Steps to Develop Audit Objectives
•4. Know general audit objectives for • classes of transactions and accounts.
•5. Know specific audit objectives for • classes of transactions and accounts.
➢ Actions when the auditor knows of an illegal act
Learning Objective 4
Classify transactions and account balances into financial statement cycles and identify benefits of a cycle approach to segmenting the audit.
Auditor’s Responsibilities for Discovering Illegal Acts
➢ Evidence accumulation and other actions • when there is reason to believe direct- or • indirect-effect illegal acts may exist
•The Sarbanes-Oxley Act provides for criminal •penalties for anyone who knowingly falsely •certifies the statements.
Learning Objective 3
Explain the auditor’s responsibility for discovering material misstatements.
Steps to Develop Audit Objectives
•1. Understand objectives and • responsibilities for the audit.
•2. Diபைடு நூலகம்ide financial statements into cycles.
•3. Know management assertions about • accounts.
Financial Statements Cycles
•Audits are performed by dividing the financial •statements into smaller segments or components.
审计学-一种整合的方法
2020年7月9日星期四
Learning Objective 1
Explain the objective of conducting an audit of financial statements and an audit of internal controls.
Objective of Conducting an Audit of Financial Statements
Learning Objective 2
Distinguish management’s responsibility for the financial statements and internal control from the auditor’s responsibility for verifying the financial statements and effectiveness of internal control.
Auditor’s Responsibilities for Discovering Illegal Acts
➢ Direct-effect illegal acts
➢ Indirect-effect illegal acts
➢ Evidence accumulation when there is no reason to believe indirect-effect illegal act exists
•It requires the CEO and the CFO of public •companies to certify the quarterly and annual •financial statements submitted to the SEC.
Management’s Responsibilities
Auditor’s Responsibilities
➢ Material versus immaterial misstatements ➢ Reasonable assurance ➢ Errors versus fraud ➢ Professional skepticism ➢ Fraud resulting from fraudulent financial reporting versus misappropriation of assets
Management’s Responsibilities
•Management is responsible for the financial •statements and for internal control.
•The Sarbanes-Oxley Act increases management’s •responsibility for the financial statements.
•The objective of the ordinary audit of financial •statements is the expression of an opinion of •the fairness with which they present fairly, in •all respects, financial position, result of •operations, and its cash flows in •conformity with GAAP.