Examinable Auditing Standards for December 2015 and June 2016 Sessions

EXAMINABLE DOCUMENTS JUNE 2011 AND DECEMBER 2011AUDITINTERNATIONALKnowledge of new examinable regulations issued by 30th September will be examinable inexamination sessions being held in the following calendar year. Documents may be examinableeven if the effective date is in the future. This means that all regulations issued by 30thSeptember 2010 will be examinable in the June and December 2011 examinations.The study guide offers more detailed guidance on the depth and level at which the examinabledocuments should be examined. The study guide should therefore be read in conjunction withthe examinable documents list.Accounting StandardsPaper F8 Audit and AssuranceThe accounting knowledge that is assumed for Paper F8 is the same as that examined in PaperF3. Therefore, candidates studying for Paper F8 should refer to the Accounting Standards listedunder Paper F3.Paper P7 Advanced Audit and AssuranceThe accounting knowledge that is assumed for Paper P7 is the same as that examined in PaperP2. Therefore, candidates studying for Paper P7 should refer to the Accounting Standards listedunder Paper P2.N.B. P7 will only expect knowledge of accounting standards and financial reporting standardsfrom Paper P2. Knowledge of exposure drafts and discussion papers will not be expected.P7 Title F8 International Standards on Auditing (ISAs)Glossary of Terms 99for Assurance Assignments 99FrameworkInternational99Preface to the International Standards on Quality Control, Auditing,Review, Other Assurance and Related Services99ISA 200 Overall Objectives of the Independent Auditor and the Conduct ofan Audit in Accordance with ISAsISA 210 Agreeing the Terms of Audit Engagements 99ISA 220 Quality Control for an Audit of Financial Statements 9ISA 230 Audit Documentation 9999ISA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit ofFinancial Statements99ISA 250 Consideration of Laws and Regulations in an Audit of FinancialStatementsISA 260 Communication with Those Charged with Governance 9999ISA 265 Communicating Deficiencies in Internal Control to Those Chargedwith Governance and ManagementISA 300 Planning an Audit of Financial Statements 9999ISA 315 Identifying and Assessing the Risks of Material Misstatementthrough Understanding the Entity and Its EnvironmentISA 320 Materiality in Planning and Performing an Audit 99ISA 330 The Auditor’s Responses to Assessed Risks 9999 ISA 402 Audit Considerations Relating to an Entity Using a ServiceOrganisationISA 450 Evaluation of Misstatements Identified During the Audit 99 ISA 500 Audit Evidence 99 ISA 501 Audit Evidence – Specific Considerations for Selected Items 99 ISA 505 External Confirmations 99 ISA 510 Initial Audit Engagements – Opening Balances 99 ISA 520 Analytical Procedures 99 ISA 530 Audit Sampling 9999 ISA 540 Auditing Accounting Estimates, Including Fair Value AccountingEstimates and Related DisclosuresISA 550 Related Parties 9 ISA 560 Subsequent Events 99 ISA 570 Going Concern 99 ISA 580 Written Representations 999 ISA 600 Special Considerations - Audits of Group Financial Statements(Including the Work of Component Auditors)ISA 610 Using the Work of Internal Auditors 99 ISA 620 Using the Work of an Auditor’s Expert 99 ISA 700 Forming an Opinion and Reporting on Financial Statements 99 ISA 705 Modifications to the Opinion in the Independent Auditor’s Report 9999 ISA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs inthe Independent Auditor’s Report99 ISA 710 Comparative Information – Corresponding Figures and ComparativeFinancial Statements99 ISA 720 The Auditor’s Responsibilities Relating to Other Information inDocuments Containing Audited Financial StatementsInternational Auditing Practice Statements (IAPSs)IAPS 1000 Inter-bank Confirmation Procedures 99 IAPS 1010 The Consideration of Environmental Matters in the Audit ofFinancial StatementsIAPS 1013 Electronic Commerce: Effect on the Audit of Financial Statements 99 International Standards on Assurance Engagements (ISAEs)99 ISAE 3000 Assurance Engagements other than Audits or Reviews of HistoricalFinancial InformationISAE 3400 The Examination of Prospective Financial Information 9 ISAE 3402 Assurance Reports on Controls at a Service Organisation 9 International Standards on Quality Control (ISQCs)9 ISQC 1 Quality Controls for Firms that Perform Audits and Reviews ofFinancial Statements, and Other Assurance and Related ServicesEngagementsInternational Standards on Related Services (ISRSs)9 ISR 4400 Engagements to Perform Agreed-Upon Procedures RegardingFinancial InformationInternational Standards on Review Engagements (ISREs)ISRE 2400 Engagements to Review Financial Statements 99 ISRE 2410 Review of Interim Financial Information Performed by theIndependent Auditor of the EntityExposure Drafts (EDs)Auditing Complex Financial Statements 99 Proposed ISA 315 (Revised) Identifying and Assessing the Risks ofMaterial Misstatement through Understanding the Entity and ItsEnvironmentProposed ISA 610 (Revised) Using the Work of Internal Auditors 9Other DocumentsACCA’s ‘Code of Ethics and Conduct’ 999 IFAC’s ‘Code of Ethics for Professional Accountants’ (Revised July2009)9 ACCA’s Technical Factsheet 94 – Anti Money-Laundering(Proceeds of Crime and Terrorism)9 The UK Corporate Governance Code as an example of a code ofbest practice9 The UK Corporate Governance Code as an example of a code ofbest practice in relation to audit committess9 IAASB Practice Alert Challenges in Auditing Fair Value AccountingEstimates in the Current Market Environment (October 2008)9 IAASB Practice Alert Audit Considerations in Respect of GoingConcern in the Current Economic Environment (January 2009)9 IAASB Applying ISAs Proportionately with the Size and Complexityof an Entity (August 2009)9 IAASB Practice Alert Emerging Practice Issues Regarding the Useof External Confirmations in an Audit of Financial Statements(November 2009)IAASB XBRL : The Emerging Landscape (January 2010) 99 IAASB Auditor Considerations Regarding Significant Unusual orHighly Complex Transactions (September 2010)Note:Topics of exposure drafts are examinable to the extent that relevant articles about them are published in student accountant.EXAMINABLE DOCUMENTS JUNE AND DECEMBER 2011AUDITUKKnowledge of new examinable regulations issued by 30th September will be examinable inexamination sessions being held in the following calendar year. Documents may be examinableeven if the effective date is in the future. This means that all regulations issued by 30thSeptember 2010 will be examinable in the June and December 2011 examinations.The study guide offers more detailed guidance on the depth and level at which the examinable documents should be examined. The study guide should therefore be read in conjunction withthe examinable documents list.Accounting StandardsAll questions set will be based on International Financial Reporting Standards.Paper F8 Audit and AssuranceThe accounting knowledge that is assumed for Paper F8 is the same as that examined in PaperF3. Therefore, candidates studying for Paper F8 should refer to the Accounting Standards listedunder Paper F3.Paper P7 Advanced Audit and AssuranceThe accounting knowledge that is assumed for Paper P7 is the same as that examined in PaperP2. Therefore, candidates studying for Paper P7 should refer to the Accounting Standards listedunder Paper P2.N.B. P7 will only expect knowledge of accounting standards and financial reporting standardsfrom Paper P2. Knowledge of exposure drafts and discussion papers will not be expected.Title F8P7 International Standards on Auditing (ISAs) (UK and Ireland)Summary of changes to the new ISAs (UK and Ireland) 9Glossary of terms 2009 9999ISA 200 Overall objectives of the independent auditor and the conduct of anaudit in accordance with ISAs (UK and Ireland)ISA 210 Agreeing the terms of audit engagements 99ISA 220 Quality control for an audit of financial statements 9ISA 230 Audit documentation 9999ISA 240 The Auditor’s responsibilities relating to fraud in an audit of financialstatements99ISA 250A Consideration of laws and regulations in an audit of financialstatementsISA 260 Communication with those charged with governance 9999ISA 265 Communicating deficiencies in internal control to those charged withgovernance and managementISA 300 Planning an audit of financial statements 9999ISA 315 Identifying and assessing the risks of material misstatement throughunderstanding the entity and Its environmentISA 320 Materiality in planning and performing an audit 99ISA 330 The auditor’s responses to assessed risks 99Title F8P7ISA 402 Audit considerations relating to entities using a service organisation 99ISA 450 Evaluation of misstatements identified during the audit 99ISA 500 Audit evidence 99ISA 501 Audit evidence – specific considerations for selected items 99ISA 505 External confirmations 99ISA 510 Initial audit engagements – opening balances 99ISA 520 Analytical procedures 99ISA 530 Audit sampling 9999ISA 540 Auditing accounting estimates, including fair value accountingestimates and related disclosuresISA 550 Related parties 9ISA 560 Subsequent events 99ISA 570 Going concern 99ISA 580 Written representations 999ISA 600 Special considerations - audits of group financial statements (includingthe work of component auditors)ISA 610 Using the work of internal auditors 99ISA 620 Using the work of an auditor’s expert 99ISA 700 The auditor’s report on financial statements 99ISA 705 Modifications to opinions in the independent auditor’s report 9999ISA 706 Emphasis of matter paragraphs and other matter paragraphs in theindependent auditor’s report99ISA 710 Comparative information – corresponding figures and comparativefinancial statements99ISA 720A The auditor’s responsibilities relating to other information in documentscontaining audited financial statements99ISA 720B The auditor’s statutory reporting responsibility in relation to directors’reportsInternational Standards on Quality Control (ISQC)9ISQC 1 Quality control for firms that perform audits and reviews of financialstatements and other assurance and related services engagementsPractice Notes (PNs)9PN 12 (Revised) Money Laundering – Guidance for auditors on UK legislation(September 2010)PN 16 Bank reports for audit purposes in the United Kingdom (Revised) 999PN 23 (Revised) Auditing complex financial instruments – interim guidance(October 2009)PN 25 Attendance at stocktaking 9999PN 26 (Revised) Guidance for smaller entity audit documentation (December2009)Ethical Standards (ESs)ES (Revised – April 2008) Provisions available for small entities 99ES1 (Revised – April 2008) Integrity, objectivity and independence 9999ES2 (Revised - April 2008) Financial, business, employment and personalrelationshipsES3 (Revised – October 2009) Long association with the audit engagement 9999ES4 (Revised – April 2008) Fees, remuneration and evaluation policies,litigation, gifts and hospitalityES5 (Revised – April 2008) Non-audit services provided to audit clients 99Glossary 99 Bulletins2001/03 E-business: identifying financial statement risks 9992008/01 Audit issues when financial market conditions are difficult and creditfacilities may be restrictedP7 Title F82008/06 The ‘senior statutory auditor’ under the United Kingdom CompaniesAct 200692008/10 Going Concern Issues During the Current Economic Conditions 99 2009/2 Auditor’s Reports on Financial Statements in the United Kingdom 99 2009/4 Developments in corporate governance affecting the responsibilities ofauditors of UK companies92010/1 XBRL tagging of information in audited financial statements – guidance for auditors9 Statement of Standards for Reporting Accountants (SSRAs)ISRE (UK and Ireland) 2410 Review of Interim Financial Information Performed by the IndependentAuditor of the Entity9Exposure Drafts (EDs) (UK and Ireland)Consultation Paper : Revised Draft Ethical Standard for Auditors 9 Consultation Draft : Practice Note 25 Attendance at Stocktaking(Revised)Consultation Draft : Practice Note 16 Bank reports for audit purposesin the United Kingdom9Discussion Paper Auditor Scepticism : Raising the Bar 9 Consultation Draft : ISA (UK and Ireland) 700 The auditor’s report onfinancial statements9The Provision of Non-Audit Services by Auditors Consultation Paper on Revised Draft Ethical Standards for Auditors9Other DocumentsACCA’s ‘Code of Ethics and Conduct’ 99 IFAC’s ‘Code of Ethics for Professional Accountants’ (Revised July2009)9The UK Corporate Governance Code 9The UK Corporate Governance Code in relation to audit committees 9 Going Concern and Liquidity Risk : Guidance for Directors of UKCompanies 20099Scope and Authority of APB Pronouncements (Revised) – October200999ACCA’s Technical Factsheet 94 – Anti-Money Laundering (Proceeds ofCrime and Terrorism)9IAASB Practice Alert Challenges in Auditing Fair Value AccountingEstimates in the Current Market Environment (October 2008)9IAASB Applying ISAs Proportionately with the Size and Complexity ofan Entity (August 2009)9IAASB Practice Alert Emerging Practice Issues Regarding the Use ofExternal Confirmations in an Audit of Financial Statements (November2009)9IAASB Auditor Considerations Regarding Significant Unusual or Highly Complex Transactions (September 2010)9Note:Topics of exposure drafts are examinable to the extent that relevant articles about them are published in student accountant.。

中国注册会计师审计准则应用指南英语全文共6篇示例，供读者参考篇1The Very Important Guide for Checking NumbersHi there, kids! Today we're going to learn about a super important book called the Chinese Certified Public Accountant Auditing Standards Application Guide. That's a really long name, so let's just call it "The Number Checker's Guide" for short.This guide is like a rule book that grown-ups called auditors use when they need to check that businesses are keeping track of their money correctly. Just like you have to follow the rules in school, businesses have to follow the rules in this book when they count their dollars and cents.The Number Checker's Guide has loads of different rules and instructions. It tells the auditors exactly how they should look over all the numbers to make sure nothing is missing or wrong. That way, we can trust that the businesses are being honest about their money.Let me give you an example of how it works. Let's say you have a lemonade stand and you sell lemonade for 25 cents a cup. The Number Checker's Guide would tell the auditors how to make sure you counted up your quarters correctly at the end of the day.First, they would check that you wrote down every sale in a logbook, just like the guide says. Then they would count all the quarters in your money box and make sure the total matches the number of lemonade cups you sold according to your logbook.If the numbers don't match up, then the auditors know that there was a mistake somewhere. Either you forgot to log some sales, or maybe you miscounted your quarters. The Number Checker's Guide helps them figure out what went wrong.But it's not just about lemonade money! The Number Checker's Guide has rules for checking all kinds of numbers that businesses deal with. Like if a company orders supplies or builds a new factory, the auditors check that the costs were all recorded properly following the rules.The guide also gives instructions on how auditors should behave when they go check a business. It tells them to be honest, independent, and never take bribes or do anything shady. That'sreally important, because we need to be able to trust that the auditors aren't helping businesses cheat on their math!There are tons of different rules about all sorts of stuff like keeping documents safe, interviewing employees, checking computer programs, and more. The Number Checker's Guide is like an encyclopedia of auditing!Auditors have to study this guide really hard to learn all the rules. It's kind of like how you have to study really hard for your math tests, except their tests are way harder! After they learn it all, they can call themselves Certified Public Accountants. That's a fancy way to say they are number checking experts who follow the rules in the guide.So next time your family goes to a restaurant or buys something from a store, you can thank the auditors who use the Number Checker's Guide. Because of their hard work, we know that businesses aren't fibbing about their money. Pretty cool, huh?Learning how to check numbers properly is super important as you start to grow up. Who knows, maybe someday you'll want to get a cool job as an auditor too! But for now, you can practice by carefully counting your pennies and making sure you always follow the rules, just like the Number Checker's Guide says.篇2Title: A Fun Guide to Auditing for Kids!Hey there, kids! Have you ever wondered what auditing is all about? Well, get ready for an exciting adventure into the world of numbers and rules!Auditing is like playing detective, but instead of solving mysteries, we make sure that companies are following the right accounting rules. Think of it as a game where you have to check if everything adds up correctly.In China, we have a special set of rules called the Chinese Certified Public Accountant Auditing Standards Application Guide. These rules are like the instruction manual for auditors, telling them exactly what to do when checking a company's books.Now, let's imagine you're an auditor working for a big accounting firm. Your job is to make sure that a company's financial statements are accurate and follow all the rules. It's like being a superhero, but instead of fighting bad guys, you're fighting against mistakes and errors!First, you need to plan your audit mission. You'll decide which areas of the company you want to focus on and gather all the information you need. It's like getting your spy gear ready before going on a secret mission!Next, you'll have to assess the risks involved. Are there any areas where mistakes are more likely to happen? It's like looking for clues to find out where the trouble spots might be.Once you've identified the risks, it's time to gather evidence. You'll request documents, interview employees, and observe how the company operates. It's like collecting clues at a crime scene, but instead of fingerprints, you're looking for numbers that don't add up.As you gather evidence, you'll need to keep detailed records of everything you find. This is called documentation, and it's like keeping a secret diary of all your adventures.If you discover any errors or problems, you'll have to report them to the company. This is called issuing an audit opinion, and it's like giving the company a report card on how well they've followed the rules.But wait, there's more! After you've completed your audit, you'll need to communicate your findings to the company'smanagement and those in charge of governance. It's like having a big meeting to discuss your secret mission and how it went.Throughout the entire process, you'll need to follow the Chinese Certified Public Accountant Auditing Standards Application Guide. These rules are like your trusty guidebook, helping you navigate through the world of auditing and making sure you do everything correctly.Auditing may sound complicated, but it's really just a game of following the rules and making sure companies are playing fair. And who knows, maybe one day you'll become a superhero auditor, fighting against financial crimes and keeping the world of accounting safe!So, what do you say, kids? Are you ready to join the exciting world of auditing? Remember, with the Chinese Certified Public Accountant Auditing Standards Application Guide by your side, you'll be unstoppable!篇3The Super Important Auditing Guide for Certified AccountantsHi there, kids! Today we're going to learn about a very important book called the Chinese Certified Public Accountants Auditing Standards Application Guide. It might sound like a mouthful, but it's a crucial set of rules that accountants need to follow when they check the books and finances of companies and organizations. Think of it as a playbook that helps accountants do their jobs properly!You know how your teachers have rules in the classroom that everyone needs to obey? Well, this guide is like that, but for accountants who work with numbers and money all day. Just like you have to raise your hand before speaking in class, accountants have to follow certain steps and guidelines when they audit (that means check) a company's financial records.Now, let's imagine you're a detective, and your job is to make sure nobody is cheating or breaking any rules when it comes to money. That's kind of what auditors (accountants who do audits) do. They look at a company's books, receipts, bank statements, and other financial documents to make sure everything adds up correctly and that no one is cooking the books (which means falsifying or changing the numbers illegally).The Auditing Standards Application Guide is like a detective's handbook that tells auditors exactly what they need to do to solve the case and catch any financial wrongdoings. It covers all sorts of important topics, like how to plan an audit, what kind of evidence they need to collect, how to test different areas of a company's finances, and how to write up their final report with their findings.One of the key things this guide emphasizes is something called "professional skepticism." That means auditors can't just take a company's word for it when they say their finances are all in order. Auditors have to be like detectives who question everything and look for any clues or red flags that something might be fishy.The guide also talks about things like auditor independence, which means auditors have to be completely unbiased and not have any conflicts of interest with the company they're auditing. It's like if a detective was best friends with the suspect they were investigating – that wouldn't be fair or objective, right?Another important part of the guide covers audit risk, which is the chance that an auditor might miss something important or make a mistake in their audit. It's like if a detective overlooked a crucial piece of evidence at a crime scene. The guide helpsauditors identify and manage these risks so they can do their jobs as thoroughly as possible.Now, you might be wondering, "Why do we need all these rules and guidelines for auditors?" Well, just like you need rules in your classroom to keep things organized and fair, these auditing standards help ensure that companies are being honest about their finances. If companies weren't audited properly, they could try to hide money or lie about their profits, which could hurt investors, employees, and even the whole economy!So, the next time you see a news story about a company getting in trouble for financial misdeeds, remember that auditors and this important guide play a huge role in catching those kinds of shenanigans. By following the Auditing Standards Application Guide, auditors can be like super-detectives who keep the financial world in check and make sure everyone is playing by the rules.And who knows, maybe one day you'll grow up to be an auditor yourself, using this guide to fight financial crime and keep companies honest. But for now, just focus on following your teacher's rules in class, and you'll be well on your way to becoming a responsible citizen!篇4The Big Book of Rules for Checking the NumbersHi there! My name is Audrey and I'm going to tell you all about the really important rules accountants have to follow when they check a company's financial records. It's kind of like a big rule book that helps them do their jobs properly. Are you ready? Let's go!First up, we have the Ethics rules. These rules remind accountants to always be honest, keep things fair, stay independent from the companies they check up on, and maintain professional behavior. It's kind of like the rules your teacher has about being a good student and treating everyone with respect. The accountants have to prove they follow these Ethics rules before they can even start their work.Next, there are the big Risk Assessment rules. This part is all about understanding the company really well before digging into the numbers. The accountants need to learn about the type of business, any risks it might face, the internal controls it has to prevent mistakes or fraud, and anything else that could affect the financial statements. It's like a detective gathering all the background information before investigating a crime scene.Then we get into the really meaty stuff - the Audit Evidence rules. These tell the accountants exactly what kinds of proof they need to collect to back up the numbers in the financial reports. Things like inspecting physical inventory, confirming balances with banks, testing calculations, and examining contracts or other legal documents. It's like showing your work on a math test so the teacher knows you didn't just guess!There are also special rules for different areas like cash, inventory, investments, revenues, expenses, and so on. The accountants have to follow the correct procedures for each section. For example, the revenue rules tell them how to make sure a company properly recorded all its sales and didn't overstate its income. It's kind of like having a playbook with specific strategies for different situations in a game.Now for the hard part - if the accountants find errors or issues, they have to communicate that based on the Communication rules. Depending on how serious it is, they might have to tell the company's audit committee, update their reports, or even quit the whole audit engagement. They have to be really careful about explaining the problems clearly.There are a lot more rules in this big book, but those are some of the key chapters. The accountants basically use it as aguide to plan their work, gather evidence, and wrap things up properly. Following the rules helps give investors and the public confidence that a company's financial statements are accurate and trustworthy.Anyway, I hope this helped explain it in a simple way. Studying can be tough, but just take it step-by-step like the auditors do. Who knows, you might end up being an awesome accountant superhero someday! Now if you'll excuse me, I need to go audit my puppy's treat stash...篇5Title: Let's Learn About Auditing Standards for Accountants in China!Hey there, kids! Have you ever wondered what it's like to be an accountant? It's a pretty cool job where you get to work with numbers and help businesses keep track of their money. But did you know that accountants in China have to follow special rules called auditing standards? These standards are like a big guidebook that tells them how to do their job properly.Imagine you're playing a game, and you need to follow certain rules to win. Well, the auditing standards are kind of like that, but for accountants. They're a set of instructions that helpaccountants make sure they're doing their job correctly and honestly.So, what are these auditing standards all about? Let me break it down for you!First of all, the auditing standards are created by a group of really smart people called the Chinese Institute of Certified Public Accountants (CICPA). They're like the bosses of all the accountants in China, and they make sure everyone is playing by the same rules.The auditing standards cover all sorts of things that accountants need to do when they're checking a company's financial records. For example, they tell accountants how to plan their work, how to gather evidence, and how to report their findings.One of the most important things the auditing standards say is that accountants have to be independent and honest. That means they can't take bribes or do anything that might make them favor one company over another. They have to be fair and impartial, just like a good referee in a sports game.Another big part of the auditing standards is about risk assessment. Accountants have to look for any risks or problemsthat could affect a company's finances. It's like being a detective and searching for clues that something might be wrong.The auditing standards also talk about how accountants should communicate with the companies they're auditing. They need to ask lots of questions and share their findings with the people in charge. That way, everyone is on the same page, and the company can make any necessary changes.But wait, there's more! The auditing standards cover all kinds of other topics, like how to use technology in auditing, how to deal with special situations like fraud or legal problems, and how to report on things like environmental issues or social responsibility.Phew, that's a lot of information, right? But don't worry; accountants don't have to memorize everything all at once. The auditing standards are like a big reference book that they can go back to whenever they need help or have questions.So, why are these auditing standards so important? Well, they help make sure that companies in China are being honest about their finances. That's really important for investors, customers, and everyone else who depends on those companies. It's like having a trustworthy referee in a game, making sure everyone plays by the rules.Isn't it cool to know that there are special guidelines in place to help accountants do their jobs properly? Next time you see an accountant, you can think about all the hard work they're doing to follow the auditing standards and keep businesses running smoothly.Who knows, maybe someday you'll even want to become an accountant yourself and learn all about these auditing standards! But for now, just remember that they're like a big rulebook that helps accountants stay honest and do their jobs the right way.篇6The Awesome Auditing Adventure GuideHi there, awesome auditing adventurers! Are you ready to learn all about the super cool world of auditing? Get ready to put on your detective hats and explore the exciting rules that accountants follow when checking a company's books.First up, let's talk about what auditing actually means. You see, companies have to keep track of all their money coming in and going out - things like sales, expenses, payments to workers, and so on. Auditors are like financial detectives who make sure the numbers add up properly and that everything is on theup-and-up.In China, there are special standards that auditors have to follow to do their jobs right. These are called the Chinese Certified Public Accountant Auditing Standards. They act like a guidebook filled with important rules and steps that auditors need to take when auditing a company. It's kind of like how adventurers need to follow a treasure map to find the loot!The first big rule is about being independent and honest. Auditors have to be like fair judges - they can't take sides or be influenced by anyone. Their job is to look at the evidence and financial records objectively without any bias. It's like being an umpire at a baseball game - you call it like you see it, no favors for anyone!Next up is having the right professional skills and knowledge. Auditors need to be total math whizzes who understand all the accounting rules backward and forward. They also have to stay up-to-date on the latest auditing procedures. Companies' finances can get super complex, so auditors have to be financial experts!Planning is another crucial part of the auditing process. Just like how you'd plan a trip to the beach - packing your swimsuit, grabbing some snacks, etc. - auditors need to properly plan out their work. They figure out what areas to focus on, whatdocuments they need to look at, what risks to watch out for, and how to gather all the evidence they need. Skipping this planning stage would be like going to the beach without sunscreen - you're gonna get burned!During the actual audit work, auditors have to gather lots and lots of evidence to back up their conclusions. They pore over financial statements, accounting records, contracts, invoices, and more. It's like being a detective, gathering clues and piecing together the whole picture. Auditors have to be superdetail-oriented to catch anything fishy.Communicating is key too. Auditors share important findings with the company they're auditing and discuss any issues that come up. They have to be clear educators to explain complex accounting standards in simple terms. At the end, they provide their official auditing report and opinion on whether the company's financial records are accurate.All along the way, auditors have to create and keep incredibly thorough documentation on everything they did, found, and concluded. These audit working papers act like a trail of breadcrumbs, allowing anyone to re-trace the auditor's steps. It's how they demonstrate they followed all the auditing rules to a T.Finally, the auditing standards require auditors to continue improving through quality control reviews. Their work gets evaluated by more experienced auditors to see if they missed anything or if there are areas they can learn from. It's like getting coaching advice after a big game to up your skills for next time.Phew, that's a lot to take in! Auditing is a seriously important job with tons of complicated standards and procedures to follow. By adhering to guidelines like these, auditors promote transparency and keep the financial world in order.So thanks for joining me on this auditing adventure! I know it was a long and complex trail to navigate, but I hope you walked away with a basic understanding of these essential accounting rules. Stay curious, study hard, and who knows - you may become a top-notch auditing detective yourself one day! The corporate world needs honest auditing experts to keep things in check. Why not let that be your awesome future job?。

本科毕业论文（设计）外文翻译外文题目Independent Review Organizations Must Meet GAOYellow Book Standards外文出处Journal of Health Care Compliance,2010(2):27-32外文作者Herrmann Thomas E原文：Independent Review Organizations Must Meet GAO “Yellow Book”StandardsBACKGROUNDOn July 30, 2001, the OIG, in conjunction with the Health Care Compliance Association (HCCA), cosponsored a Government Industry Roundtable to discuss “issues surrounding the implementation and maintenance of effective compliance programs.” Specifically addressed in the discussion was the OIG’s requirement, in the context of health care fraud and abuse settlements, that an IRO be retained by a health care entity to perform annual billing, systems, and/or other compliance reviews. Participants recognized that:The OIG requires IROs because the OIG does not have the resources to conduct the level of review necessary to determine if a provider is meeting the requirements of the CIA as well as other Federal health care program requirements. Additionally, a review by an independent entity provides the OIG with assurances that a provider’s compliance program and billing systems are objectively reviewed.Roundtable participants referenced a number of advantages associated with using an IRO. “IROs provide a broad industry perspective and expertise, are independent, help identify system weaknesses, make helpful recommendations, and their reviews serve as a useful benchmark for future reviews conducted by the provider.”OIG REQUIREMENTS FOR IRO INDEPENDENCEThe obligations for an audit/review organization, such as an IRO, to meet “independence”standards are referenced in GAGAS as set forth by the GAO in its “Yellow Book.” These standards are applicable to financial audits, typically performed by certified public accountants (CPAs), attestation engagements, and performance audits, which may be undertaken by professionals such as consultants and lawyers. The great majority of CIAs does not mandate financial audits but are rather focused on performance audits, i.e., those involving claims, systems, or arrangements with referral sources that may implicate the anti-kickback statute and Stark law.From the perspective of the OIG, it is essential that an IRO conduct its reviews with both independence and objectivity. A standard requirement in an OIG CIA is that “[t]he IRO must perform [its] review in a professionally independent and objective fashion, as appropriate to the nature of the engagement, taking into account any other business relationships or engagements…” Typically, the IRO is obligated to provide a certification regarding its professional independence and objectivity. Further, the usual CIA specifi es that “i n the event OIG has reason to believe that the IRO…is not independent and objective…, the OIG may, at its sole discretion, require” the engagement of a new IRO.The OIG has stated that an IRO should follow “the standards for auditor independence set forth in the General Accounting Office (GAO), Government Auditing Standards (2003 Revision).” The OIG has indicated that, under these standards, “CIA reviews would be considered performance audits and IROs would be subject to the independence standards set forth in the Yellow Book that relate to performance audits.” In referencing the GAO Yellow Book’s applicability to IRO independence, the OIG has further noted:When assessing independence, the two overarching principles that must be considered are that: audit organizations should not perform management functions or make management decisions; and audit organizations should not audit their own work or provide non-audit services in situations where the non-audit services are signify- cant/material to the subject matter of the audits.THE GAO YELLOW BOOK STANDARDSThe GAO Yellow Book, first issued by the Comptroller General of the United States in 1972, is intended to:Address the unique requirements of governmental entities;Establish general standards for both governmental and nongovernmental auditors performing audits in accordance with GAGAS;Supplement field work and reporting standards of the American Institute of certified Public Accountants (AICPA) Auditing Standards Board;Establish field work and reporting standards for performance audits.In July 2007, the GAO issued its fourth revision of the Yellow Book standards.With respect to performance audits, such as those performed by IROs, the new standards are applicable to those undertaken on or after January 1, 2008.The latest edition of the Yellow Book reinforces the principles of transparency, accountability, and quality in government auditing. There is an increased emphasis placed on governing ethical principles, clarification of the impact of performing nonaudit services on auditor independence, and enhancement of performance audit standards. In issuing the 2007 edition, Comptroller General David M. Walker noted that the revision sets forth “changes from the 2003 revision that reinforce the principles of transparency and accountability and provide the framework for high-quality government audits that add value.” A summary of the key Yellow Book principles that are applicable to performance audits undertaken by IROs, pursuant to CIAs, follows.e and Application of GAGASChapter one of the revised Yellow Book highlights GAGAS requirements and states that they “provi de a framework for conducting high quality government audits and attestation engagements with competence, integrity, objectivity, and independence.”It notes further that “GAGAS contain re quirements and guidance dealing with eth ics, independence, auditors’ professional compe tence and judgment, quality control, the performance of field work, and reporting.” It explains: Performance audits are defined as engagements that provide assurance orconclusions based on an evaluation of sufficient appropriate evidence against stated criteria, such as specific requirements, measures, or defined business practices. Performance audits provide objective analysis so that management and those charged with governance and oversight can use the information to improve program performance and operations, reduce costs, facilitate decision making by parties with responsibility to oversee or initiate corrective action, and contribute to public accountability.For performance audits, such as those undertaken by IROs, the revised Yellow Book indicates that certain other standards also may be utilized by reviewers in conjunction with GAGAS:International Standards for the Professional Practice of Internal Auditing;Guiding Principles for Evaluators;The Program Evaluations Standards; andStandards for Educational and Psychological Testing.2. Ethical PrinciplesChapter two of the revised Yellow Book sets forth ethical principles to provide a foundation, discipline, and structure for an audit/review entity in applying GAGAS. It notes that “e thical principles apply in preserving auditor independence, taking on only work that the auditor is competent to perform, performing high-quality work, and following the applicable standards cited in the audit report.” Further, “i ntegrity and objectivity are maintained when auditors perform their work and make decisions that are consistent with the broader interest of those relying on the auditors’ report, including the public.”The following ethical principles are specified as guiding the work of reviewers and auditors and need to be both considered and addressed by an organization serving as an IRO:The public interest;Integrity;Objectivity;Proper use of government information, Resources, and position; andProfessional behavior.3. General StandardsChapter three of the revised Yellow Book specifies general standards applicable to performing audits and reviews consistent with GAGAS. These standards focus on: Independence of the audit organization and individual auditors;The exercise of professional judgment in the performance of work;The competence of auditors/reviewers; andQuality control and assurance, as well as external peer review.While all of these factors are critical to activities of an IRO, of fundamental import ance is the concept of “independence.” “The audit organization and individual a uditor…must be free from person al, external, and organizational impairments to independence, and must avoid the appearance of such impairments to independence.” The importance of “independence” is further highlighted:Auditors and audit organizations must maintain independence so that their opinions, findings, conclusions, judgments, and recommendations will be impartial and viewed as impartial by objective third parties with knowledge of the relevant information. Auditors should avoid situations that could lead objective third parties with knowledge of the relevant information to conclude that the auditors are not able to maintain independence and thus are not capable of exercising objective and impartial judgment on all issues associated with conducting the audit and reporting on the work.Key challenges to auditor independence are personal impairments, external impairments, and organizational independence. Critical to assessing “organizational independence” is determining whether the au dit organization also performs other professional, or nonaudit, services for the audited entity. The Yellow Book advises that:External audit organizations can be presumed to be free from organizational impairments to independence when the audit function is organizationally placed outside the reporting line of the entity under audit and the auditor is not responsible for entity operations.The revised Yellow Book sets forth two basic principles for determining auditor independence when assessing the impact of performing a nonaudit service for an audited entity:The audit organization must not provide nonaudit services that involve performing management functions or making management decisions; and The audit organization must not audit its own work or provide nonaudit services in situations in which the nonaudit services are significant or material to the subject matter of the audit.In the context of these “overarching principles,” the OIG has identified certain situa tions in which an IRO’s independence might be compro mised because of its prior relationship and work for an audited provider:If the provider were to outsource its internal compliance audit function to the IRO, either before or after the execution of the provider’s CIA, the IRO’s independence likely would be impaired for purposes of conducting the provider’s CIA reviews. This is the case because internal audit is a management function and the outsourcing of the internal compliance audit function likely would result in the IRO auditing its own work as part of the CIA reviews.The OIG has stated that the most important consideration in assessing IRO indepen dence “is whe ther the IRO is involved in performing a management function or making management decisions for the provider.” It notes that “if the IRO participates in any form of decision-making…the IRO likely would be precluded from performing the CIA reviews because the IRO is in the position of making managemen t decisions for the provider.”4. Field Work Standards for Performance AuditsChapter seven of the revised Yellow Book sets forth field work standards and provides guidance for performance audits conducted. These standards include planning the audit, supervising staff, obtaining sufficient and appropriate evidence, and preparing audit documentation. Critical to establishing and following these standards are the following concepts:Reasonable assurance;S ignificance; andAudit risk.A performance audit, such as an IRO re view, must “provide reasonable assurance that evidence is sufficient and appropriate to support the auditors’ findings and conclusions.”“Significance is defined as the relative importance of a matter with the context in which it is being considered, including quantitative and qualitative factors.”Audit risk is “the possibility that the auditors’ findings, conclusions, recommendations, or assurance may be improper or inco mplete.”Thus, the IRO, in planning and conducting its review, must be cognizant of these factors and ensure that the review process and findings are in accord with these principles.5. Reporting Standards for Performance AuditsChapter eight of the revised Yellow Book sets forth the form of the report, the report contents, report issuance, and distribution. Critical to issuance of an IRO report is the presentation of “sufficient, appropriate evidence to support the findings and conclusions in relation to the audit objectives.”The OIG has expressly adopted the GAO Yellow Book standards as governing IROs. Accordingly, the current Yellow Book provisions need to be carefully reviewed and followed by a health care entity in selecting an organization to serve as an IRO. Moreover, the Yellow Book standards need to be recognized and followed by an IRO in conducting its activities.Critical to successful compliance with the terms of a CIA with the OIG is ensuring that mandated IRO reviews are conducted in an independent, objective, and comprehensive manner. This is necessary to provide assurances to the government that a health care entity is qualified, capable, and competent to continue participating in federal health care programs. Both the OIG and the subject health care entity are reliant up on an IRO’s commitment and capa bility to conduct its reviews in accordance with GAGAS. Therefore, the Yellow Book standards must be recognized and adhered to by the IRO retained by a health care entity subject to an OIG CIA. In light of this, any health care entity that is subject to a CIA should address the following questions when selecting an IRO:Does a review organization have knowledge of and past experience in applying the GAGAS requirements to its audits and reviews?Are there any constraints on an organi zation’s independence and objectivity in conducting OIG-mandated reviews as set forth in a CIA, either in terms of past or current engagements with the health care organization or other industry activities?Does the audit/review organization have the capability, capacity, and competence to perform the OIG-required performance audits, e.g., claims, systems, or arrangements review?Does the organization have quality control and assurance procedures to ensure the reliability and integrity of its audits/reviews?Can the audit/review organization certify and attest that it has conducted its review in accordance with GAGAS, as set forth in the revised Yellow Book?Source：Herrmann Thomas E.Independent Review Organizations Must Meet GAO Yellow Book Standards[J].Journal of Health Care Compliance,2010(2)：27-32.译文：独立的审计机构必须符合“黄皮书”的指标背景2001年7月30日，监察会同HCCA进行了一次商洽，共同探讨怎样实现和维护有效的合规计划。

总体评价：本次考试包括5个必答题。

A部分包括30分的问题1和10分的问题2。

B 部分包括三个更深入的问题，每题20分。

大部分考生完成了5个题目，然而还是有少部分没有完成问题的考生，这表明考试是有时间压力的。

General CommentsThe examination consisted of five compulsory questions.Section A contained question 1 for 30 marks and question 2 for 10 marks.Section B comprised three further questions of 20 marks each.The majority of candidates completed all five questions;however there was some evide nce of time pressure as a significant minority of candidates did not attempt all questions.T his seemed to mainly occur for question 5 or for the questions candidates found challengi ng,which are listed below.In addition a significant minority answered question 1 last and t heir answers were often incomplete.As question 1 is the case study and represents 30 of t he available marks,leaving this question until last can be a risky strategy,as many answers presented were incomplete or appeared rushed.Candidates performed particularly well on questions 1b,2c,3ci and 4bi.The questions c andidates found most challenging were questions 1a,2b,3a,3cii and 5b.This was mainly due to a combination of failing to read the question requirement carefully and insufficient kn owledge.A number of these areas were new to the F8 study guide in 2010 and hence as new topic areas should have been prioritised by candidates.A number of common issues arose in some candidate’s answers:•Failing to read the question requirement clearly and therefore providing irrelevant ans wers which scored few if any marks•Providing more than the required nu mber of points•Illegible handwriting and poor layout of answers.Specific CommentsQuestion OneThis 30-mark question was based on a retailer of ladies clothing and accessories,Grey stone Co,and tested candidates’ knowledge of internal control defi ciencies,trade payables an d internal audit.Part (a) for 5 marks required candidates to explain examples of matters that the audit or should consider in determining whether an internal control deficiency was significant.This part of the question was unrelated to the Greystone Co scenario and hence teste d candidates’ knowledge as opposed to application skills.This question related to ISA 265 Communicating Deficiencies in Internal Control to those Charged with Governance and Ma nagement,which is a new ISA and new to the F8 study guide for 2010.Most candidates performed inadequately on this part of the question.The main reason for this is that candidates failed to read the question properly or did not understand what the requirement entailed.The question asked for matters which would mean internal control deficiencies were significant enough to warrant reporting to those charged with governanc e.The question was not asking for examples of significant internal control deficiencies,how ever this is what a majority of candidates gave.Many answers included a long list of cont rol deficiencies such as “inadequate segregation of duties” this failed to score marks as it was not answering the question.It was apparent that many candidates had not studied the area of significant control d eficiencies,and as there is now an ISA dedicated to this area,this was unsatisfactory.Part (b) for 14 marks required a report to management which identified and explained four deficiencies,implications and recommendations for the purchasing system of Greyston e Co.A covering letter was required and there were 2 presentation marks available.This part of the question was answered well by the vast majority of candidates with some scoring full marks.The scenario was quite detailed and hence there were many possi ble deficiencies which could gain credit.Where candidates did not score well this was mai nly due to a failure to explain the deficiency and/or the implication in sufficient detail.So me candidates simply listed the information fr om the scenario such as “purchase invoices are manually matched to GRNs” and then failed to explain the implication of this for Gre ystone Co.A significant minority also failed to score marks because they provided deficiencies w hich were unrelated to the purchasing system,such as “internal audit’s only role is to perf orm inventory counts.” This was outside the scope of the question requirement and hence did not gain credit.Candidates are once again reminded that they must read the question r equirements carefully.Many candidates failed to score the full 2 marks available for presentation as they di d not produce a covering letter.A significant minority just gave the deficiencies,implication s and recommendations without any letter at all;this may be due to a failure to read the question properly.Also even when a letter was produced this was often not completed.Candidates would provide the letterhead and introductory paragraph,the detail of the d eficiencies,implications and recommendations,but then they would fail to include a concludi ng paragraph and letter sign off which would have earned a further 1 mark.In addition so me candidates produced a memo rather than a letter.In general,where candidates adopted a columnar approach to their answer they tended to score well.The question asked for four deficiencies,implications and recommendations,however ma ny candidates provided much more than the required four points.It was not uncommon to see answers which had six or seven points.Whilst it is understandable that candidates wish to ensure that they gain credit for four relevant points,this approach can lead to time pre ssure and subsequent questions can suffer.Part (c) for 5 marks required substantive procedures the auditor should perform on ye ar-end trade payables.This was answered satisfactorily for many candidates.The most comm on mistake made by some candidates was to confuse payables and purchases and hence pr ovide substantive tests for purchases such as “agree purchase invoices to goods received n otes”.As there was no reference to year-end payables then this test would not have scored any marks.A minority provided tests of controls as well as substantive procedures and ag ain these would not have scored any marks.The requirement verb was to “describe” th erefore sufficient detail was required to sco re the 1 mark available per test.Candidates are reminded that substantive procedures is a c ore topic area and they must be able to produce relevant detailed procedures.Answers such as “discuss with management to confirm ownership of payables” is far too vague to gain credit as there is no explanation of what would be discussed and also how such a discus sion could even confirm ownership.Part (d) for 5 marks required additional procedures the internal auditors of Greystone Co could perform;this was in addition to their current role of performing regular inventory counts.This required candidates to use their knowledge of internal audit assignments and apply it to a retailer scenario.On the whole candidates performed satisfactorily on this que stion.Many were able to identify assignments such as value for money audits,reviewing int ernal controls,assisting the external auditors and other operational internal audits.However s ome candidates restricted their answers to assignments the auditors would perform in light of the control deficiencies identified in part (b) of their answer.This meant that their ans wers lacked the sufficient breadth of points required to score well.问题二包括了“真实和公允”原则、国际审计准则以及审计文件。

有关审计报告的审计准则英文版Auditing standards, also known as Generally Accepted Auditing Standards (GAAS) in the United States, are a set of systematic guidelines used by auditors when conducting audits of a company's financial information. 审计准则，也被称为美国的一般受理审计准则（GAAS），是审计师在对公司财务信息进行审计时所使用的一套系统性指导方针。

These standards are used to ensure that auditors perform their duties with integrity, objectivity, and professional competence. 这些标准用于确保审计师在履行职责时具有诚信、客观性和专业能力。

The auditing standards serve as a framework for auditors to follow in order to provide a reasonable assurance that the financial statements of a company are free from material misstatement. 审计准则作为审计师所要遵循的框架，旨在提供合理保证，即公司的财务报表不存在重大错误陈述。

By adhering to these standards, auditors are able to maintain consistency and reliability in their audit work across different companies and industries. 通过遵守这些标准，审计师能够在不同公司和行业的审计工作中保持一致性和可靠性。

C LIENTM EMORANDUM PCAOB APPROVES FINAL STANDARD FOR AUDITOR ATTESTATIONS OF INTERNAL CONTROL OVER FINANCIAL REPORTINGThe Public Company Accounting Oversight Board (the “PCAOB”) recently approved a final standard for auditor attestations of a company’s internal control over financial reporting. These attestations are required under Section 404 of the Sarbanes-Oxley Act of 2002 in connection with management’s assessment of such internal control.Management Assessment of Internal Control Over Financial ReportingPursuant to Section 404 of the Sarbanes-Oxley Act, on June 5, 2003, the Securities and Exchange Commission (the “SEC”) adopted final rules requiring management of a reporting company to assess the effectiveness of the company’s internal control over financial reporting1 as of the end of the company’s most recent fiscal year and to describe in the company’s annual report management’s conclusion, as a result of that assessment, whether the company’s internal control is effective. The rules require that management’s internal control report state that the registered public accounting firm that audited the company’s financial statements has issued an attestation report as to whether management’s assessment of the company’s internal control over financial reporting is “fairly stated in all material respects.” The company must then file the attestation report as part of its annual report.Companies that are “accelerated filers” (generally Form S-3 eligible companies) must comply with these requirements in their annual reports for their first fiscal year ending on or after November 15, 2004; non-accelerated filers and foreign private issuers must comply with these requirements in their annual reports for their first fiscal year ending on or after July 15, 2005. The Sarbanes-Oxley Act further directed the PCAOB to establish professional standards governing the independent auditors’ attestation report. Accordingly, on March 9, 2004, following a previously proposed version, the PCAOB adopted Auditing Standard No. 2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction With an Audit of Financial Statements (“Auditing Standard No. 2”). This Standard has been submitted to the SEC for its approval.1The SEC defines “internal control over financial reporting” as a “process designed by, or under the supervision of, the issuer’s principal executive and principal financial officers . . . to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements” in accordance with GAAP. It includes policies and procedures for maintaining accounting records, recording transactions, authorizing receipts and expenditures and safeguarding assets.Audit of Internal Control Over Financial ReportingAlthough the work required to be performed by the independent auditors is referred to as an “attestation,” the PCAOB has stated that the attestation engagement requires the same level of work as an audit of internal control over financial reporting. Consequently, Auditing Standard No. 2 requires that the auditors not just evaluate the adequacy of management’s processes for assessing the effectiveness of the company’s internal control over financial reporting, but that the auditors independently test the effectiveness of the internal control itself.Because of the similar objectives and work involved in audits of internal control over financial reporting and audits of financial statements, the PCAOB decided that these two audits should be integrated. Accordingly, the auditors who conduct the audit of internal control over financial reporting must also audit the company’s financial statements. The two audit reports may be separate or combined, but should be dated the same date.The requirements in Auditing Standard No. 2 are based on the internal control framework established by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). However, Auditing Standard No. 2 allows companies flexibility in choosing an alternative framework that encompasses all of COSO’s general themes.Commentary:Ø The COSO framework consists of five interrelated components: control environment (so-called “tone at the top”), risk assessment, control activities toensure that management directives are carried out, capture and communication ofinformation and monitoring activities.Ø Although the COSO framework addresses the effectiveness and efficiency of operations and compliance with applicable law as well as the reliability offinancial reporting, the SEC’s requirements regarding internal control overfinancial reporting focus on the latter category. However, controls on operationsand compliance with law, to the extent they may affect financial reporting, arealso part of the SEC’s requirements.Ø Auditing Standard No. 2 provides the auditors with some flexibility to use work performed by others, including the internal auditors and management’sassessment. The more extensive and reliable the work is, and the betterdocumented it is, the less extensive and costly the independent auditors’ workwill need to be. Still, the independent auditors’ own work must constitute theprincipal evidence, both quantitative and qualitative, for their audit opinion.Ø Embedded in the SEC definition of “internal control over financial reporting” is that management’s assessment of the company’s internal control must provide“reasonable assurance” of its effectiveness. The definition recognizes that thecontrol processes will reduce, but not eliminate, the risk of financial reportingissues.Management’s ResponsibilitiesFor the auditors to perform their audit of the internal control, management must: • accept responsibility for the effectiveness of the company’s internal control over financial reporting;• evaluate the effectiveness of the internal control using acceptable criteria;• support its evaluation with sufficient evidence, including documentation; and• present its written assessment of the effectiveness of the company’s internal control as of the end of the fiscal year.If the auditors conclude that management has not satisfied these responsibilities, they should communicate, in writing, to management and the audit committee that the audit cannot be completed.The Audit ProcessThe audit of internal control over financial reporting is an extensive process involving multiple steps. These steps include planning the audit, evaluating the process that management used to perform its assessment of the effectiveness of the internal control, evaluating the effectiveness of both the design and operation of the internal control and forming an opinion about whether the internal control is effective.In addition to testing management’s assessment process and the work on internal control by others, such as the internal auditors, the auditors must test the internal control directly. For example, the auditors are required to perform walkthroughs in each annual audit to trace transactions from origination, through the company’s accounting and information systems and financial report preparation processes, to their being reported in the company’s financial statements.Auditing Standard No. 2 emphasizes the importance of controls over possible fraud and requires the auditors to test controls specifically intended to prevent, deter and detect fraud. These controls start with the “tone at the top” and include, for example, controls to prevent the misappropriation of assets, risk assessment processes, codes of ethics, internal audit activities and audit committee oversight and whistleblower procedures.Commentary:Ø More limited procedures are required to be performed by the auditors in connection with management’s quarterly certifications regarding internal controlrequired under Section 302 of the Sarbanes-Oxley Act.Auditor IndependenceUnder Rule 2-01 of Regulation S-X, the auditors’ independence is compromised if the auditors audit their own work or act as management, such as by designing or implementing the internal control. These restrictions, however, do not preclude the auditors from making recommendations as to how management may improve the design or operation of the internal control as a by-product of an audit.Auditing Standard No. 2 prohibits the auditors from providing any internal control-related service, unless the service has been specifically pre-approved by the audit committee (rather than through a general categorical approval). At all times, management must be actively involved and retain responsibility for the control matters.Timing of TestingThe Sarbanes-Oxley Act requires management’s assessment and the auditor’s opinion to address whether the internal control was effective as of the end of the company’s most recent fiscal year. Obviously, performing all of the testing on December 31 is neither practical nor appropriate. Auditing Standard No. 2 recognizes that to express an opinion about whether the internal control was effective as of a point in time the auditors must obtain evidence that the internal control operated effectively over an appropriate period of time. Accordingly, the Standard provides that the auditors should obtain evidence about operating effectiveness at different times throughout the year and then update those tests at the end of the year.Commentary:Ø Controls “as of” a specific date include controls relevant to financial reporting “as of” that date, even if they may not operate until later. For example, certaincontrols over the period-end financial reporting process normally operate onlyafter the end of the period.Evaluating the Results of TestingAuditing Standard No. 2 differentiates among a control deficiency, a significant deficiency and a material weakness:• A control deficiency exists when the design or operation of a control does not allow the company’s management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.• A control deficiency is classified as a significant deficiency if, by itself or in combination with other control deficiencies, it results in more than a remote likelihood that a misstatement of the company’s annual or interim financial statements that is more than inconsequential will not be prevented or detected.• A significant deficiency is classified as a material weakness if, by itself or in combination with other control deficiencies, it results in more than a remote likelihood that a material misstatement in the company’s annual or interim financial statements will not be prevented or detected.The auditors must evaluate the severity of all control deficiencies, communicate such deficiencies in writing to management and notify the audit committee that such communication has been made. All significant deficiencies and material weaknesses must also be communicated in writing to the audit committee.Auditing Standard No. 2 provides examples of circumstances that are significant deficiencies, as well as strong indicators of the existence of a material weakness, including:• ineffective oversight of the company’s external financial reporting and internal control over financial reporting by the company’s audit committee;Commentary:Ø Ironically, this means that the independent auditors, who are hired and supervised by the audit committee, must evaluate the effectiveness of theiroverseers.• any material misstatement in the financial statements not initially identified by the company’s internal control;• significant deficiencies that have been communicated to management and the audit committee, but that remain uncorrected after reasonable periods of time;• ineffective internal audit or risk assessment functions, particularly for large or complex companies;• an ineffective regulatory compliance function in regulated companies, where violations of applicable law could have a material effect on financial reporting; and • identification of fraud of any magnitude by senior management.Forming an Opinion and ReportingSimilar to management’s internal control report, only material weaknesses are required to be disclosed in the auditors’ report on the effectiveness of the control. If the auditors have identified a material weakness, they must conclude that the company’s internal control is not effective; a qualified opinion is not permitted if there is a material weakness.Auditing Standard No. 2 permits the auditors to express an unqualified opinion only if the auditors have not identified any material weaknesses in the internal control after having performed all of the procedures that the auditors consider necessary under the circumstances. Ifthe auditors cannot perform all necessary procedures, they are required to qualify or disclaim their opinion.Auditing Standard No. 2 further requires that the auditors report on management’s assessment of the internal control. In the event of a material weakness, the auditors could express an unqualified opinion on management’s assessment so long as management properly identified the material weakness and concluded in its assessment that the internal control was not effective. If the auditors and management disagree about the existence of a material weakness, then the auditors must render an adverse opinion on management’s assessment.ImplementationGiven the extensive amount of time required to evaluate a company’s internal control procedures and then design, implement and test any additional procedures that may be required, companies should already be well on their way in evaluating and implementing these requirements and preparing for management’s internal control report and the related auditors’ attestation report.Commentary:Ø Even though the independent auditors do not need to provide their attestation report until after year-end, make sure to involve them in the ongoing evaluationand testing processes to help ensure that there are no last minute surprises.Ø Pay attention to these requirements in connection with any business acquisition, particularly at the end of the year and particularly of private companies, whichmay not have the controls required of public companies. With no transitionperiod for newly acquired entities, any acquisition will need to be included aspart of the review of internal controls for the year in which the acquisition isconsummated. If necessary, consider adjusting the closing date.Ø Companies will need to obtain the auditors’ consent to the incorporation by reference of their attestation report in connection with any registration statementfiled under the Securities Act, similar to auditor consents to the incorporation oftheir report on the financial statements. As with the auditor consent regardingtheir report on the financial statements, this consent regarding their attestationreport will require that management deliver an updated representation letter tothe auditors.* * * * * * * * * * *If you wish to obtain additional information regarding this new PCAOB standard and related SEC regulations regarding management’s internal control report, please contact Serge Benchetrit, John S. D’Alimonte, Steven J. Gartner, Yaacov M. Gross, Jeffrey S. Hochman or the corporate partner with whom you regularly work. For help with a current investigative or regulatory issue, feel free to call litigators Stephen W. Greiner, Richard L. Posen or Michael R. Young of our Accounting Irregularities Practice Group.Willkie Farr & Gallagher LLP is headquartered at 787 Seventh Avenue, New York, NY 10019-6099. Our telephone number is 212-728-8000, and our facsimile number is 212-728-8111. Our website is located at .March 30, 2004Copyright © 2004 by Willkie Farr & Gallagher LLP.All Rights Reserved. This memorandum may not be reproduced or disseminated in any form without the express permission of Willkie Farr & Gallagher LLP. This memorandum is provided for news and information purposes only and does not constitute legal advice or an invitation to an attorney-client relationship. While every effort has been made to ensure the accuracy of the information contained herein, Willkie Farr & Gallagher LLP does not guarantee such accuracy and cannot be held liable for any errors in or any reliance upon this information.。

certified audit standardCertified Audit Standard: Enhancing Transparency and AccountabilityIntroductionIn today's complex business environment, financial reporting and disclosure play a critical role in ensuring trust and confidence among stakeholders. Companies are required to provide accurate and reliable financial information to their shareholders, investors, and regulators. To meet these expectations, auditors play a crucial role in evaluating and certifying the financial statements of organizations. The certified audit standard, a set of guidelines and principles, helps auditors perform their duty with professionalism and integrity. This article will delve into the certified audit standard, its purpose, key components, and its significance in enhancing transparency and accountability.Understanding the Certified Audit StandardThe certified audit standard is a framework that outlines the principles and procedures to be followed by auditors whileconducting an audit. This standard sets out the guidelines for an independent, objective, and systematic examination of financial records, statements, and internal controls of an organization. The objective is to express an opinion on the fairness and accuracy of the financial statements being audited.Key Components of the Certified Audit Standard1. Independence and Objectivity: The certified audit standard emphasizes that auditors must remain independent and neutral throughout the audit process. They should have no personal or financial interest in the organization being audited, ensuring their objectivity and ability to form an unbiased opinion.2. Professional Competence: The standard requires auditors to possess the necessary knowledge, skills, and expertise to carry out the audit effectively. They should stay updated with the latest accounting principles, auditing standards, and relevant industry regulations.3. Audit Planning and Risk Assessment: Before commencing an audit, auditors must carefully plan and assess the risk involved. Thisstep involves understanding the organization's internal control system, evaluating potential risks, and designing appropriate audit procedures to mitigate those risks.4. Audit Evidence and Documentation: The certified audit standard emphasizes the importance of obtaining sufficient and appropriate audit evidence that supports the auditor's opinion. Auditors need to document their work meticulously, ensuring transparency and allowing other professionals to understand the audit procedures followed.5. Communication and Reporting: The standard requires auditors to communicate with the organization's management throughout the audit process. They should discuss any significant issues identified during the audit and provide timely and accurate reports to management, shareholders, and regulatory bodies.Significance of the Certified Audit StandardEnhancing Transparency: The certified audit standard ensures that auditors follow a systematic and consistent approach while examining the financial statements. By doing so, they enhancetransparency by providing stakeholders with accurate and reliable information about the financial health of the organization.Improved Accountability: Certification under the audit standard makes companies accountable for their financial reporting. The independent opinion provided by auditors increases the credibility of the financial statements, promoting trust among stakeholders.Minimizing Fraud and Misrepresentation: Through the certified audit standard, auditors help detect financial fraud and misrepresentation. By conducting a thorough examination of the organization's records and internal controls, auditors are better positioned to identify any irregularities or potential risks.Regulatory Compliance: The certified audit standard aligns with regulatory requirements and guidelines set by regulatory bodies such as the Public Company Accounting Oversight Board (PCAOB) in the United States. Compliance with these standards ensures that companies meet legal obligations and reporting requirements.ConclusionThe certified audit standard plays a vital role in ensuring transparency, accountability, and trust in financial reporting. By adhering to the principles and guidelines set by this standard, auditors can perform their duties efficiently and effectively. The certified audit standard acts as a benchmark for auditors, providing organizations and stakeholders with confidence in the accuracy and fairness of financial statements. Through the establishment of stringent guidelines, auditors can minimize financial fraud, enhance transparency, and contribute to a more reliable financial reporting ecosystem.。

CHAPTER 6Multiple-Choice Questions1. The objective of the ordinary audit of financial statements is the expression of an opinion on: easy a. the fairness of the financial statements.a b. the accuracy of the financial statements.c. the accuracy of the annual report.d. the balance sheet and income statement.2. easy If the auditor believes that the financial statements are not fairly stated or is unable to reach an conclusion because of insufficient evidence, the auditor:c a. should withdraw from the engagement.b. should request an increase in audit fees so that more resources can be used to conduct theaudit.c. has the responsibility of notifying financial statement users through the auditor’s report.d. should notify regulators of the circumstances.3. Auditors accumulate evidence to:easy a. defend themselves in the event of a lawsuit.d b. justify the conclusions they have otherwise reached.c. satisfy the requirements of the Securities Acts of 1933 and 1934.d. enable them to reach conclusions about the fairness of the financial statements.4. easy The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the:b a. board of directors.b. company management.c. financial statement auditor.d. company’s internal audit department.5. easy The auditor’s best defense when material misstatements are not uncovered is to have conducted the audit:a a. in accordance with auditing standards.b. as effectively as reasonably possible.c. in a timely manner.d. only after an adequate investigation of the management team.6. easy If management insists on financial statement disclosures that the auditor finds unacceptable, the auditor can:d a. issue an adverse audit report.b. issue a qualified audit report.c. withdraw from the engagement.d. choose any of these three courses of action.7. easy If management insists on financial statement disclosures that the auditor finds unacceptable, the auditor can do all but which of the following?b a. Issue an adverse audit report.b. Issue a disclaimer of opinion.c. Withdraw from the engagement.d. Issue a qualified audit report.8. easy Which of the following is not one of the reasons that auditors provide only reasonable assurance on the financial statements?d a. The auditor commonly examines a sample, rather than the entire population oftransactions.b. Accounting presentations contain complex estimates which involve uncertainty.c. Fraudulently prepared financial statements are often difficult to detect.d. Auditors believe that reasonable assurance is sufficient in the vast majority of cases.9. (Public) easy In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:c a. GAAP.b. the Sarbanes-Oxley Act.c. the Securities Exchange Act of 1934.d. GAAS.10. Which of the following statements is most correct regarding errors and fraud?easy a. An error is unintentional, whereas fraud is intentional.a b. Frauds occur more often than errors in financial statements.c. Errors are always fraud and frauds are always errors.d. Auditors have more responsibility for finding fraud than errors.11. (SOX) Which of the following statements is true of a public company’s financial statements?easy a. Sarbanes-Oxley requires the CEO only to certify the financial statements.c b. Sarbanes-Oxley requires the CFO only to certify the financial statements.c. Sarbanes-Oxley requires the CEO and CFO to certify the financial statements.d. Sarbanes-Oxley neither requires the CEO nor the CFO to certify the financial statements.12. Which of the following is not one of the three categories of assertions?easy a. Assertions about classes of transactions and events for the period under auditb b. Assertions about financial statements and correspondence to GAAPc. Assertions about account balances at period endd. Assertions about presentation and disclosure13. easy If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:d a. completeness assertion.b. existence assertion.c. cutoff assertion.d. classification and understandability assertion.14. Professional skepticism requires auditors to possess a(n) ______ mind. easy a. introspectiveb b. questioningc. intelligentd. unbelieving15. easy c The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.a. important to the financial statementsb. statistically significant to the financial statementsc. material to the financial statementsd. identified by the client16. Fraudulent financial reporting is most likely to be committed by whom?easy a. Line employees of the company.c b. Outside members of the company’s board of directors.c. Company management.d. The company’s auditors.17. Which of the following would most likely be deemed a direct-effect illegal act?easy a. Violation of federal employment laws.c b. Violation of federal environmental regulations.c. Violation of federal income tax laws.d. Violation of civil rights laws.18. The concept of reasonable assurance indicates that the auditor is:easy a. not an insurer of the correctness of the financial statements.a b. not responsible for the fairness of the financial statements.c. responsible only for issuing an opinion on the financial statements.d. responsible for finding all misstatements.19. Tests of details of balances are specific procedures intended to:easy a. test for monetary errors in the financial statements.a b. prove that the accounts with material balances are classified correctly.c. prove that the trial balance is in balance.d. identify the details of the internal control system.20. Which of the following is the auditor least likely to do when aware of an illegal act?easy a. Discuss the matter with the client’s legal counsel.c b. Obtain evidence about the potential effect of the illegal act on the financial statements.c. Contact the local law enforcement officials regarding potential criminal wrongdoing.d. Consider the impact of the illegal act on the relationship with the company’s management.21. medium c The auditor gives an audit opinion on the fair presentation of the financial statements and associates his or her name with it when, on the basis of adequate evidence, the auditor concludes that the financial statements are unlikely to mislead:a. investors.b. management.c. a prudent user.d. the reader.22. medium The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:b a. the auditor.b. management.c. both management and the auditor equally.d. management for the statements and the auditor for the notes.23. When engaged to audit the financial statements, it is acceptable for the auditor to prepare: medium a. the financial statements for the client.d b. the footnotes for the client.c. a draft of the financial statements for the client.d. a draft of the financial statements and footnotes for the client.24. medium The auditor has considerable responsibility for notifying users as to whether or not the statements are properly stated. This imposes upon the auditor a duty to:a a. provide reasonable assurance that material misstatements will be detected.b. be a guarantor of the fairness in the statements.c. be equally responsible with management for the preparation of the financial statements.d. be an insurer of the fairness in the statements.25. medium “The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered.” This is an example of:b a. unprofessional behavior.b. an attitude of professional skepticism.c. due diligence.d. a rule in the AICPA’s Code of Professional Conduct.26. medium If the auditor were responsible for making certain that all of management’s assertions in the financial statements were absolutely correct:d a. bankruptcies could no longer occur.b. bankruptcies would be reduced to a very small number.c. audits would be much easier to complete.d. audits would not be economically feasible.27. medium The auditor’s best defense when existing material misstatements in the financial statements are not uncovered in the audit is:d a. the audit was conducted in accordance with generally accepted accounting principles.b. the financial statements are client’s responsibility.c. client is guilty of contributory negligence.d. none of the above.28. Fraudulent financial reporting is often called:medium a. management fraud.a b. theft of assets.c. defalcation.d. embezzlement.29. Which of the following statements is true?medium a. It is usually easier for the auditor to uncover frauds than errors.b b. It is usually easier for the auditor to uncover errors than frauds.c. It is usually equally difficult for the auditor to uncover errors or frauds.d. Usually, none of the above statements is true.30. medium Auditing standards make _____ distinction(s) between the auditor’s responsibilities for searching for errors and fraud.c a. littleb. a significantc. nod. various31. medium In comparing management fraud with employee fraud, the auditor’s risk of failing to discover the fraud is:b a. greater for management fraud because managers are inherently more deceptive thanemployees.b. greater for management fraud because of management’s ability to override existinginternal controls.c. greater for employee fraud because of the higher crime rate among blue collar workers.d. greater for employee fraud because of the larger number of employees in the organization.32. medium Which of the following statements is correct with respect to the auditor’s responsibilities relative to the detection of indirect-effect illegal acts?a a. The auditor has no responsibility for searching for indirect-effect illegal acts.b. The auditor has the same responsibility for searching for indirect-effect illegal acts as anyother potential misstatement that may occur.c. Auditors have responsibility for searching for any illegal act, whether direct-effect orindirect-effect.d. None of the above is correct.33. medium When comparing the auditor’s responsibility for detecting emp loyee fraud and for detecting errors, the profession has placed the responsibility:c a. more on discovering errors than employee fraud.b. more on discovering employee fraud than errors.c. equally on discovering either one.d. on the senior auditor for detecting errors and on the manager for detecting employee fraud.34. medium If several employees collude to falsify documents, the chance a normal audit would uncover such acts is:a a. very low.b. very high.c. zero.d. none of the above.35. medium When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor should:d a. include audit procedures which have a strong probability of detecting illegal acts.b. still include some audit procedures designed specifically to uncover illegalities.c. ignore the issue.d. make inquiries of management regarding their policies for detecting and preventing illegalacts and regarding their knowledge of violations, and then rely on normal audit proceduresto detect errors, irregularities, and illegalities.36. When the auditor has reason to believe an illegal act has occurred, the auditor should:medium a. inquire of management at a level above those likely to be involved with the illegality.d b. consult with the client’s legal counsel.c. consider accumulating additional evidence to determine if there is actually an illegal act.d. do all three of the above.37. When the auditor knows that an illegal act has occurred, the auditor must:medium a. report it to the proper governmental authorities.b b. consider the effects on the financial statements, including the adequacy of disclosure.c. withdraw from the engagement.d. issue an adverse opinion.38. (Public) If an auditor uncovers an illegal act at a public company, the auditor must notify:medium a. local law enforcement officials.c b. the Public Company Accounting Oversight Board.c. the Securities and Exchange Commission.d. all of the above.39. Why does the auditor divide the financial statements into smaller segments?medium a. Using the cycle approach makes the audit more manageable.a b. Most accounts have few relationships with others and so it is more efficient to break thefinancial statements into smaller pieces.c. The cycle approach is used because auditing standards require it.d. All of the above are correct.40. medium Why does the auditor divide the financial statements into segments around the financial statement cycles?b a. Most auditors are trained to audit cycles as opposed to entire financial statements.b. The approach aids in the assignment of tasks to different members of the audit team.c. The cycle approach is required by auditing standards.d. None of the above is correct.41. The most important general ledger account included in and affecting several cycles is the: medium a. cash account.a b. inventory account.c. income tax expense and liability accounts.d. retained earnings account.42. Management assertions are:medium a a. implied or expressed representations about accounts, transactions, and disclosures in thefinancial statements.b. stated in the footnotes to the financial statements.c. explicitly expressed representations about the financial statements.d. provided to the auditor in the assertions letter, but are not disclosed on the financialstatements.43. Which of the following statements is not true?medium c a. Auditors have found that the most effective way to conduct audits is to audit the balancesheet and use analytical procedures only for other financial statements.b. Auditors have found that the most efficient way to conduct audits is to audit the balancesheet and use analytical procedures only for other financial statements.c. Auditors have found that the most efficient and effective way to conduct audits is to obtainsome combination of assurance for each class of transactions and for the ending balance in the related account.d. Auditors have found that the most efficient and effective way to conduct audits is to obtainsome combination of assurance for specified classes of transactions only.44. Which of the following statements is true?medium a. Audit objectives follow and are closely related to management assertions.a b. Management’s assertions follow and are closely related to the audit objectives.c. The auditor’s primary responsibility is to find and disclose fraudulent managementassertions.d. Assertions about presentation and disclosure deal with whether the accounts have beenincluded in the financial statements at appropriate amounts.45. medium Which of the following statements is true regarding the distinction between general audit objectives and specific audit objectives for each account balance?b a. The specific audit objectives are applicable to every account balance on the financialstatements.b. The general audit objectives are applicable to every account balance on the financialstatements.c. The general audit objectives are stated in terms tailored to the engagement.d. All of the above statements are true.46. Which of the following statements about the existence and completeness assertions is not true? medium a. The existence and completeness assertions emphasize different audit concerns.c b. Existence deals with overstatements and completeness deals with understatements.c. Existence deals with understatements and completeness deals with overstatements.d. The completeness assertion deals with unrecorded transactions.47. The occurrence assertion applies to _______.medium a. presentation and disclosure mattersb b. classes of transactions and events during the periodc. account balancesd. none of the above48. medium Which of the following management assertions is not associated with transaction-related audit objectives?b a. Occurrenceb. Classification and understandabilityc. Accuracyd. Completeness49. Which of the following statements is not true?medium a. Balance-related audit objectives are applied to account balances.d b. Transaction-related audit objectives are applied to classes of transactions.c. Balance-related audit objectives are applied to the ending balance in balance sheetaccounts.d. Balance-related audit objectives are applied to both beginning and ending balances inbalance sheet accounts.50. In testing for cutoff, the objective is to determine:medium a. whether all of the current period’s transactions are recorded.b b. whether transactions are recorded in the correct accounting period.c. a and b are correct.d. neither a nor b is correct.51. The detail tie-in objective is not concerned that the details in the account balance:medium a. agree with related subsidiary ledger amounts.b b. are properly disclosed in accordance with GAAP.c. foot to the total in the account balance.d. agree with the total in the general ledger.52. The detail tie-in is part of the_______ assertion for account balances.medium a. classificationb b. valuation and allocationc. rights and obligationsd. completeness53. medium Which of the following is not a proper match of a transaction-related audit objective and management assertion?a a. Accuracy and cutoff.b. Classification and classification.c. Posting and summarization with accuracy.d. Occurrence and occurrence.54. Which of the following statements is not correct?medium a. There are many ways an auditor can accumulate evidence to meet overall audit objectives.d b. Sufficient appropriate evidence must be accumulated to meet the auditor’s professionalresponsibility.c. It is appropriate to minimize the cost of accumulating evidence.d. Gathering evidence and minimizing costs are equally important considerations that affectthe approach the auditor selects.55. Two overriding considerations affect the many ways an auditor can accumulate evidence:medium a1. Sufficient appropriate evidence must be accumulated to meet the auditor’sprofessional responsibility.2. Cost of accumulating evidence should be minimized.In evaluating these considerations:a. the first is more important than the second.b. the second is more important than the first.c. they are equally important.d. it is impossible to prioritize them.56. medium b If the auditor has obtained a reasonable level of assurance about the fair presentation of the financial statements through understanding internal control, assessing control risk, testing controls, and analytical procedures, then the auditor:a. can issue an unqualified opinion.b. can significantly reduce other substantive tests.c. can write the engagement letter.d. needs to do additional tests of controls so that the assurance level can be increased.57. medium d After the auditor has completed all audit procedures, it is necessary to combine the information obtained to reach an overall conclusion as to whether the financial statements are fairly presented. This is a highly subjective process that relies heavily on:a. generally accepted auditing standards.b. the AICPA’s Code of Professional Conduct.c. generally accepted accounting principles.d. the auditor’s professional judgment.58. Which of the following combinations is correct?medium a. Existence relates to whether amounts included occurred.c b. Occurrence relates to whether balances exist.c. Existence relates to whether amounts included exist.d. None of the above is true.59. medium If an auditor conducted an audit in accordance with auditing standards, which of the following would the auditor likely detect?b a. Unrecorded transactions.b. Incorrect postings of recorded transactions.c. Counterfeit signatures on paid checks.d. Fraud involving collusion.60. medium Which of the f ollowing statements best describes the auditor’s responsibility with respect to illegal acts that do not have a material effect on the client’s financial statements?a a. Generally, the auditor is under no obligation to notify parties other than personnel withinthe client’s organization.b. Generally, the auditor is under an obligation to see that stockholders are notified.c. Generally, the auditor is obligated to disclose the relevant facts in the auditor’s report.d. Generally, the auditor is expected to compel the client to adhere to requirements of theForeign Corrupt Practices Act.61. medium Which of the following statements best describes the auditor’s responsibility regarding the detection of fraud?c a. The auditor is responsible for the failure to detect fraud only when such failure clearlyresults from nonperformance of audit procedures specifically described in the engagementletter.b. The auditor must extend auditing procedures to actively search for evidence of fraud in allsituations.c. The auditor must extend auditing procedures to actively search for evidence of fraudwhere the examination indicates that fraud may exist.d. The auditor is responsible for the failure to detect fraud only when an unqualified opinionis issued.62. The essence of the attest function is to:medium a. assure the consistent application of correct accounting procedures.b b. determine whether the client’s financial statements are fairly stated.c. examine individual transactions so that the auditor may certify as to their validity.d. detect collusion and fraud.63. medium The primary difference between an audit of the balance sheet and an audit of the income statement is that the audit of the income statement deals with the verification of:a a. transactions.b. authorizations.c. costs.d. cutoffs.64. challenging The auditor’s evaluation of the likelihood of material employee fraud is normally done initially as a part of:c a. tests of controls.b. tests of transactions.c. understanding the entity’s internal control.d. the assessment of whether to accept the audit engagement.65. challenging When using the cycle approach to segmenting the audit, the reason for treating capital acquisition and repayment separately from the acquisition of goods and services is that:c a. the transactions are related to financing a company rather than to its operations.b. most capital acquisition and repayment cycle accounts involve few transactions, but eachis often highly material and therefore should be audited extensively.c. both a and b are correct.d. neither a nor b is correct.66. Illegal acts are defined in SAS 54 (AU217) as:challenging a. violations of laws or government regulations.c b. violations of laws or government regulations other than errors.c. violations of laws or government regulations other than fraud.d. violations of law which would result in the arrest of the perpetrator.67. Most illegal acts affect the financial statements:challenging a. directly.b b. only indirectly.c. both directly and indirectly.d. materially if direct; immaterially if indirect.68. With respect to the detection of illegal acts, auditing standards state that the auditor provides: challenging a. no assurance that they will be detected.a b. the same reasonable assurance provided for other items.c. assurance that they will be detected, if material.d. assurance that they will be detected, if highly material.69. challenging In describing the cycle approach to segmenting an audit, which of the following statements is not true?d a. All general ledger accounts and journals are included at least once.b. Some journals and general ledger accounts are included in more than one cycle.c. The “capital acquisition and repayment” cycle is closely related to the “acquisition ofgoods and services and payment” cycle.d. The “inventory and warehousing” cycle may be audited at any time during the engagementsince it is unrelated to the other cycles.70. Which of the following journals would be included most often in the various audit cycles? challenging a. Cash receipts journal.c b. Cash disbursements journal.c. General journal.d. Sales journal.71. Transaction cycles begin and end:challenging a. at the beginning and end of the fiscal period.d b. at the balance sheet date.c. at January 1 and December 31.d. at the origin and final disposition of the company.72. challenging After general audit objectives are understood, specific audit objectives for each account balance on the financial statements can be developed. Which of the following statements is true?a a. There should be at least one specific objective for each relevant general objective.b. There will be only one specific objective for each relevant general objective.c. There will be many specific objectives developed for each relevant general objective.d. There must be one specific objective for each general objective.74. challenging An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors or fraud and therefore should:a a. plan and perform the engagement with an attitude of professional skepticism.b. not rely on internal controls that are designed to prevent or detect errors or fraud.c. design audit tests to detect unrecorded transactions.d. extend the work to audit most recorded transactions and records of an entity.Essay Questions75.easyDiscuss the differences between errors, frauds, and illegal acts. Give an example of each.Answer:The primary difference between errors and frauds is that errors are unintentionalmisstatements of the financial statements, whereas frauds are intentional misstatements.Illegal acts are violations of laws or government regulations, other than frauds. Anexample of an error is a mathematical mistake when footing the columns in the salesjournal. An example of a fraud is the creation of fictitious accounts receivable. Anexample of an illegal act is the dumping of toxic waste in violation of the federalenvironmental protection laws.76.mediumDiscuss the actions an auditor should take when the auditor discovers an illegal act.Answer:The auditor should first consider the effects of the illegal act on the financial statements,including the adequacy of disclosures. If the auditor concludes that disclosures areinadequate, the audit report should be modified accordingly. The auditor should alsoconsider the effect of the illegal act on its relationship with management, andmanagement’s trustworthiness. Next, the client’s audit committee or others of equivalentauthority should be informed of the illegal act. If the client does not deal with the illegalact in a satisfactory manner, the auditor should consider withdrawing from theengagement. Finally, if the client is publicly held, the auditor may need to report thematter to the SEC.77.mediumThere are three broad categories of management assertions. Identify each of these categories.Answer:∙Assertions about classes of transactions and events for the period under audit.∙Assertions about account balances at period end.∙Assertions about presentation and disclosure.78. medium Briefly explain each management assertion related to classes of transactions and events for the period under audit.Answer:∙Occurrence. Transactions and events that have been recorded have occurred and pertain to the entity.∙Completeness. All transactions and events that should have been recorded have been recorded.∙Accuracy. Amounts and other data relating to recorded transactions and events have been recorded appropriately.∙Classification. Transactions and events have been recorded in the proper accounts.∙Cutoff. Transactions and events have been recorded in the correct accounting period.79.mediumBriefly explain each management assertion related to account balances at period end.Answer:∙Existence. Assets, liabilities, and equity interests exist.∙Completeness. All assets, liabilities, and equity interests that should have beenrecorded have been recorded.∙Valuation and allocation. Assets, liabilities, and equity interests are included in thefinancial statements at appropriate amounts and any resulting valuation adjustmentsare appropriately recorded.∙Rights and obligations. The entity holds or controls the rights to assets, and liabilitiesare the obligation of the entity.。

审计报告审计准则英文版Audit Report Audit Standards English VersionAuditing is a critical process that ensures the accuracy, reliability, and integrity of financial information. It is a systematic examination of an organization's accounts and records, conducted by an independent party, to verify the validity and reliability of the financial statements. The audit report is the culmination of this process, providing a comprehensive assessment of the organization's financial position, performance, and compliance with relevant laws and regulations.The audit report is a crucial document that serves as a communication tool between the auditor and the stakeholders, including management, shareholders, and regulatory authorities. It presents the auditor's findings, opinions, and recommendations based on the audit procedures performed. The report should be clear, concise, and easy to understand, ensuring that the stakeholders can make informed decisions based on the information provided.The audit report is guided by a set of established standards and principles, known as audit standards. These standards are developedand maintained by various professional organizations, such as the International Federation of Accountants (IFAC) and the American Institute of Certified Public Accountants (AICPA). The audit standards provide a framework for the auditor to conduct the audit process, ensuring consistency, reliability, and quality in the audit work.The International Standards on Auditing (ISAs) are a set of standards developed by the IFAC's International Auditing and Assurance Standards Board (IAASB). These standards are widely recognized and adopted globally, providing a common framework for auditing practices. The ISAs cover various aspects of the audit process, including planning, risk assessment, evidence gathering, reporting, and quality control.One of the key components of the ISAs is the requirement for the auditor to express an opinion on the financial statements. The auditor's opinion can be unmodified (also known as an unqualified opinion), which indicates that the financial statements are presented fairly and in accordance with the applicable financial reporting framework. Alternatively, the auditor may issue a modified opinion, such as a qualified opinion, adverse opinion, or a disclaimer of opinion, depending on the nature and extent of the issues identified during the audit.The audit report should also include a description of the auditor'sresponsibilities, the scope of the audit, and the basis for the auditor's opinion. This information helps the stakeholders understand the auditor's role and the limitations of the audit process.In addition to the ISAs, there are other standards and guidelines that may be applicable to specific industries or jurisdictions. For example, the Public Company Accounting Oversight Board (PCAOB) in the United States has its own set of auditing standards for publicly traded companies.The effective implementation of audit standards is crucial to ensuring the quality and reliability of the audit process. Auditors must have a thorough understanding of the applicable standards and must adhere to them throughout the audit engagement. This includes maintaining independence, exercising professional skepticism, and collecting sufficient and appropriate audit evidence to support their conclusions.In conclusion, the audit report and the underlying audit standards play a vital role in ensuring the transparency, accountability, and reliability of financial information. The audit report provides stakeholders with an independent and objective assessment of an organization's financial position and performance, enabling them to make informed decisions. The adherence to established auditstandards, such as the ISAs, is essential for maintaining the integrity and credibility of the audit process.。

Ordinary negligenceGenerally accepted auditing standards（GAAS)Senior or in-charge auditorCertified Public Accounting FirmsAcceptable audit riskThe custody of related assetsConstructive fraudThe concept of audit programThe concept of Internal controlThe concept of AuditingThe concept of MaterialThe concept of Acceptable audit riskAn attestation serviceAn ethical dilemmaSarbanes-OxleyThe calculation formula of financial ratiosThe objective of the financial statement auditFactors that influence the acceptable audit riskThe relationship between acceptable audit risk、evidence and detection risk understanding of the client’s business and industryThe factors affected inherent risk.The main measures to realize the control activitiesOther services provided to an audit client by auditorThe components of the COSO internal control frameworkThe characteristics of audit documentation.The The difference between accounting and auditingGenerally accepted accounting principles and the AICPAThe categories of audit reportsThe conditions required to issue different categories of audit reports Inherent limitations of internal controlAcceptance and continuation of clientsSegregation of dutiesDocumentations of an understanding of the internal controlThe purposes of analytical procedures.The factors affected the judgement of audit materiality.The main content of risk assessment.Inherent riskPurposes and Timing of Analytical ProceduresAuthorization of transactionsThe procedures to determine design and placement of controls.Due professional careStaff assistantPhysical Control over Assets and RecordsParts of the Standard Unqualified Audit ReportFactors Affecting JudgmentComponents of Audit Risk1. Translate the following words into English（12 points）2.Translate the following paragraphs into Chinese or English（24 points）3.Fill in the following blanks with suitable word or words（12 points）4. List the calculation formula for the following ratios（12 points）5. Give the main answers to the following questions（40 points）。

中国注册会计师审计准则应用指南英语The Application Guide to Chinese Certified Public Accountants Audit StandardsThe Application Guide to Chinese Certified Public Accountants (CPA) Audit Standards is a comprehensive document that provides guidance on the application of the audit standards in China. These standards are designed to ensure the quality and integrity of financial reporting, and they are essential for maintaining trust and confidence in the capital markets.The guide covers a wide range of topics, including the general principles of auditing, the responsibilities of auditors, the conduct of an audit, and the reporting requirements. It also provides specific guidance onauditing various types of entities, such as listed companies, financial institutions, and government agencies.One of the key aspects of the guide is its focus on the importance of professional judgment in the application of the audit standards. Auditors are expected to exercisetheir professional judgment throughout the audit process,from planning and performing the audit procedures to evaluating the results and forming an opinion on the financial statements.Furthermore, the guide emphasizes the need for auditors to maintain independence and objectivity throughout the audit process. Independence is essential to ensure that auditors can perform their work without bias or undue influence, while objectivity is crucial for the fair and impartial evaluation of the financial statements.In addition to providing guidance on the technical aspects of auditing, the guide also addresses the ethical considerations that auditors need to take into account. Ethical behavior is fundamental to the accounting profession, and auditors are expected to adhere to the highest standards of professional conduct and integrity.Overall, the Application Guide to Chinese CPA Audit Standards is an essential resource for auditors in China. It provides practical guidance on the application of the audit standards and helps to ensure that auditors can perform their work with professionalism, independence, and integrity.中国注册会计师审计准则应用指南中国注册会计师（CPA）审计准则应用指南是一份全面的文件，提供了关于在中国应用审计准则的指导。

certified audit standard -回复Certified Audit Standard: An In-Depth Examination of Financial Transparency and TrustIntroduction:Certified Audit Standards play a crucial role in ensuring financial transparency and trust in business transactions. These standards provide a framework for auditors to assess the accuracy and reliability of financial statements. In this article, we will dissect the components and processes involved in certified audit standards, step by step.I. Definition and Purpose of Certified Audit Standards:Certified Audit Standards are a set of guidelines established by professional accounting organizations, such as the International Auditing and Assurance Standards Board (IAASB) and the Public Company Accounting Oversight Board (PCAOB). These standards outline the expectations and responsibilities of auditors during the audit process.The primary purpose of certified audit standards is to enhance the credibility of financial statements through an independent evaluation. By following these standards, auditors can provide reasonable assurance to stakeholders that the financial statements are free from material misstatements and faithfully represent the financial position of an entity.II. Key Components of Certified Audit Standards:A. General Principles:Certified audit standards adhere to fundamental principles that govern the audit process. These principles include integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. By upholding these principles, auditors uphold their ethical responsibilities and maintain the trust of stakeholders.B. Audit Planning:Before starting the audit engagement, auditors must plan their work effectively. This involves understanding the entity's business, assessing risks, and developing an appropriate audit strategy. Certified audit standards provide specific guidelines to ensure thatauditors consider relevant factors and tailor their approach accordingly.C. Internal Control Evaluation:Auditors must evaluate the effectiveness of an entity's internal controls to determine the extent of reliance that can be placed on them. Certified audit standards provide a systematic approach to assess and test internal controls, ensuring their adequacy in preventing and detecting material misstatements.D. Substantive Procedures:Certified audit standards require auditors to perform substantive procedures, including analytical procedures and tests of details, to gather sufficient and appropriate evidence. These procedures aim to verify the accuracy, completeness, and existence of financial statement items, transactions, and disclosures.E. Audit Evidence:Auditors must obtain reliable and relevant audit evidence to support their opinion on the financial statements. Certified audit standards emphasize the importance of documentation, sufficiency, and appropriateness of audit evidence, ensuring that auditors havea robust basis for their conclusions.F. Audit Reporting:The final step of the audit process is issuing an audit report that communicates the opinion of the auditor. Certified audit standards provide specific requirements for the content and format of the report, ensuring consistency and clarity in the communication of audit results to stakeholders.III. Implementation of Certified Audit Standards:Certified audit standards are implemented through a rigorous process that involves the following steps:A. Understanding the Applicable Standards:Auditors need to familiarize themselves with the specific certified audit standards that apply to the engagement. This requires thorough study and interpretation of the standards to ensure compliance.B. Applying the Standards:During the audit process, auditors apply the certified auditstandards by following the prescribed procedures and guidelines. This includes planning and executing the audit, evaluating internal controls, performing substantive procedures, and gathering sufficient evidence.C. Documentation and Review:Certified audit standards emphasize the importance of maintaining comprehensive audit documentation. This ensures that audit evidence, procedures performed, and judgments made are properly recorded and can withstand external scrutiny. Furthermore, the audit work should undergo a thorough review process to ensure that it meets the required standards.D. Quality Control:Firms conducting certified audits should establish a robust system of quality control. This involves policies and procedures aimed at ensuring that audits are conducted in accordance with the applicable standards. It includes regular monitoring, internal inspections, and training to maintain the highest level of audit quality.E. Peer Review:In many jurisdictions, auditors are subject to peer review by other qualified auditors or audit firms. This process evaluates the firm's adherence to certified audit standards and its compliance with ethical and quality control requirements.IV. Benefits and Challenges of Certified Audit Standards:A. Benefits:1. Financial Transparency: Certified audit standards ensure that financial statements are reliable and transparent, enhancing investor confidence and promoting capital market stability.2. Compliance: Implementing certified audit standards assists entities in complying with legal and regulatory requirements.3. Stakeholder Trust: Auditors who follow certified audit standards establish credibility, fostering trust between businesses, investors, and other stakeholders.B. Challenges:1. Complexity: Certified audit standards can be intricate and technical, requiring auditors to have specialized knowledge and skills.2. Cost-Benefit Analysis: Smaller entities might find it challengingto meet the costs associated with hiring certified auditors or implementing complex audit procedures.3. Evolving Landscape: The audit profession constantly adapts to changes in regulations and technological advancements, requiring auditors to stay updated and relevant.Conclusion:Certified audit standards are essential for fostering financial transparency and trust in business transactions. By adhering to these standards, auditors provide reasonable assurance to stakeholders that financial statements accurately reflect the financial position of entities. Although implementing certified audit standards may present challenges, the benefits of increased credibility and stakeholder trust outweigh the difficulties.。

statements on auditing standards -回复什么是审计准则，以及审计准则的目的和作用。

审计准则是指评估和制定审计工作的规则和标准。

这些准则由专业组织制定，旨在指导会计师事务所和审计员在执行审计工作时遵循一定原则和规范。

审计准则的目的是保证审计工作的质量和一致性，确保审计员在审计过程中能够遵循一套标准化的程序和方法，并提供客观和可靠的审计意见。

审计准则具有以下目标和作用：1. 提高审计的标准化和一致性：审计准则为审计工作提供了一套统一的准则和方法，确保审计员在执行工作时遵循相同的标准。

这样可以保证不同审计师在不同时期对相同企业的审计结果是一致的，从而增强了审计的可比性和有效性。

2. 保护公众利益：审计准则的制定和遵循，旨在保护投资者和公众的利益。

它确保了审计员对企业的财务报表进行全面和独立的审查，并提供公正、客观的审计意见。

这有助于提高投资者对企业财务状况的信任度，并保障公众对企业的利益不受损害。

3. 提高财务报表的可靠性：审计准则要求审计员对企业财务报表进行深入的审查和验证，并评估其准确性和合规性。

通过审计工作，可以发现和纠正财务报表中的错误和不合规行为，确保财务报表的真实性和可靠性。

4. 有效管理风险：审计准则要求审计员评估企业内部控制制度的有效性，并发现潜在的风险和问题。

这有助于企业及时发现和解决财务管理中存在的问题，减少潜在风险的发生并提高企业的绩效和竞争力。

5. 提高审计员的职业道德和责任感：审计准则强调审计员的独立性、客观性和职业道德，要求他们在执行审计工作时始终保持公正和诚实。

这有助于提高审计员的职业素养和责任感，建立良好的职业声誉，并提升整个审计职业的形象和地位。

综上所述，审计准则对于保障审计工作的质量和可靠性，保护公众利益，提高财务报表的可靠性，有效管理风险以及提高审计员的职业道德和责任感，起着至关重要的作用。

审计准则的制定和遵循有助于确保审计工作的一致性、公正性和有效性，为企业和公众提供真实、可靠的财务信息和审计意见，促进经济的健康发展和稳定。

审核规则英语In the realm of content creation, the process of review and auditing is a critical step that ensures the integrity and quality of the material presented to audiences. The rules that govern this process are designed to maintain a standard that not only meets but exceeds the expectations of both creators and consumers.The cornerstone of effective auditing lies in the meticulous examination of content for accuracy. This involves a thorough verification of facts, figures, and sources to prevent the dissemination of misinformation. Auditors must possess a keen eye for detail and a commitment to truth, which serves as the bedrock upon which trust is built between the content provider and the audience.Equally important is the adherence to linguistic precision and vibrancy. Language is the medium through which ideas are conveyed, and it must be employed with skill and care. The use of clear, concise, and engaging language is paramount, as it facilitates the comprehension and retention of information. Auditors must ensure that the language used is not only correct in terms of grammar and syntax but also rich and evocative, capable of capturing and holding the reader's attention.The structure and flow of the document are also under scrutiny during the review process. The content must be logically organized, presenting a coherent narrative that guides the reader through the material without confusion. Transitions between sentences and paragraphs should be smooth, contributing to an overall sense of unity and purpose within the document. This structural integrity is essential for the conveyance of ideas in a manner that is both understandable and persuasive.In addition to these core aspects, the review process must filter out any extraneous elements that do not serve the primary objective of the content. This includes the exclusion of promotional material, personal contact information, commercial interests, and external links that may distract or mislead the reader. The focus must remain unwaveringly on the subject at hand, providing a pure and undiluted experience that is free from irrelevant or self-serving additions.Finally, the overall logic of the document must be seamless, avoiding the formulaic and often overused progression of 'firstly', 'secondly', and 'lastly'. Instead, the content should unfold naturally, with each point emerging as a necessary and integral part of the whole. This approach not only enhances the readability of the document but also imbues it with a sense of organic development, reflecting the natural flow of thought and reasoning.In conclusion, the rules of content review and auditing are designed to uphold the highest standards of quality in written material. Through a diligent application of these principles, auditors play a vital role in the cultivation of content that is not only informative and accurate but also compelling and enjoyable to read. It is through this rigorous process that the value of content is truly realized, earning the respect and trust of audiences worldwide. 。

2024年度内审员考试预测英文版Predictions for the 2024 Internal Auditor ExamIn anticipation of the upcoming 2024 Internal Auditor Exam, it is essential to prepare thoroughly. The exam is expected to cover a wide range of topics, including risk assessment, internal controls, audit planning, and financial reporting.To excel in the exam, candidates should focus on understanding the principles of internal auditing, including the Institute of Internal Auditors' Standards and Code of Ethics. Additionally, familiarity with audit procedures, compliance regulations, and fraud detection techniques will be crucial.Candidates should prioritize practicing sample exam questions and participating in mock exams to enhance their exam-taking skills. Developing strong analytical and critical thinking abilities will be beneficial in tackling complex audit scenarios presented in the exam.Staying updated on current industry trends, technological advancements, and regulatory changes will also be advantageous. It is recommended to leverage resources such as professional journals, online forums, and industry conferences to stay informed.In conclusion, success in the 2024 Internal Auditor Exam will require dedication, preparation, and a solid understanding of internal audit principles. By focusing on key topics, practicing exam questions, and staying informed, candidates can increase their chances of passing the exam with flying colors.。

陈本监审准则英语Title: Chen Ben's Audit StandardsIntroduction:Chen Ben's Audit Standards refer to a set of guidelines and principles followed by auditing professionals when conducting financial audits. These standards ensure the accuracy, reliability, and transparency of financial statements, providing confidence to stakeholders, such as investors, lenders, and regulators.1. Background and Overview:Chen Ben's Audit Standards were established by Chen Ben, a renowned auditing expert, to enhance the quality and effectiveness of financial audits. These standards are widely recognized and adopted by auditing professionals globally. The framework provides a systematic approach to auditing, promoting consistency and comparability in audit practices.2. Objectives of Chen Ben's Audit Standards:The primary objective of Chen Ben's Audit Standards is to provide reasonable assurance that financial statements are free from material misstatements. This objective is achieved by conducting systematic and evidence-based audit procedures, including risk assessment, internal control evaluation, andsubstantive testing.3. Key Principles of Chen Ben's Audit Standards:a. Independence and Objectivity: Auditors must maintain independence and objectivity throughout the audit process, ensuring that their judgment is not influenced by any conflicting interests.b. Professional Competence and Due Care: Auditors are required to possess the necessary knowledge, skills, and experience to perform audits effectively. They should exercise due care in planning, executing, and evaluating audit procedures.c. Ethical Conduct: Auditors should adhere to high ethical standards, maintaining integrity, confidentiality, and professional behavior.d. Adequate Planning and Supervision: Auditors must plan and supervise audits adequately to ensure that they are appropriately scoped and executed.e. Sufficient and Appropriate Audit Evidence: Auditors should obtain sufficient and appropriate audit evidence to support their opinion on the financial statements.f. Communication and Reporting: Auditors are responsible for clearly communicating the audit findings, including anysignificant deficiencies or material misstatements, in an understandable manner.4. Application and Compliance:Audit firms and professionals are expected to comply with Chen Ben's Audit Standards in their audit engagements. Regular monitoring and quality control procedures are necessary to ensure adherence to these standards. Non-compliance may result in disciplinary actions or loss of professional licenses.Conclusion:Chen Ben's Audit Standards play a crucial role in promoting the integrity and reliability of financial information. By adhering to these standards, auditors contribute to the trust and confidence of stakeholders in the financial reporting process. Regular updates and revisions to the standards enable them to stay relevant and address emerging challenges in the auditing profession.。

非标准审计报告英文术语Non-standard audit report英文术语：1. Scope limitation - 范围限制2. Departure from GAAP - 偏离准则会计原则3. Disclaimer of opinion - 对意见的否定4. Qualified opinion - 有保留意见5. Adverse opinion - 强烈否定意见6. Key audit matters - 关键审计事项7. Material misstatement - 实质错误陈述8. Emphasis of matter - 对事项的强调9. Going concern uncertainty - 继续经营不确定性10. Other matter - 其他事项11. Basis for qualified opinion - 保留意见的基础12. Basis for adverse opinion - 否定意见的基础13. Materiality threshold - 实质性阈值14. Overall financial statement presentation - 总体财务报表呈现15. Consistency of financial statements - 财务报表的一致性16. Comparative financial statements - 比较财务报表17. Management's responsibility for the financial statements - 管理阐述对财务报表的责任18. Auditor's responsibility for the audit of financial statements - 审计师对财务报表的责任19. Opinion on the financial statements taken as a whole - 对整个财务报表的意见20. Report on the financial statements - 财务报表的报告此外，500个字无法详细解释500个不同的术语，以上术语仅供参考。

INTERNATIONAL STANDARD ON AUDITING 320AUDIT MATERIALITY(Effective for audits of financial statements for periodsbeginning on or after December 15, 2004)∗CONTENTSParagraph Introduction ...................................................................................................1-3 Materiality ..................................................................................................... 4-8 The Relationship between Materiality and Audit Risk ..................................9-11 Evaluating the Effect of Misstatements .........................................................12-16 Communication of Errors (17)International Standard on Auditing (ISA) 320, “Audit Materiality” should be read inthe context of the “P reface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services,” which sets out the application and authority of ISAs.∗ISA 240, “The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements,” ISA 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement,”ISA 330, “The Auditor’s Procedures in Response to Assessed Risks,” and ISA 500, “Audit Evidence”gave rise to conforming amendments to ISA 320. The conforming amendments are effective for audits offinancial statements for periods beginning on or after December 15, 2004 and have been incorporated inthe text of ISA 320.ISA 320393AUDIT MATERIALITYIntroduction1.The purpose of this International Standard on Auditing (ISA) is to establishstandards and provide guidance on the concept of materiality and itsrelationship with audit risk.2.The auditor should consider materiality and its relationship with auditrisk when conducting an audit.3.“Materiality” is defined in the International Accounting Standards Board’s“Framework for the Preparation and Presentation of Financial Statements” inthe following terms:Information is material if its omission or misstatement couldinfluence the economic decisions of users taken on the basis of thefinancial statements. Materiality depends on the size of the item orerror judged in the particular circumstances of its omission ormisstatement. Thus, materiality provides a threshold or cut-off pointrather than being a primary qualitative characteristic w hichinformation must have if it is to be useful.Materiality4.The objective of an audit of financial statements is to enable the auditor toexpress an opinion whether the financial statements are prepared, in allmaterial respects, in accordance with an applicable financial reportingframework. The assessment of what is material is a matter of professionaljudgment.5.In designing the audit plan, the auditor establishes an acceptable materialitylevel so as to detect quantitatively material misstatements. However, both theamount (quantity) and nature (quality) of misstatements need to be considered.Examples of qualitative misstatements would be the inadequate or improperdescription of an accounting policy when it is likely that a user of the financialstatements would be misled by the description, and failure to disclose thebreach of regulatory requirements when it is likely that the consequentimposition of regulatory restrictions will significantly impair operatingcapability.6.The auditor needs to consider the possibility of misstatements of relativelysmall amounts that, cumulatively, could have a material effect on the financialstatements. For example, an error in a month end procedure could be anindication of a potential material misstatement if that error is repeated eachmonth.7.The auditor considers materiality at both the overall financial statement leveland in relation to classes of transactions, account balances, and disclosures.Materiality may be influenced by considerations such as legal and regulatoryrequirements and considerations relating to classes of transactions, account ISA 320 394AUDIT MATERIALITYISA 320 395balances, and disclosures and their relationships . This process may result in different materiality levels depending on the aspect of the financial statements being considered.8.Materiality should be considered by the auditor when:(a)Determining the nature, timing and extent of audit procedures;and(b)Evaluating the effect of misstatements.The Relationship Between Materiality and Audit Risk9.When planning the audit, the auditor considers what would make the financialstatements materially misstated. The auditor’s understanding of the entity and its environment establishes a frame of reference within which the auditor plans the audit and exercises professional judgment about assessing the risks of material misstatement of the financial statements and responding to those risks throughout the audit. It also assists the auditor to establish materiality and in evaluating whether the judgment about materiality remains appropriate as the audit progresses. The auditor’s assessment of materiality, related to classes of transactions, account balances, and disclosures, helps the auditor decide such questions as what items to examine and whether to use sampling and substantive analytical procedures. This enables the auditor to select audit procedures that, in combination, can be expected to reduce audit risk to an acceptably low level.10.There is an inverse relationship between materiality and the level of audit risk,that is, the higher the materiality level, the lower the audit risk and vice versa. The auditor takes the inverse relationship between materiality and audit risk into account when determining the nature, timing and extent of audit procedures. For example, if, after planning for specific audit procedures, the auditor determines that the acceptable materiality level is lower, audit risk is increased. The auditor would compensate for this by either:(a)Reducing the assessed risk of material misstatement, where this ispossible, and supporting the reduced level by carrying out extended oradditional tests of control; or(b)Reducing detection risk by modifying the nature, timing and extent ofplanned substantive procedures.Materiality and Audit Risk in Evaluating Audit Evidence11.The auditor’s assessment of materiality and audit risk may be different at thetime of initially planning the engagement from at the time of evaluating the results of audit procedures. This could be because of a change in circumstances or because of a change in the auditor’s knowledge as a result of performing audit procedures. For example, if audit procedures are performed prior toAUDIT MATERIALITYperiod end, the auditor will anticipate the results of operations and the financialposition. If actual results of operations and financial position are substantiallydifferent, the assessment of materiality and audit risk may also change.Additionally, the auditor may, in planning the audit work, intentionally set theacceptable materiality level at a lower level than is intended to be used toevaluate the results of the audit. This may be done to reduce the likelihood ofundiscovered misstatements and to provide the auditor with a margin of safetywhen evaluating the effect of misstatements discovered during the audit.Evaluating the Effect of Misstatements12.In evaluating whether the financial statements are prepared, in allmaterial respects, in accordance with an applicable financial reportingframework, the aud itor should assess whether the aggregate ofuncorrected misstatements that have been identified during the audit ismaterial.13.The aggregate of uncorrected misstatements comprises:(a)Specific misstatements identified by the auditor including the net effectof uncorrected misstatements identified during the audit of previousperiods; and(b)The auditor’s best estimate of other misstatements which cannot bespecifically identified (i.e., projected errors).14.The auditor needs to consider whether the aggregate of uncorrectedmisstatements is material. If the auditor concludes that the misstatements maybe material, the auditor needs to consider reducing audit risk by extendingaudit procedures or requesting management to adjust the financial statements.In any event, management may want to adjust the financial statements for themisstatements identified.15.If management refuses to adjust the financial statements and the results ofextended audit procedures do not enable the auditor to conclude that theaggregate of uncorrected misstatements is not material, the auditor shouldconsid er the appropriate mod ification to the aud itor’s report inaccordance with ISA 701, “Modifications to the Independent Auditor’sReport.”16.If the aggregate of the uncorrected misstatements that the auditor has identifiedapproaches the materiality level, the auditor would consider whether it is likelythat undetected misstatements, when taken with aggregate uncorrectedmisstatements could exceed materiality level. Thus, as aggregate uncorrectedmisstatements approach the materiality level the auditor would considerreducing audit risk by performing additional audit procedures or by requestingmanagement to adjust the financial statements for identified misstatements. ISA 320 396AUDIT MATERIALITYISA 320 397 Communication of Errors17.If the auditor has identified a material misstatement resulting from error,the auditor should communicate the misstatement to the appropriate level of management on a timely basis, and consider the need to report it to those charge d with governance in accor d ance with ISA 260 “Communication of Au d it Matters with Those Charge d with Governance.”Public Sector Perspective1.In assessing materiality, the public sector auditor must, in addition toexercising professional judgment, consider any legislation or regulation which may impact that assessment. In the public sector, materiality is also based on the “context and nature” of an item and includes, for example, sensitivity as well as value. Sensitivity covers a variety of matters such as compliance with authorities, legislative concern or public interest.。