1、Substantive procedures -Additions and disposalsAdditions-Obtain a breakdown of additions, and agree to the non-current asset register to confirm completenessof plant & equipment (P&E).1.具體的 breakdown與固資帳比查完整性-Select a sample of additions and agree cost to supplier invoice to confirm valuation.2.抽樣與發(fā)

2、票核對(duì)查價(jià)值-Verify rights and obligations by agreeing the addition of plant and equipment to a supplier invoice in the name of Pear.3.查發(fā)票署名查權(quán)利與義務(wù)- For a sample of additions recorded in P&E physically verify them on the factory floor to confirmexistence.4.查實(shí)體 .存在性-Review board minutes to ensure that signi

3、ficant capital expenditure purchases have been authorisedby the board.5.查董事會(huì)記錄-Review the list of additions and confirm that they relate to capital expenditure items rather than repairsand maintenance.6 查費(fèi)用化與資本化問題Disposals-Obtain a breakdown of disposals, cast the list and agree all assets removed f

4、rom the non-current asset register to confirm existence.1.具體的與總查存在-Select a sample of disposals and agree sale proceeds to supporting documentation such as sundry sales invoices.2.無恥法查 supporting documentation-Recalculate the profit/loss on disposal and agree to the income statement.3.重計(jì)inventory su

5、bstantive procedures for balances at the year end.(i) ExistenceAssets, liabilities and equity interests exist.Substantive proceduresDuring the inventory count select a sample of assets recorded in the inventory records and agree to the warehouse to confirm the assets exist.Obtain a sample of pre yea

6、r-end goods despatch notes and agree that these finished goods are excluded from the inventory records.(ii) Rights and obligationsThe entity holds or controls the rights to assets, and liabilities are the obligations of the entity.(iii) CompletenessAll assets, liabilities and equity interests that s

7、hould have been recorded have been recorded.Substantive proceduresObtain a copy of the inventory listing and agree the total to the general ledger and the financial statements.During the inventory count select a sample of goods physically present in the warehouse and confirm recorded in the inventor

8、y records.(iv) Valuation and allocationAssets, liabilities and equity interests are included in the financial statements at appropriate amounts andany resulting valuation or allocation adjustments are appropriately recorded.Substantive proceduresSelect a sample of goods in inventory at the year end,

9、 agree the cost per the records to a recent purchase invoice and ensure that the cost is correctly stated.Select a sample of year-end goods and review post year-end sales invoices to ascertain if net realisable value is above cost or if an adjustment is required.Substantive proceduresDepreciation Re

10、view the reasonableness of the depreciation rates applied to the new leisure facilities and compareto industry averages.depreciation rates 與同行業(yè)比較 Perform a proof in total calculation for the depreciation charged on the equipment, discuss withmanagement if significant fluctuations arise.a proof in to

11、tal APSelect a sample of leisure equipment and recalculate the depreciation charge to ensure that the non-current asset register is correct.Recalculate the depreciation charge為 accuracy Review the disclosure of the depreciation charges and policies in the draft financial statements.ACCURACYReview pr

12、ofits and losses on disposal of assets disposed of in the year, to assess the reasonableness of the depreciation fits and losses on disposal of assets是否合理Food poisoning1 Review the correspondence from the customersclaiming food poisoning to assess whetherPineapple has a present obligatio

13、n as a result of a past event.存在1Send an enquiry letter to the lawyers of Pineapple to obtain their view as to the probability of the claim being successful.1 Review board minutes to understand whether the directors believe that the claim will be successful or not.2 Review the post year-end period t

14、o assess whether any payments have been made to any of theclaimants.數(shù)字2 Discuss with management as to whether they propose to include a contingent liability disclosure or not, consider the reasonableness of this.3 Obtain a written management representation confirmingmanagements view that the lawsuit

15、 isunlikely to be successful and hence no provision is required.發(fā)誓3 Review the adequacy of any disclosures made in the financial statements.Substantive procedures over year-end trade payablesObtain a listing of trade payables from the purchase ledger and agree to the general ledger and the financial

16、 statements.1賬戶比數(shù)字Review the list of trade payables against prior years to identify any significant omissions.1與去年比數(shù)字 Calculate the trade payable days for Greystone and compare to prior years, investigate any significant differences.1計(jì)算 payable days 比數(shù)字Select a sample of goods received notes before

17、the year-end and follow through to inclusion in the year-end payables balance, to ensure correct cut-off.Review after date payments, if they relate to the current year2 cutoffObtain supplier statements and reconcile these to the purchase ledger balances, and investigate any reconciling items.與供貨方比較信

18、息 accuracy -Enquire of management their process for identifying goods received but not invoiced or logged in the purchase ledger and ensure that it is reasonable to ensure completeness of payables.詢問對(duì)收到貨但是未收到發(fā)票情況的處理方法-Review the purchase ledger for anydebit balances , for any significant amounts dis

19、cuss withmanagement and consider reclassification as current assets.數(shù)據(jù)出現(xiàn)異常與管理層討論原因-Ensure payables included in financial statements as current liabilities.無恥法正確做賬directors bonus and remuneration-Obtain a schedule of the directors remuneration including the bonus paid and cast the addition of the sch

20、edule.-Agree the individual bonus payments to the payroll records .12都是賬實(shí)對(duì)照查準(zhǔn)確性-Confirm the amount of each bonus paid by agreeing to the cash book and bank statements . -Review the board minutes to confirm whether any additional bonus payments relating to this year have been agreed.董事會(huì)記錄-Obtain a wr

21、itten representation from management confirming the completeness of directors remuneration including the bonus.書面-Review any disclosures made of the bonus and assess whether these are in compliance with local legislation.查是否合法合規(guī)Audit procedures regarding non-depreciation of buildings-Review audit fi

22、le to ensure that sufficient appropriate audit evidence has been collected in respect of this matter.-Ensure that GAAP does apply to the specific buildings owned by Galartha Co and that a departure from GAAP is not needed in order for the financial statements to show a true and fair view.-Meet with

23、the directors to confirm their reasons for not depreciating buildings.-Warn the directors that in your opinion buildings should be depreciated and that failure to provide depreciation will result in a modified audit report.-Determine the effect of the disagreement on the audit report in terms of the

24、 modified opinion being material or of pervasive materiality to the financial statements.-Draft the appropriate sections of the modified audit report.-Obtain a letter of representation from the directors confirming that depreciation will not be charged on buildings.Procedures to confirm i nventory h

25、eld at third party locations-Send a letter requesting direct confirmation of inventory balances held at year end from the third party warehouse函證providers used by Abrahams Co regarding quantities and condition.-Attend the inventory count (if one is to be performed) at the third party warehouses to r

26、eview the controls in operation to ensure the completeness and existence of inventory.參與盤點(diǎn)-Inspect any reports produced by the auditors of the warehouses in relation to the adequacy of controls over inventory.檢查報(bào)告-Inspect any documentation in respect of third party inventory.檢查第三方倉儲(chǔ)文件(ii) Procedures

27、 to confirm use of standard costs for inventory valuation-Discuss with management of Abrahams Co the basis of the standard costs applied to the inventoryvaluation, and how often these are reviewed and updated. 與管理層討論-Review the level of variances between standard and actual costs and discuss with ma

28、nagement how these are treated.與管理層討論差別-Obtain a breakdown of the standard costs and agree a sample of these costs to actual invoices or wage records to assess their reasonableness.明細(xì)檢查差錯(cuò)Going concern procedures- Obtain the companycsash flow forecastand review the cash in and out flows. Assess theas

29、sumptions for reasonableness and discuss the findings with management to understand if the company will have sufficient cash flows.- Review the company psost year-end sales and order book to assess if the levels of trade are likely to increase and if the revenue figures in the cash flow forecast are

30、 reasonable.-Review the loan agreement and recalculate the covenant which has been breached. Confirm the timing and amount of the loan repayment.-Review any agreements with the bank to determine whether any other covenants have been breached, especially in relation to the overdraft.-Discuss with the

31、 directors whether they have contacted any alternative banks for finance to assess whether they have any other means of repaying the loan of $48m.法律-Review any correspondence with shareholders to assess whether any of these are likely to increase their equity investment in the company.財(cái)務(wù)-Review post

32、 year-end correspondence with suppliers to identify if any others have threatened legal action or refused to supply goods .-Discuss with the finance director whether the sales director has yet beenreplaced and whether anynew customers have been obtained to replace the one lost.運(yùn)營-Enquire of the lawy

33、ers of Strawberry as to the existence of any additional litigation and request theirassessment of the likely amounts payable to the suppliers.- Perform audit tests in relation to subsequent events to identify any items that might indicate or mitigate the risk of going concern not being appropriate.-

34、Review the post year-end bo ard minutes to identify any other issues that might indicate further financial difficulties for the company.-Consider whether the g oing concern basi s is appropriate for the preparation of the financial statements.-Obtain a written representation c onfirming the director

35、ew sthvait Strawberry is a going concern.其他Procedures the auditor should adopt in respect of auditing accounting estimates include:- Enquire of management how t he accounting estimate is made and the d ata on which it is based.- Determine whether events occurring up to the date of the auditor s repo

36、rt (after the reporting period)provide audit evidence regarding the accounting estimate.-Review the method of measurement used and assess the r easonableness o f assumptions made.-Test the operating effectiveness of the controls over how management made the accounting estimate. Evaluate overall whet

37、her the accounting estimates in the financial statements are either reasonable or misstated. Obtain sufficient appropriate audit evidenceabout whether the disclosures in the financialstatements related to accounting estimates and estimation uncertainty are reasonable. Obtain written representations

38、from management and, where appropriate, those charged with governance whether they believe significant assumptions used in making accounting estimates are reasonable.Procedures during the inventory countObserve the counting teams of Lily to confirm whether the inventory count instructions are being

39、followed correctly.observe the procedures for identifying and segregating damaged goods are operating correctly. Observe the procedures for movements of inventory during the count, to confirm that no raw materials or finished goods have been omitted or counted twice .Select a sample and perform test

40、 counts from inventory sheets to warehouse aisle and from warehouse aisle to inventory sheets.Select a sample of damaged items as noted on the inventory sheets and inspect these windows to confirm whether the level of damage is correctly noted.Obtain a photocopy of the completed sequentially numbere

41、d inventory sheets for follow up testing on the final audit.Discuss with the warehouse manager how he has estimated the raw materials quantities. To the extent that it is possible, re-perform the procedures adopted by the warehouse manager.Identify and record any inventory held fo r third parties (i

42、f any) and confirm that it is excluded from the count.Audit procedures using CAATSThe audit team can use audit software to calculate inventory days for the year-to-date to compare against the prior year to identify whether inventory is turning over slower, as this may be an indication that it is ove

43、rvalued.Audit software can be utilised to produce an aged inventory analysis to identify any slow moving goods, which may require write down or an allowance.Cast the inventory listing to confirm the completeness and accuracy of inventory.Audit software can be used to select a representative sample o

44、f items for testing to confirm net realisable value and/or cost.Audit software can be utilised to recalculate cost and net realisable value for a sample of inventory. CAATs can be used to verify cut -off by testing whether the dates of the last GRNs and GDNs recorded relate to pre year end; and that

45、 any with a date of 1 January 2013 onwards have been excluded from the inventory records.CAATs can be used to confirm whether any inventory adjustments noted during the count have been correctly updated into final inventory records.Procedures the auditor should adopt in respect of auditing this accr

46、ual include:-Agree the year-end income tax payable accrual to the payroll records to confirm accuracy .-Agree the subsequent payment to the post year-end cash book and bank statements to confirm completeness.-Recalculationof the accrual to confirm accuracy .-Review any disclosures made of the income

47、 tax accrual and assess whether these are incompliancewith accounting standards and legislation.Audit procedures for continuous (perpetual) inventory counts-The audit team should attend at least one of the c ontinuous (perpetual) inventory counts to reviewwhether the controls over the inventory coun

48、t are adequate.-Consider attending the inventory count at the year endto undertake test counts of inventory fromrecords to floor and from floor to records in order to confirm theexistence and completeness ofinventory.-Review the adjustments made to the inventory records on a monthly basis to gain an

49、 understanding ofthe level of differences arising on a month by month basis.-If significant differences consistently arise, this could indicate that the inventory records are not adequately maintained. D iscuss with manageme nt how they will ensure that year-end inventory will not be under or overst

50、ated.Procedures to undertake in relation to the uncorrected misstatement-The extent of the potential misstatementshould be considered and therefore a large sample ofinventory items should be tested to identify the possible size of the misstatement.-The potential misstatement should be d iscussed wit

51、h Clarinet Co s managementin order to understand why these inventory differences are occurring.- The misstatement should be compared to materiality to assess if the error is materia l individually. -If not, then it should be added to other errors noted during the audit to assess if inaggregate theun

52、corrected errors are now material.-If material, the auditors should ask the directors to adjust the inventory balancesto correct themisstatements identified in the 2014 year end.-Request a written representation from the directors about the uncorrected misstatements including the inventory errors.-C

53、onsider the implication for the audit report if the inventory errors are material and the directors refuses to make adjustments.Receivables circularisation - procedures 步驟-Obtain a list of receivables balances , cast this and agree it to the receivables control account total at the end of theyear. A

54、geing of receivables may also be verified at this time.- Determine an appropriate sampling method(cumulative monetary amount, value-weightedselection, random, etc.)-Select the balances to be tested, with specific reference to the categories of receivable noted below. Extract details of each receivab

55、le selected from the ledger andprepare circularisation letters- Ask the chief accountant at Seeley Co (or other responsible official ) to sign the letters . -The auditor posts or faxes the letters to the individual receivables.Substantive procedures to confirm valuation of inventory- Select a repres

56、entative sample of goods in inventory at the year end, agree the cost per the records to a recent purchase invoice and ensure that the cost is correctly stated.-Select a sample of year end goods and review post year end sales invoices to ascertain if NRV is above cost or if an adjustment is required

57、.- For a sample of manufactured items obtain cost sheets and confirm:- raw material costs to recent purchase invoices- labour costs to time sheets or wage records- overheads allocated are of a production nature .-Review aged inventory reports and identify any slow moving goods, discuss with manageme

58、nt why these items have not been written down.-Review the inventory records to identify the level of adjustments made throughout the year for damaged /obsolete items. If significant consider whether the year end records require further adjustments and discuss with management whether any further write downs/provision may be required.-Follow up any damaged /obsolete items noted by the auditor at the inventory counts attended, to ens