阿伦斯审计学一种整合的方法课后习题答案ch02.docx
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阿伦斯审计学一种整合的方法课后习题答案ch02
Chapter2
TheCPAProfession
ReviewQuestions
2-1ThefourmajorservicesthatCPAsprovideare:
1.AssuranceservicesAssuranceservicesareindependentprofessionalservicesthatimprovethequalityofinformationfordecisionmakers.Assuranceservicesincludeattestationservices,whichareanyservicesinwhichtheCPAfirmissuesareportthatexpressesaconclusionaboutthereliabilityofanassertionthatistheresponsibilityofanotherparty.Thefourcategoriesofattestationservicesareauditsofhistoricalfinancialstatements,attestationontheeffectivenessofinternalcontroloverfinancialreporting,reviewsofhistoricalfinancialstatements,andotherattestationservices.
2.AccountingandbookkeepingservicesAccountingservicesinvolvepreparingtheclient'sfinancialstatementsfromtheclient'srecords.Bookkeepingservicesincludethepreparationoftheclient'sjournalsandledgersaswellasfinancialstatements.
3.TaxservicesTaxservicesincludepreparationofcorporate,individual,andestatereturnsaswellastaxplanningassistance.
4.ManagementconsultingservicesTheseservicesrangefromsuggestionstoimprovetheclient'saccountingsystemtocomputerinstallations.
2-2ThemajorcharacteristicsofCPAfirmsthatpermitthemtofulfilltheirsocialfunctioncompetentlyandindependentlyare:
1.OrganizationalformACPAfirmexistsasaseparateentitytoavoidanemployer-employeerelationshipwithitsclients.TheCPAfirmemploysaprofessionalstaffofsufficientsizetopreventoneclientfromconstitutingasignificantportionoftotalincomeandtherebyendangeringthefirm'sindependence.
2.ConductACPAfirmemploysaprofessionalstaffofsufficientsizetoprovideabroadrangeofexpertise,continuingeducation,andpromotionofaprofessionalindependentattitudeandcompetence.
3.PeerreviewThispracticeevaluatestheperformanceofCPAfirmsinanattempttokeepcompetencehigh.
2-3ThePublicCompanyAccountingOversightBoardprovidesoversightforauditorsofpubliccompanies,includingestablishingauditingandqualitycontrolstandardsforpubliccompanyaudits,andperforminginspectionsofthequalitycontrolsatauditfirmsperformingthoseaudits.
2-4ThepurposeoftheSecuritiesandExchangeCommissionistoassistinprovidinginvestorswithreliableinformationuponwhichtomakeinvestmentdecisions.SincemostreasonablylargeCPAfirmshaveclientsthatmustwiththeSECeachyear(allcompaniesfilingregistrationstatementsunderthesecuritiesactsofl933andl934mustfinancialstatementsandotherreportswiththeSECatleastonceeachyear),theprofessionishighlyinvolvedwiththeSECrequirements.
TheSEChasconsiderableinfluenceinsettinggenerallyacceptedaccountingprinciplesanddisclosurerequirementsforfinancialstatementsbecauseofitsauthorityforspecifyingreportingrequirementsconsiderednecessaryforfairdisclosuretoinvestors.Inaddition,theSEChaspowertoestablishrulesforanyCPAassociatedwithauditedfinancialstatementssubmittedtotheCommission.
2-5TheAICPAistheorganizationthatsetsprofessionalrequirementsforCPAs.TheAICPAalsoconductsresearchandpublishesmaterialsonmanydifferentsubjectsrelatedtoaccounting,auditing,managementadvisoryservices,andtaxes.TheorganizationalsopreparesandgradestheCPAexaminations,providescontinuingeducationtoitsmembers,anddevelopsspecialtydesignationstohelpmarketandassurethequalityofservicesinspecializedpracticeareas.
2-6StatementonStandardsforAttestationEngagementswasfirstissuedin1986anditspurposesweretoprovideaframeworkforattestengagementsandtodevelopstandardsforthoseengagements.In2001,theAuditingStandardsBoardissuedSSAE10inresponsetotheneedformoredetailedstandardsforspecifictypesofattestationservices.SSAE10supercedesthepreviouslyissuedstandardsanditsmainpurposeistoimprovetheusefulnessoftheattestationstandardsandprovidegreaterflexibilitytopractitionersinprovidingassuranceservices.
2-7ThePCAOBnowhasresponsibilityforestablishingauditingstandardsforpubliccompanies,whiletheAuditingStandardsBoard(ASB)oftheAICPAestablishesauditingstandardsforprivatecompanies.TheASBpreviouslyhadresponsibilityforestablishingauditingstandardsforbothpublicandprivatecompanies.ExistingauditingstandardswereadoptedbythePCAOBasinterimauditingstandardsforpubliccompanyaudits.
2-8Generallyacceptedauditingstandardsaretengeneralguidelinestoaidauditorsinfulfillingtheirprofessionalresponsibilities.Theseguidelinesincludethreegeneralstandardsconcernedwithcompetence,independence,anddueprofessionalcare;threestandardsoffieldworkincludingplanningandsupervision,studyandevaluationofinternalcontrol,andthegatheringofcompetentevidentialmatter;andfourstandardsofreportingwhichrequireastatementastopresentationinaccordancewithgenerallyacceptedaccountingprinciples,inconsistencyobservedinthecurrentperiodinrelationtotheprecedingperiod,adequatedisclosure,andtheexpressionofanopinionastothefairnessofthepresentationofthefinancialstatements.
2-8(continued)
Generallyacceptedaccountingprinciplesarespecificrulesforaccountingfortransactionsoccurringinabusinessenterprise.ExamplesmaybeanyoftheopinionsoftheFASB.
2-9Auditorscanobtainadequatetechnicaltrainingandproficiencythroughformaleducationinauditingandaccounting,adequatepracticalexperience,andcontinuingprofessionaleducation.AuditorscandemonstratetheirproficiencybybecominglicensedtopracticeasCPAs,whichrequiressuccessfulcompletionoftheUniformCPAExamination.Thespecificrequirementsforlicensurevaryfromstatetostate.
2-10Forthemostpart,generallyacceptedauditingstandardsaregeneralratherthanspecific.Manypractitionersalongwithcriticsoftheprofessionbelievethestandardsshouldprovidemoreclearlydefinedguidelinesasanaidindeterminingtheextentofevidencetobeaccumulated.ThiswouldeliminatesomeofthedifficultauditdecisionsandprovideasourceofdefenseiftheCPAischargedwithconductinganinadequateaudit.Ontheotherhand,highlyspecificrequirementscouldturnauditingintomechanicalevidencegathering,voidofprofessionaljudgment.Fromthepointofviewofboththeprofessionandtheusersofauditingservices,thereisprobablyagreaterharmfromdefiningauthoritativeguidelinestoospecificallythantoobroadly.
2-11InternationalStandardsonAuditing(ISAs)areissuedbytheInternationalAuditingPracticesCommittee(IAPC)oftheInternationalFederationofAccountants(IFAC).ISAsaredesignedtoimprovetheuniformityofauditingpracticesandrelatedservicesthroughouttheworldbyissuingpronouncementsonavarietyofauditandattestfunctionsandpromotingtheiracceptanceworldwide.ACPAwhoconductsanauditinaccordancewithGAASmaynotcomplywithISAsbecausetheremaybeadditionalISArequirementsthatextendbeyondGAASrequirements.
2-12QualitycontrolsaretheproceduresusedbyaCPAfirmthathelpitmeetitsprofessionalresponsibilitiestoclients.QualitycontrolsarethereforeestablishedfortheentireCPAfirmasopposedtoindividualengagements.
2-13Theelementofqualitycontrolispersonnelmanagement.ThepurposeoftherequirementistohelpassureCPAfirmsthatallnewpersonnelshouldbequalifiedtoperformtheirworkcompetently.ACPAfirmmusthavecompetentemployeesconductingtheauditsifqualityauditsaretooccur.
2-14Apeerreviewisareview,byCPAs,ofaCPAfirm'scompliancewithitsqualitycontrolsystem.Amandatorypeerreviewmeansthatsuchareviewisrequiredperiodically.AICPAmemberfirmsarerequiredtohaveapeerrevieweverythreeyears.RegisteredfirmswiththePCAOBaresubjecttoqualityinspections.ThesearedifferentthanpeerreviewsbecausetheyareperformedbyindependentinspectionteamsratherthananotherCPAfirm.
2-14(continued)
Peerreviewscanbebeneficialtotheprofessionandtoindividualfirms.Byhelpingfirmsmeetqualitycontrolstandards,theprofessiongainsifreviewsresultinpractitionersdoinghigherqualityaudits.Afirmhavingapeerreviewcanalsogainifitimprovesthefirm'spracticesandtherebyenhancesitsreputationandeffectiveness,andreducesthelikelihoodoflawsuits.Ofcoursepeerreviewsarecostly.Thereisalwaysatradeoffbetweencostandbenefits.ACPAfirmalsogivesupsomeindependenceofactivitieswhenitisreviewedbyanotherCPAfirm.
2-15ThetwodivisionsofpracticethataCPAfirmmaybelongtoaretheSECPracticeSection(renamedtheCenterforPublicCompanyAuditFirms)andthePrivateCompaniesPracticeSection.Afirmmaybelongtoonesection,bothsections,orneither.Manyoftheself-regulatoryactivitiesoftheSECPShavebeentakenoverbythePCAOB.
ProponentsofthisdivisionbelievethatthiswillimprovethequalityofpracticebyCPAfirmsandthatitwillimproveself-regulation.CriticsstatethatitestablishestwoclassesofCPAsandimpliesalowerperformancequalityforfirmsthatarenotmembersoftheSECPracticeSection.
MultipleChoiceQuestionsFromCPAExaminations
2-16a.
(1)b.
(2)c.(3)d.(3)
2-17a.
(2)b.
(2)c.(3)
DiscussionQuestionsAndProblems
2-18
a.ThecommentssummarizethebeliefsofmanypractitionersabouttheSarbanes–OxleyActandthePCAOB.TheargumentsagainsttheActcanbesummarizedasfourarguments:
1.CostsofcomplyingwiththeActareexcessivelyhigh,especiallytherequirementtoreportoninternalcontroloverfinancialreporting,andwilldiscouragecompaniesfro