Chapter 32 Compliance Auditing.docx
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Chapter 32 Compliance Auditing.docx
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Chapter32ComplianceAuditing
窗体底部
32
ComplianceAuditing
32.1INTRODUCTION
32.2GENERALLYACCEPTEDAUDITINGSTANDARDS
32.3SPECIALCONSIDERATIONSINPLANNINGAGOVERNMENTALAUDIT
32.4GOVERNMENTAUDITINGSTANDARDS
(a)GeneralStandards,
(b)FieldWorkStandards,
(c)ReportingStandards,
(d)ReportingonHUDAuditsandOtherFederalAudits,
32.5HISTORYOFSINGLEAUDITS
32.6SINGLEAUDITACTAMENDMENTSOF1996ANDOMBCIRCULARA-133
(a)DeterminationofaMajorProgram,
(b)MaterialityandRiskAssessmentUndertheSingleAuditAct,
(i)InherentRisk,
(ii)ControlRisk,
(iii)DetectionRisk,
(c)TestingCompliancewithRequirementsofMajorFederalFinancialAssistancePrograms,
(d)ReportingUndertheSingleAuditAct,
32.1INTRODUCTION
Lawsandgovernmentalregulationsplayanintegralpartinanentity'soperations,andfailuretocomplywiththemmayaffectitsfinancialstatements.Managementisresponsibleforensuringthattheentitycomplieswithapplicablelawsandregulations.Tomeetthisresponsibility,managementidentifiesthoselawsandregulationsandestablishescontrolsdesignedtoprovidereasonableassuranceofcompliance.Theauditor'sresponsibilitiesfortestingandreportingoncompliancewithlawsandgovernmentalregulationsvariesaccordingtothetypeofentitybeingauditedandthetermsoftheengagement.
Duringthemid-1980s,Congressandthepublicbeganexpressingconcernsaboutincreasedreportsofillegalactsandbeganquestioningauditors'responsibilityfordetectingandreportingontheseviolations.Consequently,theAuditingStandardsBoard(ASB)issuedtwoStatementsonAuditingStandards(SASs):
No.53,TheAuditor'sResponsibilitytoDetectandReportErrorsandIrregularities,andNo.54,IllegalActsbyClients.Togethertheydefinedtheauditor'sresponsibilitiesinthisareaundergenerallyacceptedauditingstandards(GAAS).InFebruary1997,theASBissuedSASNo.82,ConsiderationofFraudinaFinancialStatementAudit,whichsupersededSASNo.53.
TheresponsibilitiesincludedintheseSASsapplytoallauditsperformedunderGAAS.Inadditiontotheserequirements,anentity,particularlyagovernmentalornonprofitorganization,mayrequireanauditinaccordancewithgovernmentauditingstandardsissuedbytheComptrollerGeneraloftheUnitedStates,oftenreferredtoasthe"YellowBook";theSingleAuditAct,amendedmostrecentlyin1996;andOfficeofManagementandBudget(OMB)CircularA-133,"AuditsofStates,LocalGovernments,andNon-ProfitOrganizations,"revisedinJune1997.Inperforminganauditinaccordancewiththeserequirements,theauditorassumesresponsibilitiesbeyondthoseencompassedbyGAAS.Familiaritywitheachofthesepronouncements-GAAS,generallyacceptedgovernmentauditingstandards(GAGAS),theSingleAuditAct,andOMBCircularA-133-isessentialfortheauditortofullyunderstandhowtheconsiderationofillegalactsaffectsthescopeofsuchaudits.Thischapterdiscusseseachofthesesourcesofauditguidanceregardinganentity'scompliancewithlawsandregulations.
32.2GENERALLYACCEPTEDAUDITINGSTANDARDS
Theauditor'sprimaryresponsibilitieswithrespecttocomplianceunderGAASaretoprovidereasonableassuranceofdetectingnoncompliancewithlawsandregulationsthatcouldhaveadirectandmaterialeffectonfinancialstatementamountsandtomaketheauditcommitteeawareofanyillegalactsthatcometotheauditor'sattention.Specificauditresponsibilities,whichincludethedetectionoferrors,fraud,andillegalacts,areidentifiedinSASNos.54and82.ThesetermsandresponsibilitiesarediscussedinChapter4.
SASNo.82(AUSection316)statesthat"theauditorshouldspecificallyassesstheriskofmaterialmisstatementofthefinancialstatementsduetofraudandshouldconsiderthatassessmentindesigningtheauditprocedurestobeperformed"(para.316.12).Toensureaneffectiveriskassessment,theauditorshouldobtainanunderstandingoftheentity'sinternalcontrol.SASNo.55,asamendedbySASNo.78,ConsiderationofInternalControlinaFinancialStatementAudit(AUSection319),requirestheauditortoobtainanunderstandingofinternalcontrolsufficienttoplantheauditandtoassesscontrolriskfortheassertionsembodiedinthefinancialstatements.Inassessingcontrolriskwithrespecttocompliance,theauditorshouldconsiderallfivecomponentsofinternalcontrol,asoutlinedinSASNo.78:
thecontrolenvironment,riskassessment,controlactivities,informationandcommunication,andmonitoring.Thisincludesknowledgeofanentity'scontrolsdesignedtoensurecompliancewithlawsandregulationsthathaveadirectandmaterialeffectonthedeterminationoffinancialstatementamounts.Basedonthisassessmentofinternalcontrol,theauditordesignssubstantivetestsforcompliance.
AuditsconductedinaccordancewithGAASordinarilydonotincludeproceduresdesignedspecificallytodetectillegalactsthatmighthaveonlyanindirecteffectonfinancialstatements.However,thesetypesofillegalactsmaycometotheauditor'sattentionthroughproceduresperformedtosupporttheauditopinion,forexample,readingminutesandreviewingmanagement'spoliciesforpreventingillegalacts;inquiringofmanagementandlegalcounselconcerninglitigation,claims,andassessments;andobtainingperiodicrepresentationsfrommanagementrelativetocompliancewithlawsandregulations.SASNo.54providesadditionalguidancewithrespecttodetectingandreportingillegalacts.
Anyillegalactsdetectedbyanauditorshouldbebroughttomanagement'sattentionor,ifmanagementisinvolved,totheattentionoftheauditcommitteeoritsequivalent.SASNos.54and82donotrequiretheauditortoissueaformalauditreportontheclient'scompliancewithlawsandregulations.IftheentityisanSECregistrant,additionalreportingmayberequiredpursuanttothePrivateSecuritiesLitigationReformActof1995.
32.3SPECIALCONSIDERATIONSINPLANNINGAGOVERNMENTALAUDIT
ForpurposesofconductinganauditunderGAGAS,theSingleAuditAct,andOMBCircularA-133,a"governmentalentity"includesfederal,state,andlocalgovernmentsandnonprofitorganizationsthatreceivefederalgovernmentfunds.Indevelopingtheauditstrategyforagovernmentalentity,theauditorshouldconsideralltheapplicableperformanceandreportingrequirementsincombination.Aspreviouslydiscussed,therearefourreferencesources-GAAS,GAGAS,theSingleAuditAct,andOMBCircularA-133.Eachofthesecontainsdifferentrequirements,whichtheauditorshouldunderstandwhenconsideringagovernmentalentity'scompliancewithlawsandregulations.Becausetheprovisionsofthesesourcesoverlap,theASBissuedSASNo.74,ComplianceAuditingConsiderationsinAuditsofGovernmentalEntitiesandRecipientsofGovernmentalFinancialAssistance(AUSection801),toprovideprofessionalguidanceforimplementingthesesourcesastheyapplytocompliancewithlawsandregulations.
UnderGAAS,themethodbywhichanauditorobtainsanunderstandingofinternalcontrolandassessescontrolriskinauditingagovernmentalentityissimilartothatusedinauditsofnongovernmentalentities(explainedindetailinChapters10-12).Becausegovernmentalentitiestypicallyaresubjecttomorespecificlawsandregulationsthanareotherbusinessentities,however,theauditriskoffailingtodetectinstancesofnoncomplianceiscorrespondinglygreater.Consequently,inplanninganauditofagovernmentalentity,itisessentialthattheauditordesignprocedurestoreducetheriskthatthefinancialstatementsmaybemateriallymisstatedduetononcompliancewithlawsandregulationstotheappropriatelylowlevelrequiredbyprofessionalstandards.Theauditoralsoshouldconsidermaterialitynotonlyinrelationtothefinancialstatementsbutalsoinrelationtogovernment-fundedprograms.Failuretoconsiderthisintheplanningstagesmaycauseaduplicationofeffortlaterintheaudit.
Asnotedearlier,inassessingcontrolriskrelativetocompliancewithlawsandregulationsforagovernmentalentity,theauditorshouldconsidercontrolsinallfivecomponentsofinternalcontrol.However,thefollowingcontrolenvironmentfactorsareparticularlyrelevantinplanningagovernmentalaudit:
∙Management'sawarenessofrelevantlawsandregulations
∙Policiesregardingacceptableoperatingpracticesandcodesofconduct
∙Assignmentofresponsibilityanddelegationofauthorityovermatterssuchasorganizationalgoalsandobjectives,operatingfunctions,andcompliancewithregulatoryrequirements
Asdiscussedlaterinthischapter,GAGASrequirethatanauditbedesignedtoprovidereasonableassuranceofdetectingmaterialnoncompliancewithapplicablelawsandregulations.Inplanningandconductingthenecessarytestsofcompliance,theauditorshould:
∙Determinewhichlawsandregulationscould,ifnotcompliedwith,haveadirectandmaterialeffectonthefinancialstatements
∙Determinewhethermanagementhasidentifiedtheselawsandregulations
∙Assess,foreachsignificantlaworregulation,theriskthatmaterialnoncompliancecouldoccur.Thisincludesassessingtheeffectivenessofthedesignofcontrolstheentityhasplacedinoperationtoensurecompliancewithlawsandregulations.
∙Basedonthatassessment,designprocedurestotestcompliancewithlawsandregulationstoprovidereasonableassurancethatintentionalorunintentionalinstancesofnoncompliancethatcouldhaveamaterialeffectonthefinancialstatementshavenotoccurred.Theseproceduresmayincludeconsideringknowledgeobtainedinprioryearaudits;i
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