审计学（英文）_25 Internal and Governmental Financial Auditing and Operational Auditing

Internal and Governmental25 Financial Auditing and Operational Auditing Good Auditing Often Results in Improved Cash Flows Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Internal and Governmental 25 Financial Auditing and Operational Auditing Good Auditing Often Results in Improved Cash Flows

Internal Financial Auditing Institute of internal Auditors Relationship of internal and external auditors Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Internal Financial Auditing Institute of Internal Auditors Relationship of Internal and External Auditors

Governmental Financial Auditing The primary source of authoritative literature for performance of government audits is Government Auditing standards, which is issued by the gao Because of the color of the cover it is usually referred to as the“ Yellow B0ok” The Yellow Book standards are often called general accepted government auditing standards (gagas or gas) Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Governmental Financial Auditing The primary source of authoritative literature for performance of government audits is Government Auditing Standards, which is issued by the GAO. The Yellow Book standards are often called general accepted government auditing standards (GAGAS or GAS). Because of the color of the cover, it is usually referred to as the “Yellow Book

Financialaudit and reporting Requirements Yellow book Materiality and significance Quality control Compliance auditing Reporting Working papers Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Financial Audit and Reporting Requirements￾Yellow Book • Materiality and significance • Quality control • Compliance auditing • Reporting. • Working papers

Audit and reporting Requirements-Single Audit Act and OMB Circular A-133 The threshold for requiring a single audit was raised from S100,000 to $300,000 to exempt many smaller entities from single audit requirements Statutory coverage of the single audit was extended to not-for-profit organizations, as well as to state and local governments a risk-based approach is to be used in selecting programs for testing. Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Audit and Reporting Requirements-Single Audit Act and OMB Circular A-133 • The threshold for requiring a single audit was raised from $100,000 to $300,000 to exempt many smaller entities from single audit requirements. • Statutory coverage of the single audit was extended to not-for-profit organizations, as well as to state and local governments. • A risk-based approach is to be used in selecting programs for testing

Audit Requirements The audit should be in accordance with generally accepted government auditing standards gagas or gas). The auditor must obtain an understanding of internal control over federal programs sufficient to support a low assessed level of control risk for major programs. The auditor should determine whether the client had compiled with laws, regulations, and the provisions of contracts orgrant agreements that may have a direct and material effect on each of its major programs. Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Audit Requirements The audit should be in accordance with generally accepted government auditing standards (GAGAS or GAS). The auditor must obtain an understanding of internal control over federal programs sufficient to support a low assessed level of control risk for major programs. The auditor should determine whether the client had compiled with laws, regulations, and the provisions of contracts or grant agreements that may have a direct and material effect on each of its major programs

Reporting Requirements An opinion on whether the financial statements are in accordance with GaaP, and an opinion as to whether the schedule of federal awards is presented fairly in all material respects in relation to the financial statements as a whole A report on internal control related to the financial statements and major program. A report on compliance with laws, regulations, and the provisions of contracts or grant agreements. A schedule of findings and questioned costs. Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Reporting Requirements An opinion on whether the financialstatements are in accordance with GAAP, and an opinionas to whether the schedule of federal awardsis presented fairly in all material respectsin relation to the financialstatements as a whole. A report on internal control related to the financial statements and major program. A report on compliance with laws, regulations, and the provisions of contracts or grant agreements. A schedule of findings and questioned costs

Operational Auditing We prefer to use operational auditing broadly, as long as the purpose of the test is to determine the effectiveness or efficiency of any part of an organization. Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Operational Auditing We prefer to use operational auditing broadly, as long as the purpose of the test is to determine the effectiveness or efficiency of any part of an organization

Difference between Operational and financial Auditing Purpose of the audit Distribution of the reports Inclusion of Nonfinancial areas Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Difference between Operational and Financial Auditing Purpose of the Audit Distribution of the Reports Inclusion of Nonfinancial Areas

Effectiveness versus Efliciency Types of Inefficiency Types of Inefficiency Acquisition of goods and services Raw materials are not available for is excessively costly. production when needed. Example Example Bids for purchases of material are An entire assembly line must be shut not required down because necessary materials were not ordered Arens, Loebbecke; Auditing, 8/ @2000 by Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Effectiveness versus Efficiency Types of Inefficiency • Acquisition of goods and services is excessively costly. Example • Bids for purchases of material are not required. Types of Inefficiency • Raw materials are not available for production when needed. Example • An entire assembly line must be shut down because necessary materials were not ordered