審計學(xué)一種整合方法15版英文教輔資源AEB15-SM-C02-v

2-1

Chapter2

TheCPAProfession

ReviewQuestions

2-1ThefourmajorservicesthatCPAsprovideare:

1.AuditandassuranceservicesAssuranceservicesareindependentprofessionalservicesthatimprovethequalityofinformationfordecisionmakers.Assuranceservicesincludeattestationservices,whichareanyservicesinwhichtheCPAfirmissuesareportthatexpressesaconclusionaboutthereliabilityofanassertionthatistheresponsibilityofanotherparty.Thefourcategoriesofattestationservicesareauditsofhistoricalfinancialstatements,attestationontheeffectivenessofinternalcontroloverfinancialreporting,reviewsofhistoricalfinancialstatements,andotherattestationservices.

2.AccountingandbookkeepingservicesAccountingservicesinvolvepreparingtheclient’sfinancialstatementsfromtheclient’srecords.Bookkeepingservicesincludethepreparationoftheclient’sjournalsandledgersaswellasfinancialstatements.

3.TaxservicesTaxservicesincludepreparationofcorporate,individual,andestatereturnsaswellastax-planningassistance.

4.ManagementconsultingservicesTheseservicesrangefromsuggestionstoimprovetheclient’saccountingsystemtocomputerinstallations.

2-2ThemajorcharacteristicsofCPAfirmsthatpermitthemtofulfilltheirsocialfunctioncompetentlyandindependentlyare:

1.OrganizationalformACPAfirmexistsasaseparateentitytoavoidanemployer-employeerelationshipwithitsclients.TheCPAfirmemploysaprofessionalstaffofsufficientsizetopreventoneclientfromconstitutingasignificantportionoftotalincomeandtherebyendangeringthefirm’sindependence.

2.ConductACPAfirmemploysaprofessionalstaffofsufficientsizetoprovideabroadrangeofexpertise,continuingeducation,andpromotionofaprofessionalindependentattitudeandcompetence.

3.PeerreviewThispracticeevaluatestheperformanceofCPAfirmsinanattempttokeepcompetencehigh.

2-3ThePublicCompanyAccountingOversightBoardprovidesoversightforauditorsofpubliccompanies,includingestablishingauditingandqualitycontrolstandardsforpubliccompanyaudits,andperforminginspectionsofthequalitycontrolsatauditfirmsperformingthoseaudits.

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2-4ThepurposeoftheSecuritiesandExchangeCommissionistoassistinprovidinginvestorswithreliableinformationuponwhichtomakeinvestmentdecisions.SincemostreasonablylargeCPAfirmshaveclientsthatmustfilereportswiththeSECeachyear(allcompaniesfilingregistrationstatementsunderthesecuritiesactsof1933and1934mustfileauditedfinancialstatementsandotherreportswiththeSECatleastonceeachyear),theprofessionishighlyinvolvedwiththeSECrequirements.

TheSEChasconsiderableinfluenceinsettinggenerallyacceptedaccountingprinciplesanddisclosurerequirementsforfinancialstatementsbecauseofitsauthorityforspecifyingreportingrequirementsconsiderednecessaryforfairdisclosuretoinvestors.Inaddition,theSEChaspowertoestablishrulesforanyCPAassociatedwithauditedfinancialstatementssubmittedtotheCommission.

2-5TheAICPAistheorganizationthatsetsprofessionalrequirementsforCPAs.TheAICPAalsoconductsresearchandpublishesmaterialsonmanydifferentsubjectsrelatedtoaccounting,auditing,managementadvisoryservices,andtaxes.TheorganizationalsopreparesandgradestheCPAexaminations,providescontinuingeducationtoitsmembers,anddevelopsspecialtydesignationstohelpmarketandassurethequalityofservicesinspecializedpracticeareas.

2-6StatementsonStandardsforAttestationEngagementsprovideaframework

forattestengagements,includingdetailedstandardsforspecifictypesofattestationengagements.

2-7ThePCAOBhasresponsibilityforestablishingauditingstandardsforU.S.publiccompanies,whiletheAuditingStandardsBoard(ASB)oftheAICPAestablishesauditingstandardsforU.S.privatecompanies.PriortothecreationofthePCAOB,theASBhadresponsibilityforestablishingauditingstandardsforbothpublicandprivatecompanies.BecauseexistingauditingstandardswereadoptedbythePCAOBasinterimauditingstandardsforpubliccompanyaudits,thereisconsiderableoverlapinthetwosetsofauditingstandards.

2-8AuditingstandardsrepresentthecombinationofthefourprinciplesandalltheStatementsonAuditingStandards(SASs)thatarecodifiedintheAU-Csections.Whilethe10GAASstandardshighlightedinTable2-3arenolongerreferencedasgeneral,fieldwork,andreportingstandards,theunderlyingconceptscontainedinthosecontinuetoberelevantinU.S.auditingstandards.ExamplesofauditingstandardsincludeanyoftheSASs(e.g.,SASNo.125).

Generallyacceptedaccountingprinciplesarespecificrulesforaccountingfortransactionsoccurringinabusinessenterprise.ExamplesmaybeanyoftheopinionsoftheFASB,suchasaccountingforleases,pensions,orfairvalueassets.

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2-9Auditorsdeveloptheircompetencyandcapabilitiesforperforminganauditthroughformaleducationinauditingandaccounting,adequatepracticalexperience,andcontinuingprofessionaleducation.AuditorscandemonstratetheirproficiencybybecominglicensedtopracticeasCPAs,whichrequiressuccessfulcompletionoftheUniformCPAExamination.Thespecificrequirementsforlicensurevaryfromstatetostate.

2-10Forthemostpart,auditingstandards,includingSASs,aregeneralratherthanspecific.Manypractitionersalongwithcriticsoftheprofessionbelievethestandardsshouldprovidemoreclearlydefinedguidelinesasanaidindeterminingtheextentofevidencetobeaccumulated.ThiswouldeliminatesomeofthedifficultauditdecisionsandprovideasourceofdefenseiftheCPAischargedwithconductinganinadequateaudit.Ontheotherhand,highlyspecificrequirementscouldturnauditingintomechanicalevidencegathering,voidofprofessionaljudgment.Fromthepointofviewofboththeprofessionandtheusersofauditingservices,thereisprobablyagreaterharmfromdefiningauthoritativeguidelinestoospecificallythantoobroadly.

2-11InternationalStandardsonAuditing(ISAs)areissuedbytheInternationalAuditingandAssuranceStandardsBoard(IAASB)oftheInternationalFederationofAccountants(IFAC)andaredesignedtoimprovetheuniformityofauditingpracticesandrelatedservicesthroughouttheworld.TheIAASBissuespronouncementsonavarietyofauditandattestfunctionsandpromotestheiracceptanceworldwide.AsaresultofeffortsbytheAuditingStandardsBoardtoconvergeU.S.GAASwithinternationalstandards,AICPAauditingstandardsandInternationalStandardsonAuditingaresimilarinmostrespects.

2-12QualitycontrolsaretheproceduresusedbyaCPAfirmthathelpitmeetitsprofessionalresponsibilitiestoclients.QualitycontrolsarethereforeestablishedfortheentireCPAfirmasopposedtoindividualengagements.

2-13Theelementofqualitycontrolispersonnelmanagement.ThepurposeoftherequirementistohelpassureCPAfirmsthatallnewpersonnelarequalifiedtoperformtheirworkcompetently.ACPAfirmmusthavecompetentemployeesconductingtheauditsifqualityauditsaretooccur.

2-14Apeerreviewisareview,byCPAs,ofaCPAfirm’scompliancewithitsqualitycontrolsystem.Amandatorypeerreviewmeansthatsuchareviewisrequiredperiodically.AICPAmemberfirmsarerequiredtohaveapeerrevieweverythreeyears.RegisteredfirmswiththePCAOBaresubjecttoqualityinspections.ThesearedifferentthanpeerreviewsbecausetheyareperformedbyindependentinspectionteamsratherthananotherCPAfirm.

Peerreviewscanbebeneficialtotheprofessionandtoindividualfirms.Byhelpingfirmsmeetqualitycontrolstandards,theprofessiongainsifreviewsresultinpractitionersdoinghigherqualityaudits.Afirmhavingapeerreviewcanalsogainifitimprovesthefirm’spracticesandtherebyenhancesitsreputationandeffectiveness,andreducesthelikelihoodoflawsuits.Ofcourse,peerreviewsarecostly.Thereisalwaysatrade-offbetweencostandbenefits.

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MultipleChoiceQuestionsFromCPAExaminations

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2-16

2-17

a.(2)

a.(2)

a.(1)

b.(1)

b.(3)

b.(2)

c.(3)

c.(3)

DiscussionQuestionsAndProblems

2-18a.Themainobjectiveofanauditoffinancialstatementsistoobtain

reasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,therebyenablingtheauditortoexpressanopinioninawrittenreportonwhetherthefinancialstatementsarepresentedfairly,inallmaterialrespects,inaccordancewithanapplicablefinancial

reportingframework.

b.No.Inanauditofthefinancialstatements,theauditorperformsauditprocedurestoobtainreasonableassuranceaboutwhetherthefinancialstatementscontainmaterialmisstatements.Whileahighlevelofassurance,reasonableassuranceislessthanaguarantee―whichimpliesabsolute(100%)assurance.Inanaudit,theauditorissuesanopiniononwhetherthefinancialstatementsarepresentedfairly,buttheauditorisnotguaranteeingthatthefinancialstatementsareaccuratewithcertainty.

c.No.Fraudisabroadlegalconceptthatdescribesanyintentionaldeceitmeanttodepriveanotherpersonorpartyoftheirpropertyorrights.Theauditordoesnottakeresponsibilityfordetectingall

typesoffraud,givenmanytypesoffrauddonotimpactthefinancialstatements.Instead,theauditorperformsauditingprocedurestoobtainreasonableassurancethatthefinancialstatementsdonotcontainmaterialmisstatements,whetherduetofraudorerror.Thus,theauditorisconcernedwithdetectingfraudthatleadstoamaterialmisstatement.Theauditorisnotresponsiblefordetecting

fraudthatdoesnotleadtoamaterialmisstatement.

d.Eachentityfacesanumberofrisksuniquetothenatureofitsbusinessandindustry.Thetypesofoperations,theextentofregulation,howtheorganizationobtainscapitaltofunditsbusinessmodel,andthenatureofaccountsinthefinancialstatements,amongotherfactors,eachtriggerdifferenttypesofrisksthatcouldleadtomaterialmisstatements.Inaddition,thereareuniqueaccountingstandardsforcertainindustriesthatimpacthowtransactions,accounts,anddisclosuresarereportedinfinancialstatements.Thus,athoroughunderstandingoftheclient’sbusinessiscriticaltoassessingtheriskofmaterialmisstatementsinthefinancialstatementswhenplanningtheaudit.

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2-18(continued)

e.Theauditorisresponsibleforobtainingsufficientappropriateauditevidenceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatements.Inadditiontounderstandingwhethertheamountsreportedinthefinancialstatementsaremathematicallyaccurate,theauditorobtainsothertypesofinformationtodeterminethattheamountsreportedrepresentvalidtransactionsandaccountsandthatallvalidtransactionsandaccountsareincludedinthosestatements.Evidenceisalsogatheredtodeterminethattheentityhastherightstoassetsandhastheobligationtorepayliabilitiesreflectedinthosefinancialstatementsandwhetherthecorrectdisclosuresareincludedinthefinancialstatementsasrequiredbyaccountingstandards.

2-19a.Engagementperformance

b.Monitoring

c.Engagementperformance

d.Engagementperformance

e.Relevantethicalrequirement

f.Humanresources

g.Humanresources

h.Acceptanceandcontinuationofclientsandengagements

i.Engagementperformance

j.Leadershipresponsibilities

2-20a.TheAICPAAuditingStandardsBoard(ASB)isresponsiblefor

issuingstandardsintheU.S.tobeusedbyauditorswhenauditingthefinancialstatementsofallentitiesotherthanU.S.publiclytradedcompanies.ThePublicCompanyAccountingOversightBoard(PCAOB)isresponsibleforissuingstandardstobeusedbyauditors

whenauditingaU.S.publiccompany.

b.TheInternationalAuditingandAssuranceStandardsBoard(IAASB)oftheInternationalFederationofAccountants(IFAC)isresponsibleforissuingInternationalStandardsonAuditing(ISAs).TheISAsdonotoverrideaspecificcountry’sregulationsgoverningtheauditoffinancialstatements.

c.TheASBhasrevisedmostofitsstandardstoconvergethemwiththeinternationalstandards.Asaresult,U.S.standardsaremostlyconsistentwithinternationalstandards,exceptforcertainrequirementsthatreflectuniquecharacteristicsoftheU.S.environment.

d.WhendevelopinganewSAS,theASBusestheISAsasthebasestandardandthenmodifiesthatbasestandardonlywhenappropriatefortheU.S.environment.

e.ThePCAOBdevelopsandissuesitsstandards.WhilethePCAOBconsidersexistinginternationalstandards,itdoesnotstartwiththeISAstandardasthebase.

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2-21

BRIEFDESCRIPTION

OFPRINCIPLE

RESPONSIBILITIES

PRINCIPLES

Theauditormustpossessthecompetencyandcapabilitiestoperformtheaudit.

Theauditormustcomply

withethicalrequirements,whichincludemaintainingindependenceinmentalattitudeinallmattersrelatingtotheaudit.

Theauditormustmaintainprofessionalskepticismandexerciseprofessionaljudgmentintheperformanceoftheauditandthepreparationofthereport.

HOLMES’ACTIONSRESULTINGINFAILURETOCOMPLYWITHPRINCIPLE

ItwasinappropriateforHolmestohirethetwostudentstoconducttheaudit.Theauditmustbeconductedbypersonswithpropereducationandexperienceinthefieldofauditing.Althoughajuniorassistanthasnotcompletedhisformaleducation,hemayhelpintheconductoftheauditaslongasthereispropersupervisionandreview.

Tosatisfythisprinciple,Holmesmustbewithoutbiaswithrespecttotheclientunderaudit.Holmeshasanobligationforfairnesstotheowners,management,andcreditorswhomayrelyonthereport.BecauseofthefinancialinterestinwhetherthebankloanisgrantedtoRay,Holmesisindependentinneitherfactnorappearancewithrespecttotheassignmentundertaken.

ThisprinciplerequiresHolmestoperformtheauditwithduecare,whichimposesonHolmesandeveryoneinHolmes’organizationaresponsibilitytoobservetheprinciplesofperformanceandreporting.Maintainingprofessionalskepticismandexercisingprofessionaljudgmentrequirecriticalreviewateverylevelofsupervisionoftheworkdoneandthejudgmentsexercisedbythoseassistingintheaudit.Holmesdidnotreviewtheworkorthejudgmentsoftheassistantsandclearlyfailedtoadheretothisstandard.

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2-21(continued)

BRIEFDESCRIPTION

HOLMES’ACTIONSRESULTINGIN

OFPRINCIPLE

FAILURETOCOMPLYWITHPRINCIPLE

PERFORMANCE

PRINCIPLES

Theauditormustadequatelyplan

Thisprinciplerecognizesthatearlyappointment

theworkandmustproperly

oftheauditorhasadvantagesfortheauditor

superviseanyassistants.

andtheclient.Holmesacceptedtheengagementwithoutconsideringtheavailabilityofcompetentstaff.Inaddition,Holmesfailedtosupervisetheassistants.Theworkperformedwasnotadequatelyplanned.

Theauditormustidentifyand

Holmesdidnotobtainanunderstandingofthe

assesstherisksofmaterial

entityoritsinternalcontrol,nordidthe

misstatementbasedona

assistantsobtainsuchanunderstanding.

sufficientunderstandingofthe

Thereappearstohavebeennoauditatall.

entityanditsenvironment,

Theworkperformedwasmoreanaccounting

includingitsinternalcontrol,to

servicethanitwasanauditingservice.

designthenature,timing,and

extentoffurtheraudit

procedures.

Theauditormustobtainsufficient

Holmesacquirednoevidencethatwould

appropriateauditevidenceby

supportthefinancialstatements.Holmes

performingauditproceduresto

merelycheckedthemathematicalaccuracyof

affordareasonablebasisforan

therecordsandsummarizedtheaccounts.

opinionregardingthefinancial

Standardauditproceduresandtechniques

statementsunderaudit.

werenotperformed.

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2-21(continued)

BRIEFDESCRIPTION

OFPRINCIPLE

REPORTING

PRINCIPLES

Theauditormustexpressanopinioninawrittenreportaboutwhetherthefinancialstatementsarepresentedinaccordancewiththeapplicablefinancialreportingframework.

Theauditormusteitherexpressanopinionregardingthefinancialstatements,takenasawhole,orstatethatanopinioncannotbeexpressedintheauditor’sreport.Whentheauditorcannotexpressanoverallopinion,theauditorshouldstatethereasonsthereforintheauditor’sreport.Inallcaseswhereanauditor’snameisassociatedwithfinancialstatements,theauditorshouldclearlyindicatethecharacteroftheauditor’swork,ifany,andthedegreeofresponsibilitytheauditoristaking,intheauditor’sreport.

Theauditormustassesswhetherthefinancialstatementsarepresentedinaccordancewiththefinancialreportingframework.

HOLMES’ACTIONSRESULTINGINFAILURETOCOMPLYWITHPRINCIPLE

Holmes’reportmadenoreferencetogenerallyacceptedaccountingprinciples.BecauseHolmesdidnotconductaproperaudit,thereportshouldstatethatnoopinioncanbeexpressedastothefairpresentationofthefinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples.

AlthoughHolmes’reportcontainsanexpressionofopinion,suchopinionisnotbasedontheresultsofaproperaudit.Holmesshoulddisclaimanopinionbecausehefailedtoconductanauditinaccordancewithauditingstandards.

Holmes’improperauditwouldnotenablehimtodeterminewhethergenerallyacceptedaccountingprincipleswereconsistentlyapplied.Holmes’reportshouldmakenoreferencetotheconsistentapplicationofaccountingprinciples.

Managementisprimarilyresponsiblefor

adequatedisclosuresinthefinancialstatements,butwhenthestatementsdonotcontainadequatedisclosurestheauditorshouldmakesuchdisclosuresintheauditor’sreport.Inthiscaseboththestatementsandtheauditor’sreportlackadequatedisclosures.

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2-22a.U.S.generallyacceptedauditingstandards.

b.Internationalauditingstandards.

c.PCAOBauditingstandards.

d.PCAOBauditingstandards(reportingintheU.K.willbeunderinternationalauditingstandards).

e.U.S.generallyacceptedauditingstandards.

f.U.S.generallyacceptedauditingstandards.

g.Internationalauditingstandards.

h.PCAOBauditingstandards(duetothepubliclytradeddebt).

ResearchProblem2-1:InternationalAuditingan