审计学一种整合方法 课件Chapter09

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Illustration of Differing Evidence Among Cycles
Sales and collection cycle A B Inherent risk Control risk Acceptable audit risk Medium Medium Acquisition Payroll and and payment personnel cycle cycle High Low Low Low
Step Estimate total 3 misstatement in segment Step Estimate the 4 combined misstatement Compare combined Step estimate with judgment 5 about materiality
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Estimated Total Misstatement and Preliminary Judgment
Estimated Misstatement Amount
Known Misstatement Tolerable and Direct Misstatement Projection Sampling Error
Materiality and Risk
Chapter 9
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Learning Objective 1
Apply the concept of materiality to the audit.
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Steps in Applying Materiality
Step Set preliminary judgment 1 about materiality Planning extent of tests
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Set Preliminary Judgment About Materiality
Auditors decide early in the audit the combined amount of misstatements of the financial statements that would be considered material. This preliminary judgment is the maximum amount by which the auditor believes the statements could be misstated and still not affect the decisions of reasonable users.
Allocate preliminary Step judgment about 2 materiality to segments
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Steps in Applying Materiality
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Allocate Preliminary Judgment About Materiality to Segments
This is necessary because evidence is accumulated by segments rather than for the financial statements as a whole. Most practitioners allocate materiality to balance sheet accounts. SAS 107 (AU 312)
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
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Learning Objective 4
Use materiality to evaluate audit findings.
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Materiality
It is a major consideration in determining the appropriate audit report to issue.
Account
Total
Cash Accounts receivable Inventory Total estimated misstatement amount Preliminary judgment about materiality
$ 4,000 20,000 36,000
$ 2,000 12,000 31,500 $45,500
= Direct projection estimate of misstatement ($31,500)
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Learning Objective 5
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Learning Objective 3
Allocate preliminary materiality to segments of the audit during planning.
Estimated Total Misstatement and Preliminary Judgment
Net misstatements in the sample ($3,500)
÷ Total sampled ($50,000)
× Total recorded population value ($450,000)
$
N/A 6,000 15,750
$ 2,000 18,000 47,250 $62,300
$16,800
$50,000
N/A = Not applicable Cash audited 100 percent
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Materiality
The auditor’s responsibility is to determine whether financial statements are materially misstated. If there is a material misstatement, the auditor will bring it to the client’s attention so that a correction can be made.
Define risk in auditing.
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Risk
Auditors accept some level of risk in performing the audit. An effective auditor recognizes that risks exist, are difficult to measure, and require careful thought to respond. Responding to risks properly is critical to achieving a high-quality audit.
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Evaluating results
Learning Objective 2
Make a preliminary judgment about what amounts to consider material.
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Guidelines
Accounting and auditing standards do not provide specific materiality guidelines to practitioners. Professional judgment is to be used at all times in setting and applying materiality guidelines.
C
D
Low
Low
Medium
Low
High
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Planned Medium detection risk
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Factors Affecting Judgment
Materiality is a relative rather than an absolute concept. Bases are needed for evaluating materiality. Qualitative factors also affect materiality.
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Risk and Evidence
Auditors gain an understanding of the client’s business and industry and assess client business risk. Auditors use the audit risk model to further identify the potential for misstatements and where they are most likely to occur.