审计英语.docx

1、审计英语审 计 英 语教学大纲 Chapter 1 An Introduction to Auditing Chapter 2 Auditing Standards Chapter 3 Professional Ethics and Legal Liability Chapter 4 Audit Objectives and Audit Process Chapter 5 Audit Report Chapter 6 Audit Evidence and Working Papers Chapter 7 Audit Planning and Materiality Chapter 8 Unde

2、rstanding the Entity and its Environment and Assessing the Risks of Material Misstatement Chapter 9 Auditors Procedures in Response to Assessed Risks Chapter 10 Audit Sampling Chapter 11 Audit of the Sales and Collection Cycle Chapter 12 Audit of the Acquisition and Payment Cycle Chapter 13 Audit of

3、 the Manufacturing Cycle Chapter 14 Audit of the Capital Acquisition and Payment Cycle Chapter 15 Audit of the Cash Balances Chapter 16 Completing the Audit Chapter 1 An Introduction to Auditing 1.1 Definition of auditing1.2 Auditing, attestation and assurance1.3 The three parties involved in auditi

4、ng1.4 The classification of audit1.5 Types of auditors 1.6 Distinction between auditing and accounting Learning Objectives After studying this chapter, you should be able to 1. Understand the definition of auditing.2. Understand the relationship among auditing, attestation and assurance.3. Comprehen

5、d the differences between auditing and review.4. Learn the three parties involved in auditing.5. Learn the classification of audit.6. Learn the types of auditors.7. Comprehend the distinction between auditing and accounting. Dependable information is essential to the very existence of our society. T

6、he investor making a decision to buy or sell securities, the banker deciding whether to approve a loan, the government in obtaining revenue based on income tax returns, all are relying upon information provided by others. In many of these situations, the goals of the providers of information run dir

7、ectly counter to those of the users of the information. Implicit in this line of reasoning is recognition of the social need for independent public accountants-individuals of professional competence and integrity who can tell us whether the information that we use constitutes a fair picture of what

8、is really going on. 1.1 Definition of auditing Glossaryauditing 审计assertion 认定GAAP(general accepted accounting principles) 公认会计准则review审阅reasonable assurance 合理保证limited assurance 有限保证misstatement 错报positive assurance 积极鉴证negative assurance 消极鉴证 There are different definitions about auditing from th

9、e history development of auditing. Some people defined the auditing is the appraisal process, some defined that the auditing is the evaluation process, and others defined that the auditing is the economic control process. The most accepted definition for auditing should be stated as follows: “Auditi

10、ng is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.” From this definition, sev

11、eral important words are needed to pay attention to. First, auditing is a systematic process. It is not the appraisal process, evaluation process, or economic control process. Second, when the auditor collects the evidence, they need to keep objectivity. Third, the collected evidence should be compa

12、red with the assertions. Assertions are the implication or representation by management. Forth, the auditors report is about the degree of correspondence between assertions and established criteria. The results of auditing will be available to all the interested users. Fifth, the established criteri

13、a usually refer to GAAP(general accepted accounting principles). There is another definition-review, which is similar to audit, but there are many differences between them. The audit offers reasonable assurance about verified information, whereas the review offers limited assurance about verified in

14、formation. What does reasonable assurance mean It means that the audit cannot find all the misstatements because of his or her knowledge and scope limitation. However, the auditors try their best to collect sufficient evidence to prove their opinions. The limited assurance means that the auditors ju

15、st use limited procedures to collect evidence, which just includes inquiry and analytical procedures. They dont try their best to collect evidence so that they only can offer the limited assurance. Thats why we call audit is a positive assurance, and the review is a negative assurance. 1.2 Auditing,

16、 attestation and assurance Glossaryin all material respects 在所有重大方面credibility 可信性，可信程度attestation 鉴证assurance 保证或可信性保证agreed-upon procedures 执行商定程序high levels of assurance 高保证水平moderate levels of assurance 中等保证水平reliability 可靠性，可靠程度relevance 相关，相关性assurance standards 鉴证准则 The phrases used to expres

17、s the CPAs opinion are “give a true and fair view” or “present fairly, in all material respects,” which are equivalent terms. Although the CPAs opinion enhances the credibility of the financial statements, the user cannot assume that the opinion is an assurance as to the future viability of the enti

18、ty nor the efficiency or effectiveness with which management has conducted the affairs of the entity. A financial statement audit is, by far, the most common type of assurance engagements. Many times, the term attestation is used to describe the same activities as auditing. However, CPAs attest to t

19、he reliability of a wide range of other types of information, including financial forecasts, internal control, compliance with laws and regulations. There is a broad range of assurance engagements, which includes engagements of the following:1. Engagements to report on a broad range of subject matte

20、rs covering financial and non-financial information.2. Engagements intended to provide high or moderate levels of assurance.3. Attest and direct reporting engagements.4. Engagements to report internally and externally. 5. Engagements in the private and public sector. Not all engagements performed by

21、 CPAs are assurance engagements. Other engagements frequently performed by CPAs that are not assurance engagements include the following. 1. Agreed-upon procedures. 2. Compilation of financial or other information. 3. Preparation of tax returns where no conclusion is expressed, and tax consulting. 4

22、. Management consulting. 5. Other advisory services. In China, the assurance standards are issued in 2006 and implemented on January 1, 2007. The “assurance” in China means assurance service and attestation service. Assurance engagement 鉴证业务Audit 审计Review Engagement审阅业务Review of internal control内部控制

23、审核The Examination of Prospective Financial Information预测性财务信息审核Related services 相关服务Management Consulting管理咨询Agreed-upon Procedures商定程序Compilation代编Taxation services税务服务Accounting services会计服务 1.3 The three parties involved in auditing Glossaryauditor 审计机构、审计人员CPA firms 会计师事务所accountability 受托经济责任fi

24、nancial statement 财务报表independence 独立性 We know that there are three parties involved in auditing, and they are auditors, owners and managers. The auditors are the first party in this relationship and they usually refer to CPA firms. The owners are the third party in this relationship. The owners ent

25、rust the auditors to do the auditing. The relationship between the owners and managers is called accountability, which is the responsibility or obligation of managers to operate and manage the economic resources entrusted by the owners. The managers must report the situation of application of econom

26、ic resources to the owners and the owners will assess the performance of managers through the information. From the point of managers view, there is a conflict between the position of entrustee and the compensation related to performance. So they will offer different information to satisfy the owner

27、s. The owners have no direct information from the company, therefore, they invite the auditor to assess the information offered by the management. This is why the auditing appeared. The owners entrust the auditors to audit the managers, and the auditors report the results to the owners. When the aud

28、itors audit the managers, the managers should feedback the information the auditors want. However, this three-party relationship is changing in the real life. The managers instead of the owners entrust the auditors to do auditing. Because government requires many companies to offer the audited finan

29、cial statement, the managers have to ask the auditors to audit the financial statements. So the managers control the auditors because the managers become the entrustor and they decide the employment and salaries of auditors. This kind of relationship impairs the independence of auditors. 1.4 The cla

30、ssification of audit GlossaryCPA firms auditing 注册会计师审计government auditing 国家审计internal control auditing or internal auditing 内部审计proprietorship独资general partnership 普通合伙制Limited Liability Company (LLC) 有限责任制Limited Liability Partnership (LLP) 有限责任合伙制CPA(Certified Public Accountant) 注册会计师Big Four 四大

31、（国际性会计师事务所）Glossaryfinancial statement audit 财务报表审计compliance audit 合规性审计operational audit 经营审计fixed time audit 定期审计flexible time audit 不定期审计auditing at the clients company 就地审计auditing at CPA firms 报送审计Micro-audit 微观审计Macro-audit 宏观审计Glossarydomestic audit 国内审计overseas audit 海外审计international audit

32、 国际审计Accounting number-based audit approach 账项基础审计System-based audit approach 制度基础审计Risk-oriented audit approach 风险导向审计There are many ways to classify the audit. First, according to the different auditors, there are three main auditing, and they are CPA firms auditing, government auditing, and internal control auditing. The CPA firms usually have four types,