审计的基本概念、原则、方法和技巧。
《Cost Accounting and Management Control》 by author Robin Cooper，这本书是关于成本会计和管理控制的经典教材，详细介绍了成本
会计的基本概念、原则、方法和技巧。
以上书籍仅供参考，建议根据自己的实际情况和兴趣选择适合的书籍。
同时，也要注意查阅新版的书籍，以获得最新的知识和信息。
信息检索---上机实验作业
四川师范大学信息检索课实验题目1、举例说明搜索引擎中filetype、site、双引号这三个高级检索语法的功能。
要求：1）请问上述语法的作用是什么？什么情况下用到这些语法？答：作用：filetype——特定文件类型检索。
Site——把搜索范围限定在特定站点中，可以提高检索效率。
双引号——精确配比，可以提高检索效果。
情况：a.在需要搜索特定文件类型的时候可以通过filetype语法实现。
b.需要在特定站点搜索资源时可以通过site语法实现。
c.当检索词过长，或输入的是英语句子，不想让搜索引擎对检索词进行拆分或者去词时，可以对检索词加上双引号。
2）自己设计一个或多个检索案例，体现这些语法的功能，说清楚检索意图和检索表达式，并对检索效果进行评价。
答;案例1：检索意图;通过搜索引擎检索有关高等数学方面的幻灯片课件。
检索表达式：高等数学 filetype：PPT效果评价：搜索引擎所支持的幻灯片文件是微软公司的PowerPoint文件，文件格式均为PPT，大大提高了检索效率。
案例2;检索意图：通过搜索引擎在中国教育网内检索教材高等数学。
检索表达式：高等数学 site：。
效果评价：检索到的相关内容均属于中国教育网内，提高了检索效率。
参考：/search/page_feature.html#092、查询本专业经典书籍。
要求：1）查询确定本专业必读的书籍{要包括外文书籍}。
（自己查询后，最后能向专业课老师请教，听听他们的意见）答：a.管理审计方法 b.财务审计案例示范 c.审计学一种整合方法（第12版）[Auditing And assurance Services]2）选择其中3本，国内哪些图书馆有这3本书？(任选国内211高校{没听说过211？百度一下！}图书馆3个）答;a.北京大学图书馆 b.西南财经大学图书馆 c.西南大学图书馆3)通过四川师范大学图书馆网站上的书生之家数据库和超星数据库查询这些书的全文。
审计基础(英文版)
• Examples • Consumer reports • Underwriters laboratories • CPA WebTrust • Performance View • PrimePlus Services
1-11
Attestation Engagements
• An attestation engagement - a practitioner is assesses and reports on “subject matter or an assertion about the subject matter that is the responsibility of another party.”
1. Define information risk and explain how auditing and assurance services play a role in reducing this business risk.
2. Define and contrast auditing, attestation, and assurance services. 3. Describe and define the management assertions embodied in financial
• Some non-financial attestation engagements • Compliance with contractual requirements • Effectiveness of internal control systems • Inventory quantities and locations
会计学外文经典文献
会计学外文经典文献会计学作为一门学科，有许多经典的外文文献。
以下是其中一些：1. "Accounting Principles" by Jerry J. Weygandt, DonaldE. Kieso, and Paul D. Kimmel: 这本书是会计学的经典教材，涵盖了会计学的基本原理和概念，适用于初学者和专业人士。
2. "Financial Accounting: Tools for Business Decision Making" by Paul D. Kimmel, Jerry J. Weygandt, and Donald E. Kieso: 这本书探讨了财务会计的理论和实践，重点关注如何用财务信息做出商业决策。
3. "Management Accounting: Information for Decision-Making and Strategy Execution" by Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, and S. Mark Young: 这本书涵盖了管理会计的理论和实践，讨论了如何为决策制定和战略执行提供信息。
4. "Cost Accounting: A Managerial Emphasis" by CharlesT. Horngren, Srikant M. Datar, and Madhav V. Rajan: 这本书介绍了成本会计的概念和方法，重点关注如何计算和控制成本以支持管理决策。
5. "Auditing and Assurance Services" by Alvin A. Arens, Randal J. Elder, and Mark S. Beasley: 这本书详细介绍了审计和保证服务的原理和实践，讨论了审计的目的、过程和责任。
阿伦斯审计学：一种整合方法课后习题答案.docx
Chapter 1The Demand for Audit and Other Assurance ServicesReview Questions1-1The relationship among audit services,attestation services,and assurance services is reflected in Figure 1-3 on page 13 of the text. Anassurance service is an independent professional service to improve thequality of information for decision makers. An attestation service is aform of assurance service in which the CPA firm issues a report about the reliability of an assertion that is the responsibility of another party.Audit services are a form of attestation service in which the auditor expresses a written conclusion about the degree of correspondence between information and established criteria.The most commonform of audit service is an audit of historical financial statements, in which the auditor expresses a conclusion as towhether the financial statements are presented in conformity with generally accepted accounting principles.An example of an attestation service is a report on the effe ctiveness of an entity’s internal control over financial reporting.There are many possible forms of assurance services,including services related to business performance measurement, health care performance, and information system reliability.1-2An independent audit is a means of satisfying the need for reliable information on the part of decision makers.Factors of a complex society which contribute to this need are:1.Remoteness of informationa.Owners (stockholders) divorced from managementb.Directors not involved in day-to-day operations or decisionsc.Dispersion of the business among numerous geographiclocations and complex corporate structures2.Biases and motives of providerrmation will be biased in favor of the providerwhen his or her goals are inconsistent with thedecision maker's goals.3.Voluminous dataa.Possibly millions of transactions processed dailyvia sophisticated computerized systemsb.Multiple product linesc.Multiple transaction locationsplex exchange transactionsa.New and changing business relationships leadto innovative accounting and reporting problemsb.Potential impact of transactions not quantifiable, leading toincreased disclosures1-3 1. Risk-free interest rate This is approximately the rate the bank couldearn by investing in U.S. treasury notes for the same length of time asthe business loan.2.Business risk for the customer This risk reflects the possibility that thebusiness will not be able to repay itsloan because of economic or business conditions such as arecession,poor management decisions,or unexpectedcompetition in the industry.rmation risk This risk reflects the possibility thatthe information upon which the business risk decision was made wasinaccurate. A likely cause of the information risk is the possibility ofinaccurate financial statements.Auditing has no effect on either the risk-free interest rate or business risk.However, auditing can significantly reduce informationrisk.1-4The four primary causes of information risk are remoteness of information,biases and motives of the provider,voluminous data,and the existence of complex exchange transactions.The three main ways to reduce information risk are:er verifies the information.er shares the information risk with management.3.Audited financial statements are provided.The advantages and disadvantages of each are as follows:ADVANTAGES DISADVANTAGESUSER VERIFIES 1. User obtains information 1.High cost ofINFORMATION desired.obtaining2. User can be more information.confident of the 2.Inconvenience toqualifications and the personactivities of the person providing thegetting the rmation becauselarge number ofusers would be onpremises.USER SHARES 1.No audit costs incurred. INFORMATIONRISK WITHMANAGEMENT er may not beable to collecton losses.AUDITED 1.Multiple users obtain 1. May not meet needs FINANCIAL the information.of certain users. STATEMENTS ARE rmation risk can 2. Cost may be higher PROVIDED usually be reduced than the benefitssufficiently to satisfy in some situations,users at reasonable such as for a smallpany.3.Minimal inconvenience tomanagement by havingonly one auditor.1-5To do an audit, there must be information in a verifiable form and some standards( criteria)by which the auditor can evaluate the information. Examples of established criteria include generally acceptedaccounting principles and the Internal Revenue Code.Determining the degree of correspondence between information and established criteria is determining whether a given set of information is in accordance with theestablished criteria. The information for Jones Company's tax return isthe federal tax returns filed by the company. The established criteriaare found in the Internal Revenue Code and all interpretations. For theaudit of Jones Company's financial statements the information is the financial statements being audited and the established criteria are generally accepted accounting principles.1-6The primary evidence the internal revenue agent will use in the audit of the Jones Company's tax return include all available documentation and other information available in Jones' office or fromother sources.For example,when the internal revenue agent audits taxable income, a major source of information will be bank statements,the cash receipts journal and deposit slips. The internal revenue agentis likely to emphasize unrecorded receipts and revenues. For expenses,major sources of evidence are likely to be cancelled checks,vendors' invoices and other supporting documentation.1-7This apparent paradox arises from the distinction between the function of auditing and the function of accounting.The accounting function is the recording,classifying and summarizing of economic events to provide relevant information to decision makers. The rules ofaccounting are the criteria used by the auditor for evaluating the presentation of economic events for financial statements and he or shemust therefore have an understanding of generally accepted accounting principles(GAAP), as well as auditing standards.The accountant need not, and frequently does not, understand what auditors do, unless he orshe is involved in doing audits, or has been trained as an auditor.1-8OPERATIONAL COMPLIANCE AUDITS OF FINANCIALAUDITS AUDITS STATEMENTSPURPOSE To evaluate To determine To determinewhether whether the client whether theoperating is following overallprocedures are specific procedures financialefficient and set by higher statements areeffective authority presented inaccordance withspecifiedcriteria(usually GAAP) USERS OF Management of Authority setting Different groups AUDIT REPORT organization down procedures,for differentinternal or purposes — manyexternal outside entities NATURE Highly Not standardized,Highlynonstandard;but specific and standardizedoften usually objectivesubjectivePERFORMED BY:CPAsFrequently Occasionally AlmostuniversallyGAOFrequently Frequently Occasionally AUDITORSIRSNever Universally NeverAUDITORSINTERNALFrequently Frequently Frequently AUDITORS1-9 Five examples of specific operational audits that could be conducted by an internal auditor in a manufacturing company are:1.Examine employee time cards and personnel records to determine ifsufficient information is available to maximizethe effective use of personnel.2.Review the processing of sales invoices to determine ifit could be done more efficiently.3.Review the acquisitions of goods,including costs,todetermine if they are being purchased at the lowest possiblecost considering the quality needed.4.Review and evaluate the efficiency of the manufacturingprocess.5.Review the processing of cash receipts to determine ifthey are deposited as quickly as possible.1-10 When using a strategic systems auditing approach in an audit of historical financial statements,an auditor must have a thorough understanding of the client and its environment. This knowledge shouldinclude the client ’s regulatory and operating environment,business strategies and processes,and measurement indicators.The strategic systems approach is also useful in other assurance or consulting engagements. For example, an auditor who is performing an assurance service on information technology would need to understand the client’s business strategies and processes related to information technology, including such things as purchases and sales via the Internet. Similarly,a practitioner performing a consulting engagement to evaluate the efficiency and effectiveness of a cli ent ’s manufacturing process would likely start with an analysis of various measurement indicators, including ratio analysis and benchmarking against key competitors.1-11The major differences in the scope of audit responsibilities are:1.CPAs perform audits in accordance with auditing standards ofpublished financial statements prepared in accordance withgenerally accepted accounting principles.2.GAO auditors perform compliance or operational audits inorder to assure the Congress of the expenditure of publicfunds in accordance with its directives and the law.3.IRS agents perform compliance audits to enforce thefederal tax laws as defined by Congress, interpreted by thecourts, and regulated by the IRS.4.Internal auditors perform compliance or operational auditsin order to assure management or the board of directors thatcontrols and policies are properly and consistentlydeveloped, applied and evaluated.1-12 The four parts of the Uniform Attestation, Financial Accounting CPA Examinationand Reporting,are: AuditingRegulation,andandBusiness Environment and Concepts.1-13 It is important for CPAs to be knowledgeable about e-commerce technologies because more of their clients are rapidly expanding theiruse of e-commerce. Examples of commonly used e-commerce technologiesinclude purchases and sales of goods through the Internet,automatic inventory reordering via direct connection to inventory suppliers,and online banking.CPAs who perform audits or provide other assurance services about information generated with these technologies need a basic knowledge and understanding of information technology and e-commerce in order to identify and respond to risks in the financialand other information generated by these technologies.Multiple Choice Questions From CPA Examinations1-14 a.(3) b.(2) c.(2) d.(3)1-15 a.(2) b.(3) c.(4) d.(3)Discussion Questions And Problems1-16 a.The relationship among audit services, attestation servicesand assurance services is reflected in Figure 1-3 on page 13of the text.Audit services are a form of attestationservice,and attestation services are a form of assuranceservice. In a diagram, audit services are located within theattestation service area, and attestation services arelocated within the assurance service area.b. 1.(1)Audit of historical financial statements2.(2)An attestation service other than an auditservice; or(3)An assurance service that is not an attestationservice ( WebTrust developed from the AICPASpecial Committee on Assurance Services, but theservice meets the criteria for an attestation service.)3.(2)An attestation service other than an auditservice4.(2)An attestation service other than an auditservice5.(2)An attestation service other than an auditservice6.(2)An attestation service that is not an auditservice(Review services are a form ofattestation,but are performed according toStatements on Standards for Accounting andReview Services.)7.(2)An attestation service other than an auditservice8.(2)An attestation service other than an auditservice9.(3) An assurance service that is not an attestationservice1-17 a.The interest rate for the loan that requires a review reportis lower than the loan that did not require a review becauseof lower information risk. A review report provides moderateassurance to financial statement users,which lowersinformation risk. An audit report provides further assuranceand lower information risk.As a result of reducedinformation risk, the interest rate is lowest for the loanwith the audit report.b.Given these circumstances,Vial-tek should select the loanfrom City First Bank that requires an annual audit. In thissituation, the additional cost of the audit is less than thereduction in interest due to lower information risk.Thefollowing is the calculation of total costs for each loan:LENDERCPA COST OF CPA ANNUAL ANNUAL SERVICE SERVICES INTEREST LOAN COSTExisting loan None0$ 142,500$ 142,500 First National Review$ 12,000$ 127,500$ 139,500 BankCity First Bank Audit$ 20,000$ 112,500$ 132,5001-17 (continued)c.Vial-tek may desire to have an audit because of the manyother positive benefits that an audit provides.The auditwill provide Vial-tek ’s management with assurance aboutannual financial information used for decision-makingpurposes. The audit may detect errors or fraud, and providemanagement with information about the effectiveness ofcontrols.In addition,the audit may result inrecommendations to management that will improve efficiencyor effectiveness.d.Under a strategic systems audit approach,the auditor musthave a thorough understanding of the client and itsenvironment, including the client’s e -commerce technologies,industry,regulatory and operating environment,suppliers,customers, creditors, and business strategies and processes.This thorough analysis helps the auditor identify risksassociated with the client ’s strategies that may affectwhether the financial statements are fairly stated.Whenapplying the strategic systems audit approach,the auditoroften discovers ways to help the client improve businessoperations,thereby providing added value to the auditfunction.1-18 a.The services provided by Consumers Union are very similar toassurance services provided by CPA firms.The servicesprovided by Consumers Union and assurance services providedby CPA firms are designed to improve the quality ofinformation for decision makers.CPAs are valued for theirindependence,and the reports provided by Consumers Unionare valued because Consumers Union is independent of theproducts tested.b.The concepts of information risk for the buyer of anautomobile and for the user of financial statements areessentially the same.They are both concerned with theproblem of unreliable information being provided.In thecase of the auditor, the user is concerned about unreliableinformation being provided in the financial statements. Thebuyer of an automobile is likely to be concerned about themanufacturer or dealer providing unreliable information.c.The four causes of information risk are essentially the samefor a buyer of an automobile and a user of financialstatements:(1)Remoteness of information It is difficult for a userto obtain much information about either an automobilemanufacturer or the automobile itself withoutincurring considerable cost. The automobile buyer doeshave the advantage of possibly knowing other users whoare satisfied or dissatisfied with a similar automobile.(2)Biases and motives of provider There is a conflictbetween the automobile buyer and the manufacturer. Thebuyer wants to buy a high quality product at minimumcost whereas the seller wants to maximize the sellingprice and quantity sold.(3)Voluminous data There is a large amount of availableinformation about automobiles that users might like tohave in order to evaluate an automobile.Either that information is not available or too costly to obtain.1-18(continued)(4)Complex exchange transactions The acquisition of anautomobile is expensive and certainly a complexdecision because of all the components that go intomaking a good automobile and choosing between a largenumber of alternatives.d. The three ways users of financial statements and buyers ofautomobiles reduce information risk are also similar:(1)User verifies information him or herself That can beobtained by driving different automobiles,examiningthe specifications of the automobiles,talking toother users and doing research in various magazines.(2)User shares information risk with management The manufacturerof a product has a responsibility to meetits warranties and to provide a reasonable product.The buyer of an automobile can return the automobilefor correction of defects. In some cases a refund maybe obtained.(3)Examine the information prepared by Consumer ReportsThis is similar to an audit in the sense thatindependent information is provided by an independentparty. The information provided by Consumer Reports iscomparable to that provided by a CPA firm that auditedfinancial statements.1-19 a. The following parts of the definition of auditing are relatedto the narrative:(1)Virms is being asked to issue a report aboutqualitative and quantitative information for trucks.The trucks are therefore the information with whichthe auditor is concerned.(2)There are four established criteria which must beevaluated and reported by Virms:existence of thetrucks on the night of June30, 2005,ownership ofeach truck by Regional Delivery Service,physicalcondition of each truck and fair market value of eachtruck.(3)Susan Virms will four types ofaccumulate and evaluateevidence :(a)Count the trucks to determine their existence.(b)Use registrations documents held by Oatley forcomparison to the serial number on each truck todetermine ownership.(c)Examine the trucks to determine each truck's physicalcondition.(d)Examine the blue book to determine the fair marketvalue of each truck.(4)Susan Virms,CPA, appears qualified,as a competent,independent person. She is a CPA, and she spends mostof her time auditing used automobile and truck dealerships and has extensive specialized knowledge about used trucks that is consistent with the nature of the engagement.1-19(continued)(5)The report results are to include:(a)which of the 35 trucks are parked in Regional'sparking lot the night of June 30.(b)whether all of the trucks are owned byRegional Delivery Service.(c)the condition of each truck, using establishedguidelines.(d)fair market value of each truck using the current bluebook for trucks.b.The only parts of the audit that will be difficult forVirms are:(1)Evaluating the condition, using the guidelines of poor,good, and excellent. It is highly subjective to do so.If she uses a different criterion than the"bluebook,"the fair market value will not be meaningful.Her experience will be essential in using thisguideline.(2)Determining the fair market value,unless it isclearly defined in the blue book for each condition.1-20 a. The major advantages and disadvantages of a career as an IRS agent, CPA, GAO auditor, or an internal auditor are:EMPLOYMENT ADVANTAGES DISADVANTAGESINTERNAL 1.Extensive training in 1.Experience limited to REVENUE individual, corporate,taxes.AGENT gift, trust and other 2.No experience withtaxes is available with operational or financialconcentration in area statement auditing.chosen. 3.Training is not2.Hands-on experience with extensive with anysophisticated selection business enterprise.techniques.CPA 1.Extensive training in 1. Exposure to taxes and toaudit of financial the business enterprisestatements, compliance may not be as in-depthauditing and operational as the internal revenueauditing.agent or the internal2.Opportunity for auditor.experience in auditing, 2. Likely to be lesstax consulting, and exposed to operationalmanagement consulting auditing than is likelypractices.for internal auditors.3.Experience in a diversityof enterprises andindustries with theopportunity to specializein a specific industry.GAO AUDITOR 1.Increasing opportunity 1.Little exposure tofor experience in diversity of enterprisesoperational auditing.and industries.2.Exposure to highly 2.Bureaucracy of federalsophisticated statistical government.sampling and computerauditing techniques.1-20(continued)EMPLOYMENT ADVANTAGESINTERNAL 1.Extensive exposure to all AUDITOR segments of theenterprise with whichemployed.2.Constant exposure to oneindustry presentingopportunity for expertisein that industry.3.Likely to have exposureto compliance, financialand operational auditing.DISADVANTAGES1.Little exposure totaxation and theaudit thereof.2.Experience is limited toone enterprise, usuallywithin one or a limitednumber of industries.(b)Other auditing careers that are available are:Auditors within many of the branches of the federalgovernment ., Atomic Energy Commission)Auditors for many state and local government units .,state insurance or bank auditors)1-21 The most likely type of auditor and the type of audit for each ofthe examples are:EXAMPLE TYPE OF AUDITOR TYPE OF AUDITIRS Compliance1.GAO OperationalInternal auditor or CPA Operational2.CPA or Internal auditor Financial statementsGAO Operational3.CPA Financial statementsGAO Financial statements4.IRS ComplianceCPA Financial statements5.Internal auditor or CPA ComplianceInternal auditor or CPA Financial statements6.GAO Compliance7.8.9.10.11.12.1-22 a.The conglomerate should either engage the management advisory services division of a CPA firm or its own internalauditors to conduct the operational audit.b.The auditors will encounter problems in establishingcriteria for evaluating the actual quantitative events andin setting the scope to include all operations in whichsignificant inefficiencies might exist.In writing thereport,the auditors must choose proper wording to statethat no financial audit was performed,that the procedureswere limited in scope and that the results reported do notnecessarily include all the inefficiencies that might exist.1-23 a.The CPA firm for the Internet company described in this problem could address these customer concerns by performinga WebTrust attestation engagement.The WebTrust assuranceservice was created by the profession to respond to thegrowing need for assurance resulting from the growth ofbusiness transacted over the Internet.b.The appropriate WebTrust principle for each of the customerconcerns noted in the problem is as follows:1.Accuracy of product descriptions and adherence tostated return policies: (3) Processing Integrity.2.Credit card and other personal information: (1)Online Privacy and (2) Security.3.Selling information to other companies: (1) Online Privacy and(2) Security.4.System failure: (4) Availability.Internet Problem Solution: Assurance Services1-1 This problem requires students to work with the AICPA assurance services Web site.1.Considering the assurance needs of customers and thecapabilities of CPAs, the Special Committee on AssuranceServices developed business plans for six assurance services.Chapter 1of the textbook discussed several of theseservices.Go to the service description for the assuranceservice that most interests you (any one of the six). Whatare the major aspects or sections of the associatedbusiness plan ., does the plan address market potential,competition, etc.?)Answer: Each business plan provides background information,describes the service, assesses market potential, discussesissues such as competition and why CPAs should offer the service,identifies practice tools available and steps that CPAs must take tobegin offering the services.2.The Special Committee's report on Assurance Services discussescompetencies needed by assurance providers todayand in the coming decade.Briefly describe the 5 generalcompetencies needed in the next decade (Hint:See the“About Assurance Services ”link.Then follow the“Assurance Services and Academia” link.)Answer: The Committee identified the following five imperatives regarding future competencies, each of implies increasing emphasis on the competencies noted:major which1-1(continued)Customer focus .Assurance service providers need tounderstand user decision processes and how informationshould enter into those processes.Increased emphasis isneeded on:understanding user needs,communication skills,relationship management, responsiveness and timeliness.Migration to higher value-added information activities.Toprovide more value to client/decision makers and others,assurance service providers need to focus less on activitiesinvolved in the conversion of business events intoinformation.,collecting,classifying,and summarizingactivities)and more on activities involved in thetransformation of information into knowledge .,analyzing,interpreting,and evaluating activities)that effectivelydrives decision processes.This will require:analyticalskills, business advisory skills, business knowledge, modelbuilding (including sensitivity analysis), understanding theclient’s business processes,measurement theory(development of operational definitions of concepts, designof appropriate measurement techniques, etc.).Information technology(IT).Assurance services deal ininformation.Hence,the profound changes occurring ininformation technology will shape virtually all aspects ofassurance services.As information specialists,assuranceservice providers need to embrace information technology inall of its complex dimensions.Embracing IT meansunderstanding how it is transforming all aspects of business.It also means learning how to effectively use newdevelopments in hardware, software, communications, memory,encryption, etc., in everything assurance service providersdo as information specialists,not only in dealing withclients, but also in dealing with each other as individuals,teams,firms,state societies,and national professionalorganizations.Pace of change and complexity.Assurance services will takeplace in an environment of rapid change and increasingcomplexity.Assurance service providers need to investheavily in life-long learning in order to maintain up-to-date knowledge and skills.They will require:intellectualcapability, learning and rejuvenation.Competition.Growth in new assurance services will dependless on franchise/regulation and more on market forces.Assurance service providers need to develop their marketingskills—the ability to see clients ’ latent informationand assurance needs and rapidly design and deploy cost-effective services to meet those needs—in order toeffectively compete for market-driven assurance services.Required skills include:marketing and selling,understanding customer needs,designing and deployingeffective solutions.1-1(continued)( Note: Internet problems address current issues using Internet Because Internet sites are subject to change, Internet problems and solutionsare subject to change.Current information on Internet problems is atsources. available。
Principles of Auditing and Other Assurance Services (5)
Inherent Risk--Risk of a material misstatement occurring in an assertion assuming no related internal controls. Control Risk--Risk that a material misstatement in an assertion will not be prevented or detected on a timely basis by the company’s internal control.
This is the risk that the auditors will issue an unqualified opinion on financial statements that contain a material departure from GAAP.
Auditors must obtain sufficient appropriate audit evidence to reduce audit risk to a low level in every audit.
Nonroutine
Estimation transactions
5-11
Appropriateness of Audit Evidence
Auditor must obtain sufficient appropriate audit evidence. To be appropriate audit evidence must be:
5-6
Audit Risk Formula
AR = IR * CR * DR
审计学-重要术语
重要术语第1章审计的重要性American Institute of Certified Public Accountants AICPA美国注册会计师协会是注册会计师的主要职业组织；它包括许多委员会,为服务的发展和行业自律来制定职业准则。
assertion认定对于一个企业或产品在一定时期内的经营活动、事项、状况或者业绩做出的肯定表述，这些内容是鉴证服务的主要工作。
Assurance 保证服务向决策者提供改善信息质量的独立专业服务。
attestation services 鉴证服务审计人员向第三方所做出的关于财务报告所含认定的正确性，或者按照其客观可识别性和衡量标准，来确定其他报告的正确性，并发表意见。
auditing审计一种通过客观地收集和评价与经济活动认定有关的审计证据，以确定这些认定和已经确立的标准之间相关程度，并将结果报告给相关使用者的系统过程。
compliance合规性审计用于评价是否遵循公司政策或政府规定的审计。
corporate governance公司治理一方为经营目的按照契约向另一方提供资源，提供资源的一方要求另一方承担以下经营管理责任：（a）这些资源是否安全；（b）它们是否按照契约目的使用；（c）这些资源的利用情况如何（财务业绩）。
financial audit 财务审计为了确定某一企业的财务报表或其它财务结果是否按照公认会计原则或者其它会计基础公允反映的系统过程。
General Accounting Office GAO 美国审计总署一个直接对美国国会负责的政府机构，对国会负责，执行特殊调查，并为国家审计制定准则。
generally accepted accounting principles GAAP 公认会计准则由美国财务会计准则委员会（FASB）或其委托人制定的会计准则，受到广泛认可，并为评价财务报表的公允性提供标准。
generally accepted auditing standards GAAS 公认审计准则由上市公司会计监管委员会（负责上市公司）和美国注册会计师协会（负责非上市公司）制定的准则，其目的是指导美国公共会计界的审计实务。
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
Chapter TwelveSOLUTIONS FOR REVIEW CHECKPOINTS12.1 Management prepares a report on the effectiveness of internal control over financial reporting.The auditors prepare reports on (1) the entity’s financial statement and other disclosures and (2)the ef fectiveness of the entity’s internal control over financial reporting. These can be presented as two separate reports or a combined report.12.2Management’s report on internal control over financial reporting consists of the following majorcomponents:∙ A statement indicating that management is responsible for establishing and maintaining adequate internal control over financial reporting.∙ A statement identifying the framework used by management to assess the effectiveness of the entity’s internal control.∙Management’s opinion on the effectiveness of the entity’s internal control, including an explicit statement as to whether the internal control over financial reporting is effective.∙ A statement that the registered accounting firm auditing the financial statements (auditor) has issued an attestation report on the entity’s internal control over financial reporting.12.3 The auditors’ report serves to communicate to users three specific statements with respect to thefinancial statements, the conduct of the audit, and the entity in general. First, the report indicateswhether the financial statements are presented in conformity with GAAP. Second, auditors usetheir report to indicate any unusual aspects of the audit examination. Third, even if the financialstatements are fairly presented and no problems were noted in the conduct of the audit, the auditors can use the report to communicate information useful to decision makers that may not appear onthe face of the financial statements.12.4 Nine important e lements of the auditors’ standard report are:1. Title.The title should contain the word independent, as in “Independent RegisteredPublic Accounting Firm” or “Independent Auditors”.2. Address. The report shall be addressed to the client, which occasionally may be differentfrom the auditee.3. Notice of Audit. A sentence should identify the financial statements and indicate thatthey were audited. This appears in the introductory paragraph.4. Responsibilities.The report should state management’s responsibility for the financialstatements and the auditors’ responsibility for the report. These statements are also in theintroductory paragraph.5. Description of the Audit. The second paragraph (scope paragraph) should declare thatthe audit was conducted in accordance with the standards of the Public CompanyAccounting Oversight Board (PCAOB) and describe the principal characteristics of anaudit, including a statement of belief that the audit provided a reasonable basis for theopinion.6. Opinion. The report shall express an opinion (opinion paragraph) regarding conformityof the financial statements with accounting principles generally accepted in the UnitedStates of America.7.Internal Control. The report should reference the auditors’ e xamination, report, andopinion on the client’s internal control over financial reporting.8. Signature. The auditors (partner of the audit team) shall sign the report, manually orotherwise.9. Date. The report shall be dated using the date when the auditors have obtained sufficientappropriate evidence to support their opinion (the audit completion date).12.5 a. The objects of the audit are the financial statements (balance sheet, income statement,statement of comprehensive income, statement of sh areholders’ equity, and statement ofcash flows) and the related footnote disclosures.b. This statement means that the auditors complied with the responsibilities andperformance principles, which require that auditors:1. Possessed competence and capabilities.2. Complied with relevant ethical requirements, including independence and duecare.3. Maintained professional skepticism and exercised professional judgment.4. Planned and supervised the work.5. Identified and assessed risks of material misstatement based on an understandingof the entity.6. Gathered sufficient appropriate evidence.12.6 The major differences in the report issued under AS 5 (for public entities) and SAS 58 (fornonpublic entities) include:1. The AS 5 re port is titled “Report of Independent Registered Public Accounting Firm”while the SAS 58 report is titled “Report of Independent Auditors”.2. The AS 5 report references “standards established by the PCAOB (United States)” whilethe SAS 58 report referen ces “auditing standards generally accepted in the United States”.3. The SAS 58 report does not contain a reference to the auditors’ examination and report onthe effectiveness of the client’s internal control over financial reporting (suchexaminations are not required for nonpublic entities).12.7 Major reasons for departures from the wording in the standard report include:1. The financial statements contain a departure from GAAP.2. Matters (scope limitations) affect the ability of auditors to conduct an audit in accordancewith GAAS.3. The auditors wish to reference other matters affecting the audit or the client.12.8 If a departure from GAAP exists and the effect is immaterial, then an unqualified opinion may beissued. If the effect of the departure is material (but not pervasive) and isolated to a single event, then a qualified opinion would be issued. If the effect is pervasive, the auditors should issue anadverse opinion.12.9 Qualified opinions indicate that, “except for” the effec ts of an isolated departure from GAAP, thefinancial statements are presented in conformity with GAAP. Adverse opinions indicate that thefinancial statements are not presented in conformity with GAAP. Clearly, the wording used in the adverse opinions represents more serious and significant departures from GAAP.12.10 A client-imposed scope limitation results from management’s refusal to let auditors performauditing procedures while a circumstance-imposed scope limitation occurs when circumstances beyond the auditors’ or client’s control result in the inability of auditors to perform certainprocedures.Because of the deliberate and intentional nature of client-imposed scope limitations, these scopelimitations are of greater concern to auditors than circumstance-imposed scope limitations.12.11 1. In comparison to the standard report, a report qualified for a scope limitation has:a. An “except for” phrase in the scope paragraph identifying the scope limitation.b. An explanatory paragraph describing the scope limitation, the accounts ordisclosures affected by the scope limitation, and the dollar amounts involved, ifdeterminable.c. An “except for” phrase in the opinion paragraph that recognizes the scopelimitation may have affected auditors’ abil ity to identify misstatements.2. In comparison to the standard report, a report in which the opinion is disclaimed becauseof a scope limitation has:a. A modification to the introductory paragraph indicating “[w]e have beenengaged to audit” instead of “[w]e have audited”.b. The introductory paragraph omits the sentence in which the auditors indicatetheir responsibility for an opinion on the financial statements.c. The scope paragraph is omitted.d. An explanatory paragraph describing the scope limitation, the accounts ordisclosures affected by the scope limitation, and the dollar amounts involved, ifdeterminable.e. The opinion paragraph refers to the explanatory paragraph and disclaims anopinion on the financial statements.12.12 When auditors are not independent with respect to an auditee, a disclaimer of opinion should beissued because auditors are required to be independent to conduct an examination (and express an opinion). While this disclaimer will indicate that the auditors were not independent, it should not refer to the reason(s) for the lack of independence.12.13 The following situations cause auditors to modify their reports to identify inconsistent applicationsof GAAP:1. Change in accounting principles (from GAAP to GAAP).2. Change in the form of reporting entity.3. Change from a principle not conforming to GAAP to one that is GAAP.4. Change in an accounting principle that is inseparable from a change in accountingestimate.12.14 The following circumstances may indicate substantial doubt about an entity’s ability to continue asa going concern:∙Financial difficulties (negative trends in financial ratios).∙Labor problems.∙Loss of key personnel.∙Significant litigation.12.15 When going-concern uncertainties exist, auditors may either add an explanatory paragraph to anunqualified opinion or disclaim an opinion on the entity’s financial statements. Disclaimers would typically be issued when the going-concern uncertainties are more serious and pervasive.12.16 Rule 203 all ows auditors to issue an unqualified opinion on an entity’s financial statements whenthose statements contain a departure from a FASB or GASB (or their predecessors’) standard. This rule relates to situations in which auditors believe that this departure prevents the financialstatements from being misleading.12.17 When a division of responsibility exists, principal auditors can assume responsibility for the otherauditors’ work; if so, no reference is made to the other auditors’ work in the principal auditors’report (the standard report can be issued). If principal auditors decide to refer to the work andreports of other auditors, they would modify the introductory, scope, and opinion paragraphs oftheir report to indicate the division of responsibility.12.18 The principal auditors’ reference in their report to other auditors is not a scope limitation. Thereference only shows the division of responsibility for the audit work.12.19 Circumstances, events, or transactions that auditors may wish to emphasize to financial statementusers include:∙ A warning that bankruptcy may be imminent.∙ A description of the auditee as a subsidiary of a larger entity.∙The effects of business events on the comparability of financial statements.∙The interaction of the auditee with related parties.∙The effect of events that occur after the balance sheet date.12.20 Auditors are associated with financial statements when they consent to the use of their name insome form of communication containing the financial statements or submit to their clients orothers financial statements they have prepared or assisted in preparing. When associated with anentity’s unaudited financial statements, auditors are required to disclaim an opinion on financialstatements.With respect to unaudited financial statements, in addition to issuing a disclaimer of opinion, the following guidelines should be observed:1. The report should not mention any auditing procedures applied because readers mighterroneously conclude that these procedures were sufficient to enable an opinion to beexpressed on the financial statements.2. If the auditors should learn that the financial statements are not in conformity withgenerally accepted accounting principles (including adequate disclosures), the departuresshould be explained in the disclaimer.3. If prior-years’ unaudited financial statements are presented, the disclaimer should coverthem as well as the current-year statements.4. Each page of the financial statements should be clearly labeled as “unaudited”.12.21 An updated report is a report on prior-year financial statements that is based on both the prior-year audit and on information that has come to light in the most recent audit. An updated reportmay be modified for events occurring subsequent to the date of the initial report.A reissued report is a copy of a previously-issued report that auditors provide or grant permissionto use in another document after its delivery date. This report is not modified to consider eventsoccurring subsequent to the date of the initial report.12.22 The two types of disclosure issues related to “other information” are:a. Material inconsistency of other information with disclosures and information included inthe audited financial statements.b. Material misstatements of fact or omissions related to the other information.12.23 Auditors are prohibited from issuing a standard report on condensed financial statements becausethe condensed financial statements are not a fair presentation of financial position, results ofoperations, and cash flows in conformity with GAAP. (These financial statements present only asubset of the necessary disclosures required for conformity with GAAP).12.24 Issues that may be encountered with supplementary information include:∙Required supplementary information is omitted (either in its entirety or in part)∙The supplementary information departs from presentation guidelines∙The supplementary information contains material departures from GAAP.∙Auditors cannot perform necessary review procedures to evaluate the supplementary.When these problems are encountered, auditors should expand their report on the financialstatements or disclaim an opinion on the supplementary information.SOLUTIONS FOR MULTIPLE-CHOICE QUESTIONS12.25 a. Correct Auditors explicitly report on GAAP and express an opinion; auditorsimplicitly report on consistency and disclosure.b. Incorrect Consistency is implicitly reported upon.c. Incorrect Auditors explicitly report on GAAP and express an opinion; auditorsimplicitly report on consistency and disclosure.d. Incorrect The implicit reporting on consistency is the only correct option in thischoice.12.26 a. Incorrect The unqualified opinion is not an option with a material GAAPdeparture, and the disclaimer of opinion is inappropriate because theauditors are aware of the GAAP departure.b. Incorrect The unqualified opinion is not an option with a material GAAPdeparture.c. Incorrect The emphasis paragraph does not compensate for the GAAP departureand the unqualified opinion is still inappropriate.d. Correct Because this is a material departure from GAAP, and the choices are toqualify or issue the adverse opinion.12.27 a. Correct The choice depends on the auditors’ perception of the magnitude of theuncertainty.b. Incorrect The standard report without an explanatory paragraph is not appropriatein the circumstances.c. Incorrect Because the disclosures are adequate, a qualified opinion or adverseopinion for GAAP departure would be inappropriate.d. Incorrect see (b) and (c)12.28 a. Incorrect This is not a viable option because the auditors believe the financialstatements would be misleading.b. Incorrect Auditors cannot disclaim an opinion when they have full knowledge ofthe GAAP departure.c. Correct Rule 203 provides for an explanatory paragraph and unqualifiedopinion if GAAP are misleading.d. Incorrect Auditors cannot issue the standard report when there is a departurefrom GAAP, even in cases where GAAP might be misleading.12.29. a. Incorrect Changes in estimates do not require a consistency paragraph.b. Incorrect Error corrections not involving a change in principle do not require aconsistency paragraph.c. Incorrect Changes in the consolidated entity by reason of sale of a subsidiary donot require a consistency paragraph.d. Correct This is a change in accounting principle.12.30 a. Incorrect The prior audit must be described regardless of the type of opinionissued.b. Correct The predecessor auditors should be named only if their report isincluded.c. Incorrect The type of opinion must be stated.d. Incorrect The predecessor auditors should not be named unless their report isincluded.12.31 The key word in the question is “may” issue a report.a. Correct Modification of the report to indicate division of responsibility with anunqualified opinion is a viable reporting option.b. Correct The principal auditors taking full responsibility by not mentioning theother auditors is a possibility.c. Incorrect The principal auditors must take some responsibility when a division ofresponsibility exists.d. Incorrect When the other auditors are named, their reports must be presented.12.32 a. Correct The “emphasis” paragraph is a modification, but otherwise does notchange an unqualified opinion.b. Incorrect See (a) above.c. Incorrect See (a) above.d. Incorrect See (a) above.12.33 a. Incorrect A disclaimer when going-concern uncertainties exist is permitted.b. Incorrect A disclaimer based on a scope limitation is permitted.c. Incorrect Auditors must always disclaim an opinion when they are notindependent.d. Correct Auditors cannot disclaim an opinion when departures from GAAP existand they have conducted a GAAS audit (qualified or adverse opinionsare appropriate).12.34 a. Correct The auditors’ responsibility is explicitly stated in the introductoryparagraph of the report.b. Incorrect The auditors’ responsibility is explicitly stated.c. Incorrect The auditors’ responsibility is describe d in the introductory, not theopinion paragraph.d. Incorrect The auditors’ responsibility is explicitly stated; in addition, it is statedin the introductory, not opinion, paragraph.12.35 a. Incorrect Megabank is the user of the financial statements.b. Incorrect Samson & Delilah is the auditor.c. Correct Company A hired the auditors (and will pay the fee).d. Incorrect Company B is the auditee.12.36a. Incorrect The standard report identifies the financial statements.b. Incorrect The standard report provides a general description of an audit.c. Incorrect The standard report expresses an opinion about conformity with GAAP.d. Correct The standard report does not call for economic analysis or commentary.12.37 a. Correct The report on internal control over financial reporting would bemodified to reference the report on the financial statements; in addition,the report on the financial statements would be modified to referencethe report on internal control over financial reporting.b. Incorrect The report on internal control over financial reporting would bemodified to reference the report on the entity’s financial statements.c. Incorrect The report on the entity’s financial statements would be modified toreference the report on internal control over financial reporting.d. Incorrect Both the report on the financial statements and the report on internalcontrol over financial reporting would be modified to reference theother report.。