阿倫斯 審計(jì)學(xué)：一種整合方法 課后習(xí)題答案ch01

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1、Chapter 1 The Demand for Audit and Other Assurance Services < Review Questions 1-1 The relationship among audit services, attestation services, and assurance services is reflected in Figure 1-3 on page 13 of the text. An assurance service is an independent professional service to improve

2、the quality of information for decision makers. An attestation service is a form of assurance service in which the CPA firm issues a report about the reliability of an assertion that is the responsibility of another party. Audit services are a form of attestation service in which the auditor express

3、es a written conclusion about the degree of correspondence between information and established criteria. The most common form of audit service is an audit of historical financial statements, in which the auditor expresses a conclusion as to whether the financial statements are presented in conform

4、ity with generally accepted accounting principles. An example of an attestation service is a report on the effectiveness of an entity’s internal control over financial reporting. There are many possible forms of assurance services, including services related to business performance measurement, heal

5、th care performance, and information system reliability. 1-2 An independent audit is a means of satisfying the need for reliable information on the part of decision makers. Factors of a complex society which contribute to this need are: 1. Remoteness of information a. Owners (stockholders) di

6、vorced from management b. Directors not involved in day-to-day operations or decisions c. Dispersion of the business among numerous geographic locations and complex corporate structures 2. Biases and motives of provider a. Information will be biased in favor of the provider when his or her goals

7、 are inconsistent with the decision maker's goals. 3. Voluminous data a. Possibly millions of transactions processed daily via sophisticated computerized systems b. Multiple product lines c. Multiple transaction locations 4. Complex exchange transactions a. New and changing business relationsh

8、ips lead to innovative accounting and reporting problems b. Potential impact of transactions not quantifiable, leading to increased disclosures 1-3 1. Risk-free interest rate This is approximately the rate the bank could earn by investing in U.S. treasury notes for the same length of time as the

9、business loan. 2. Business risk for the customer This risk reflects the possibility that the business will not be able to repay its loan because of economic or business conditions such as a recession, poor management decisions, or unexpected competition in the industry. 3. Information risk This

10、risk reflects the possibility that the information upon which the business risk decision was made was inaccurate. A likely cause of the information risk is the possibility of inaccurate financial statements. Auditing has no effect on either the risk-free interest rate or business risk. However,

11、auditing can significantly reduce information risk. 1-4 The four primary causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and the existence of complex exchange transactions. The three main ways to reduce information risk are: 1. U

12、ser verifies the information. 2. User shares the information risk with management. 3. Audited financial statements are provided. The advantages and disadvantages of each are as follows: ADVANTAGES DISADVANTAGES USER VERIFIES INFORMATION 1. User obtains information desired. 2. User

13、 can be more confident of the qualifications and activities of the person getting the information. 1. High cost of obtaining information. 2. Inconvenience to the person providing the information because large number of users would be on premises. USER SHARES INFORMATION RISK WITH MANAGEMENT

14、1. No audit costs incurred. 1. User may not be able to collect on losses. AUDITED FINANCIAL STATEMENTS ARE PROVIDED 1. Multiple users obtain the information. 2. Information risk can usually be reduced sufficiently to satisfy users at reasonable cost. 3. Minimal inconvenience to management b

15、y having only one auditor. 1. May not meet needs of certain users. 2. Cost may be higher than the benefits in some situations, such as for a small company. 1-5 To do an audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the info

16、rmation. Examples of established criteria include generally accepted accounting principles and the Internal Revenue Code. Determining the degree of correspondence between information and established criteria is determining whether a given set of information is in accordance with the established crit

17、eria. The information for Jones Company's tax return is the federal tax returns filed by the company. The established criteria are found in the Internal Revenue Code and all interpretations. For the audit of Jones Company's financial statements the information is the financial statements being audit

18、ed and the established criteria are generally accepted accounting principles. 1-6 The primary evidence the internal revenue agent will use in the audit of the Jones Company's tax return include all available documentation and other information available in Jones' office or from other sources. For

19、 example, when the internal revenue agent audits taxable income, a major source of information will be bank statements, the cash receipts journal and deposit slips. The internal revenue agent is likely to emphasize unrecorded receipts and revenues. For expenses, major sources of evidence are likely

20、to be cancelled checks, vendors' invoices and other supporting documentation. 1-7 This apparent paradox arises from the distinction between the function of auditing and the function of accounting. The accounting function is the recording, classifying and summarizing of economic events to provide

21、relevant information to decision makers. The rules of accounting are the criteria used by the auditor for evaluating the presentation of economic events for financial statements and he or she must therefore have an understanding of generally accepted accounting principles (GAAP), as well as auditing

22、 standards. The accountant need not, and frequently does not, understand what auditors do, unless he or she is involved in doing audits, or has been trained as an auditor. 1-8 OPERATIONAL AUDITS COMPLIANCE AUDITS AUDITS OF FINANCIAL STATEMENTS PURPOSE To evaluate whether oper

23、ating procedures are efficient and effective To determine whether the client is following specific procedures set by higher authority To determine whether the overall financial statements are presented in accordance with specified criteria (usually GAAP) USERS OF AUDIT REPORT Management of o

24、rganization Authority setting down procedures, internal or external Different groups for different purposes — many outside entities NATURE Highly nonstandard; often subjective Not standardized, but specific and usually objective Highly standardized PERFORMED BY: CPAs Frequently

25、 Occasionally Almost universally GAO AUDITORS Frequently Frequently Occasionally IRS AUDITORS Never Universally Never INTERNAL AUDITORS Frequently Frequently Frequently 1-9 Five examples of specific operational audits that could be conducted by an i

26、nternal auditor in a manufacturing company are: 1. Examine employee time cards and personnel records to determine if sufficient information is available to maximize the effective use of personnel. 2. Review the processing of sales invoices to determine if it could be done more efficiently. 3. R

27、eview the acquisitions of goods, including costs, to determine if they are being purchased at the lowest possible cost considering the quality needed. 4. Review and evaluate the efficiency of the manufacturing process. 5. Review the processing of cash receipts to determine if they are deposited as

28、 quickly as possible. 1-10 When using a strategic systems auditing approach in an audit of historical financial statements, an auditor must have a thorough understanding of the client and its environment. This knowledge should include the client’s regulatory and operating environment, business st

29、rategies and processes, and measurement indicators. The strategic systems approach is also useful in other assurance or consulting engagements. For example, an auditor who is performing an assurance service on information technology would need to understand the client’s business strategies and proce

30、sses related to information technology, including such things as purchases and sales via the Internet. Similarly, a practitioner performing a consulting engagement to evaluate the efficiency and effectiveness of a client’s manufacturing process would likely start with an analysis of various measurem

31、ent indicators, including ratio analysis and benchmarking against key competitors. 1-11 The major differences in the scope of audit responsibilities are: 1. CPAs perform audits in accordance with auditing standards of published financial statements prepared in accordance with generally accepte

32、d accounting principles. 2. GAO auditors perform compliance or operational audits in order to assure the Congress of the expenditure of public funds in accordance with its directives and the law. 3. IRS agents perform compliance audits to enforce the federal tax laws as defined by Congress, interp

33、reted by the courts, and regulated by the IRS. 4. Internal auditors perform compliance or operational audits in order to assure management or the board of directors that controls and policies are properly and consistently developed, applied and evaluated. 1-12 The four parts of the Uniform CPA E

34、xamination are: Auditing and Attestation, Financial Accounting and Reporting, Regulation, and Business Environment and Concepts. 1-13 It is important for CPAs to be knowledgeable about e-commerce technologies because more of their clients are rapidly expanding their use of e-commerce. Examples of

35、 commonly used e-commerce technologies include purchases and sales of goods through the Internet, automatic inventory reordering via direct connection to inventory suppliers, and online banking. CPAs who perform audits or provide other assurance services about information generated with these techno

36、logies need a basic knowledge and understanding of information technology and e-commerce in order to identify and respond to risks in the financial and other information generated by these technologies. < Multiple Choice Questions From CPA Examinations 1-14 a. (3) b. (2) c. (2) d. (3) 1-

37、15 a. (2) b. (3) c. (4) d. (3) < Discussion Questions And Problems 1-16 a. The relationship among audit services, attestation services and assurance services is reflected in Figure 1-3 on page 13 of the text. Audit services are a form of attestation service, and attestation services are a form

38、 of assurance service. In a diagram, audit services are located within the attestation service area, and attestation services are located within the assurance service area. b. 1. (1) Audit of historical financial statements 2. (2) An attestation service other than an audit service; or (3) An as

39、surance service that is not an attestation service (WebTrust developed from the AICPA Special Committee on Assurance Services, but the service meets the criteria for an attestation service.) 3. (2) An attestation service other than an audit service 4. (2) An attestation service other than an audi

40、t service 5. (2) An attestation service other than an audit service 6. (2) An attestation service that is not an audit service (Review services are a form of attestation, but are performed according to Statements on Standards for Accounting and Review Services.) 7. (2) An attestation service ot

41、her than an audit service 8. (2) An attestation service other than an audit service 9. (3) An assurance service that is not an attestation service 1-17 a. The interest rate for the loan that requires a review report is lower than the loan that did not require a review because of lower informat

42、ion risk. A review report provides moderate assurance to financial statement users, which lowers information risk. An audit report provides further assurance and lower information risk. As a result of reduced information risk, the interest rate is lowest for the loan with the audit report. b. Given

43、 these circumstances, Vial-tek should select the loan from City First Bank that requires an annual audit. In this situation, the additional cost of the audit is less than the reduction in interest due to lower information risk. The following is the calculation of total costs for each loan: LEND

44、ER CPA SERVICE COST OF CPA SERVICES ANNUAL INTEREST ANNUAL LOAN COST Existing loan None 0 $ 142,500 $ 142,500 First National Bank Review $ 12,000 $ 127,500 $ 139,500 City First Bank Audit $ 20,000 $ 112,500 $ 132,500 1-17 (continued) c. Vial-tek may desire to

45、have an audit because of the many other positive benefits that an audit provides. The audit will provide Vial-tek’s management with assurance about annual financial information used for decision-making purposes. The audit may detect errors or fraud, and provide management with information about the

46、effectiveness of controls. In addition, the audit may result in recommendations to management that will improve efficiency or effectiveness. d. Under a strategic systems audit approach, the auditor must have a thorough understanding of the client and its environment, including the client’s e-comm

47、erce technologies, industry, regulatory and operating environment, suppliers, customers, creditors, and business strategies and processes. This thorough analysis helps the auditor identify risks associated with the client’s strategies that may affect whether the financial statements are fairly state

48、d. When applying the strategic systems audit approach, the auditor often discovers ways to help the client improve business operations, thereby providing added value to the audit function. 1-18 a. The services provided by Consumers Union are very similar to assurance services provided by CPA firm

49、s. The services provided by Consumers Union and assurance services provided by CPA firms are designed to improve the quality of information for decision makers. CPAs are valued for their independence, and the reports provided by Consumers Union are valued because Consumers Union is independent of th

50、e products tested. b. The concepts of information risk for the buyer of an automobile and for the user of financial statements are essentially the same. They are both concerned with the problem of unreliable information being provided. In the case of the auditor, the user is concerned about unreli

51、able information being provided in the financial statements. The buyer of an automobile is likely to be concerned about the manufacturer or dealer providing unreliable information. c. The four causes of information risk are essentially the same for a buyer of an automobile and a user of financial s

52、tatements: (1) Remoteness of information It is difficult for a user to obtain much information about either an automobile manufacturer or the automobile itself without incurring considerable cost. The automobile buyer does have the advantage of possibly knowing other users who are satisfied or dis

53、satisfied with a similar automobile. (2) Biases and motives of provider There is a conflict between the automobile buyer and the manufacturer. The buyer wants to buy a high quality product at minimum cost whereas the seller wants to maximize the selling price and quantity sold. (3) Voluminous dat

54、a There is a large amount of available information about automobiles that users might like to have in order to evaluate an automobile. Either that information is not available or too costly to obtain. 1-18 (continued) (4) Complex exchange transactions The acquisition of an automobile is expe

55、nsive and certainly a complex decision because of all the components that go into making a good automobile and choosing between a large number of alternatives. d. The three ways users of financial statements and buyers of automobiles reduce information risk are also similar: (1) User verifies info

56、rmation him or herself That can be obtained by driving different automobiles, examining the specifications of the automobiles, talking to other users and doing research in various magazines. (2) User shares information risk with management The manufacturer of a product has a responsibility to mee

57、t its warranties and to provide a reasonable product. The buyer of an automobile can return the automobile for correction of defects. In some cases a refund may be obtained. (3) Examine the information prepared by Consumer Reports This is similar to an audit in the sense that independent informati

58、on is provided by an independent party. The information provided by Consumer Reports is comparable to that provided by a CPA firm that audited financial statements. 1-19 a. The following parts of the definition of auditing are related to the narrative: (1) Virms is being asked to issue a report

59、about qualitative and quantitative information for trucks. The trucks are therefore the information with which the auditor is concerned. (2) There are four established criteria which must be evaluated and reported by Virms: existence of the trucks on the night of June 30, , ownership of each truck

60、 by Regional Delivery Service, physical condition of each truck and fair market value of each truck. (3) Susan Virms will accumulate and evaluate four types of evidence: (a) Count the trucks to determine their existence. (b) Use registrations documents held by Oatley for comparison to the serial

61、number on each truck to determine ownership. (c) Examine the trucks to determine each truck's physical condition. (d) Examine the blue book to determine the fair market value of each truck. (4) Susan Virms, CPA, appears qualified, as a competent, independent person. She is a CPA, and she spends m

62、ost of her time auditing used automobile and truck dealerships and has extensive specialized knowledge about used trucks that is consistent with the nature of the engagement. 1-19 (continued) (5) The report results are to include: (a) which of the 35 trucks are parked in Regional's parking lot

63、the night of June 30. (b) whether all of the trucks are owned by Regional Delivery Service. (c) the condition of each truck, using established guidelines. (d) fair market value of each truck using the current blue book for trucks. b. The only parts of the audit that will be difficult for Virms a

64、re: (1) Evaluating the condition, using the guidelines of poor, good, and excellent. It is highly subjective to do so. If she uses a different criterion than the "blue book," the fair market value will not be meaningful. Her experience will be essential in using this guideline. (2) Determining the

65、 fair market value, unless it is clearly defined in the blue book for each condition. 1-20 a. The major advantages and disadvantages of a career as an IRS agent, CPA, GAO auditor, or an internal auditor are: EMPLOYMENT ADVANTAGES DISADVANTAGES INTERNAL REVENUE AGENT 1. Extensive trai

66、ning in individual, corporate, gift, trust and other taxes is available with concentration in area chosen. 2. Hands-on experience with sophisticated selection techniques. 1. Experience limited to taxes. 2. No experience with operational or financial statement auditing. 3. Training is not extensive with any business enterprise. CPA 1. Extensive training in audit of financial statements, compliance auditing and operational auditing. 2. Opportunity for experience in auditing, tax consultin