F8总结之概念题

概念题

应用：

Goofy Co’s year end is 31 December, which is traditionally a busy time for NAB & Co. Goofy Co currently has an internal audit department of five employees but they have struggled to undertake the variety and extent of work required by the company, hence Goofy Co is considering whether to recruit to expand the department or to outsource the internal audit department. If outsourced, Goofy Co would require a team to undertake monthly visits to test controls at the various shops across the country, and to perform ad hoc operational reviews at shops and head office. Goofy Co is considering using NAB & Co to provide the internal audit services as well as remain as external auditors.

Required:

(b) Discuss the advantages and disadvantages to both Goofy Co and NAB & Co of

Negative assurance

是什么：

Negative assurance means that nothing has come to the attention of an auditor which indicates that the cash flow forecast contains any material errors.

In contrast, the audit report on financial statements provides positive assurance; that is the financial statements do show a true and fair view.

目的：

Using negative assurance, the auditor is warning users that the cash flow forecast may be inaccurate. Less reliance can therefore be placed on the forecast than the financial statements, where the positive assurance was given.

（解释为什么可能不是准确的）With regard to the negative assurance, there were limited audit procedures that could be used; as the cash flow relates to the future and therefore the auditor cannot obtain appropriate and sufficient evidence to guarantee its accuracy. While Financial statements relate to the past, and so the auditor should be able to obtain the information to confirm they are correct.

Audit plan 的好处和内容

Helping the auditor properly audit engagement is performed in an effective and efficient manner.

8.Sufficiency of evidence

从已得到的信息来判断是否需要进一步收集

Significant? Risk?

–Assessment of risk at the financial statement level or at the assertion level. As risk increases then more evidence is required.

– The materiality of the item. More evidence will normally be collected on material items whereas immaterial items may simply be reviewed to ensure they appear correct.

– The reliability of the information. Where evidence is obtained from reliable sources (e.g. written evidence) then less evidence is required than if the source was unreliable (e.g. verbal evidence).

– The auditor’s knowledge and experience of the business. Where the auditor has good past knowledge of the business and trusts the integrity of staff then less evidence will be required.

是否有替代

– The nature of the accounting and internal control systems. The auditor will place more reliance on good accounting and internal control systems and reduce the amount of audit evidence required.