AU书本课后答案CH06.docx
《AU书本课后答案CH06.docx》由会员分享,可在线阅读,更多相关《AU书本课后答案CH06.docx(18页珍藏版)》请在冰豆网上搜索。
![AU书本课后答案CH06.docx](https://file1.bdocx.com/fileroot1/2022-10/27/89274458-4f0d-4a1f-a1b4-a92acfb95244/89274458-4f0d-4a1f-a1b4-a92acfb952441.gif)
AU书本课后答案CH06
Chapter6
AuditResponsibilitiesandObjectives
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