審計學課件AuditingSeptember19,2011.ppt

Thought for the Day,Experience teaches only the teachable.,Aldous Huxley, author of Brave New World,Auditing - Syllabus Course Description: An introduction to auditing and the auditing profession. Topics include generally accepted auditing standards, generally accepted accounting procedures, the auditors opinion, the development and use of audit programs, professional responsibilities, and the acquisition and evaluation of audit evidence. Topics are relevant to preparation for the auditing section of the CPA examination. Auditing is one fourth of the Certified Public Accountants (CPA) examination, and, auditing is difficult when working in the field and even more difficult with no hands on experience to compare the classroom teachings. Required Text: Auditing and Assurance Services, Tenth or Eleventh Edition; Alvin A. Arens, Randal J. Elder, Marks S. Beasley; Pearson Education, Inc.,Auditing Syllabus Course Objectives: Understand the auditors professional responsibility in meeting the needs of financial statement users. Explore the concepts of audit evidence and materiality as they relate to audit risk. Facilitate the development of skills, competencies and points of view needed by the accounting professional. Improve technology skills by developing audit programs, flowcharts, schedules, worksheets, and financial statements in a microcomputer environment. Improve written communication skills through the use of a critical analysis. Performance Evaluation: Individual Homework 15% Group Presentation 15% Mid-Term Examination 25% Final Examination 45%,Auditing - Syllabus Individual Homework: Each student should select a case and present a detail and thorough answers to the questions of the case. I will prepare the case and have them available by the 6th or 7th week. Team work: Students should form a group of 3-4 students. A case will be assigned to your group. The groups are supposed to present their analysis and hand in their written reports. The presentation should include several parts: key factors, question answering, and other aspects your group would like to dig in. The final four weeks will be your presentation week. And written report is due at the last class of the semester.,Introduction,My English Name is Harold Burris,My Chinese Name is Jiang Hai De,Please Call Me,Professor Jiang or Professor Burris,I live in Cedar Rapids, Iowa, USA,Click on map below for state profiles.,Iowa,Iowa,.,Los Angeles,San Francisco,New York City,2,900 km,1,645 km,Texas,4,490 km,Winter in Iowa,Summer In Iowa,I have had a cough for many years,You are NOT contagious.,All the tests show that your cough cannot make anyone else sick.,This is me and my wife,I think I love her very much,We have 6 children,I also have,grandchildren.,24,California State University at Los Angeles,More About Professor Jiang,I am a Christian and a member of The Church of Jesus Christ of Latter-day Saints,More About Professor Jiang,I am a Christian, a member of The Church of Jesus Christ of Latter-day Saints,More About Professor Jiang,I am a Christian, a member of The Church of Jesus Christ of Latter-day Saints,More About Professor Jiang,I am a Christian, a member of The Church of Jesus Christ of Latter-day Saints,Class Expectations,Class Expectations:,Be in class and Be on Time,Speak so everybody can hear you,I Will Not Cheat,I will not look at someone elses paper during a test.,I will do my own work on individual assignments.,I will do my own homework.,Penalty for Plagiarism,Your will be graded on your portion the work: If you did 75% of the work the best grade that you can receive is a 75/100. Deductions will be made on your percentage of the work. If you give proper credit for someone elses work there will be no penalty.,Summary of What is Cheating,Cheating is: Peeking at someone elses paper Collaborating with students on work assigned to be completed individually Copying homework Paying someone else to write a paper Downloading a paper from an online Web site Developing a cheat sheet Getting access to the test before the exam date (either by stealing the test or referencing tests from a previous semester),Review,GAAS,General qualifications and conduct,Field work performance of the audit,Reporting results,Adequate training and proficiency Independence in mental attitude Due professional care,Proper planning and supervision Sufficient understanding of internal controls Sufficient competent evidence,Whether statements were prepared in accordance with GAAP Circumstances when GAAP not consistently followed Adequacy of informative disclosures Expression of opinion on financial statements,What are the requirements for a company to receive an Unqualified Report?,All statements are included in the audit. The three general standards were followed. Sufficient evidence was gathered to conclude that the standards of field work were met Financial statements were presented in accordance with GAAP. No exceptions were found to require an explanatory statement.,Who brought in an Unqualified Report?,Who brought in an Unqualified Report with Explanatory Paragraph or Modified Wording?,Who brought in a Qualified Report?,Who brought in an Adverse or Disclaimer Report?,Homework Assignment and Discussion,What is contained in the Auditors Reports that you brought with you?,Now lets move on to new material,Any questions about last class?,Unqualified Report with Explanatory Paragraph,Inconsistent application of GAAP. Doubt about the ability of the client to remain in business. Auditor agrees with a deviation from GAAP. To emphasize a matter. There are reports from other auditors.,What affects Comparability?,1. Change in an estimate. 2. Error correction not involving principles. 3. Variations in format and presentations in financial information. 4. Changes because of substantially different transactions of events.,Why would you issue any type of report besides an Unqualified Report? The client limits the scope of the audit. Departures from GAAP. You are not independent.,A limitation in the scope of the audit or departures from GAAP would result in a Qualified Report. If the financial reports are so misstated or misleading as to present a distorted picture of the company the auditor should issue an Adverse Report . If the auditor isnt satisfied that the financial statements are not fairly presently he should issue a Disclaimer of Opinion.,What affects Consistency and requires an Explanatory Paragraph,Changes in accounting principles Changes in reporting entities Correction of errors involving principles When is the paragraph necessary? Only if the changes are material!,What is considered “material” in the financial statements? If the misstatement would mislead a reasonable user of the report to make a decision that would not fairly represent his objectives it would be considered a material misrepresentation.,Relationship of Materiality to Type of Opinion,Materiality Decisions,Failure to follow GAAP,Audit report,Unqualified,Qualified opinion only,Adverse,Materiality Decisions,Dollar amount compared with a base,Measurability,Nature of the item,What steps in the thought process should an auditor use to determine what type of report should be issued?,Does a condition exist that would require an opinion other than an Unqualified Report? How material is the condition that may cause a different kind of report? Decide what is the correct type of report for this condition. Write the report.,Scope Restricted by Client or Other Conditions,Statements Not Prepared in Accordance With GAAP