Chapter 8 – Audit Planning and Analytical Procedures
审计学一种整合的方法1ppt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:
Accept client and perform initial audit planning.
Understand the client’s business and industry.
Assess client business risk.
Perform preliminary analytical procedures.
8-7
Initial Audit Planning
➢ Client acceptance and continuance ➢ Identify client’s reasons for audit ➢ Obtain an understanding with the client ➢ Develop overall audit strategy
©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.
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(英)-课件--第八章
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Accept Client and Perform Initial Audit Planning
Continuing Clients
➢Many CPA firms evaluate existing clients annually to determine whether there are reasons for not continuing to do the audit.
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Accept Client and Perform Initial Audit Planning
Client acceptance and continuance:
➢New client investigation.
➢Continuing clients.
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Accept Client and Perform Initial Audit Planning
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Accept Client and Perform Initial Audit Planning
New client investigation.
➢ When there has been no previous auditor, when a predecessor auditor will not provide the desired information, or if any indication of problems arises from the communication, auditor can gathering information from local attorneys, other CPAs, banks, and other businesses, even hire a professional investigation.
chapter8 Audit Planning andAnalytical Procedures
Acceptance and Continuance of Clients
• Even though obtaining and retaining clients is not easy in a competitive profession such as public accounting, a CPA firm must use care in deciding which clients are acceptable.
control – Information from 3rd
parties – Background of key
personnel
Acceptance and Continuance of Clients
• Attributes of the Auditor
– Competence – Independence and
objectivity
Acceptance of New Clients
• Before accepting a new client, most CPA firms investigate the company to determine its acceptability, by gathering information from local attorneys, other CPAs, banks, and other businesses. They do this by examininn the business community, financial stability, and relations with its previous CPA firm.
Predecessor Auditor Concerns / Interests
美国大学审计学Auditing and Assurance Services习题解
Review Questions
8-1 There are three primary benefits from planning audits: it helps the auditor obtain sufficient appropriate evidence for the circumstances, helps keep audit costs reasonable, and helps avoid misunderstandings with the client. 8-2 Eight major steps in planning audits are: 1. 2. 3. 4. 5. 6. 7. 8. Accept client and perform initial planning Understand the client’s business and industry Assess client business risk Perform preliminary analytical procedures Set materiality, and assess acceptable audit risk and inherent risk Understand internal control and assess control risk Gather information to assess fraud risks Develop overall audit plan and audit program
8-3 The new auditor (successor) is required by AU 315 to communicate with the predecessor auditor. This enables the successor to obtain information about the client so that he or she may evaluate whether to accept the engagement. Permission must be obtained from the client before communication can be made because of the confidentiality requirement in the Code of Professional Conduct. The predecessor is required to respond to the successor’s request for information; however, the response may be limited to stating that no information will be given. The successor auditor should be wary if the predecessor is reluctant to provide information about the client. 8-4 Prior to accepting a client, the auditor should investigate the client. The auditor should evaluate the client’s standing in the business community, fina ncial stability, and relations with its previous CPA firm. The primary purpose of new client investigation is to ascertain the integrity of the client and the possibility of fraud. The auditor should be especially concerned with the possibility of fraudulent financial reporting since it is difficult to uncover. The auditor does not want to needlessly expose himself or herself to the possibility of a lawsuit for failure to detect such fraud. 8-5 Auditing standards require auditors to document their understanding of the terms of the engagement with the client in an engagement letter. The engagement letter should include the engagement’s objectives, the responsibilities of the auditor and management, and the engagement’s limitations. An engagement letter is an agreement between the CPA firm and the client concerning the conduct of the audit and related services. It should state what services will be provided, whether any restrictions will be imposed on the auditor’s work, deadlines
ACCA F8考试：Planning
ACCA F8考试：Planning本文由高顿ACCA整理发布，转载请注明出处1 ObjectiveThe relevant standard for audit planning is ISA 300 Planning an Audit of Financial Statements.During planning, the auditor's objectives are to:devote appropriate attention to important areas;identify potential problems and resolve on a timely basis;organise and manage the engagement in an effective and efficient way; andassist in assigning appropriate staff to the audit, directing and supervising them then finally reviewing their work.2 ScopePlanning entails developing:an overall audit strategy (using professional judgement and scepticism) which sets the scope, timing and direction of the audit;a detailed approach (developed from the strategy and again using professional judgement and scepticism) for the nature, timing and extent of audit procedures to reduce audit risk to an acceptable low level—the audit plan; andadequate two-way communication between the auditor and those charged with governance.The engagement partner and other key engagement team members must be involved in planning the audit, including any discussions among other engagement team membersconcerning developing the strategy and plan. The engagement partner must take full responsibility for the audit strategy and plan.3 Planning ActivitiesPlanning activities include:Initial evaluation of the ability to continue to carry out the audit of the client.Considering the effect of a modified audit report, management (weakness) letters and points forward (for attention of next audit) from the prior audit, including an assessment of uncorrected misstatements.Developing the overall audit strategy (scope, timing and direction of the audit).Establishing the resources required including, audit team members, their experience, the use of external experts and time budgets.Developing the detailed audit plan in terms of the nature, timing and extent of audit procedures.Establishing the necessary direction, supervision and review procedures (which will depend on the nature of the audit, the assessed risk of material misstatement and the experience of each audit team member).Changing, as necessary, the audit strategy and the audit plan as the audit progresses.Establishing and maintaining communication with those charged with governance and management.更多ACCA资讯请关注高顿ACCA官网：。
审计学一种整合方法 课件 CHapter08共49页文档
8-2
Risk Terms
➢ Acceptable audit risk ➢ Inherent risk
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8-3
Planning an Audit and Designing an Audit Approach
Learning Objective 1
Discuss why adequate audit planning is essential.
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8-1
Three Main Reasons for Planning
Accept client and perform initial audit planning.
Understand the client’s business and industry.
Assess client business risk.
Perform preliminary analytical procedures.
➢ Information technology ➢ Global operations
➢ Human capital
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
8-9
Understanding of the Client’s Business and Industry
F8-Task 7-1
Task 7Audit planning and documentationOverviewOverview(a) Identify and explain the need for, and importance of, planning an audit [2](b) Identify and describe the contents of the overall audit strategy and audit plan [2](c) Explain and describe the relationship between the overall audit strategy and the audit plan [2](d) Explain the difference between interim and final audit [1](e) Describe the purpose of an interim audit, and the procedures likely to be adopted at this stage in the audit[2](f) Describe the impact of the work performed during the interim audit on the final audit [2](g) Explain the need for, and the importance of, audit documentation [1](h) Describe the form and contents of working papers and supporting documentation[2](i) Explain the procedures to ensure safe custody and retention of working papers[1]a) The need for planning 1Form and nature of planningThis is affected by•Size of the entity•Complexity of the audit•Auditor’s experience with the entity •Knowledge of the business •Commercial environment•Method of processing transactions •Reporting requirementsa) The need for planning 2Objectives of planning•Ensuring that appropriate attention is devoted to important areas of the audit •Ensuring that potential problems are identified•Ensuring that the work is completed expeditiously•Proper assignment of work to assistants•Coordination of work done by other auditors and experts; and •Facilitating reviewThe audit strategy and the audit planAudit strategy Audit plan —General strategy—Guidance for development of plan—Instructions to team—Sets out the audit procedures。
ACCAF8备考Tips：审计各阶段及流程详解
ACCAF8备考Tips：审计各阶段及流程详解ACCA F8备考Tips：审计各阶段及流程详解F8(Audit and Assurance)是一门实务性很强的课程，要求大家熟悉审计工作流程，应用会计知识判断被审计单位的财务报告编制过程及结果是否有误。
自2016年9月开始实施的新考试题型包括Section A和Section B两大部分，Section A(Objective Test Cases)共有三道Case，每个Case有五道选择题，每题两分，涉及范围包括大纲的方方面面；Section B共有三道大题，第一题30分，第二题和第三题各自20分，常见的题型包括auditrisk & auditor’s response，internal controldeficiencies/strengths & TOCs，以及substantive procedures等。
大题对大家书面表达的要求比较高，所以理解审计逻辑，勤加练习并学会总结对于大部分没有实务经验的同学们而言非常必要。
我们先来看一下完整的审计工作需要经过哪些阶段，具体又有哪些流程。
上图是完整的审计工作循环，始于engagement letter（业务约定书），终于audit report （审计报告），历经audit planning、auditperformance和completion三个阶段。
1.Beforeaudit process为了签订最开始的engagementletter，审计师在接受业务委托时需要先“自我反省”，看看注册会计师是否符合职业道德准则（Codeof Ethics）的要求，如果有一些情况产生了对独立性（independence）的威胁（具体包括self-interest, self-review, familiarity, advocacy& intimidation threats），则应该考虑适用相对应的保卫措施（常见的safeguards 包括dispose of interests/shares, independent/quality control partner review, remove t he one from the engagementteam等）。
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©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8 - 17
Client Objectives and Strategies
Strategies are approaches followed by the entity to achieve organizational objectives. Auditors should understand client objectives. Financial reporting reliability Effectiveness and efficiency of operations Compliance with laws and regulations
Audit Planning and Analytical Procedures
Chapter 8
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8-1
Learning Objective 1
Discuss why adequate audit planning is essential.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8 - 13
Tour the Plant and Offices
By viewing the physical facilities, the auditor can asses physical safeguards over assets and interpret accounting data related to assets.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8-8
Learning Objective 3
Gain an understanding of the client’s business and industry.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8-2
Three Main Reasons for Planning
1. To obtain sufficient appropriate evidence for the circumstances 2. To help keep audit costs reasonable 3. To avoid misunderstanding with the client
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8 - 15
Management and Governance
Management establishes the strategies and processes followed by the client’s business. Governance includes the client’s organizational structure, as well as the activities of the board of directors and the audit committee. Corporate charter and bylaws Code of ethics Meeting minutes
8-4
Planning an Audit and Designing an Audit Approach
Accept client and perform initial audit planning. Understand the client’s business and industry. Assess client business risk. Perform preliminary analytical procedures.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8-7
Initial Audit Planning
1. Client acceptance and continuance 2. Identify client’s reasons for audit 3. Obtain an understanding with the client 4. Develop overall audit strategy
Performance measurement includes ratio analysis and benchmarking against key competitors.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
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
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8-5
Planning an Audit and Designing an Audit Approach
Set materiality and assess acceptable audit risk and inherent risk. Understand internal control and assess control risk. Gather information to assess fraud risks. Develop overall audit plan and audit program.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8 - 10
Understanding of 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 Measurement and performance
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8 - 14
Identify Related Parties
A related party is defined as an affiliated company, a principal owner of the client company, or any other party with which the client deals, where one of the parties can influence the management or policies of the other.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8-3
Risk Terms
Acceptable audit risk Inherent risk
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 8 - 16
Code of Ethics
In response to the Sarbanes-Oxley Act, the SEC now requires each public company to disclose whether is has adopted a code of ethics that applies to senior management. The SEC also requires companies to disclose amendments and waivers to the code of ethics.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley
8-9
Understanding of the Client’s Business and Industry
Factors that have increased the importance of understanding the client’s business and industry: Information technology Global operations Human capital