Chapter13OverallAuditPlanandAuditProgram(审计
Inquiries of the client Reperformance Analytic performance
Type of Test
Procedures for internal control
Tests of controls
Substantive tests of transactions
Analytical procedures
Tests of details of balances
Audit Assurance at Different Levels of
Internal Control Effectiveness
Acceptable assurance
No assurance
AUDIT ASSURANCE
C3
C2
C1 Audit assurance from substantive tests
Audit assurance from control risk assessment and tests of control
A
C
B
INTERNAL CONTROL EFFECTIVENESS
Impact of Information Technology on Audit Testing
Computer assisted audit techniques may be used to test automated controls or data.
Reports produced by IT may be used to test the effectiveness of IT general controls.
Types of Audit Tests and the Audit Risk Model
Audit risk model
AAR IR × CR
= PDR
Types of audit tests
Procedures
to obtain an understanding
+
of internal control
Tests of controls
Substantive tests of transactions
Analytical procedures
Tests of details of balances
Relationship Between Types of Tests and Evidence Type of Evidence
Types of Tests
Procedures to obtain an understanding of internal control Tests of control Substantive tests of transactions Analytical procedures Tests of details of balances
Weak control
Strong control
Reliance on controls: C3 – None, C2 – Some, C1 – Maximum
Learning Objective 3
Understand how information technology affects audit testing.
Sales
Accounts Receivable
Cash in Bank
Sales transactions
Cash receipts transactions
Audited by TOC, STOT, and AP
Audited by TOC, STOT, and AP
Ending balance
Ending balance
Audited by AP and TDB
TOC + STOT + AP + TDB = Sufficient competent evidence per GAAS
Learning Objective 2
Select the appropriate types of audit tests.
Relationship Between Types of Tests and Evidence Type of Evidence
Physical examination Confirmation Documentation Observation
Type of Test
Procedures for internal control
Tests of controls (TOC)
Substantive
+
tests of transactions
(STOC)
Types of Audit Tests and the Audit Risk Model
Audit risk model
AAR IR × CR
= PDR
Types of audit tests
Chapter13OverallAudi tPlanandAuditProgra
m(审计
2020年7月11日星期六
Learning Objective 1
Use the five types of audit tests to determine whether financial statements are fairly stated.
Impact of Information Technology on Audit Testing
SAS 80 (AU 326) and SAS 94 (AU 319) provide guidance for auditors of entities that transmit, process, maintain, or access significant information electronically.
Analytical procedures
(AP)
Tests of Sufances
=
competent evidence
(TDP) per GASS
Role of all Audit Tests in the Sales
and Collection Cycle
全面检查生产线的建议英语作文
全面检查生产线的建议英语作文英文回答：Comprehensive Production Line Audit.Objective: To thoroughly assess the performance and efficiency of a production line in order to identify areas for improvement and optimize overall operations.Scope: The audit will encompass all aspects of the production line, including:Equipment and machinery.Materials and inventory.Processes and workflows.Quality control measures.Workforce and training.Safety and compliance.Methodology:Data collection: Gather relevant data from various sources, such as production logs, quality reports, employee records, and equipment manuals.Site observations: Conduct on-site observations to witness the production process firsthand and identify potential bottlenecks or inefficiencies.Interviews and discussions: Engage with personnel at all levels, including operators, supervisors, managers, and engineers, to gather insights and perspectives.Analysis and evaluation: Analyze the collected data and observations to identify strengths, weaknesses, and areas for improvement.Reporting:Summary report: Provide a comprehensive overview ofthe audit findings, including key observations, recommendations, and potential cost savings.Detailed report: Present specific details of the audit, including data analysis, process mapping, and improvement suggestions.Action plan: Outline a prioritized list of recommendations and timelines for implementation.Benefits:Improved efficiency: Identify and eliminatebottlenecks and inefficiencies in the production process.Increased productivity: Optimize workflows and improve resource allocation to enhance output.Enhanced quality: Ensure that products meet qualitystandards and reduce defects.Reduced costs: Identify cost-saving opportunities through optimized operations and improved resource utilization.Increased safety: Ensure compliance with safety regulations and improve workplace conditions for employees.Timeline: The timeline for the audit will be determined based on the scope and complexity of the production line.中文回答：全面检查生产线的建议。
Audit Planning and Analytical Procedures(英文版)(ppt 57页)
Understanding the client's business includes:
Economic environment the business operates in.
Acceptable audit risk – the acceptability of giving the wrong audit opinion.
Inherent risk – the risk of material mistatements making it into the financial statements.
Evaluate the Acceptance or Retention of a Client.
Obtain financial information- prepared by client, annual reports, SEC reports, reports to regulatory agencies, and interim reports.
Engagementຫໍສະໝຸດ letters Help establish an understanding of the terms of the engagement, contract
Are not required but recommended. Helps to avoid misunderstandings related to what
Review independence relationship to client.
审计学：一种整合方法 (8)
Industry and External Environment
Reasons for obtaining an understanding of the client’s industry and external environment: 1. Risks associated with specific industries 2. Inherent risks common to all clients in certain industries 3. Unique accounting requirements
Performance measurement includes ratio analysis and benchmarking against key competitors.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8-8
Learning Objective 3
Gain an understanding of the client’s business and industry.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8 - 12
Business Operations and Processes
Factors the auditor should understand: Major sources of revenue Key customers and suppliers Sources of financing Information about related parties
审计学一种整合方法第12版英文版Chapter13PPT课件
AUDIT ASSURANCE
Acceptable assurance
C3
Audit assurance
C2
from control risk assessment and
tests of control
C1
No assurance
Audit assurance from substantive tests
Tests of details of balances
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Eldetween Further Audit Procedures and Evidence
Select the appropriate types of audit tests.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
13 - 7
Relationship Between Further Audit Procedures and Evidence
Analytical procedures
Tests of details of balances
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
13 - 9
Audit Assurance at Different Levels of Internal Control Effectiveness
Cash in Bank
审计学一种整合的方法2ppt课件
Chapter 8
ቤተ መጻሕፍቲ ባይዱ
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8-1
Learning Objective 1
Discuss why adequate audit planning is essential.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8-9
Understanding of the Client’s Business and Industry
Factors that have increased the importance of understanding the client’s business and industry:
8-6
Learning Objective 2
Make client acceptance decisions and perform initial audit planning.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
Understand internal control and assess control risk.
Gather information to assess fraud risks.
Develop overall audit plan and audit program.
审计英语审计计划
审计英语审计计划一、考情分析从历年考试情况来看，本章属于基本理论章节，是审计实务的基石，贯穿于整个审计过程，这部分通常也是一些没有实务经验的考生难以理解的内容。
英语部分，本章要关注的知识点包括：总体审计策略、具体审计计划、重要性的运用、审计风险。
二、专业词汇审计计划：Audit plan总体审计策略：General audit strategy具体审计计划：Specific audit plan审计项目组成员：Engagement team members重要性：Materiality实际执行的重要性： Materiality of actual execution交易：Transaction账户余额：Account balance披露：Disclosure审计风险：Audit risk重大错报风险：Risk of material misstatement报表层次的重大错报风险：The risk of material misstatement on financial statement level 认定层次的重大错报风险：The risk of material misstatement at assertion level固有风险：Inherent risk控制风险：Control risk检查风险：Detection risk审计意见：Audit opinion财务报表：Financial statements内部控制：Internal control实质性程序的性质、时间安排和范围：Nature, time and scope of substantive procedure 控制测试的性质、时间安排和范围: Nature, time and scope of control test细节测试：Test of details函证：Confirmation应收账款： Account receivable三、重点、难点讲解I.审计计划审计计划分为总体审计策略和具体审计计划两个层次。
Chapter13OverallAuditPlanandAuditProgram(审计
Learning Objective 4
Understand the concept of evidence mix and how it should be varied in different circumstances.
Chapter13OverallAuditPlanandAudit Program(审计
Weak control
Strong control
Reliance on controls: C3 – None, C2 – Some, C1 – Maximum
Chapter13OverallAuditPlanandAudit Program(审计
Learning Objective 3
Understand how information technology affects audit testing.
Design substantive tests of transactions. (Step 4)
Reports produced by IT may be used to test the effectiveness of IT general controls.
Program change controls Access controls
Chapter13OverallAuditPlanandAudit Program(审计
Analytical procedures
Tests of details of balances
Chapter13OverallAuditPlanandAudit Program(审计
Types of Audit Tests and the Audit Risk Model
audit preparation(tower)
环境外部审核准备说明
Find out the opportunities to improvement
对审核员提出的问题和合理的建议要认真记 录、虚心接受、并定期改正！ 不要找理 由开脱！ Explain the fact in objective way!! 当审核员提出不适当的问题和要求时，要耐 心解释，并尽可能出具记录、程序、图纸 等技术资料作有效支持cument availability
文件和记录要事先按序有条理的准备，不要 让审核员久等， 审核员需要什么文件，针对性提供，不宜主 动多提供无关联的文件，除非提供的文件 可证明或回答他的提问。
5
环境外部审核准备说明
Open mind and Cooperation 开诚布公、积极合作的态度
Be calm
保持镇静，不要慌张！！
1
环境外部审核准备说明
Effective communication，Clarify the unclear question
有效的沟通：对于审核员提出的问题，要理解 清楚，必要时，要与审核员澄清 Right people answer right question 对自己不清楚的问题，或是超出自己责任范围 之外的问题，不要贸然回答。
请适当的人员回答适当的问题！！
2
环境外部审核准备说明
Focus on customer’s concerns
关注顾客关心的问题。比如，现场控制技术 和手段、质量水平、顾客抱怨分析等 Factual approach 用记录、程序、控制计划、图表等事实来说 服审核员！！ Answer question in direct way 正面、直接回答审核员提出的问题。做到简 洁明了！！！
审计课后选择题
CHAPTER1THE DEMAND FOR AUDIT AND OTHER ASSURANCE SERVICES1-1Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements?>The opinion of an independent party is needed because a company may not be objective with respect to its own financial statements.1-2Independent auditing can best be described as?>a discipline that attests to the results of accounting and other functional operations and data.1-3Which of the following professional services would be considered an attestation engagement?>An engagement to report on statutory requirements.1-4In performing an attestation engagement,a CPA typically?>expresses a conclusion about an assertion.1-5Operational audits generally have been conducted by internal auditors and governmental audit agencies but may be performed by certified public accountants.A primary purpose of an operational audit is to provide?>a measure of management performance in meeting organizational goals.1-6In comparison to the external auditor,an internal auditor is more likely to be concerned with?>operational auditing.1-7Which of the following best describes the operational audit?>It concentrates on seeking aspects of operations in which waste could be reduced by the introduction of controls.1-8Compliance auditing often extends beyond audits leading to the expression of opinion on the fairness of financial presentation and includes audits of efficiency,economy,effectiveness,as well as?>adherence to specific rules or procedures.CHAPER2THE CPA PREFESSION2-1The first general standard,which states in part that the audit is to be performed by a person or persons having adequate technical training,requires that an auditor have?>education and experience in the field of auditing.2-2Which of the following best describes what is meant by generally accepted auditing standards?>Acts to be performed by the auditors.2-3The general group of the generally accepted auditing standards includes a requirement that?>due professional care be exercised by the auditor.2-4What is the general character of the three generally accepted auditing standards classified as standards of field work?>The criteria of audit planning and evidence gathering.2-5A CPA firm is reasonably assured of meeting its responsibility to provide services that conform with professional standards by?>having an appropriate system of quality control.2-6Which of the following are elements of a CPA firm’s quality control that should be considered in establishing its quality control policies and procedures?>Personnel Management.(Yes)/Monitoring.(Yes)/Engagement Performance.(Yes)2-7Which of the following is an element of a CPA firm’s quality control that should be considered in establishing its quality control policies and procedures?>Management Personnel.CHAPTER3AUDIT REPORTS3-1An auditor’s unqualified report?>explicitly states that all material items have been disclosed in conformity with accounting principles generally accepted in the United Stated of America.3-2The date of the CPA’s opinion on the financial statements of the client should be the date of the?>completion of all important audit procedures.3-3If a principal auditor decides to refer in his or her report to the audit of another,he or she is required to disclose the?>portion of the financial statements audited by the other auditor.3-4An entity changed from the straight-line method to the declining-balance method of depreciation for all newly acquired assets.This change has no material effect on the current year’s financial statements but is reasonably certain to have a substantial effect in later years.If the change is disclosed in the notes to the financial statements,the auditor issue a report with a?>qualified opinion with explanatory paragraph regarding consistency.3-5A CPA will issue an adverse auditor’s opinion if?>the exception to the fairness of presentation is so material that an“expect for”opinion is not justified.3-6An auditor would most likely disclaim an opinion because of?>a client-imposed scope limitation.3-7Under which of the following sets of circumstances should an auditor issue a qualified opinion?>The financial statements contain a departure from generally accepted accounting principles,the effect of which is material.CHAPTER4PROFESSIONAL ETHICS4-1What is the meaning of the generally accepted auditing standard that the Code of Professional Conduct or GAAS.Choose the best response.>The auditor must be without bias with respect to the client under audit.4-2The independent audit is important to readers of financial statements because it?>involves the objective examination of and reporting on management-prepared statements.4-3An auditor strives to achieve independence in appearance to?>maintain public confidence in the profession.4-4In which one of the following situations would a CPA be in violation of the AICPA Code of Professional Conduct in determining the audit fee?>A fee based on whether the CPA’s report on the client’s financial statements results in the approval of a bank loan.4-5The AICPA Code of Professional Conduct that a CPA shall not disclose any confidential information obtained in the course of a professional engagement except with the consent of the client.In which one of the following situations would disclosure by a CPA be in violation of the code?>Disclosing confidential information to another accountant interested in purchasing the CPA’s practice.4-6A CPA’s retention of client records as a means of enforcing payment of an overdue audit fee is an action that is?>prohibited under the AICPA rules of conduct.CHAPTER6AUDIT RESPONSIBILITIES AND OBJECTIVES6-1Which of the following best describes the reason why an independent auditor report on financial statements?>Different interests may exist between the company preparing the statements and the persons using the statements.6-2An independent audit aids in the communication of economic data because the audit? >lends credibility to the financial statements.6-3The major reason an independent auditor gathers audit evidence is to?>form an opinion on the financial statements.6-4An independent auditor has the responsibility to design the audit to provide reasonable assurance of detecting errors and fraud that might have a material effect on financialstatements.Which of the following,if material,would be a fraud as defined in Codification of Statements on Auditing Standards?>Misappropriation of an asset or groups of assets.6-5What assurance does the auditor provide that errors,fraud,and direct-effect illegal acts that are material to the financial statements will be detected?>Errors.(Reasonable)/Fraud.(Reasonable)/Direct-Effect Illegal Acts.(Reasonable)6-6An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management’s assertions about?>valuation or allocation.6-7The audit client’s board of directors and audit committee refused to take any action with respect to an immaterial illegal act that was brought to their attention by the auditor.Because of their failure to act,the auditor withdrew from the engagement.The auditor’s decision to withdraw was primarily because of doubts concerning?>reliance on management’s representations.6-8The primary responsibility for the adequacy of disclosure in the financial statements and footnotes rests with the?>client.CHAPTER7AUDIT EVIDENCE7-1Which of the following types of documentary evidence should the auditor consider to be the most reliable?>A check,issued by the company and bearing the payee’s endorsement,that is included with the bank statements mailed directly to the auditor.7-2The most reliable type of audit evidence that an auditor can obtain is?>physical examination by the auditor.7-3Audit evidence can come in different forms with different degrees of persuasiveness.Which of the following is the least persuasive type of evidence?>Prenumbered sales invoices.7-4Which of the following is the least persuasive documentation in support of an auditor’s opinion?>Schedules of details of physical inventory counts conducted by the clients.7-5Which of the following is not a primary purpose of audit documentation?>To support the financial statements.7-6During an audit engagement,pertinent data are compiled and included in the audit files.The audit files primarily are considered to be?>support for the auditor’s representations as to compliance with generally accepted auditing standards.7-7Although the quantity,type,and content of audit documentation will vary with the circumstances,audit documentation generally would include the?>auditing procedures followed and the testing performed in obtaining evidential matter.CHAPTER8AUDIT PLANNING AND ANALYTICAL PROCEDURES8-1Which of the following is an effective audit planning procedure that helps prevent misunderstandings and inefficient use of audit personnel?>Arrange a preliminary conference with the client to discuss audit objectives,fees,timing,and other information.8-2An auditor is planning an audit engagement for a new client in a business with which he is unfamiliar.Which of the following would be the most useful source of information during the preliminary planning stage,when the auditor is trying to obtain a general understanding of audit problems that might be encountered?>Prior-year audit files of the predecessor auditor.8-3An auditor obtains knowledge about a new client’s business and industry to?>understand the events and transactions that may have an effect on the client’s financial statements.8-4In assessing whether to accept a client for an audit engagement,a CPA should consider?>Client Business Risk.(Yes)/Acceptable Audit Risk.(Yes).8-5When approached to perform an audit for the first time,the CPA should make inquires of the predecessor auditor.This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor indetermining whether?>the engagement should be accepted.8-6What is the responsibility of successor auditor with respect to communicating with the predecessor auditor in connection with a prospective new audit client?>The successor auditor should obtain permission from the prospective client to contact the predecessor auditor.8-7Analytical procedures used in planning an audit should focus on identifying?>areas that may represent specific risks relevant to the audit.8-8For all audits of financial statements made in accordance with generally accepted auditing standards,the use of analytical procedures is required to some extent?>In the Planning Stage(Yes)/As a Substantive Test(No)/In the Completion Stage(Yes).8-9Which of the following would be least likely to be comparable between similar corporations in the same industry line of business?>Earnings per share.8-10Which of the following situations has the best chance of being detected whena CPA compares2004revenues and expenses with the prior year and investigates all changes exceeding a fixed percentage?>An increase in property tax rates has not been recognized in the company’s2004 accrual.CHAPTER9MATERIALITY AND RISK9-1Which one of the following statements is correct concerning the concept of materiality? >Materiality is a matter of professional judgment.9-2The concept of materiality will be least important to the CPA in the determining the?>effects of the CPA’s direct financial interest in a client upon the CPA’s independence.9-3Edison Corporation has a few large accounts receivable that total$1400000.Victor Corporation has a great number of small accounts receivable that also total $1400000.The importance of a misstatement in any one account is therefore greater for Edison than for Victor.This is example of the auditor’s concept of?>materiality.9-4Which of the following are elements ultimately determines the specific auditing procedures that are necessary in the circumstances to afford a reasonable basis for an opinion?>Inherent risk.9-5Which of the following best describes the element of inherent risk that underlies the application of generally accepted auditing standards,specifically the standards of field work and reporting?>Inventories may require more attention by the auditor on an engagement for a merchandising enterprise than on an engagement for a public utility.9-6Which one of the following statements is not correct about materiality?>An auditor considers materiality for planning purposes in terms of largest aggregate level of misstatements that could be material to any one of the financial statements.9-7Inherent risk and control risk differ from planned detection risk in that they?>exist independently of the financial statement audit.9-8In considering materiality for planning purposes,an auditor believes that misstatements aggregating$10000would have a material effect on an entity’s income statement,but that misstatements would have to aggregate$20000to materiality affect the balance sheet.Ordinarily,it would be appropriate to design auditing procedures that would be expected to detect misstatements that aggregate?$10000.CHAPTER10INTERNAL CONTROL AND CONTROL RISK10-1When considering internal control,an auditor must be aware of the concept of reasonable assurance which recognizes that the?>cost of internal control should not exceed the benefits expected to be derived therefrom.10-2When an auditor issues an unqualified opinion on the financial statement,it is implied that the?>likelihood of fraud is minimal.10-3Which of the following statements about the auditor’s responsibility for internal control is correct?>Even when controls are adequately designed and placed in operation,the auditor can assess control at maximum and not perform tests of controls when substantive tests are less costly to perform.10-4What is the independent auditor’s principal purpose for obtain evidence in every audit that internal control and assessing control risk in a financial statement audit?>To determine the nature,timing,and extent of subsequent audit work.10-5In general,a significant internal control weakness may be defined as a condition under which material misstatements would ordinarily not be detected within a timely period by?>employees in the normal course of performing their assigned functions.10-6Which of the following statements with respect to required auditor communication of significant deficiencies is correct?>Such communication must include a description of all weakness.10-7The auditor who becomes aware of a significant deficiency in internal control is required to communicate this to the?>audit committee.10-8The ultimate purpose of assessing control risk is to contribute to the auditor’s evaluation of the?>risk that material misstatements exist in the financial statement.10-9An auditor uses assessed control risk to?>determine the materiality thresholds for planning and evaluation purposes are sufficiently high.10-10On the basis of audit evidence gathered and evaluated,an auditor decides to increase assessed control risk from that originally planned.To achieve an audit risk level(AcAR)that is substantially the same as the planned audit risk level(AAR),the auditor would?>decrease planned detection risk.10-11Which of the following statements about tests of controls is correct?Tests of controls?>provide persuasive evidence that a material misstatement exists when the auditor determines that the control is not being consistently applied.CHAPTER12THE IMPACT OF INFORMATION TECHNOLOGY12-1An IT system is designed to ensure that management possesses the information it needs to carry out its function through the integrated actions of?>data gathering,analysis,and reporting functions.12-2Which of the following conditions would not normally cause the auditor to question whether material misstatements exist?>Bookkeeping errors are lists on an IT-generated error listing.12-3As the strength of general IT controls weakens,the auditor is most likely to?>expand testing of application controls used to reduce control risk to cover greater portions of the fiscal year under audit.12-4Which of the following is an example of an application control?>The sales system automatically computes the total sale amount and posts the total to the sales journal master file.12-5Which of the following client IT systems generally can be audited without examining or directly testing the computer programs of the system?>A system that performs relatively uncomplicated processes and produces detailed output.12-6Which of the following is true of generalized audit software programs?>They each have their own characteristics that the auditor must carefully consider before using in a given audit situation.12-7Assume that an auditor estimates that10000checks were issued during the accounting period.If an IT application control that performs a limit check for each check request is to be subjected to the auditor’s test data approach,the sample should include? >a number of test items determined by the auditor to be sufficient under the circumstances.12-8An auditor will use the test data approach to gain certain assurances with respect to the?>procedures contained within the program.CHAPTER13OVERALL AUDIT PLAN AND AUDIT PROGRAM13-1The auditor looks for an indication duplicate sales invoices to see whether the involves have been verified.This is an example of?>a test of control.13-2Analytical procedures may be classified as being primarily?>substantive tests.13-3To support the auditor’s initial assessment of control risk below maximum,the auditor performs procedures to determine that internal controls are operating effectively.Which of the following audit procedures is the auditor performing?>Tests of controls.13-4The auditor faces a risk that the audit will not detect material misstatements that occur in the accounting process.To minimize this risk,the auditor relies primarily on?>substantive tests.13-5Which following questions deal with tests of controls.Choose the best response?>Tests of controls include observations of the proper segregation of duties.13-6Which of the following would be least likely to be included in an auditor’s tests of controls?>Confirmation.13-7The two phases of the auditor’s involvement with internal control are sometimes called“understanding and assessment”and“tests of controls.”In the tests of controls phase,the auditor attempts to obtain?>a reasonable degree of assurance that the client’s internal controls are operating effectively on a consistent basis throughout the year.13-8Which of the following is ordinarily considered a test of control audit procedure?>Examining signatures on checks.13-9A conceptually logical approach to the auditor’s evaluation of internal control consists of the following four steps:Ⅰ.Determining the internal controls that should prevent or detect errors and fraud.Ⅱ.Identifying weaknesses to determine their effect on the nature,timing,or extent of auditing procedures to be applied and suggestions to be made to the client.Ⅲ.Determining whether the necessary procedures are prescribed and are being followed satisfactorily.Ⅳ.Considering the types of errors and fraud that could occur.>Ⅳ,Ⅰ,Ⅲ,Ⅱ.13-10The sequence of steps in gathering evidence as the basis of the auditor’s opinion is？>initial assessment of control risk,tests of controls,and substantive tests.CHAPTER14AUDIT OF THE SALES AND COLLECTION CYCLE14-1When a customer fails to include a remittance advice with a payment,it is common for the person opening the mail to prepare one,Consequently,mail should be opened by which of the following four company employees?>Receptionist.14-2A key internal control in the sales and collection cycle is the separation of duties between cash handing and record keeping.The objective most directly associated with this control is to verify that?>existing cash receipts are recorded.14-3An auditor tests a company’s policy of obtaining credit approval before shipping goods to customers in support of management’s financial statement assertion of?>existence or occurrence.14-4Which of the following internal controls would most likely reduce charge-offs of uncollectible accounts receivable?>Employees involved in the credit-granting function are separated from the sales function.14-5A manufacturing company received a substantial sales return in the last month of theyear,but the credit memorandum for the return was not prepared until after the auditors had completed their field work.The returned merchandise was included in the physical inventory?>Credit memoranda are prenumbered and all numbers are accounted for.14-6The sales manager credited a salesman,Jack Smith,with sales that were actually”house account”ter,Smith divided his excess sale commissions with the sales manager?>Sales orders are reviewed and checked periodically by persons independent of the sales manager.14-7A sale invoice for$5200was computed correctly but,by mistake,was key-entered as $2500to the sales journal and to the accounts receivable master file,The customer remitted only$2500,the amount on his monthly statement?>The customer’s monthly statements are verified and mailed by a responsible person other than the bookkeeper who prepared them.14-8Copies of sales invoices show different unit prices for apparently identical items?>All sales invoices are compared with the customer’s purchase orders.14-9Auditors sometimes use comparison of ratios as audit evidence.For example,an unexplained decrease in the ratio of gross profit to sale may suggest which of the following possibilities?>Unrecorded sales.14-10An auditor is performing substantive tests of transactions for sales.One step is to trace a sample of debit entries from the accounts receivable master file back to the supporting duplicate sales invoices.What would the auditor intend to establish by this step?>Debit entries in the accounts receivable master file are properly supported by sales invoices.14-11To verify that all sales transactions have been recorded,a substantive test of transactions should be completed on a representative sample drawn from?>a file of duplicate copies of sales invoices for which all prenumbered forms in the series have been accounted.。
审计学一种整合的方法ppt课件
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8-9
Understanding of the Client’s Business and Industry
Factors that have increased the importance of understanding the client’s business and industry:
Understand client’s business and industry
Industry and external environment
Business operations and processes
Management and governance
Objectives and strategies
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8-5
Planning an Audit and Designing an Audit Approach
Set materiality and assess acceptable audit risk and inherent risk.
8-6
Learning Objective 2
Make client acceptance decisions and perform initial audit planning.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder