审计学 变化环境中的概念 英文版PDF电子书下载

Chapter 1: Assurance Services 2

Introduction 3

A.Need for Assurance 3

Potential Bias in Providing Information 3

Remoteness of Users 3

Complexity 4

Need for Assurance Regarding Information and Operations 4

B.The Special Role of Financial Statement Audits 12

Auditing Defined 13

The Need for Unbiased Reporting 15

Requirements to Enter the Public Accounting Profession 16

The Public Accounting Profession 17

C.The Providers of Assurance Services 17

The Internal Audit Profession 18

Governmental Auditing Profession 19

D.Other Professional and Regulatory Organizations 20

The American Institute of Certified Public Accountants 20

State Boards of Accountancy 21

The Securities and Exchange Commission 21

The Institute of Internal Auditors 22

The U.S.General Accounting Office 22

The Court System 22

Summary 22

Significant Terms 23

Review Questions 24

Multiple-Choice Questions 25

Discussion and Research Questions 26

Cases 31

Chapter 2: Corporate Governance, Serving Client and Public Interests, and Audit Professionalism 34

A.Corporate Governance: Serving Client and Public Interests 35

Roles of Interested Parties 35

Who Is the Audit Client? 35

Audit Committees 36

Serving the Public s Interests 38

Framework for Quality 40

Assuring Quality 40

B.Maintaining Professionalism: Standards 41

Need for Professional Standards 41

Generally Accepted Auditing Standards 42

Standards for Other Audit Engagements 47

C.Maintaining Professionalism: Ethical Framework 50

Importance of Ethical Conduct 50

AICPA Code of Professional Conduct 50

Ethical Theories: Resolving Issues That Are Not Black or White 60

An Ethical Framework 61

D.Maintaining Professionalism: Ensuring Quality 63

Quality Control Standards and External Peer Reviews 63

Summary 64

Internal Peer Review Programs 64

Significant Terms 65

Review Questions 66

Multiple-Choice Questions 67

Discussion and Research Questions 69

Cases 76

Chapter 3: The Audit Process 80

A.Overview of Audit Process 81

Developing an Understanding with the Client 81

The Audit Process 84

Overall Materiality versus Individual Account Materiality 92

Materiality Approaches 92

B.Materiality and Audit Risk 92

Risk of Material Misstatement 93

Risk Concepts 93

The Profession s Audit Risk Model: Practice Implications 96

Illustration of the Audit Risk Model 98

Limitations of the Audit Risk Model 99

C.Management Assertions 101

Financial Statement Assertions 101

Assertions for Other Assurance Services 103

D.Audit Evidence and Procedures 104

Relevance 104

Persuasiveness 104

Examples of Audit Programs 105

Sufficiency 105

Relationship Among Audit Procedures and Assertions 105

Summary 108

Significant Terms 109

Review Questions 109

Multiple-Choice Questions 111

Discussion and Research Questions 113

Chapter 4: Understanding Business Risk: A Framework for Audit Planning 120

A.Business Risk: Audit lmplications 121

What Is Risk? 121

The Relationship of Business Risk to the Audit Process 123

B.Using Analytical Tools to Develop Expectations 134

Assumptions Underlying Analytical Techniques 135

Trend Analysis 137

Ratio Analysis 138

Commonly Used Financial Ratios 138

C.Risk Analysis: Auditor Responsibility for Detecting and Reporting Fraud and Other Misstatements 140

Responsibilities for Detecting Errors 142

Responsibilities for Detecting and Reporting Fraud 142

Responsibilities for Discovering Fraud 142

Fraud Risk Assessment 144

Detecting Fraud: Matching Procedures to the Risk 145

Reporting on Detected Defalcations 145

Responsibilities for Detecting and Reporting Illegal Acts 146

Reporting on Fraudulent Financial Statements 146

Linkage to Direct Tests of Account Balances 147

Quality of Accounting Principles Used 147

D.Risk Analysis and the Conduct of the Audit 147

Summary 149

Significant Terms 149

Appendix 4A: Regression and Time Series Analysis 149

Review Questions 155

Multiple-Choice Questions 157

Discussion and Research Questions 158

Case 168

Chapter 5: Evaluating the Integrity and Effectiveness of the Client s Controi Systems 170

Internal Control 171

A.A Framework for Control 171

The Need for Control 172

B.A Framework for Understanding and Evaluating Internal Controls 179

Components of an Internal Control System 180

Understanding and Evaluating Accounting Information Systems 187

C.Control Risk Assessment 197

Phase 1—Obtain an Understanding 198

Phase 2—Make Preliminary Assessment of Control Risk 205

Phase 3—Perform Test of Controls 206

Phase 4—Update Assessment of Control Risk and Need for Substantive Testing 206

Review Questions 208

Significant Terms 208

Summary 208

Multiple-Choice Questions 210

Discussion and Research Questions 212

Cases 220

Chapter 6: Computer-Based Processing: Developing an Audit Assessment Approach 224

A.Introduction 225

Overview of Computerized Accounting Systems 225

The New Telecommunications Era: The Virtual Private Network 231

B.General and Application Controls 233

General Control Concepts 233

Application Control Procedures 245

Gaining an Understanding of the Control Structure 253

C.Overview of Control Risk Assessment Process 253

Testing the Effectiveness of Control Procedures 254

D.Electronic Data Interchange and Electronic Commerce 257

Risks and Control Considerations 260

Application Controls 260

Evaluating Controls in EDI: An Illustration 262

Electronic Commerce 264

Summary 265

Significant Terms 266

Review Questions 267

Multiple-Choice Questions 269

Discussion and Research Questions 271

Cases 276

Chapter 7: Direct Tests of Account Balances 278

A.Overview of Evidence for Directly Testing Financial Statement Items 279

Approach to Gathering Evidence 283

Nature of Audit Testing 284

B.Audit Procedures 286

Overview of Audit Procedures 286

Commonly Used Audit Procedures for Direct Tests of Account Balances 292

Timing of Procedures 296

Extent of Procedures 296

Audit Program Development 297

C.Audit Programs and Documenting Audit Evidence 297

Documenting Audit Evidence 298

Importance of Quality Review 303

Summary 306

Significant Terms 306

Review Questions 306

Multiple-Choice Questions 308

Discussion and Research Questions 310

Cases 317

Chapter 8: Auditing Computerized Information Systems 320

A.Computer Audit Tools to Test Computer Processing 321

Overview of a Comprehensive Approach to Computerized Data Processing 321

Test Data: Auditing through the Computer 323

Approaches to Address Correctness of Processing 323

Integrated Test Facility 326

Concurrent Processing Methodologies 327

Embedded Audit Modules 330

Relative Advantages of ITF, Concurrent Processing, and Embedded Audit Modules 331

B.Using the Computer to Help Test Accounting Records 333

Generalized Audit Software 335

Custom-Designed Software 337

C.Unique Audit Approaches for Electronic Commerce 338

Risk Analysis 338

Detailed Testing of Account Balances—Using Computerized Audit Techniques 339

The Process and Control Audit 339

D.Use of Personal Computing in Conducting an Audit 342

Traditional Uses of Personal Computers: Word Processing and Spreadsheets 343

Expanded Uses of Personal Computing Software for Audit Purposes 343

Unique Problems: Auditing a Client s Spreadsheet 346

Summary 347

Significant Terms 347

Review Questions 348

Multiple-Choice Questions 350

Discussion and Research Questions 352

Cases 358

Chapter 9: Auditing Revenue and Reiated Accounts 360

Overview of Revenue Cycle 361

A.Introduction 361

B.Assessment of Environment Risk 367

Audit Steps 367

Inherent Risk 368

The Control Environment: Effect on Sales 371

Developing an Understanding of Internal Controls 372

Monitoring Controls 374

Control Structure Regarding Returns, Allowances, and Warranties 374

Importance of Credit Policies Authorizing Sales 377

Assessing and Documenting Environment Risk 378

Planning for Direct Tests of Account Balances 381

C.Substantive Testing in the Revenue Cycle 381

Audit Objectives and Assertions 384

Standard Accounts Receivable Audit Procedures 386

Allowance for Doubtful Accounts 399

Analytical Procedures for Revenue Cycle Accounts 401

Notes Receivable 402

Summary 403

Significant Terms 403

Review Questions 404

Multiple-Choice Questions 406

Discussion and Research Questions 409

Cases 421

Chapter 10: Audit Sampling 426

A.Introduction 427

Overview of Audit Sampling 428

Nonsampling and Sampling Risk 428

Nonstatistical Sampling Using Audit Software 430

Selecting a Sampling Approach 431

Sampling to Test Controls 432

Substantive Sampling Considerations 433

B.Nonstatistical Sampling 438

Determining Sample Size 438

Selecting the Sample 438

Evaluating the Sample Results 438

C.Probability Proportional to Size Sampling 441

Overview of PPS Sample Design 442

Sample Size and Selection 444

Sample Evaluation 447

Summary 453

Significant Terms 453

Appendix 1OA: Sampling to Test Controls 456

Appendix 1OB: Classical Sampling Methods 469

Review Questions 478

Multiple-Choice Questions 480

Discussion and Research Questions 482

Case 490

A.Audit of the Acquisition Cycle 492

Chapter 11: Audit of Acquisition Cycle and Inventory 492

Overview of Control Procedures and Control Risk Assessment 494

Testing Controls over Accounts Payable and Related Expenses 499

Substantive Tests of Accounts Payable 500

Audits of Expense Accounts 501

B.Audit of Inventory and Cost of Goods Sold 502

Internal Controls for Inventory 504

Substantive Testing of Inventory and Cost of Goods Sold 509

Cost of Goods Sold 516

Summary 517

Significant Terms 517

Review Questions 518

Multiple-Choice Questions 520

Discussion and Research Questions 522

Cases 530

Chapter 12: Auditing Liquid Assets 532

A.Introduction 532

Cash Accounts Affected 533

Types of Marketable Security Accounts 534

Planning for Audits of Cash and Marketable Securities 534

B.Audits of Cash Accounts 538

Evaluating Control Risk: Cash Accounts 538

Understanding and Testing Internal Controls 542

Substantive Testing of Cash Balances 546

Operational Audits of Cash 551

C.Marketable Securities and FinanciaI Instruments 553

Audits of Marketable Securities 553

Audits of Other Short-Term Securities 553

New Financial Instruments and Marketable Securities 556

Summary 559

Significant Terms 560

Review Questions 560

Multiple-Choice 562

Discussion and Research Questions 564

Cases 572

A.Audit of Property, Plant, and Equipment 574

Chapter 13: Audit of Other Assets and Long-Term Financing 574

First-Time Audits 575

Inherent Risks 575

Evaluating Control Risk and Control Effectiveness 578

Tests of Property Additions and Disposals 579

Audit Considerations for Capitalized Leases 581

Asset Impairment 581

Depreciation Expense and Accumulated Depreciation 581

Natural Resources 582

B.Audits of Mergers and Acquisitions 583

An Overview of Accounting Issues Associated with Mergers and Acquisitions 583

Audits of Mergers and Acquisitions 584

C.Audits of Financing Activities 587

Bonds 588

Common Stock and Owner s Equity 589

Summary 592

Significant Terms 592

Review Questions 592

Multiple-Choice Questions 594

Discussion and Research Questions 595

Cases 604

Chapter 14: Completing the Audit 606

A.Final Review of the Audit 607

Contingencies 607

Adequacy of Disclosures 609

Management Representation Letter 612

Management Letter 614

Summarizing Possible Adjustments 615

Evaluating the Going Concern Assumption 615

Review of Major Estimates 620

Analytical and Quality Review of the Audit 621

Communicating with the Audit Committee 622

B.Subsequent Events 623

Normal Review of Subsequent Events 623

Subsequent Discovery of Facts Existing at the Date of the Auditor s Report 625

Summary 627

Significant Terms 627

Consideration of Omitted Procedures after the Report Date 627

Review Questions 628

Multiple-Choice Questions 628

Discussion and Research Questions 630

Case 634

Chapter 15: Communicating Levels of Assurance 636

A.Audits, Reviews, and Compilations of Historical Financial Statements 637

Audit Reports 637

Reviews and Compilations 653

B.Reports on Other Financial Information 659

Special Reports 659

Interim Financial Information 663

Changing Information Needs of Investors and Creditors 666

C.Reports on Non-Financial and Other Information 666

Reports on Internal Control 667

Reporting on Evolving Assurance Services 671

Summary 675

Significant Terms 675

Review Questions 676

Multiple-Choice Questions 678

Discussion and Research Questions 680

Case 690

Chapter 16: Professional Liability 692

A.The Legal Environment Affecting Litigation against Auditors 692

Audit Time and Fee Pressures 694

Joint and Several Liability 694

Audits Viewed as an Insurance Policy 695

Contingent-Fee Compensation for Lawyers 695

Class Action Suits 695

B.Legal Concepts 695

Causes of Legal Action 696

Parties That May Bring Suit against Auditors 697

C.Approaches to Mitigating Liability Exposure 705

Continuing Education Requirement 705

Membership Requirements for Firms 705

Quality Control Programs 706

Defensive Auditing 707

Role of Insurance 709

Tort Reform 710

Effect of Court Cases on Auditing Standards and Practice 711

Summary 712

Significant Terms 713

Review Questions 714

Multiple-Choice Questions 715

Discussion and Research Questions 717

Cases 720

Chapter 17: Internal and Value-Added Auditing 724

A.Internal Auditing 724

Internal Auditing Defined 725

B.Scope of Value-Added Internal Auditing 732

The Institute of Internal Auditors Code of Ethics 732

Reporting Company Fraud 732

Operational Auditing 735

Information Systems Audits 741

Compliance Audits 742

Financial Reporting and Control Audits 742

Program and Performance Audits 743

C.Trends in Value-Added and Internal Auditing 744

Global Internal Auditing 744

Outsourcing Internal Auditing 745

Internal Auditing by Any Other Name 745

Review Questions 746

Significant Terms 746

Summary 746

Multiple-Choice Questions 747

Discussion and Research Questions 749

Case 755

Appendix: IDEA Tutorial and Cases 756

Tutorial 756

IDEA Case 1—Fraud 843

IDEA Case 2—Accounts Receivable 844

IDEA Case 3—Inventory 845

Case Index 847

Index 848