审计学（英文）_08 AUDIT PLANNING AND DOCUMENTATION

AUDIT PLANNINGAND DOCUMENTATION 8 AN AUDITOR WHO DOES NOT UNDERSTAND A CLIENT'S BUSINESS TAKES A GREAT RISK Arens, Loebbecke: Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 8 AUDIT PLANNING AND DOCUMENTATION AN AUDITOR WHO DOES NOT UNDERSTAND A CLIENT’S BUSINESS TAKES A GREAT RISK

1. Need an effective and efficient audit plan 2. Under-audit- see you in court 3. Over-audit-lose clients to competitors Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 1. Need an effective and efficient audit plan 2. Under-audit - see you in court 3. Over-audit - lose clients to competitors

The work is to be adequately planned, and assistants, ifany, are to be properly supervised. 1. Preplan 2. Obtain client background information 3. Obtain information about legal obligations 4. Perform preliminary analytical procedures Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 1. Preplan 2. Obtain client background information 3. Obtain information about legal obligations 4. Perform preliminary analytical procedures The work is to be adequately planned, and assistants, if any, are to be properly supervised

FIGURE 8-1 Planning an Audit and Designing an Audit Approach Preplan Obtain background information Obtain information about client' s legal obligations Perform preliminary analytical procedures Set materiality, and assess acceptable audit risk and inherent risk Understand internal control and assess control risk Develop overall audit plan and audit program Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Preplan Obtain background information Obtain information about client’s legal obligations Perform preliminary analytical procedures Set materiality, and assess acceptable audit risk and inherent risk Understand internal control and assess control risk Develop overall audit plan and audit program FIGURE 8 - 1 Planning an Audit and Designing an Audit Approach

Do we want this client? Are we independent? Are we technically competent? Is client reputable? Who will use financial statements? (Ke ey part of acceptable audit risk discussed in Chapter 8) Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Do we want this client? - Are we independent? - Are we technically competent? - Is client reputable? Who will use financial statements? (Key part of acceptable audit risk - discussed in Chapter 8)

Understanding with Client Must obtain and document understanding(sas #83) Written engagement letter recommended Timing Fees Client assistance Other services Limits of audit Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. • Must obtain and document understanding (SAS #83) • Written engagement letter recommended - Timing - Fees - Client assistance - Other services - Limits of audit

w出 precessor predecesso Required by Sas #84/ Purpose is to assess whether to accept client Successor Initiates predecessor needs client permission to release information Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Required by SAS #84 Purpose is to assess whether to accept client Successor Initiates predecessor needs client permission to release information

Successor Predecesso GommunicatiogOr Usually review prior auditor working papers Determine whether problems exist Support beginning asset balances (why?) Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. • Usually review prior auditor working papers - Determine whether problems exist - Support beginning asset balances (Why?)

ALYTICALPROCEIURES Analytical procedures used in planning the audit should focus on: 1. Material weaknesses in internal control 2. Predictability of financial data from individual transactions 3. The various assertions that are embodied in the financial statements 4. Areas that may represent specific risks relevant to the audit. Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Analytical procedures used in planning the audit should focus on: 1. Material weaknesses in internal control. 2. Predictability of financial data from individual transactions. 3. The various assertions that are embodied in the financial statements. 4. Areas that may represent specific risks relevant to the audit

Identify Related parties Concern is that they are adequately disclosed By nature, are not arm's length Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Identify Related Parties • Concern is that they are adequately disclosed • By nature, are not arm’s length