Auditing And Assurance Chapter1 ppt

1、©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-1TheDemandforAuditandOtherAssuranceServicesChapter1©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-2Sarbanes-OxleyActTheActestablishedthePublicCompanyAccountingOversightBoard.Italsorequiresauditorstoattesttomanagementreportsontheeffectivenessofinternalcontroloverfinancialreporting.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-3LearningObjective1Describeauditing.©2008PrenticeHallBu。

2、sinessPublishing,Auditing12/e,Arens/Beasley/Elder1-4NatureofAuditingAuditingistheaccumulationandevaluationofevidenceaboutinformationtodetermineandreportonthedegreeofcorrespondencebetweentheinformationandestablishedcriteria.Auditingshouldbedonebyacompetent,independentperson.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-5InformationandEstablishedCriteriaTodoanaudit,theremustbeinformationinaverifiableformandsomestandards(criteria)bywhichtheauditorcanevaluatetheinformation.©2。

3、008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-6AccumulatingEvidenceandEvaluatingEvidenceEvidenceisanyinformationusedbytheauditortodeterminewhethertheinformationbeingauditedisstatedinaccordancewiththeestablishedcriteria.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-7Competent,IndependentPersonTheauditormustbequalifiedtounderstandthecriteriausedandmustbecompetenttoknowthetypesandamountofevidencetoaccumulatetoreachtheproperconclusionaftertheevidencehasb。

4、eenexamined.Thecompetenceoftheindividualperformingtheauditisoflittlevalueifheorsheisbiasedintheaccumulationandevaluationofevidence.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-8AuditReportThefinalstageintheauditingprocessispreparingtheAuditReport,whichisthecommunicationoftheauditor’sfindingstousers.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-9AuditofaTaxReturnExampleInternalRevenueagentCompetent,independentpersonExaminescancelledchecksandothersu。

5、pportingrecordsAccumulatesandevaluatesevidenceDeterminescorrespondenceFederaltaxreturnsfiledbytaxpayerInformationInternalRevenueCodeandallinterpretationsEstablishedcriteriaReportontaxdeficienciesReportonresults©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-10LearningObjective2Distinguishbetweenauditingandaccounting.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-11DistinguishBetweenAuditingandAccountingAccountingistherecording,classifying,andsummarizi。

6、ngofeconomiceventsforthepurposeofprovidingfinancialinformationusedindecisionmaking.Auditingisdeterminingwhetherrecordedinformationproperlyreflectstheeconomiceventsthatoccurredduringtheaccountingperiod.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-12LearningObjective3Explaintheimportanceofauditinginreducinginformationrisk.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-13EconomicDemandforAuditingInformationriskreflectsthepossibilitythattheinformationu。

7、ponwhichthebusinessriskdecisionwasmadewasinaccurate.Auditingcanhaveasignificanteffectoninformationrisk.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-14LearningObjective4Listthecausesofinformationrisk,andexplainhowthisriskmaybereduced.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-15CausesofInformationRiskRemotenessofinformationBiasesandmotivesoftheproviderVoluminousdataComplexexchangetransactions©2008PrenticeHallBusinessPublishing,Auditing12/e,A。

8、rens/Beasley/Elder1-16ReducingInformationRiskUserverifiesinformationUsersharesinformationriskwithmanagementAuditedfinancialstatementsareprovided©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-17LearningObjective5DescribeassuranceservicesanddistinguishauditservicesfromotherassuranceandnonassuranceservicesprovidedbyCPAs.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-18AssuranceServicesAnassuranceserviceisanindependentprofessionalservicethatimprovesth。

9、equalityofinformationfordecisionmakers.AssuranceservicescanbeperformedbyCPAsorbyavarietyofotherprofessionals.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-19AttestationServicesAnattestationserviceisatypeofassuranceserviceinwhichtheCPAfirmissuesareportaboutthereliabilityofanassertionthatistheresponsibilityofanotherparty.©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-20AttestationServices1.Auditofhistoricalfinancialstatements2.Attestationofinternalcon。

10、troloverfinancialreporting3.Reviewofhistoricalfinancialstatements4.Attestationservicesoninformationtechnology5.Otherattestationservices©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-21RelationshipsAmongAuditors,Client,andExternalUsersClientAuditorClientorauditcommitteehiresauditorExternalUsersAuditorissuesreportrelieduponbyusers©2008PrenticeHallBusinessPublishing,Auditing12/e,Arens/Beasley/Elder1-22OtherAssuranceServicesMostoftheotherassuranceservicesthatCPAsprovidedonotmee。