Kế toán doanh nghiệp - Chapter 17: Auditing and evaluating the ais

Chapter 17Auditing and Evaluating the AISOutlineLearning objectivesTypes of auditsAudit Clarity ProjectGenerally accepted auditing standardsFinancial statement audit stepsLearning objectivesDescribe the various kinds of audits you might encounter in your accounting career.Explain the purpose of the Audit Clarity Project and summarize its essential components.Explain ten generally accepted auditing standards & their role in a financial statement audit.Discuss the basic steps associated with a financial statement audit.Explain the connection between auditing and accounting information systems.Types of auditsFinancial auditExpress an opinion on the fairness of a company’s financial statementsOperational auditDetermine if a company’s business processes & policies “make sense”Systems auditAscertain whether information technology is producing expected resultsTypes of auditsCompliance auditExamine the AIS and financial statements of GNFP entitiesManagement auditDetermines the way management decisions are supportedInvestigative auditInvestigates the AIS and related data to determine if fraud has occurredInternational auditApplies and combines one or more of the other types in international contextsAudit Clarity ProjectFour main change areas to financial statement audit standardsFormatTerminologyAdditional requirementsAudit reportThe ACP’s goals were to make audit standards easier to read and to converge them with international audit standards.Audit Clarity ProjectAudit Clarity ProjectTerminologyApplicable financial reporting frameworkUS GAAPIFRSEmphasis of matter paragraphCalls attention to something in the statements and / or the disclosuresAudit Clarity ProjectAdditional requirementsEnsure appropriateness of applicable financial reporting framework if other than US GAAPObtain agreement from management regarding their responsibilities for financial statements & internal controlAdhere to quality control standards throughout the auditAudit Clarity ProjectTable 17.1Elements of the unmodified auditor’s report ElementExplanationTitleMust include the phrase “independent auditor’s report”AddresseeMay be the board of directors, management or other partiesIntroductory paragraphMust identify the organization, the financial statements audited and related informationManagement’s responsibilitiesFinancial statements and internal controlsAuditor’s responsibilitiesPerforming an audit according to generally accepted auditing standards (GAAS)Auditor’s opinionStates that, in the auditor’s opinion, the statements are fairly presentedSignature, address and dateAudit firm’s informationGenerally Accepted Auditing StandardsFigure 17.3Financial statement audit stepsFigure 17.4