accaF8实质性审计程序总结大全

Substantive procedures – Additions and disposalsAdditions– Obtain a breakdown of additions, and agree to the non-current asset register to confirm completeness of plant & equipment (P&E) .1.具体的breakdown 与固资帐比查完整性– Select a sample of additions and agree cost to supplier invoice to confirm valuation.2.抽样与发票核对查价值– Verify rights and obligations by agreeing the addition of plant and equipment to a supplier invoice in the name of Pear. 3.查发票署名查权利与义务– For a sample of additions recorded in P&E physically verify them on the factory floor to confirm existence. 4.查实体.存在性– Review board minutes to ensure that significant capital expenditure purchases have been authorised by the board. 5.查董事会记录– Review the list of additions and confirm that they relate to capital expenditure items rather than repairs and maintenance. 6查费用化与资本化问题Disposals– Obtain a breakdown of disposals, cast the list and agree all assets removed from the non-current asset register to confirm existence. 1.具体的与总查存在– Select a sample of disposals and agree sale proceeds to supporting documentation such as sundry sales invoices. 2.无耻法查supporting documentation– Recalculate the profit/loss on disposal and agree to the income statement. 3.重计i nventory substantive procedures for balances at the year end.(i) ExistenceAssets, liabilities and equity interests exist.Substantive proceduresDuring the inventory count select a sample of assets recorded in the inventory records and agree to the warehouse to confirm the assets exist.Obtain a sample of pre year-end goods despatch notes and agree that these finished goods are excluded from the inventory records.(ii) Rights and obligationsThe entity holds or controls the rights to assets, and liabilities are the obligations of the entity.(iii) CompletenessAll assets, liabilities and equity interests that should have been recorded have been recorded. Substantive proceduresObtain a copy of the inventory listing and agree the total to the general ledger and the financial statements.During the inventory count select a sample of goods physically present in the warehouse and confirm recorded in the inventory records.(iv) Valuation and allocationAssets, liabilities and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.Substantive proceduresSelect a sample of goods in inventory at the year end, agree the cost per the records to a recent purchase invoice and ensure that the cost is correctly stated.Select a sample of year-end goods and review post year-end sales invoices to ascertain if net realisable value is above cost or if an adjustment is required.Substantive proceduresDepreciation– Review the reasonableness of the depreciation rates applied to the new leisure facilities and compare to industry averages. depreciation rates与同行业比较– Perform a proof in total calculation for the depreciation charged on the equipment, discuss with management if significant fluctuations arise. a proof in total AP– Select a sample of leisure equipment and recalculate the depreciation charge to ensure that thenon-current asset register is correct. Recalculate the depreciation charge 为accuracy– Review the disclosure of the depreciation charges and policies in the draft financial statements.ACCURACY– Review profits and losses on disposal of assets disposed of in the year, to assess the reasonableness of the depreciation policies. profits and losses on disposal of assets 是否合理Food poisoning1– Review the correspondence from the customers claiming food poisoning to assess whether Pineapple has a present obligation as a result of a past event. 存在1– Send an enquiry letter to the lawyers of Pineapple to obtain their view as to the probability of the claim being successful.1– Review board minutes to understand whether the directors believe that the claim will be successful or not.2– Review the post year-end period to assess whether any payments have been made to any of the claimants. 数字2– Discuss with management as to whether they propose to include a contingent liability disclosure or not, consider the reasonableness of this.3 Obtain a written management representation confirming management’s view that the lawsuit is unlikely to be successful and hence no provision is required. 发誓3– Review the adequacy of any disclosures made in the financial statements.Substantive procedures over year-end trade payables– Obtain a listing of trade payables from the purchase ledger and agree to the general ledger and the financial statements. 1账户比数字– Review the list of trade payables against prior years to identify any significant omissions.1与去年比数字–Calculate the trade payable days for Greystone and compare to prior years, investigate any significant differences. 1计算payable days比数字– Select a sample of goods received notes before the year-end and follow through to inclusion in the year-end payables balance, to ensure correct cut-off.– Review after date payments, if they relate to the current year 2 cutoff– Obtain supplier statements and reconcile these to the purchase ledger balances, and investigate any reconciling items. 与供货方比较信息accuracy–Enquire of management their process for identifying goods received but not invoiced or logged in the purchase ledger and ensure that it is reasonable to ensure completeness of payables.询问对收到货但是未收到发票情况的处理方法– Review the purchase ledger for any debit balances, for any significant amounts discuss with management and consider reclassification as current assets. 数据出现异常与管理层讨论原因– Ensure payables included in financial statements as current liabilities. 无耻法正确做账directors’ bonus and remuneration– Obtain a schedule of the directors’ remuneration including the bonus paid and cast the addition of the schedule.– Agree the individual bonus payments to the payroll records. 12都是账实对照查准确性– Confirm the amount of each bonus paid by agreeing to the cash book and bank statements.– Review the board minutes to confirm whether any additional bonus payments relating to this year have been agreed. 董事会记录–Obtain a written representation from management confirming the completeness of directors’ remuneration including the bonus. 书面– Review any disclosures made of the bonus and assess whether these are in compliance with local legislation. 查是否合法合规Audit procedures regarding non-depreciation of buildings– Review audit file to ensure that sufficient appropriate audit evidence has been collected in respect of this matter.– Ensure that GAAP does apply to the specific buildings owned by Galartha Co and that a departure from GAAP is not needed in order for the financial statements to show a true and fair view.– Meet with the directors to confirm their reasons for not depreciating buildings.– Warn the directors that in your opinion buildings should be depreciated and that failure to provide depreciation will result in a modified audit report.– Determine the effect of the disagreement on the audit report in terms of the modified opinion being material or of pervasive materiality to the financial statements.– Draft the appropriate sections of the modified audit report.– Obtain a letter of representation from the directors confirming that depreciation will not be charged on buildings.Procedures to confirm i nventory held at third party locations– Send a letter requesting direct confirmation of inventory balances held at year end from the third party warehouse 函证providers used by Abrahams Co regarding quantities and condition.– Attend the inventory count (if one is to be performed) at the third party warehouses to review the controls in operation to ensure the completeness and existence of inventory. 参与盘点– Inspect any reports produced by the auditors of the warehouses in relation to the adequacy of controls over inventory. 检查报告– Inspect any documentation in respect of third party inventory. 检查第三方仓储文件(ii) Procedures to confirm use of standard costs for inventory valuation–Discuss with management of Abrahams Co the basis of the standard costs applied to the inventoryvaluation, and how often these are reviewed and updated. 与管理层讨论– Review the level of variances between standard and actual costs and discuss with management how these are treated. 与管理层讨论差别– Obtain a breakdown of the standard costs and agree a sample of these costs to actual invoices or wage records to assess their reasonableness. 明细检查差错Going concern procedures–Obtain the company’s cash flow forecast and review the cash in and out flows. Assess the assumptions for reasonableness and discuss the findings with management to understand if the company will have sufficient cash flows.–Review the company’s post year-end sales and order book to assess if the levels of trade are likely to increase and if the revenue figures in the cash flow forecast are reasonable.– Review the loan agreement and recalculate the covenant which has been breached. Confirm the timing and amount of the loan repayment.– Review any agreements with the bank to determine whether any other covenants have been breached, especially in relation to the overdraft.– Discuss with the directors whether they have contacted any alternative banks for finance to assess whether they have any other means of repaying the loan of $4·8m.– Review any correspondence with shareholders to assess whether any of these are likely to increasetheir equity investment in the company. 财务– Review post year-end correspondence with suppliers to identify if any others have threatened legal action or refused to supply goods.– Discuss with the finance director whether the sales director has yet been replaced and whether anynew customers have been obtained to replace the one lost. 运营– Enquire of the lawyers of Strawberry as to the existence of any additional litigation and request theirassessment of the likely amounts payable to the suppliers. 法律– Perform audit tests in relation to subsequent events to identify any items that might indicate or mitigate the risk of going concern not being appropriate.– Review the post year-end bo ard minutes to identify any other issues that might indicate further financial difficulties for the company.– Consider whether the g oing concern basi s is appropriate for the preparation of the financial statements.– Obtain a written representation c onfirming the director’s vi ew that Strawberry is a going concern.其他Procedures the auditor should adopt in respect of auditing accounting estimates include:–Enquire of management how t he accounting estimate is made and the d ata on which it is based.–Determine whether events occurring up to the date of the auditor’s report (after the reporting period) provide audit evidence regarding the accounting estimate.–Review the method of measurement used and assess the r easonableness o f assumptions made.– Test the operating effectiveness of the controls over how management made the accounting estimate.– Evaluate overall whether the accounting estimates in the financial statements are either reasonable or misstated.–Obtain sufficient appropriate audit evidence about whether the disclosures in the financial statements related to accounting estimates and estimation uncertainty are reasonable.–Obtain written representations from management and, where appropriate, those charged with governance whether they believe significant assumptions used in making accounting estimates are reasonable.Procedures during the inventory count–Observe the counting teams of Lily to confirm whether the inventory count instructions are being followed correctly.–observe the procedures for identifying and segregating damaged goods are operating correctly.–Observe the procedures for movements of inventory during the count, to confirm that no raw materials or finished goods have been omitted or counted twice.– Select a sample and perform test counts from inventory sheets to warehouse aisle and from warehouse aisle to inventory sheets.– Select a sample of damaged items as noted on the inventory sheets and inspect these windows to confirm whether the level of damage is correctly noted.– Obtain a photocopy of the completed sequentially numbered inventory sheets for follow up testing on the final audit.– Discuss with the warehouse manager how he has estimated the raw materials quantities. To the extent that it is possible, re-perform the procedures adopted by the warehouse manager.– Identify and record any inventory held fo r third parties (if any) and confirm that it is excluded from the count.Audit procedures using CAATSThe audit team can use audit software to calculate inventory days for the year-to-date to compare against the prior year to identify whether inventory is turning over slower, as this may be an indication that it is overvalued.Audit software can be utilised to produce an aged inventory analysis to identify any slow moving goods, which may require write down or an allowance.Cast the inventory listing to confirm the completeness and accuracy of inventory.Audit software can be used to select a representative sample of items for testing to confirm net realisable value and/or cost.Audit software can be utilised to recalculate cost and net realisable value for a sample of inventory. CAATs can be used to verify cut-off by testing whether the dates of the last GRNs and GDNs recorded relate to pre year end; and that any with a date of 1 January 2013 onwards have been excluded from the inventory records.CAATs can be used to confirm whether any inventory adjustments noted during the count have been correctly updated into final inventory records.Procedures the auditor should adopt in respect of auditing this accrual include:–Agree the year-end income tax payable accrual to the payroll records to confirm accuracy.– Agree the subsequent payment to the post year-end cash book and bank statements to confirm completeness.–Recalculation of the accrual to confirm accuracy.– Review any disclosures made of the income tax accrual and assess whether these are in compliance with accounting standards and legislation.Audit procedures for continuous (perpetual) inventory counts– The audit team should attend at least one of the c ontinuous (perpetual) inventory counts t o review whether the controls over the inventory count are adequate.– C onsider attending the inventory count at the year end to undertake test counts of inventory from records to floor and from floor to records in order to confirm the existence and completeness of inventory.– Review the adjustments made to the inventory records on a monthly basis to gain an understanding of the level of differences arising on a month by month basis.– If significant differences consistently arise, this could indicate that the inventory records are not adequately maintained. D iscuss with manageme nt how they will ensure that year-end inventory will not be under or overstated.Procedures to undertake in relation to the uncorrected misstatement– The extent of the potential misstatement should be considered and therefore a large sample of inventory items should be tested to identify the possible size of the misstatement.– The potential misstatement should be d iscussed with Clarinet Co’s management in order to understand why these inventory differences are occurring.– The misstatement should be compared to materiality to assess if the error is materia l individually.– If not, then it should be added to other errors noted during the audit to assess if in aggregate the uncorrected errors are now material.– If material, the auditors should ask the directors to adjust the inventory balances to correct the misstatements identified in the 2014 year end.– Request a written representation from the directors about the uncorrected misstatements including the inventory errors.– Consider the implication for the audit report if the inventory errors are material and the directorsr efuses to make adjustments.Receivables circularisation– procedures 步骤– Obtain a list of receivables balances, cast this and agree it to the receivables control account total at the end of theyear. Ageing of receivables may also be verified at this time.–Determine an appropriate sampling method (cumulative monetary amount, value-weighted selection, random, etc.)–Select the balances to be tested, with specific reference to the categories of receivable noted below. – Extract details of each receivable selected from the ledger and prepare circularisation letters.– Ask the chief accountant at Seeley Co (or other responsible official) to sign the letters.– The auditor posts or faxes the letters to the individual receivables.Substantive procedures to confirm valuation of inventory– Select a representative sample of goods in inventory at the year end, agree the cost per the records to a recent purchase invoice and ensure that the cost is correctly stated.– Select a sample of year end goods and review post year end sales invoices to ascertain if NRV is above cost or if an adjustment is required.– For a sample of manufactured items obtain cost sheets and confirm:–raw material costs to recent purchase invoices–labour costs to time sheets or wage records–overheads allocated are of a production nature.– Review aged inventory reports and identify any slow moving goods, discuss with management why these items have not been written down.– Review the inventory records to identify the level of adjustments made throughout the year for damaged/obsolete items. If significant consider whether the year end records require further adjustments and discuss with management whether any further write downs/provision may be required. – Follow up any damaged/obsolete items noted by the auditor at the inventory counts attended, to ensure that the inventory records have been updated correctly.– Perform a review of the average inventory days for the current year and compare to prior year inventory days. Discuss any significant variations with management.Substantive procedures to confirm completeness of provisions or contingent liability– Discuss with management the nature of the dispute between Smoothbrush and the former finance director (FD), to ensure that a full understanding of the issue is obtained and to assess whether an obligation exists.–Write to the company’s lawyers to obtain their views as to the probability of the FD’s claim being successful.– Review board minutes and any company correspondence to assess whether there is any evidence to support the former FD’s claims of unfair dismissal.– Obtain a written representation from the directors of Smoothbrush confirming their view that the former FD’s chances of a successful claim are remote, and hence no provision or contingent liability is required.Substantive procedures over bank balance:–Obtain the company’s bank reconciliatio n and c heck the additions t o e nsure arithmeticalaccuracy.– Obtain a b ank confi rmation lett er from the company’s bankers.– Verify the balance per the bank statement to an original year end bank statement and also to the bank confi rmation letter.– Verify the rec onciliation’s balanc e per the cash book t o the year end cash book.– Trace all of the outstanding lodgement s to the pre year end cash book, post year end bank statement and also to paying-in-book pre year end.– Trace all u npresented cheques through to a pre year end cash book and post year end statement. For any unusual amounts or signifi cant delays obtain explanations from management.– Review the cash book and bank statements for any u nusual items or large transfers around the year end, as this could be evidence of window dressing.– Examine the bank confi rmation letter for details of any security provided by the company or any legal right of set-off as this may require disclosure.Appropriate procedures to determine that net realisable value of book inventory is above cost would include:(1) Assessment of estimated proceeds from the sale of items of inventory. Sales price in the period following the year-end is one important element of net realisable value. Procedures to determine sales prices include:– Obtain actual sales prices by reference to invoices issued after the year-end and determine that the sales were genuine by vouching sales invoices to orders, despatch notes and subsequent receipt of cash.– If actual sales prices are not available, the auditor should obtain estimated sales prices from management. It would be necessary to assess how reasonable these estimated prices were. The auditor might be aided in this respect by reviewing the reports from sales staff backed up by discussions with management.– Particular attention should be paid to sales prices of books identifi ed as slow-moving. (Tutorial note: Slowmoving books might be identifi ed by obtaining lists of sales made in the preceding (say) six months and reviewing reports from sales staff. The sales statistics would also be useful in this respect.)– For damaged books disposal price may be nil or very low and the auditor should examine records of disposal of such books in the past. (Tutorial note: Damaged books should have been identifi ed during the inventory count.)(2) Determine estimated costs to completion. These costs represent another important element of net realisable value.Relevant procedures include:– Some books may still be in production and will initially be included in inventory at cost to date; for example, they may have been printed but not bound. The auditor should examine production budgets and actual costs (for binding, for example) to determine actual costs to completion. (Tutorial note: It is not uncommon for publishers to print books but leave them unbound until sales in the immediate future are expected.)– Books returned may incur extra costs before they can be made ready for resale and the auditor should examine cost records to obtain a reasonable estimate of such costs.(3) Determine costs to be incurred in marketing, selling and distributing directly related to theitems in question.– In general terms the auditor may determine the percentage relationship between sales and selling and distribution expenses.– However, the distribution costs of heavy books are likely to be higher than for (say) light paperback books and the auditor should assess whether the cost weighting is reasonable.(4) All of the above matters should be discussed with management bearing in mind that, although they represent an internal source of evidence, they are the most informed people regarding the saleability of books on hand and regarding determination of the various elements of net realisable value.(5) Discuss with management the need for an inventory provision for slow moving and/or obsolete books.Audit procedures adopted in the examination of the cash fl ow forecast would include:(1) Check that the opening balance of the cash forecast is in agreement with the closing balance of the cash book, to ensure the opening balance of the forecast is accurate.(2) Consider how accurate company forecasts have been in the past by comparing past forecasts with actual outcomes. If forecasts have been reasonably accurate in the past, this would make it more likely that the current forecast is reliable.(3) Determine the assumptions that have been made in the preparation of the cash fl ow forecast. For example, the company is experiencing a poor economic climate, so you would not expect cash fl ows from sales and realisation of receivables to increase, but either to decrease or remain stable. You are also aware that costs are rising so you would expect cost increases to be refl ected in the cash forecasts.(4) Examine the sales department detailed budgets for the two years ahead and, in particular, discuss with them the outlets that they will be targeting. This would help the auditor determine whether the cash derived from sales is soundly based.(5) Examine the pr oduction department’s assessment of the non-current assets required to increase the production of white bread to the level required by the sales projections. Obtain an assessment of estimated cost of non-current assets, reviewing bids from suppliers, if available. This would provide evidence on material cash outfl ows.(6) Consider the adequacy of the increased working capital that will be required as a result of the expansion. Increased working capital would result in cash outfl ows and it would be important to establish its adequacy.(7) If relevant review the post year end period to compare the actual performance against the forecast fi gures.(8) Recalculate and cast the cash fl ow forecast balances.(9) Review board minutes for any other relevant issues which should be included within the forecast.(10) Review the work of the internal audit department in preparing the cash fl ow forecast.Fire at warehouse(i) Audit procedures– Discuss the matter with the directors checking whether the company has sufficient inventory to continue trading in the short term.– Enquire that the directors are satisfied that the company can continue to trade in the longer term. Ask the directors to sign an additional letter of representation to this effect.– Obtain a schedule showing the inventory destroyed and if possible check this is reasonable given past production records and inventory valuations.– Enquire that the insurers have been informed. Review correspondence from the insurers confirming theamount of the insurance claim.– Consider whether or not EastVale can continue as a going concern, given the loss of inventory and potential damage to the company’s reputation if customer orders cannot be fulfilled.Batch of cheese(i) Audit procedures– Discuss the matter with the directors, determining specifically whether there was any fault in the production process.– Obtain a copy of the damages claim and again discuss with the directors the effect on EastVale and the possibility of success of the claim.–Obtain independent legal advice on the claim from EastVale’s lawyers. Attempt to determine the extent of damages that may have to be paid.– Review any press reports about the contaminated cheese. Consider the impact on the reputation of EastVale and whether the company can continue as a going concern.– Discuss the going concern issue with the directors. Obtain an additional letter of representation on the directors’ opinion of the going concern status of EastVale.Substantive procedures to confi rm Tinkerbell’s revenue:– Compare the overall level of revenue against prior years and budget and investigate any significant fluctuations.– Obtain a schedule of sales for the year broken down into the major categories of toys manufactured and compare this to the prior year breakdown and for any unusual movements discuss with management.– Calculate the gross margin for Tinkerbell and compare this to the prior year and investigate any significant fluctuations.– Select a sample of sales invoices for larger customers and recalculate the discounts allowed to ensure that these are accurate.– Recalculate for a sample of invoices that the sales tax has been correctly applied to the sales invoice. – Select a sample of customer orders and agree these to the despatch notes and sales invoices through to inclusion in the sales ledger to ensure completeness of revenue.– Select a sample of despatch notes both pre and post the year end, follow these through to sales invoices in the correct accounting period to ensure that cut-off has been correctly applied.– Select a sample of credit notes issued after the year end and follow through to sales invoice to ensure the returns were recorded in the proper period.。