F6-chapter 8

BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.ThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.Chapter8IntroductiontoauditevidenceBPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.Overview1BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.Overview2BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.—Whenundertakinganaudit,theauditorneedstofindevidencethroughtestingofprocesses,transactions,accountbalancesanddatatosupporthisopinion.—Auditevidenceisalloftheinformationusedbytheauditorinarrivingattheconclusionsonwhichtheauditor’sopinionisbased.IntroductionSlide31QUALITYOFEVIDENCE1SufficientAppropriateISA500AuditEvidenceRelevantReliableQUALITYOFEVIDENCE2(Reliability)•Auditevidencefromexternalsources•Evidenceobtaineddirectlybyauditors•Whentherelatedcontrolsystemoperateseffectively•Intheformofdocuments(paperorelectronic)orwrittenrepresentations•OriginaldocumentsSlide32Management’sexpertAmanagement’sexpertisanindividualororganizationpossessingexpertiseinafieldotherthanauditingoraccounting,whoseworkisusedbytheentitytoassistinthepreparationofthefinancialstatements.Ifinformationtobeusedasauditevidencehasbeenpreparedbyamanagement’sexpert,theauditormustevaluatethecompetence,capabilitiesandobjectivityoftheexpert,obtainanunderstandingoftheworkdone,andevaluatetheappropriatenessoftheworkdoneasauditevidence.Slide33BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.Classesoftransactions—Occurrence—Completeness—Cutoff—Classification—AccuracyAssertions1BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.Accountbalances—Completeness—Obligationsandrights（ownership)—Valuationandallocation—ExistenceAssertions2BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.Presentationanddisclosures—Occurrenceandobligationsandrights—Completeness—Classificationandunderstandability—AccuracyandvaluationAssertions3Slide37AssertionsSummary-ACCACOVERAccuracyCompletenessCutoffAllocation(e.g.cost)ClassificationOccurrenceValuationExistence(FA,Inventory)Rights&obligationsSlide38Explanation1Rightsandobligation(ownership):theentityholdsorcontrolstherightstoassets,andliabilitiesaretheobligationsoftheentity.(FA,inventory)Classification:transactionsandeventshavebeenrecordedintheproperaccounts.(e.g.capital/expense)Slide39Explanation2Occurrence:transactionsandeventsthathavebeenrecordedhaveoccurred.Cut-off:transactionsandeventshavebeenrecordedinthecorrectaccountingperiod.Valuation:assets/liabilitiesareincludedinthefinancialstatementsatappropriateamounts.(AR,FA,Inventory)Slide40Explanation3Existence:assetsandliabilitiesexist.Completeness:alltransactions/assets/liabilitieshavebeenrecorded.两个凡是提醒1：Auditproceduresaredesignedtoobtainevidenceaboutthefinancialstatementassertions.Assertion代表某个科目可能产生错报的方面。一个科目会有多个相关的assertion.Slide41提醒2：Sometimestheexaminerwouldask:1)whataretheassertions2)Listsubstantiveprocedures.However,ifaquestionasksforauditproceduresrelatingtoaparticularassertion,makesureyouransweraddressesonlytheassertionrequiredbythequestion.Therefore,ifaskedaboutsubstantiveprocedures,youshouldfirstlythinkaboutassertionsinordertoprepareyouranswers.Slide42TypesofproceduresTheauditorobtainsauditevidencebyundertakingauditprocedurestodothefollowing:•Riskassessmentprocedures•Testsofcontrols•SubstantiveproceduresSlide43TwotypesofauditproceduresthatareexaminedBPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.Testsofcontrols—Procedurestotesttheoperatingeffectivenessofcontrolsinpreventing,ordetectingandcorrecting,materialmisstatementsattheassertionlevel.Slide44BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.Substantiveprocedures(实质性程序）—Procedurestodetectmaterialmisstatementsattheassertionlevel.Theyaregenerallyoftwotypes:1)SubstantiveanalyticalproceduresYoucanownsomemarksfromlistinganalyticalprocedures.However,youshouldclearlytellwhatinformation(financialratio,account)iscalculatedandcomparedwithwhat(prioryear,expectation…)?2)Testsofdetailofclassesoftransactions,accountbalancesanddisclosuresRelatedwithspecificaccountsSlide45BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder.TestofcontrolVSSubstantiveprocedures—Testsofcontrolinvolveidentifyingandrepeatedlytestinganentity’sinternalcontrolsinordertogatherauditevidence.—Substantiveproceduresareusedbytheauditortodetectmaterialmisstatements.Slide46Focusoninternalcontrolpoints,maynotdirectlyrelatetoanyspecificaccounts.通常与InternalControl题目结合起来出题。Mustdealwithspecificfinancialstatementaccountsandassertions。通常题目列明”pleaselistsubstantivetestprocedures”.BPPLEARNINGMEDIAThisisalicencedcopyofBPPMaterial,intendedsolelyfortheuseoftheagreedlicenceholder