主讲人： 讲讲讲院 　　　　　　 　讲丹 TEL:13767443022 E-mail:jxufechen@163.com 　　 　　　　　　　 讲名 : 讲讲讲一讲整合方法 ( 第 12 版 ) 作者 : 阿讲文 ·A· 阿讲斯 (Alvin A.Arens) 出版社 : 中讲人民大讲出版社 What is audit? (text P4) truth and fairness (text P12) 2010 Dec Q2a materiality (text P13) Misstatement 2011 June Q5a 江西讲讲股讲有限公司 2011 年年度讲告 http://q.stock.sohu.com/cn/gg/115/478/11547853.shtml ISA 450 Misstatement is a difference between the amount, classification, presentation, or disclosure of a reported financial statement item and the amount, classification, presentation, or disclosure that is required for the item to be in accordance with the applicable financial reporting framework Misstatements can arise from error or fraud uncorrected misstatements are Misstatements that the auditor has accumulated during the audit and that have not been corrected There are three categories of misstatements: (i) Factual misstatements are misstatements about which there is no doubt (ii) Judgemental misstatements are differences arising from the judgements of management concerning accounting estimates that the auditor considers unreasonable, or the selection or application of accounting policies that the auditor considers inappropriate (iii) Projected misstatements are the auditor’s best estimate of misstatements in populations, involving the projection of misstatements identified in audit samples to the entire populations from which the samples were drawn why are the F/Ss of a company required to be audited? case study (text P6) accountability VS responsibility …… 我 想 哭 statutory audits non-statutory why are some not-for-profit organizations required to have an audit? advantage of statutory audits - auditors provide impartial view to shareholders - recommendations are made in relation to accounting and control system - auditors may detect fraud and error assurance engagement (text P8) Audit of F/Ss Review of F/Ss Auditors are frequently required High level of assurance Moderate level of assurance to provide assurance for a range of Reasonable assurance Limited assurance non-audit engagements Positive assurance Negative assurance Required: F/Ss give a true and Nothing has come to fairList view and explain professional the elements of accountant’s attention to an assurance engagement (5 suggest that the F/Ss not2a give a true and marks) 2010 June fair view other assurance engagements (not included in F8) assurance engagement Audit of F/Ss Review of F/Ss High level of assurance Moderate level of assurance Reasonable assurance Positive assurance F/Ss give a true and fair view Limited assurance Negative assurance Nothing has come to professional accountant’s attention to suggest that the F/Ss not give a true and fair view other assurance engagements (not included in F8) why different level of assurance? positive negative Sufficient work •The extent of work carried out is normally less AEIOU More evidences •AEI •Less evidences So: More reliance Less reliance why does auditor provide a high, but not absolute, level of assurance? limitations of auditing (text P13) assurance engagements engagements related services others agreed –upon procedures compilation engagement Level of Assurance Attained Relationship between Evidence Accumulation and Assurance Attained High (audit) Moderate (review) None (compilation) Minimal Significant Extensive (compilation) (review) (audit) Amount of Evidence Accumulated June 08 Q5(d) ……A cash flow forecast prepared internally shows Smithson requiring significant additional cash within the next 12 months to maintain even the current level of services Smithson’s auditors have been asked to provide a negative assurance report on this forecast (d) In the context of the cash flow forecast, define the term ‘negative assurance’ and explain how this differs from the assurance provided by an audit report on statutory financial statements (4 marks) mark per action (0·5 if brief or unclear) •1 •1 •1 •1 • Negative assurance means that nothing has come to the attention of an auditor which indicates that the cash flow forecast contains any material errors The assurance is therefore given on the absence of any indication to the contrary • In contrast, the audit report on statutory financial statements provides positive or reasonable assurance; that is the financial statements show a true and fair view • With negative assurance, the auditor is warning that there were limited audit procedures that could be used; the cash flow relates to the future and therefore the auditor cannot obtain all the evidence to guarantee its accuracy Financial statements relate to the past, and so the auditor should be able to obtain the information to confirm they are correct in material respects • Using negative assurance, the auditor is warning users that the cash flow forecast may be inaccurate Less reliance can therefore be placed on the forecast than the financial statements, where the positive assurance was given Dec 06 Q1(c) When reporting on a cash flow forecast, explain the term ‘negative assurance’ and why this is used.(4 marks) • definition • Forecast relates to future – uncertainty • Conditions may not turn out as expected (future conditions not agree with those under which the forecast was prepared) • limited audit procedures • Accuracy of cash flow not confirmed June 05 Q5 (c) The directors of Hood Enterprises have prepared a cash flow forecast for submission to the bank They have asked you as the auditor to provide a negative assurance report on this forecast Required: Briefly explain the difference between positive and negative assurance, outlining the advantages to the directors of providing negative assurance on their cash flow forecast (4 marks) One mark per point – Meaning of positive assurance – Meaning of negative assurance Advantages of negative assurance – Some comfort provided – Credibility – Cost effective The advantages of providing negative assurance include: – The user of the financial information receives some comfort that the information is correct, even though that assurance is less than positive assurance – The report adds some credibility to the financial information because it has been reviewed by a professional accountant – For the preparer, the report will be more cost effective than obtaining a full positive assurance report