Chapter07 Audit Evidence(审计学-英文版).doc

Chapter07 Audit Evidence(审计学-英文版)
Audit Responsibilities
and Objectives
Chapter 6
Learning Objective 1
Explain the objective of
conducting an audit of
financial statements and
an audit of internal controls3>.
Objective of Conducting an Audit of Financial Statements
The objective of the ordinary audit of financial
statements is the expression of an opinion of
the fairness with which they present fairly, in
all respects, financial position, result of
operations, and its cash flows in
conformity with GAAP.
Steps to Develop Audit Objectives
Understand objectives and
responsibilities for the audit.
1
2
Divide financial statements
into cycles.
3
Know management
assertions about accounts.
Steps to Develop Audit Objectives
Know general audit objectives for
classes of transactions and accounts.
4
5
Know specific audit objectives for
classes of transactions and accounts.
Learning Objective 2
Distinguish management’s
responsibility for the financial
statements and internal control
from the auditor’s responsibility
for verifying the financial
statements and effectiveness
of internal control.
Management’s Responsibilities
Management is responsible for the financial
statements and for internal control.
The Sarbanes–Oxley Act increases management’s
responsibility for the financial statements.
It requires the CEO and the CFO of public
companies to certify the quarterly and annual
financial statements submitted to the SEC.
Management’s Responsibilities
The Sarbanes-Oxley Act provides for criminal
penalties for anyone who knowingly falsely
certifies the statements.
Learning Objective 3
Explain the auditor’s
responsibility for discovering
material misstatements.
Auditor’s Responsibilities
– Material versus immaterial misstatements
– Reasonable assurance
– Errors versus fraud
– Professional skepticism
– Fraud resulting from fraudulent financial
reporting versus misappropriation of assets
Auditor’s Responsibilities for D