Chapter 27 Completing the Audit.docx
- 文档编号:24247487
- 上传时间:2023-05-25
- 格式:DOCX
- 页数:50
- 大小:251.29KB
Chapter 27 Completing the Audit.docx
《Chapter 27 Completing the Audit.docx》由会员分享,可在线阅读,更多相关《Chapter 27 Completing the Audit.docx(50页珍藏版)》请在冰豆网上搜索。
Chapter27CompletingtheAudit
窗体底部
PART4
CompletingtheWorkandReportingtheResults
27
CompletingtheAudit
27.1AnalyticalProcedures
27.2ReadingMinutesofMeetings
27.3Lawyers'Letters
(a)AuditingProcedures,
(b)InquiryofanEntity'sLawyer,
(i)AcceptableLimitationsontheScopeofLawyers'Responses,
(ii)ResponsesResultinginScopeLimitations,
(iii)ResponsesRequiringFurtherManagementandAuditorConsideration,
(c)InsideCounsel,
(d)ChangesorResignationsofLawyers,
27.4ManagementRepresentations
(a)WrittenRepresentations,
(i)Materiality,
(ii)Definitions,
(iii)DatingandSigning,
(iv)ScopeLimitations,
(v)RepresentationsfromOthers,
(b)RepresentationsinOtherthanAuditEngagements,
27.5SummarizingMisstatementsandEvaluatingtheAuditFindings
(a)CategoriesofMisstatementstoBeEvaluated,
(b)PreparingandUsingtheSummary,
(c)AggregatingandNettingMisstatements,
(d)QuantitativeAspectsofMaterialityJudgments,
(e)QualitativeConsiderationsinEvaluatingMisstatements,
(f)TreatmentofPrior-YearWaivedAdjustments,
(g)DispositionofItemsontheSummaryofAuditDifferences,
27.6WorkingPaperReview
(a)KeyEngagementMatters,
(b)TypesofReviews,
(c)ReviewbyaConcurringReviewPartner,
(d)ConsultationonCriticalIssues,
(e)AidsforReviewers,
(f)TimingoftheReviewProcess,
(g)DocumentationofSignificantReviewFindings,
27.7SubsequentEvents
(a)TypesofSubsequentEvents,
(b)Auditor'sResponsibilityforSubsequentEvents,
(c)AuditingProceduresintheSubsequentPeriod,
(d)DatingtheReport,
(i)AuditPlanningConsiderations,
(ii)DualDating,
(e)TheSecuritiesActof1933,
(i)SubsequentEventProceduresforKeepingCurrent,
(ii)LettersforUnderwriters,
27.8AdministrativeWrap-up
Thischapterdealswithauditingproceduresandconsiderationsthatarepartofthefinalphaseofanauditbutarenotrelatedtospecifictransactioncyclesoraccounts.Thefinalphaseoccursprimarilyafterthebalancesheetdate.Theseproceduresentailmanysubjectivedecisionsrequiringjudgmentandexperience,andthustheseniormembersoftheengagementteamusuallyperformthem.
Thejudgmentsmadeduringthisphaseofanauditareoftencrucialtotheultimateoutcomeoftheengagement.Accordingly,theproceduresshouldreflecttheauditor'sassessmentoftherisksassociatedwiththeentity'sbusinessandthefinancialstatements.Theprocedurescoveredinthischapteroftenbringtolightmattersthatareofmajorconcerninforminganopiniononthefinancialstatements.
27.1AnalyticalProcedures
AsnotedinChapter15(Section15.3,AnalyticalProcedures),StatementonAuditingStandards(SAS)No.56,AnalyticalProcedures(AUSection329),requirestheauditortoperformanalyticalproceduresasanoverallreviewofthefinancialstatementsatorneartheendoftheaudit.Theobjectiveofanalyticalproceduresusedatthisstageistohelptheauditorassesstheconclusionsreachedduringtheauditandformanopiniononthefinancialstatements.Theoverallreviewgenerallyincludesreadingthestatementsandnotes,andconsidering(a)whethertheinformationandexplanationsgatheredinresponsetounusualorunexpectedbalancesorrelationshipspreviouslyidentifiedareadequate,and(b)whetherthereareunusualorunexpectedbalancesorrelationshipsthatwerenotpreviouslyidentified.Theauditormayuseavarietyofanalyticalprocedures(asdescribedinChapter15)inmakingthisoverallreview.Thoseproceduresmayprovideaddedevidencethatthefinancialstatementsarenotmateriallymisstatedbecauseofundetectederrorsorfraud,ortheymayindicatetheneedforadditionalauditingproceduresbeforethereportonthefinancialstatementsisissued.
27.2ReadingMinutesofMeetings
Readingtheminutesofmeetingsoftheboardofdirectorsanditsimportantcommitteesenablestheauditortoexaminetheboard'sapprovalofmanagement'ssignificantactionsandtodeterminewhethersignificantdecisionsthataffectthefinancialstatementsorrequiredisclosureinthenoteshavebeenappropriatelyreflectedtherein.Oftentheauditorreadsminutesofmeetingsshortlyafterthemeetingsorduringtheearlystageoftheyear-endfieldwork.Thisallowstheauditortoamendtheauditstrategy,ifnecessary,foractionstheboardoraboardcommitteehastaken.Forexample,theboard'sauthorizingthedisposalofasegmentofthebusinesscouldsignificantlyaffecttheauditstrategy.Theauditorshouldbesatisfiedthatcopiesofminutesofallmeetingsheldduringtheperiodhavebeenprovided,includingmeetingsheldafteryear-endbutbeforethedateoftheauditreport.Ifminuteswerenotpreparedandapprovedformeetingsheldshortlybeforethedateoftheauditreport,theauditorshouldinquireofthesecretaryoftheboardorthecommitteeaboutactionstaken.Thisinquiryshouldbedocumentedintheworkingpapers.
27.3Lawyers'Letters
Chapter26discussedaccounting,reporting,andauditingaspectsoflosscontingencies.Withrespecttooneparticulargroupoflosscontingencies-litigation,claims,andassessments-paragraph4ofSASNo.12,InquiryofaClient'sLawyerConcerningLitigation,Claims,andAssessments(AUSection337.04),requirestheauditortoobtainevidentialmatterrelatedtothefollowingfactors:
∙Theexistenceofacondition,situation,orsetofcircumstancesindicatinganuncertaintyastothepossiblelosstoanentityarisingfromlitigation,claims,andassessments
∙Theperiodinwhichtheunderlyingcauseforlegalactionoccurred
∙Theprobabilityofanunfavorableoutcome
∙Theamountorrangeofpotentialloss
Theterm"litigation,claims,andassessments"includesbothpendingandthreatenedlitigation,claims,andassessmentsandunassertedclaimsandassessments.Theauditorneedstoidentifyallmateriallitigation,claims,andassessmentsandtoobtainsufficientcompetentevidentialmatterabouttheirrecognition,measurement,anddisclosure.
(a)AuditingProcedures
Managementisresponsibleforadoptingpoliciesandprocedurestoidentify,evaluate,andaccountforlitigation,claims,andassessments.Accordingly,theauditor'sprocedureswithrespecttosuchmattersshouldinclude:
∙Askingmanagementaboutitspoliciesandproceduresforidentifying,evaluating,andaccountingforlitigation,claims,andassessments
∙Nearthecompletionoffieldwork,obtainingfrommanagementadescriptionandevaluationoflitigation,claims,andassessmentsasofthebalancesheetdateandduringtheperiodfromthebalancesheetdatetothedatetheinformationisfurnished
∙Examiningdocumentsrelatedtolitigation,claims,andassessments,includingcorrespondenceandinvoicesfromlawyers
∙Requestingmanagementtosendaletterofauditinquirytolawyerswhowereconsultedconcerninglitigation,claims,andassessments
∙Obtainingassurancefrommanagement-preferablyintherepresentationletter,discussedlaterinthischapter-thatallcontingencies,includinglitigation,claims,andassessments,requiredtobedisclosedbyStatementofFinancialAccountingStandards(SFAS)No.5havebeendisclosedandthatallunassertedclaimsthatcounselhasadvisedmanagementareprobableofassertionandmustbedisclosedinaccordancewithSFASNo.5havebeendisclosed.
Proceduresundertakenfordifferentpurposes,forexample,readingminutes,contracts,agreements,leases,andcorrespondencewithtaxingauthorities,alsomaydisclosetheexistenceoflitigation,claims,andassessments.
(b)InquiryofanEntity'sLawyer
Theauditorcanascertainreadilytheexistenceoflitigation,claims,andassessmentswhentheaccountsincludeprovisionsforlosses.Also,whilemakingroutineauditinquiriesandperformingtestsforunrecordedandcontingentliabilities,theauditormaybecomeawareofeventsthatarelikelytogiveorhavegivenrisetolitigation,claims,orassessments.Certainevents,however,suchaspatentinfringementorpricefixing,maybemoredifficulttodetectinanaudit.AsnotedinSASNo.54,IllegalActsbyClients(AUSection317.06),andasdiscussedinChapter4,manylawsorregulations"relatemoretoanentity'soperatingaspectsthantoitsfinancialandaccountingaspects,andtheirfinancialstatementeffectisindirect.Anauditorordinarilydoesnothavesufficientbasisforrecognizingpossibleviolationsofsuchlawsandregulations."
AtaboutthesametimethatSASNo.12wasissued,theAmericanBarAssociation(ABA)issueda"StatementofPolicyRegardingLawyers'ResponsestoAuditors'RequestsforInformation,"whichisreproducedinAppendixCtoSASNo.12.Theseprofessionalstandardsrequiretheauditor,management,andlawyeralltobecomeinvolvedindeterminingwhichlitigation,claims,andassessmentsneedtobedisclosed.Managementistheprimarysourceofinformationconcerninglitigation,claims,andassessments;thelawyerisexpectedtocorroboratetotheauditorthecompletenessoftheinformationmanagementsuppliedtotheauditorandthelawyerregardingpendingorthreatenedlitigation,claims,andassessments.
Specifically,SASNo.12(AUSection337.09)requires,amongotherthings,thefollowingtobeincludedinmanagement'sletterofauditinquirytothelawyer:
∙Alistpreparedbymanagement(orarequestbymanagementthatthelawyerpreparealist)thatdescribesandevaluatespendingorthreatenedlitigation,claims,andassessmentswithrespecttowhichthelawyerhasbeenengaged.Whenmanagementpreparesthelist,thelawyer'sresponseshouldstate
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- Chapter 27 Completing the Audit