审计学一种整合方法.docx

审计学一种整合方法.docx

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审计学一种整合方法

审计学：

一种整合方法-阿伦斯-英文版-第12版-课后答案

-Chapter-22-Solutions-Manua

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Chapter22

AuditoftheCapitalAcquisitionandRepaymentCycle

ReviewQuestions

22-1Fourexamplesofinterestbearingliabilityaccountscommonlyfound

onbalaneesheetsare:

NotespayableContractspayableMortgagespayableBondspayable

Theseliabilitieshavethefollowingcharacteristicsincommon:

ofthe

Theseliabilitiesdifferinwhattheyrepresentandthenaturerespectiveliabilities.

thanth

22-2Thecharacteristicsoftheliabilityaccountsinthecapitalacquisitionandrepaymentcyclethatresultinadifferentauditingapproachapproachfollowedintheauditofaccountspayableare:

1.

2.

3.

4.

Relativelyfewtransactionsaffecttheaccountbalanee,but

eachtransactionisoftenhighlymaterialinamount.

Theexclusionofasingletransactioncouldbematerialinitself.

Thereisalegalrelationshipbetweenthecliententityandtheholderofthestock,bond,orsimilarownershipdocument.

Thereisadirectrelationshipbetweeninterestanddividendaccountsanddebtandequity.

22-3Itiscommontoauditthebalaneeinnotespayableinconjunctionwiththeauditofinterestexpenseandinterestpayablebecauseitminimizestheverificationtimeandreducesthelikelihoodofoverlookingmisstatementsinthebalanee.Oncetheauditorissatisfiedwiththebalanceinnotespayableandtherelatedinterestratesandduedatesforeachnote,itiseasytotesttheaccuracyofaccruedinterest.Iftheinterestexpensefortheyearisalso

testedatthesametime,thelikelihoodofomittinganotefromnotespayableforwhichinteresthasbeenpaidisminimized.Whentherearealargnumberofnotesoralargenumberoftransactionsduringtheyea

itisusuallytootimeconsumingto

completelytieoutinterestexpenseasapartoftheauditofthenotepayableandrelatedaccruedinterest.Normally,however,thereareonlyfewnotesandfewtransactionsduringtheyear.

22-4Themostimportantcontrolstheauditorshouldbeconcernedabout

intheauditofnotespayableare:

1.Theproperauthorizationfortheissuanceofnewnotes（or

renewals）toinsurethatthecompanyisnotbeingcommittedto

debtarrangementsthatarenotauthorized.

2.Controlsovertherepaymentofprincipalandinteresttoinsurethattheproperamountsarepaid.

3.Properrecordsandprocedurestoinsurethatallamountsinalltransactionsareproperlyrecorded.

4.Periodicindependentverificationtoinsurethatallthecontrolsovernotespayableareworking.

22-5Themostimportantanalyticalproceduresusedtoverifynotes

payableisatestofinterestexpense.Bytheuseofthistest,auditorscanuncovermisstatementsininterestcalculationsorpossibleunrecorded

notespayable.

22-6Itismoreimportanttosearchforunrecordednotespayablethanunrecordednotesreceivablebecausetheomissionofanassetislesslikelytooccurthantheomissionofadebt.Severalauditprocedurestheauditorcanusetouncoverunrecordednotespayableare:

1.

2.

3.

4.

Examinethenotespaidafteryear-endtodeterminewhethertheywereliabilitiesatthebalancesheetdate.

Obtainastandardbankconfirmationthatincludesspecific

referencetotheexistenceofnotespayablefromallbankswithwhichtheclientdoesbusiness.

Reviewthebankreconciliationfornewnotescrediteddirectly

tothebankaccountbythebank.

Obtainconfirmationfromcreditorswhohaveheldnotesfrom

theclientinthepastandarenotcurrentlyincludedinthenotespayableschedule.

5.Analyzeinterestexpensetouncoverapaymenttoacreditorwhoisnotincludedonthenotespayableschedule.

6.Reviewtheminutesoftheboardofdirectorsforauthorizedbut

unrecordednotes.

22-7Theprimarypurposeofanalyzinginterestexpenseistouncoverapaymenttoacreditorwhoisnotincludedonthenotespayableschedule.

Theprimaryconsiderationstheauditorshouldkeepinmindwhendoingthe

analysisare:

1.Isthepayeefortheinterestpaymentlistedinthecashdisbursementsjournalalsoincludedinthenotespayablelist?

2.Hasaconfirmationfornotespayablebeenreceivedfromthe

payee?

22-8Thetestsofcontrolsandsubstantivetestsoftransactionsforliabilityaccountsinthecapitalacquisitionandrepaymentcycleconsistsoftestsofthecontrolandsubstantivetestsoverthepaymentofprincipalandinterestandtheissuaneeofnewnotesorotherliabilities,whereasthetestsofdetailsofbalancesconcernthebalaneeoftheliabilities,interestpayable,andinterestexpense.Auniqueaspectofthecapitalacquisitionan

repaymentcycleisthatauditorsnormallyverifythetransactionsan

balancesintheaccountatthesametime,asdescribedinthesolutiontoReviewQuestion22-3.

22-9FourtypesofrestrictionsIong-termcreditorsoftenputoncompaniesingrantingthemaloanare:

1.Financialratiorestrictions

2.Paymentofdividendsrestrictions

3.Operationsrestrictions

4.Issueofadditionaldebtrestrictions

Theauditorcanfindoutabouttheserestrictionsbyexaminingtheloanagreementandrelatedcorrespondenceassociatedwiththeloan,andby

confirmation.Theauditormustperformcalculationsandobserveactivitiestodeterminewhethertheclienthasobservedtherestrictions.

22-10Theprimaryobjectivesintheauditofowners'equityaccountsaretodeterminewhether:

1.Theinternalcontrolsovercapitalstockandrelateddividendsareadequate.

2.Owners'equitytransactionsarerecordedproperly,asdefinedbythefollowingsixtransaction-relatedauditobjectives:

Occurrenee

Completeness

Accuracy

PostingandsummarizationClassification

Timing

22-10（continued）

3.Owners'equitybalancesinthefinancialstatementssatisfythefollowingbalance-relatedauditobjectives:

Detailtie-in

Existenee

Completeness

Accuracy

Classification

Cutoff

4.Owners'equitybalancesareproperlypresentedanddisclosed

tosatisfythefollowingpresentationanddisclosure-related

auditobjectives:

OccurreneeandRightsandObligations

Completeness

AccuracyandValuation

ClassificationandUnderstandability

22-11Althoughthecorporatecharterandbylawsarelegaldocuments,theirlegalnatureisnotbeingjudgedbytheauditor.Theyarebeingusedonlytorefereneetransactionsbeingtestedbytheauditorandprovideinsightintosomeofthekeycontrolfeaturesofthecompany.Theauditorshouldconsultanattorneyiftheinformationtheauditorneedsfromthedocumentsisnotclearorifalegalinterpretationisneeded.

22-12Themajorinternalcontrolsoverowners'equityare:

1.Properauthorizationoftransactions

2.Properrecordkeeping

3.Adequatesegregationofdutiesbetweenmaintainingowners'

equityrecordsandhandlingcashandstockcertificates

4.Theuseofanindependentregistrarandstocktransferagent

22-13Theauditofowners'equityforacloselyheldcorporationdiffersfromthatforapubliclyheldcorporationinthattheamountoftimespentin

verifyingowners'equityinacloselyheldcorporationisusuallyminimalbecauseoftherelativelyfewtransactionsforcapitalstockaccountsthat

occurduringtheyear.Forpubliclyheldcorporations,theauditofowners'equityismorecomplexduetotheexisteneeofalargernumberof

shareholdersandfrequentchangesintheindividualsholdingstock.

Theauditsarenotsignificantlydifferentinregardtowhetherthe

transactionsintheequityaccountsareproperlyauthorizedandrecorded

andwhethertheamountsintheaccountsareproperlyclassified,described,andstatedinaccordaneewithgenerallyacceptedaccountingprinciples.

22-14Thedutiesofastockregistrararetomakesurethatstockisissuedby

acorporationinaccordaneewiththecapitalauthorizationoftheboardof

directors,tosignallnewlyissuedstockcertificates,andtomakesureoldcertificatesarereceivedandcancelledbeforeareplacementcertificateis

issuedwhenthereisachangeintheownershipofthestock.

Thedutiesofatransferagentaretomaintainthestockholderrecords,andinsomecases,disbursecashdividendstoshareholders.

Theuseoftheservicesofastockregistrarimprovestheeffectivenessoftheclient'sinternalcontrolsbypreventingtheimproperissuaneeofstockcertificates.Alongsimilarlines,theuseoftheservicesofanindependenttransferagentimprovesthecontroloverthestockrecordsbyputtingtheminthehandsofanindependentorganization.

22-15Thenumberofsharesoutstanding,thecorrectvaluationofcapital

stocktransactions,andparvaluecanallbeconfirmedwithatransferagent.

Thebalaneecanthenbeeasilyrecalculatedfromthisinformation.

22-16Sinceitisimportanttoverifythatproperlyauthorizeddividendshavebeenpaidtoownersofstockasofthedividendrecorddate,acomparisonofarandomsampleofcancelleddividendcheckstoadividendlistpreparedbymanagementwouldbeinadequate.Suchanauditstepisuselessuniessthedividendlisthasfirstbeenverifiedtoincludeallstockholdersofrecordatthedividendrecorddate.Abettertestistodeterminethetotalnumberofsharesoutstandingatthedividenddatefromthestockregistrarand

recomputethetotaldividendsthatshouldhavebeenpaidforcomparisonwiththetotalamountactuallypaid.Arandomsampleofcancelledchecksshouldthenbecomparedtotheindependentregistrar'srecordstoverifythatthepaymentswereactuallymadetovalidshareholders.

stock

22-17Ifatransferagentdisburses