審計(jì)學(xué)一種整合方法

1、3 - 1Audit ReportsChapter 3Learning Objective 1Describe the parts of the standardunqualified audit report.Parts of the StandardUnqualified Audit Report1. Report title2. Audit report address3. Introductory paragraph4. Scope paragraph5. Opinion paragraph6. Name of CPA firm7. Audit report dateLearning

2、Objective 2Specify the conditions requiredto issue the standard unqualifiedaudit report.Conditions for StandardUnqualified Audit Report1. All financial statements are included.2. The three general standards have beenfollowed in all respects on the engagement.3. Sufficient evidence has been accumulat

3、edto conclude that the three standards offield work have been met.Conditions for StandardUnqualified Audit Report4. The financial statements are presented inaccordance with generally acceptedaccounting principles.5. There are no circumstances requiring theaddition of an explanatory paragraph ormodif

4、ication of the wording of the report.Four Categories of Audit Reports1. Standard unqualified3. Qualified2. Unqualified with explanatory paragraphor modified wording4. Adverse or disclaimerLearning Objective 3Understand combined reportingon financial statements andinternal control over financialrepor

5、ting under Section 404 ofthe Sarbanes-Oxley Act.Sarbanes-Oxley ActThis Act requires the auditor of a publiccompany to attest to managementsreport on the effectiveness of internalcontrol over financial reporting.PCAOB Auditing Standard 2 requiresthe audit of internal control to be integratedwith the

6、audit of the financial statements.Sarbanes-Oxley ActCombined Report on Financial Statements andInternal Control Over Financial Reporting1. Introductory paragraph2. Scope paragraph 3. Definition paragraph4. Inherent limitations paragraph5. Opinion paragraphLearning Objective 4Describe the five circum

7、stanceswhen an unqualified report withan explanatory paragraph ormodified wording is appropriate.Unqualified Report with Explanatory Paragraph1. Lack of consistent application of generallyaccepted accounting principles2. Substantial doubt about going concern3. Auditor agrees with a departure frompro

8、mulgated accounting principles4. Emphasis of a matter5. Reports involving other auditorsSubstantial Doubt AboutGoing Concern1. Significant recurring operating lossesor working capital deficiencies.2. Inability of the company to pay itsobligations as they come due.3. Loss of major customers, the occu

9、rrenceof uninsured catastrophes.4. Legal proceedings, legislation that mightjeopardize the entitys ability to operate.Auditor Agrees with a Departurefrom a Promulgated PrincipleThe auditor must be satisfied and must stateand explain, in a separate paragraph orparagraphs in the audit report, that adh

10、eringto the principle would have produced amisleading result in that situation.Emphasis of a MatterUnder certain circumstances, the CPA maywant to emphasize specific matters regardingthe financial statements, even though theCPA intends to express an unqualified opinion.Reports Involving Other Audito

11、rs1. Make no reference in the audit report3. Qualify the opinion2. Make reference in the report(modified wording report)Learning Objective 5Identify the types of audit reportsthat can be issued when anunqualified opinion is not justified.Departures from AnUnqualified Opinion1. Scope limitation2. GAA

12、P departure3. Auditor not independentQualified OpinionA qualified opinion report can result froma limitation on the scope of the audit orfailure to follow generally acceptedaccounting principles.Adverse OpinionIt is used only when the auditor believesthat the overall financial statements areso mater

13、ially misstated or misleading thatthey do not present fairly the financialposition or results of operations and cashflows in conformity with GAAP.Disclaimer of OpinionIt is issued when the auditor is unableto be satisfied that the overall financialstatements are fairly presented.Learning Objective 6

14、Explain how materiality affectsaudit reporting decisions.MaterialityA misstatement in the financial statementscan be considered material if knowledge ofthe misstatement would affect a decisionof a reasonable user of the statements.Levels of MaterialityAmounts are immaterial.Amounts are material but

15、do not overshadowthe financial statements as a whole.Amounts are so material or so pervasive thatoverall fairness of the statements is in question.Relationship of Materiality toType of OpinionMaterialityLevelSignificance in Terms ofReasonable Users DecisionsType ofOpinionUsers decisions are unlikely

16、to be affected.ImmaterialUnqualifiedUsers decisions are likelyto be affected.MaterialQualifiedUsers decisions are likelyto be significantly affected.HighlymaterialDisclaimeror adverseMateriality DecisionsFailure tofollow GAAPAudit reportUnqualifiedQualifiedopinion onlyAdverseMateriality Decisions Do

17、llar amount compared with a base Measurability Nature of the itemMateriality DecisionsScopelimitationAudit reportUnqualifiedQualified scopeand opinionDisclaimerLearning Objective 7Draft appropriately modifiedaudit reports under a varietyof circumstances.Discussion of ConditionsRequiring Departure Au

18、ditors scope has been restricted Statements are not in conformity with GAAP Auditor is not independentLearning Objective 8Determine the appropriate auditreport for a given audit situation.Auditors Decision ProcessDetermine whether any condition existsrequiring a departure from a standardunqualified

19、report. Decide the materiality for each condition Decide the appropriate type of report Write the audit reportMore Than One Condition Requiringa Departure or ModificationThe auditor is not independent.There is a scope limitation.There is a substantial doubt aboutthe companys ability to continueas a going concern.There is a deviation in the statementspreparation in accordance to GAAP.Number of Paragraphsin the ReportStandar