《审计概念与方法 现行理论与实务指南 英文版·第6版》

CHAPTER 1 The Audit Function-An Overvie?v1

HISTORY OF THE AUDIT FUNCTION2

Independent Audits Prior to 19002

Twentieth-Century Developments3

AUDITING DEFINED4

Financial Auditing4

Other Types of Audits5

The Need for Audits of Financial Statements5

The Standard Report6

THE AUDIT REPORT6

Generally Accepted Accounting Principles10

Report Title,Address,Signature,and Date11

Departures from the Standard Report12

Generally Accepted Auditing Standards13

THE INDEPENDENT AUDITOR16

Types of CPA Firms16

Internal Structure of a CPA Firm18

OTHER TYPES OF AUDITORS AND AUDITS20

Compliance Audits21

Operational Audits25

Internal Audits25

CHAPTER I ASSIGNMENTS26

CHAPTER 2 Professional Ethics and the Auditing Environment38

PROFESSIONAL STATUS―FRAMEWORK OF THE ENVIRONMENT39

Systematic Theory40

Professional Authority40

Community Sanction40

Regulative Code41

A Culture41

NATURE OF THE ENVIRONMENT41

SELF-REGULATION BY THE PUBLIC ACCOUNTING PROFESSION42

The Organizations Involved43

The Code of Professional Conduct45

Quality Control within CPA Firms54

Mandatory Continuing Professional Education55

Monitoring and Enforcement55

EXTERNAL REGULATION56

The Securities and Exchange Commission57

Legal Liability59

CHAPTER 2 ASSIGNMENTS59

CHAPTER 3 Legal Liability69

THE LEGAL ENVIRONMENT70

CIVIL LIABILITY71

Liability to Clients72

Liability to Third Parties―Common Law73

Liability to Third Parties―Statutory Law78

CRIMINAL LIABILITY81

NOTED LEGAL CASES82

Bar Chris82

U.S. Financial83

Continental Vending83

Yale Express83

National Student Marketing84

1136 Tenants Corporation84

Equity Funding84

Fund of Funds85

Credit Alliance86

Mann Judd Landau86

ESM87

Bily87

SELF-PROTECTION AGAINST LIABILITY88

Crazy Eddie88

TORT REFORM89

FORENSIC ACCOUNTING89

CHAPTER 3 ASSIGNMENTS90

CHAPTER 4 The Elements of Auditing97

EVIDENCE, ASSERTIONS,AND PROCEDURES99

Auditing Procedures99

Evidential Matter and Its Relationship to Procedures101

Financial Statement Assertions and Audit Objectives103

OVERVIEW OF THE AUDIT RISK MODEL106

Types of Tests of Controls107

TYPES OF AUDIT TESTS107

Classification by Purpose of Test107

Types of Substantive Tests108

OVERVIEW OF AN AUDIT OF FINANCLAL STATEMENTS109

WORK PAPERS110

The Function of Work Papers110

The Contents and Requirements of Work Papers111

Legal Aspects of Work Papers113

Mechanics of Work Paper Preparation114

Illustrative Audit Work Papers115

CHAPTER 4 ASSIGNMENTS120

CHAPTER 5 Understanding the Client and General Planning128

CLIENT ACCEPTANCE AND CONTINUANCE129

Quality Control Policies and Procedurse130

Communication with a Predecessor Auditor130

Engagement Letters131

Conferences with Client Personnel131

KNOWLEDGE OF THE BUSINESS133

Organization Structure133

Operations of Legal Structure134

Industry and Economic Conditions136

GENERAL PLANNING AND THE PRELIMINARY AUDIT PLAN137

General Planning Decisions to Be Made137

Knowledge Obtained to Prepare Preliminary Audit Plan137

Procedures in Preparing Preliminary Audit Plan138

AUDIT DECISIONS IN PRELIMINARY PLANNING138

Understanding the Internal Control Structure and the Control Risk Assessment138

Materiality and Audit Risk139

Special Areas of Audit Risk143

Overall Timing of Engagement149

Involvement of Specialists and Others152

Assignment and Scheduling of Audit Staff154

ANALYTICAL PROCEDURES155

Use of Analytical Procedures155

Analytical Procedures in Planning the Audit156

Analytical Procedures as Substantive Tests157

Analytical Procedures in the Overall Review158

Data Used in Analytical Proceduress159

CHAPTER 5 ASSIGNMENTS159

CHAPTER 6 Understanding the Internal Control Structure and Assessing Control Risk176

AUDIT STRATEGY AND THE INTERNAL CONTROL STRUCTURE177

Audit Logic and the Internal Control Structure178

Internal Control Structure Concepts179

Internal Control Structure Objectives180

Detailed Objectives of Internal Control181

COMPONENTS OF THE INTERNAL CONTROL STRUCTURE182

Control Environment182

Monitoring184

Risk Assessment186

Information and Communication186

Control Activities192

An Overview of the Auditor s Consideration198

THE AUDITOR S CONSIDERATION OF THE INTERNAL CONTROL STRUCTURE IN A FINANCIAL STATEMENT AUDIT198

Organizing the Auditor s Consideration203

Understanding the Internal Control Structure205

Documenting the Understanding207

Assessing Control Risk211

Tests of Controls214

Documentation of the Assessment of Control Risk217

Effect on Design of Substantive Tests217

THE FOREIGN CORRUPT PRACTICES ACT218

CHAPTER 6 ASSIGNMENTS219

CHAPTER 7 Planning Tests of Detalls of Transactions and Balances231

DESIGNING AUDIT PROGRAMS―AN INTRODUCTION232

Decisions to Be Made233

Considerations in Deciding on Nature,Timing,and Extent235

Efficiency and Effectiveness of Audit Tests235

DIRECT TESTS OF BALANCES236

Nature of Financial Statement Component and Audit Objectives237

Materiality at the Account Balance Level239

Audit Risk an the Account Balance Level244

Efficiency of Audit Tests251

Relation of Tests of Transaction Classes to Direct Tests of Balances258

TESTS OF TRANSACTION CLASSES258

Types of Tests of Transaction Classes259

Planning the Scope of Tests of Transaction Classes260

DESIGNING AUDIT PROGARMS―ADDITIONAL MATTERS263

Revision of Audit Program as Audit Progresses263

Client Expectations263

Generalized Materials263

Direct Tests of Balances at an Interim Date264

AUDITING ACCOUNTING ESTIMATES265

CHAPTER 7 ASSIGNMENTS265

CHAPTER 8 Audit Sampling276

AN INTRODUCTION TO AUDIT SAMPLING277

Definition and Basic Features of Audit Sampling277

Nonstatistical versus Statistical Audit Sampling279

Representative Selection Methods280

AUDIT SAMPLING FOR TESTS OF TRANSACTION CLASSES283

Planning Samples for Tests of Transaction Classes283

Selection of Samples for Tests of Transaction Classes288

Evaluation of Sample Results of Tests of Transaction Classes288

Statistical Sampling for Tests of Transaction Classes290

Nonstatistical Sampling for Tests of Transaction Classes297

Planning Samples for Direct Tests of Balances300

AUDIT SAMPLING FOR DIRECT TESTS OF BALANCES300

Selection of Samples for Direct Tests of Balances302

Evaluation of Sample Results of Direct Tests of Balances303

Nonstatistical Sampling for Direct Tests of Balances304

Statistical Sampling for Direct Tests of Balances308

Establishing Tolerable Misstatement for Sampling Applications313

Other Statistical Models316

Accounting Estimation versus Audit Hypothesis Testing317

Mean-per-Unit Estimation317

APPENDIX; ESTIMATION SAMPLING―AN AUDIT HYPOTHESIS TESTING APPROACH317

Stratified Mean-Per-Unit Estimation322

Difference Estimation322

Ratio Estimation323

CHAPTER 8 ASSIGNMENTS324

CHAPTER 9 The Effect of Computers on the Audit334

THE RELATION OF COMPUTERS TO AUDITING335

Relation to Phases of the Audit335

Recognizing Reliance on the Computer337

Control Classification in Computerized Systems338

THE INTERNAL CONTROL STRUCTURE AND COMPUTERIZED SYSTEMS338

Auditor Use of the Computer338

Application Controls340

Ceneral Controls343

CONSIDERATION OF THE COMPUTER IN PLANNING THE AUDIT347

Understanding the Client and the Control Environment348

Understanding the Accounting System348

Understanding Control Activities349

Planning Tests of Details of Transactions and Balances350

COMPUTER-ASSISTED AUDIT TECHNIQUES352

Testing Client Programs353

Testing Client Files354

Use of a Microcomputer as an Audit Tool356

A Terminology Note358

OTHER COMPUTER-RELATED CONSIDERATIONS358

Real-Time Processing Systems358

Electronic Data Interchange358

Computer Service Centers359

Database Management Systems359

LANs and Other Networks360

ADVANCED COMPUTER-ASSISTED TECHNIQUES360

Hardware361

APPENDIX:BASIC CONCEPTS OF COMPUTER PROCESSING361

Software362

Data Processing and Storage363

CHAPTER 9 ASSIGNMENTS366

CHAPTER 10 Tests of Transaction Classes and Related Balances378

REVENUE,RECEIVABLES,AND RECEIPTS379

Functions,Documents,Inputs,and Accounting Systems380

Primary Control-Related Features382

Potential Misstatements384

Account Balances and Transactions384

Tests of Transaction Classes for Sales387

Tests of Transaction Classes for Cash Receipts392

Tests of Adjustments to Accounts Receivable393

Special Considerations394

EXPENDITURES,PAYABLES,AND DISBURSEMENTS394

Differences from the Sales Cycle394

Functions,Documents,Inputs,and Accounting Systems396

Primary Control-Related Features400

Account Balances and Transactions400

Potential Misstatements400

Tests of Transaction Classes for Purchases for Inventory401

Tests of Transaction Classes for Cash Disbursements403

Variations for Other Types of Expenditure Transactions406

RELATED DIRECT TESTS OF BALANCES407

Accounts Receivable407

Accounts Payable415

Cash419

CHAPTER 10 ASSIGNMENTS425

CHAPTER 11 Direct Tests of Balances447

INVENTORIES448

Differences from the Sales and Expenditures Cycles449

Assertions,Objectives,and Procedures451

Observation of the Physical Inventory453

Tests of Pricing and Summarization456

Materiality456

Audit Risk457

Additional Considerations458

LONG-TERM ASSETS AND OBLIGATIONS AND OWNERSEQUITY459

Property and Equipment459

Investments and Intangible Assets463

Long-Term Obligations465

Owners Equity467

The Income Statement468

THE INCOME STATEMENT AND INCOME TAXES468

Income Taxes471

CHAPTER 11 ASSIGNMENTS475

CHAPTER 12 Completion of the Audit498

NATURE OF COMPLETION AND REVIEW PROCEDURES500

Date of the Audit Report500

Audit Procedures after Year-End501

SUBSEQUENT EVENTS AND RELATED REVIEW PROCEDURES502

Subsequent Events Review502

Subsequent Events of Audit Interest502

Subsequent Events and the Report Date504

Reissuance of the Audit Report505

REPRESENTATION LETTERS506

Legal Representation Letters506

Client Representation Letters508

REVIEW OF WORK PAPERS AND FINANCIAL STATEMENTS511

Summarization and Evaluation of Audit Results511

Evaluation of Going Concern Status518

Financial Statement Review and Analytical Procedures519

Administrative Completion of Work Papers520

AFTER THE AUDIT521

Subsequent Discovery of Facts522

Maintaining Quality of Audit Practice522

Subsequent Discovery of Omitted Procedures523

CHAPTER 12 ASSIGNMEMTS524

CHAPTER 13 The Auditor s Report537

AUDITOR S REPORTING OBLIGATION539

Departures from a Standard Report540

Financial Statements and Periods Covered542

QUALIFICATIONS, DISCLAIMERS, AND ADVERSE OPINIONS545

Limitations on the Scope of the Audit546

Departures from Generally Accepted Accounting Principles548

EXPLANATORY LANGUAGE ADDED TO THE STANDARD REPORT550

Opinion Based in Part on the Report of Another Auditor551

Departure from a Promulgated Accounting Principle553

Uncertainties554

Going Concern Uncertainties556

Inconsistent Application of Accounting Principles556

Comparative Financial Statements―Updated Reports558

Information outside the Basic Financial Statements558

Emphasis of a Matter559

Old Reporting Terms559

Communicating with Stockholders560

AUDITOR-CLIENT COMMUNICATIONS560

Communicating with the Board of Directors562

Communicating with Audit Committees562

Communicating with Management565

CHAPTER 13 ASSIGNMENTS566

CHAPTER 14 Attestation Services, Unaudited Financial Statements,and Specialized Reporting588

ATTESTATION AND COMPILATION SERVICES590

Types of Engagements591

Attestation Standards592

Compilation or Review of Financial Statements for Nonpublic Companies593

UNAUDITED FINANCLAL STATEMENTS593

Review of Interim Financial Information of a Public Company600

Other Unaudited Financial Statements of Public Companies602

SPECIALIZED REPORTING CIRCUMSTANCES603

Letters for Underwriters604

Special Reports604

Reports on Accompanying Information606

Forecasts and Projections608

Internal Control Structure611

Pro Forma Financial Information613

Compliance Attestation613

CHAPTER 14 ASSIGNMENTS615

CHAPTER 15 Operational Auditing623

FRAMEWORK OF OPERATIONAL AUDITING624

Operational Auditing Defined625

Operational Auditor s Qualifications627

Purpose of the Operational Audit Engagement629

Arrangements for the Operational Audit Engagement630

Methods of Conducting the Operational Audit Engagement631

Form and Content of the Operational Audit Report632

CONDUCT OF AN OPERATIONAL AUDIT634

Preliminary Survey635

Review of Charter and Development of Performance Criteria636

Revicw of Administrative and Related Controls637

Development of Specific Findings and Recommendations637

Preparation and Submission of Operational Audit Report638

EXAMPLES OF OPERATIONAL AUDITS638

Independent CPA638

Governmental Auditor639

Internal Auditor640

CHAPTER 15 ASSIGNMENTS641

Index645