AU书本课后答案CH06Word文档下载推荐.docx

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ReviewQuestions

6-1Theobjectiveoftheauditoffinancialstatementsbytheindependentauditoristheexpressionofanopiniononthefairnesswithwhichthefinancialstatementspresentfinancialposition,resultsofoperations,andcashflowsinconformitywithapplicableaccountingstandards.

Theauditormeetsthatobjectivebyaccumulatingsufficientappropriateevidencetodeterminewhethermanagement’sassertionsregardingthefinancialstatementsarefairlystated.

6-2Itismanagement'

sresponsibilitytoadoptsoundaccountingpolicies,maintainadequateinternalcontrolandmakefairrepresentationsinthefinancialstatements.Theauditor'

sresponsibilityistoconductanauditofthefinancialstatementsinaccordancewithauditingstandardsandreportthefindingsoftheauditintheauditor'

sreport.

6-3Anerrorisanunintentionalmisstatementofthefinancialstatements.Fraudrepresentsanintentionalmisstatement.Theauditorisresponsibleforobtainingreasonableassurancethatmaterialmisstatementsinthefinancialstatementsaredetected,whetherthosemisstatementsareduetoerrorsorfraud.

Anauditmustbedesignedtoprovidereasonableassuranceofdetectingmaterialmisstatementsinthefinancialstatements.Further,theauditmustbeplannedandperformedwithanattitudeofprofessionalskepticisminallaspectsoftheengagement.Becausethereisanattemptatconcealmentoffraud,materialmisstatementsduetofraudareusuallymoredifficulttouncoverthanerrors.Theauditor’sbestdefensewhenmaterialmisstatements（eithererrorsorfraud）arenotuncoveredintheauditisthattheauditwasconductedinaccordancewithauditingstandards.

6-4Misappropriationofassetsrepresentsthetheftofassetsbyemployees.Fraudulentfinancialreportingistheintentionalmisstatementoffinancialinformationbymanagementoratheftofassetsbymanagement,whichiscoveredupbymisstatingfinancialstatements.

Misappropriationofassetsordinarilyoccurseitherbecauseofinadequateinternalcontrolsoraviolationofexistingcontrols.Thebestwaytopreventtheftofassetsisthroughadequateinternalcontrolsthatfunctioneffectively.Manytimestheftofassetsisrelativelysmallindollaramountsandwillhavenoeffectonthefairpresentationoffinancialstatements,althoughtherearesomecasesofmaterialtheftofassets.Fraudulentfinancialreportingisinherentlydifficulttouncoverbecauseitispossibleforoneormoremembersofmanagementtooverrideinternalcontrols.Inmanycasestheamountsareextremelylargeandmayaffectthefairpresentationoffinancialstatements.

6-5True,theauditormustrelyonmanagementforcertaininformationintheconductoftheaudit.However,theauditormustnotacceptmanagement'

srepresentationsblindly.Theauditormust,wheneverpossible,obtainappropriateevidencetosupporttherepresentationsofmanagement.Asanexample,ifmanagementrepresentsthatcertaininventoryisnotobsolete,theauditorshouldbeabletoexaminepurchaseordersfromcustomersthatprovepartoftheinventoryisbeingsoldatapricethatishigherthanthecompany'

scostplussellingexpenses.Ifmanagementrepresentsanaccountreceivableasbeingfullycollectible,theauditorshouldbeabletoexaminesubsequentpaymentsbythecustomerorcorrespondencefromthecustomerthatindicatesawillingnessandabilitytopay.

6-6

CHARACTERISTIC

AUDITSTEPS

1.Management’scharacteristicsandinfluenceoverthecontrolenvironment.

Investigatethepasthistoryofthefirmanditsmanagement.

Discussthepossibilityoffraudulentfinancialreportingwithpreviousauditorandcompanylegalcounselafterobtainingpermissiontodosofrommanagement.

2.Industryconditions.

Researchcurrentstatusofindustryandcompareindustryfinancialratiostothecompany’sratios.Investigateanyunusualdifferences.

ReadAICPA’sIndustryAuditRiskAlertforthecompany’sindustry,ifavailable.Considertheimpactofspecificrisksthatareidentifiedontheconductoftheaudit.

3.Operatingcharacteristicsandfinancialstability.

Performanalyticalprocedurestoevaluatethepossibilityofbusinessfailure.

Investigatewhethermaterialtransactionsoccurclosetoyear-end.

6-7Thecycleapproachisamethodofdividingtheauditsuchthatcloselyrelatedtypesoftransactionsandaccountbalancesareincludedinthesamecycle.Forexample,sales,salesreturns,andcashreceiptstransactionsandtheaccountsreceivablebalanceareallapartofthesalesandcollectioncycle.Theadvantagesofdividingtheauditintodifferentcyclesaretodividetheauditintomoremanageableparts,toassigntaskstodifferentmembersoftheauditteam,andtokeepcloselyrelatedpartsoftheaudittogether.

6-8

GENERALLEDGERACCOUNT

CY