《会计英语》课程教学课件（PPT讲稿）Unit 13 Auditing

Unit 13Auditing

Unit 13 Auditing

An audit is an exercise whose objective is toenable auditors to express an opinion whetherthe financial statements are prepared, in allmaterial respects,inaccordancewithanidentified financial reporting framework.Audit provides high, but not absolute level ofassurance,expressed intheauditreportasreasonable assurance.Reasonable assurance is nota guarantee ofcorrectness, but an assurance of truth andfairness within a reasonable margin of error.2

2 ⚫ An audit is an exercise whose objective is to enable auditors to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework. ⚫ Audit provides high, but not absolute level of assurance, expressed in the audit report as reasonable assurance. ⚫ Reasonable assurance is not a guarantee of correctness, but an assurance of truth and fairness within a reasonable margin of error

ContentI : Auditing Standard and Professional EthicsII. Types of AuditingII. Auditing ProceduresIV. Audit ReportV . Types of Audit ReportVI. A sample of audit report (CSAC)

3 Content ⚫Ⅰ. Auditing Standard and Professional Ethics ⚫Ⅱ. Types of Auditing ⚫Ⅲ. Auditing Procedures ⚫Ⅳ. Audit Report ⚫Ⅴ. Types of Audit Report ⚫Ⅵ. A sample of audit report (CSAC)

I . Auditing Standard and Professional EthicsReportingGeneralFieldworkStandardsStandardsStandards1.Auditing Standard

4 General Standards Fieldwork Standards Reporting Standards 1.Auditing Standard Ⅰ. Auditing Standard and Professional Ethics

General Standards1.The auditor must have adequate technicaltraining and proficiency to perform the audit.2.The auditor must maintain independencein mental attitude in all matters related to theaudit.3.The auditor must use due professionalcare during the performance of the auditand the preparation of the report.5

5 General Standards 1.The auditor must have adequate technical training and proficiency to perform the audit.  2.The auditor must maintain independence in mental attitude in all matters related to the audit.  3.The auditor must use due professional care during the performance of the audit and the preparation of the report

Fieldwork Standards1. The auditor must adequately plan the workand mustproperly superviseany assistants.2. The auditor must obtain a sufficientunderstanding of the entity and its environmentincluding its internal control, to assess the riskof material misstatement of the financialstatements whether due to error or fraud, andto design the nature, timing, and extent offurther audit procedures.3. The auditor must obtain sufficient appropriateaudit evidence by performing audit proceduresto afford a reasonable basis for an opinionregarding the financial statements under audit6

6 Fieldwork Standards ◆1. The auditor must adequately plan the work and must properly supervise any assistants. ◆2. The auditor must obtain a sufficient understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures. ◆3. The auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit

Reporting Standards 1.The auditor must state in the auditor's reportwhether the financial statements are presentedin accordance with generally acceptedaccounting principles 2.The auditor must identify in the auditor's reportthose circumstances in which such principleshave not been consistently observed in thecurrent period in relation to the preceding period 3.When the auditor determines that informativedisclosures are not reasonably adequate, theauditor must so state in the auditor's report

7 Reporting Standards 1.The auditor must state in the auditor's report whether the financial statements are presented in accordance with generally accepted accounting principles. 2.The auditor must identify in the auditor's report those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period.  3.When the auditor determines that informative disclosures are not reasonably adequate, the auditor must so state in the auditor's report

4.The auditor must either express an opinionregarding the financial statements, taken as awhole, or state that an opinion cannot beexpressed, in the auditor's report.When the auditor cannot express an overallopinion, the auditor should state the reasonstherefore in the auditor's report. In all caseswhere an auditor's name is associated withfinancial statements, the auditor should clearlyindicate the character of the auditor's work, ifany, and the degree of responsibility theauditor is taking, in the auditor's report8

8 4.The auditor must either express an opinion regarding the financial statements, taken as a whole, or state that an opinion cannot be expressed, in the auditor's report. When the auditor cannot express an overall opinion, the auditor should state the reasons therefore in the auditor's report. In all cases where an auditor's name is associated with financial statements, the auditor should clearly indicate the character of the auditor's work, if any, and the degree of responsibility the auditor is taking, in the auditor's report

2. Professional Ethics(a) IntegrityAprofessionalaccountantshouldbestraightforward and honest in all professional andbusinessrelationships(b) ObjectivityA professional accountant should not allow bias.conflict of interest or undue influence of others tooverride professional orbusiness judgments(c) Professional Competence and Due CareAprofessional accountanthasa continuingdutyto maintainprofessional knowledge and skill at thelevel requiredtoensurethataclientoremployerreceivescompetentprofessional servicebasedoncurrent developments in practice, legislation andtechniques.9

9 2. Professional Ethics ◆(a) Integrity A professional accountant should be straightforward and honest in all professional and business relationships. ◆(b) Objectivity A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments. ◆(c) Professional Competence and Due Care A professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques

(d) ConfidentialityAprofessional accountant should respecttheconfidentiality of information acquired as a resultof professional and business relationships andshould not disclose any such information to thirdparties without proper and specific authorityunless there is a legal or professional right orduty to disclose.(e) Professional BehaviorAprofessional accountant should comply withrelevant laws and regulations and should avoidany action that discredits the profession.10

10 ◆(d) Confidentiality A professional accountant should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose. ◆(e) Professional Behavior A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession