审计基础(英文版)

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Assurance Services
• Assurance services are independent professional services that improve the quality of information, or its context, for decision makers. • Examples • Consumer reports • Underwriters laboratories • CPA WebTrust • Performance View • PrimePlus Services
Chapter 1
Auditing and Assurance Services
"If you want to be successful, it's just this simple: Know what you're doing. Love what you're doing. And believe in what you're doing." -- Will Rogers
Distinguish Between Auditing and Accounting
Accounting is the recording, classifying, and summarizing of economic events for the purpose of providing financial information used in decision making.
• Information risk
– the risk (probability) that the information (mainly financial) disseminated by a company will be materially false or misleading. – users demand an independent third party assessment of the information.
Exhibit 1.2 Overview of Financial Statement Auditing
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Definition of Auditing
Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria GAAP and communicating the results to Auditor's Report/ interested users.
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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.” • Some financial attestation engagements (other than audits) • Supplementary financial statistics • Pro forma financial information • Financial forecasts and projections • Some non-financial attestation engagements • Compliance with contractual requirements • Effectiveness of internal control systems • Inventory quantities and locations
McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
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Chapter 1 Objectives
1. 2. 3. Define information risk and explain how auditing and assurance services play a role in reducing this business risk. Define and contrast auditing, attestation, and assurance services. Describe and define the management assertions embodied in financial statements, and explain why auditors use them as a focal point of the audit. Explain some characteristics of professional skepticism. Describe the organization of public accounting firms and identify the various services they offer. Describe the audits and auditors in governmental, internal, and operational auditing. List and explain the requirements for becoming a certified information professional.
பைடு நூலகம்Other Reports
Financial Statements (including footnotes)
Persons who rely on the financial reports
•Creditors •Investors
Source: American Accounting Association Committee on Basic Auditing Concepts. 1973. A Statement of Basic Auditing Concepts, American Accounting Association (Sarasota, FL).
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PCAOB Management Assertions
• Existence or occurrence – Assets included in accounts exists and events that give rise to transactions have taken place • Rights and obligations- Entity has a legal claim on all assets obligationsand revenues reported and has a legal responsibility for all liabilities and expenses • Completeness - All transactions have been recorded • Valuation or allocation – Transactions are recorded at the correct amount in the proper period • Presentation and disclosure – All accounts are presented in the appropriate place and all information required has been disclosed in the statements and footnotes.
Auditing is determining whether recorded information properly reflects the economic events that occurred during the accounting period
Review Checkpoints
The Relationships Among Auditing, Attestation, and Assurance Engagements
Assurance Services Any Information Attestation Services Primarily Financial Information Auditing Financial Statements
1. What is business risk? 2. What conditions increase demand for relevant, reliable information? 3. What risk creates a demand for objective outsiders to provide assurance to decision makers?
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SarbanesSarbanes-Oxley Act of 2002
• In response to several accounting related corporate scandals Congress passed the Sarbanes-Oxley Act Sarbanes• The Act’s major provisions include: – Requirement of CEO/CFO certification of financial statements – Requirement of auditor examination of company internal controls – Creation of the Public Company Accounting Oversight Board (PCAOB) to serve as an auditing profession “watchdog.” – Prohibition of certain client services by firms conducting a client’s audit.
4. 5. 6. 7.
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User Demand for Reliable Information
• Business risk? • Today’s information
– – – – More complex Demanded by remote users Demanded in a more timely manner Has far reaching consequences
SarbanesSarbanes-Oxley: Management’s Responsibility For Financial Reporting
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One of its most important provisions (Section 302) states that the key company officials must certify the financial statements. The company CEO and CFO must sign a statement indicating: 1. They have read the financial statements. 2. They are not aware of any false or misleading statements (or any key omitted disclosures). 3. They believe that the financial statements present an accurate picture of the company’s financial condition. Source: U.S. Congress, Sarbanes-Oxley Act of 2002, Pub.