ISA 13 nghĩa vụ báo cáo của KTV

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ISA 13 nghĩa vụ báo cáo của KTV

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Chapter 13 The Auditor’s Reporting Obligations Copyright  2006 McGraw-Hill Australia Pty Ltd 13- Learning Objective 1: Obligations to Report • The objective of an audit of the financial report is to enable the auditor to express an opinion whether the financial report is prepared, in all material respects, in accordance with an applicable financial reporting framework • The auditor also has an obligation to form a conclusion as to whether the financial reports have been prepared using Australian accounting standards issued by the AASB Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-2 Obligations to report (Cont.) • S.307 of the Corporations Act 2001 requires the auditor to form an opinion as to: (a) Whether the financial report is in accordance with the Act, including: (i) section 296 or 304 (compliance with accounting standards); and (ii) section 297 or 305 (true and fair view); and (aa) if the financial report includes additional information … (to give a true and fair view of the financial position and performance) – whether the inclusion of that information was necessary to give the true and fair view required by section 297 or 305; and Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-3 Obligations to report (Cont.) • (S.307 cont.) (b) whether the auditor has been given all information, explanation and assistance necessary for the conduct of the audit; and (c) whether the company, registered scheme or disclosing entity has kept financial records sufficient to enable a financial report to be prepared and audited; and (d) whether the company, registered scheme or disclosing entity has kept other records and registers as required by this Act Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-4 Obligations to report (Cont.) • The Corporations Act 2001 (s 308(1)) also clearly specifies that the audit report shall state the auditor’s opinion in relation to: – – section (a) (i) of s 307(1): - compliance with accounting standards, and section (a) (ii) of s 307(1): - true and fair view Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-5 Who the auditor has an obligation to report to • The governing body and members • Management and the board of directors • Australian Securities and Investments Commission (ASIC) Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-6 Learning Objective 2: True and Fair View • Differences in terminology for: – – AUS 702/ASA 700 (ISA 700) — whether financial report presents fairly in accordance with applicable accounting standards and other mandatory professional reporting requirements; and Corporations Act 2001 audits — whether the accounts are drawn up so as to give a true and fair view Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-7 Interpretations of true and fair • Technical interpretation; and • Literal interpretation Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-8 Technical interpretation • Financial report will constitute a true and fair view when prepared in accordance with generally accepted accounting principles (GAAP) • Thus, where an accounting standard has not been complied with, financial reports will not present a true and fair view Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-9 Literal interpretation • View presented by financial information is consistent with auditor’s knowledge of the entity • Allows for non-compliance with GAAP where compliance would result in view presented by financial report inconsistent with auditor’s knowledge of the entity • Standard-setters have effectively adopted a technical interpretation by requiring any “true and fair” override to be in the notes to accounts (these are rare in practice) rather than being reflected in the balance sheet and income statement Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-10 Example of qualified audit opinion paragraph for a statement of inability for form an opinion Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-25 ‘Emphasis of matter’ • Included at end of audit report to draw attention to certain matters that are considered relevant to the reader, but not affect type of audit opinion issued • It is not a qualification, but is used to draw reader’s attention to matters (usually contained in a note to the accounts) that are relevant to the reader’s decisionmaking process • From July 2006, guidance on emphasis of matter opinions is contained in ASA 701 because they are modifications to the auditors’ report (the adding of additional explanatory language), even if they not result in modifications to the auditor’s opinion Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-26 Circumstances giving rise to emphasis of matter (for audits commenced before July 2006) • • Additional disclosures with which auditor concurs; Inherent uncertainty (including going concern) that is adequately disclosed; • Material inconsistency between information contained in documents attached to financial report and the financial report; • Notice that financial report is a revised financial report; and • (Other category in AUS 702 as at 2005, “inappropriateness of going concern…”, cannot give rise to EOM given revised accounting standards in this area) Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-27 Circumstances giving rise to emphasis of matter (for audits commencing on or after July 2006) ASA 701 (ISA 701) outline circumstances in which emphasis of matter can be issued for audits commencing on or after July 2006 • Significant uncertainty - going concern • Significant uncertainty – other • Additional disclosures (only when following an accounting standard results in a misleading financial report) • Material inconsistency between information contained in documents attached to financial report and the financial report; • Subsequent event results in a new auditor’s report on a revised financial report Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-28 ‘Emphasis of matter’ paragraph relating to inherent uncertainties Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-29 Learning Objective 5: Circumstances Giving Rise to a Qualification • Disagreement with management (or those charged with governance) regarding financial report (e.g over applicability of accounting standards or over asset valuations) • Conflict between applicable financial reporting frameworks Very rare in practice (e.g difference between specific legislative requirements and accounting standards) • Limitation on scope of audit (e.g evidence auditor believes should exist but cannot get access to) Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-30 The effect of materiality on the audit qualification • The primary factor when considering whether to qualify an audit opinion, or attempting to determine what sort of qualification to apply, is the materiality of the subject matter giving rise to the qualification • One critical aspect is the dollar magnitude of the effects of the matter on the financial report • The auditor also needs to consider qualitative factors, the nature of the matter, when making judgments regarding materiality Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-31 Circumstances that result in a modified audit Report Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-32 Learning Objective 6: The Audit of Comparative Amounts • Auditor should obtain sufficient, appropriate audit evidence that comparative financial information is not materially misstated • For continuing audits, audit procedures for comparative amounts are minimal • For new engagements, auditor may consider work of previous auditor or perform audit procedures on opening balances Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-33 Auditor’s responsibilities for other information in annual report • Examples of other information include summaries of 510 years of operating results, chairperson’s and directors’ reports • Auditor does not usually have any specific responsibility to substantiate such other information • Auditor should review such information to ensure it does not contain material inconsistencies or misstatements of fact • If inconsistency identified, and the client doesn’t change it, an unqualified opinion with an emphasis of matter usually results (refer circumstances giving rise to EOM) Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-34 Learning Objective 7: Communications with Shareholders • Principal means of communication with shareholders is auditor’s opinion on financial report included in the annual report • Secondary means of communication is through discussions at annual general meetings • Shareholders have opportunity at AGM to ask auditor questions related to conduct of audit, preparation and content of audit report, accounting policies adopted by the company and independence of the auditor Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-35 Communications with executive management • Auditor has a responsibility to report significant matters identified as a result of audit procedures to management on a timely basis • Principal written form of communication between management and auditor is the management letter in which auditor lists the business risks and internal control weaknesses identified, and makes recommendations for improvement Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-36 Communicating with the audit committee or board • Auditor will usually meet with audit committee at or near completion of audit to discuss results of audit • Effective committees should ask auditor about aggressiveness of accounting policy choices and any disagreements with management • Auditor should ensure that the audit committee or board of directors are aware of contents of management letter • Matters that cannot be satisfactorily resolved with executive management must be discussed with the audit committee or the full board Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-37 Communicating through electronic presentation of financial reports • Many companies publish their audited financial report on their websites • Auditor must consider whether audit report might be construed as providing assurance of other information on the website that was unaudited • Auditor should review website to ensure audit report cannot be construed as providing assurance on this other unaudited information Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-38 Recent changes to the audit report • At the end of 2004, IAASB approved a revised standard on audit reports on complete sets of general purpose financial statements designed to provide a true and fair view (ISA 700), which requires a standard form audit report Some features of this standard form audit report are the following: Fuller description of management’s responsibilities (Approximates recent extension to the Australian standard form audit report); – Fuller description of auditors’ responsibilities; and – A two-part audit opinion, where first part is standardised and meets international requirements The second part, if needed, is used to meet a specific country’s requirements – • • Example: Report (Exhibit 13.8, pp 630-631) These changes are now reflected in the revised ASA 700 (ISA 700), which take effect for audit reporting periods commencing on or after July 2006 Copyright  2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett 13-39 ... reporting standards will replace AUS 702 These are: • ASA 700 (ISA 700) The Auditor’s Report on a General Purpose Financial Report • ASA 701 (ISA 701) Modifications to the Auditor’s Report ASA 700 will... Learning Objective 2: True and Fair View • Differences in terminology for: – – AUS 702/ASA 700 (ISA 700) — whether financial report presents fairly in accordance with applicable accounting standards... commencing on or after July 2006, ‘except for’ opinions are referred to as qualified opinions (ASA 701/ ISA 701) This brings Australian auditing standards in line with international auditing standards

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Mục lục

  • Chapter 13 The Auditor’s Reporting Obligations

  • Obligations to Report

  • Obligations to report (Cont.)

  • Slide 4

  • Slide 5

  • Who the auditor has an obligation to report to

  • True and Fair View

  • Interpretations of true and fair

  • Technical interpretation

  • Literal interpretation

  • Audit Reporting Standards Developments from 1 July 2006

  • Structure of the Audit Report

  • Example: Unqualified audit report

  • Example: Unqualified audit report

  • Slide 15

  • Qualitative criteria of audit report

  • Types of Audit Opinions

  • Unqualified opinion

  • ‘Except for’ opinion

  • Example of qualification and qualified opinion paragraph for an ‘except for’ opinion

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