审计学（英文）_10 INTERNAL CONTROL AND CONTROL RISK

INTERNAL CONTROL AND CONTROL RISK 0 GOOD INTERNAL CONTROL PREVENTS MORE DEFALCATIONS THAN GOOD AUDITORS FIND Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 10 INTERNAL CONTROL AND CONTROL RISK GOOD INTERNAL CONTROL PREVENTS MORE DEFALCATIONS THAN GOOD AUDITORS FIND

Importance of Control Risk Lower Less Control risk Evidence Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Importance of Control Risk Lower Control Risk Less Evidence

Basic Concepts a Managements responsibility 「 Reasonable assurance a Inherent Limitations Reliability of Financial Reporting a Efficiency and effectiveness of operations Compliance with Applicable Laws and Regulations Controls Related to Reliability of Financial Reporting Controls over Classes of Transactions Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. ¶ Management’s Responsibility ¶ Reasonable Assurance ¶ Inherent Limitations ¶ Reliability of Financial Reporting ¶ Efficiency and Effectiveness of Operations ¶ Compliance with Applicable Laws and Regulations ¶ Controls Related to Reliability of Financial Reporting ¶ Controls over Classes of Transactions

Elements of the Control Structure 1. Control Environment 2. Managements Risk Assessment 3. Accounting System 4. Control Activities 5. Monitoring Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 1. Control Environment 2. Management’s Risk Assessment 3. Accounting System 4. Control Activities 5. Monitoring

Components of Internal Control Integrity and ethical values Commitment to Competence Board of Directors of Audit Committee Participation Managements Philosophy and operating Style Organizational Structure Assignment of Authority and responsibility Human resources policies and practices Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Components of Internal Control Organizational Structure Commitment to Competence Board of Directors of Audit Committee Participation Management’s Philosophy and Operating Style Integrity and Ethical Values Assignment of Authority and Responsibility Human Resources Policies and Practices

FIGURE 10-1 Control Environment Risk Control Information and Assessment Activities Monitoring Communication Arens, Loebbecke; Auditing, 8/E 2000 Prentice Hall, Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Risk Assessment Control Environment Monitoring Control Activities Information and Communication FIGURE 10 - 1

Specific Control Activities 1. Separation of Duties 2. Proper Authorization 3. Adequate documents and records 4. Physical Control over Documents and records 5. Independent checks on Performance Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Specific Control Activities 1. Separation of Duties 2. Proper Authorization 3. Adequate Documents and Records 4. Physical Control over Documents and Records 5. Independent Checks on Performance

Separation of duties Custody of Assets from Accounting Authorization from transactions from the Custody of related Assets Operational responsibility for Record-Keeping responsibility Information Technology duties from Duties of Key Users Outside Information Technology Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Operational Responsibility for Record-Keeping Responsibility Information Technology Duties from Duties of Key Users Outside Information Technology Separation of Duties Authorization from Transactions from the Custody of Related Assets

Assessing Contad Obtain Understanding of Internal control Design and perform Tests of control Assess control risk Decide pdr and Substantive test Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Assess Control Risk Decide PDR and Substantive Test Design and Perform Tests of Control Obtain Understanding of Internal Control

obtain nderstandin Minimum Documenting understanding is required Requirements for all audits under sas#55 Assess Auditability Identify potential Errors Assess detection risk Design Effective Test Arens, Loebbecke; Auditing, 8/E

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Assess Auditability Identify Potential Errors Assess Detection Risk Design Effective Test Minimum Requirements Documenting understanding is required for all audits under SAS #55