1、審計(jì)咨詢?nèi)藛T培訓(xùn)課程英文版Learning Objective 1Conduct a review for contingentliabilities and commitments.Summary of theAudit ProcessPhase IPlan and designan audit approach.Phase IIPerform tests ofcontrols andsubstantive testsof transactions.Phase IIIPerform analyticalprocedures andtests of detailsof balances.Pha

2、se IVComplete theaudit and issuean audit report.Phase IV Completing the AuditReview forcontingentliabilitiesReview for subsequent eventsAccumulatefinal evidenceEvaluate resultsIssue audit reportCommunicate with audit committeeand managementA contingent liability is potential futureobligation to an o

3、utside party for anunknown amount resulting fromactivities that have already taken place.Contingent LiabilitiesLikelihood of Occurrence and Financial Statement TreatmentLikelihood ofFinancial StatementOccurrence of EventTreatmentRemote (slight chance)No disclosure necessaryReasonably possibleFootnot

4、e disclosure ProbableAdjust financial statementsOR footnote disclosureAudit Procedures forFinding ContingenciesInquire of management (orally and in writing)about the possibility of unrecorded contingencies.Review current and previous years internalrevenue reports for income tax settlements.Review th

5、e minutes of directors and stockholdersmeetings for indications of lawsuits.Audit Procedures forFinding ContingenciesAnalyze legal expenses and review invoicesand statements from legal counsel.Obtain a letter from each major attorney of theclient as to the status of pending litigation.Examine letter

6、s of credit in force.Review audit documentation for any informationthat may indicate a potential contingency.Learning Objective 2Obtain and evaluate lettersfrom the clients attorneys.A list including (1) pending threatened litigation and(2) asserted or unasserted claims or assessmentswith which the

7、attorney has had involvement.A request that the attorney furnish information orcomment about the progress of each item listed. Inquiry of Clients AttorneysA request for the identification of any unlistedpending or threatened legal action or a statementthat the clients list is complete.A statement in

8、forming the attorney of the attorneysresponsibility to inform management of legal mattersrequiring disclosure in the financial statements andto respond directly to the auditor.Inquiry of Clients AttorneysLearning Objective 3Conduct a post-balance-sheetreview for subsequent events.Period Covered bySu

9、bsequent Events ReviewClients endingbalance sheetdateAuditreportdateDate clientissues financialstatementsPeriod to whichreview forsubsequentevents appliesPeriod forprocessingthe financialstatements12-31-023-11-033-26-03Those that have a direct effect on thefinancial statements and require adjustment

10、Those that have no direct effect on thefinancial statements but for whichdisclosure is advisableTypes of Subsequent Events Declaration of bankruptcy by a customer with an accounts receivable balance. Settlement of a litigation at an amount different from the amount recorded on the booksRequiring Adj

11、ustment Disposal of equipment not being used in operations at a price below the current book value Sale of investments at a price below recorded costRequiring AdjustmentAdvisability of Disclosure Decline in the market value of securities held for temporary investment or resale Issuance of bonds or e

12、quity securities Decline in the market value of inventory as consequence of government action barring further sale of a product Uninsured loss of inventories as a result of fire A merger or an acquisition Inquiry of management Correspond with attorneys Review internal statements prepared subsequent

13、to the balance sheet date Review records prepared subsequent to the balance sheet date Examine minutes issued subsequent to the balance sheet date Obtain a letter of representationAudit TestsThe first date is the date for the completionof field work except for a specific exception.The second date, w

14、hich is always later,deals with the exception.Dual DatingLearning Objective 4Design and perform the final stepsin the evidence-accumulationsegment of the audit.Perform final analytical procedures.Evaluate the going-concern assumption.Obtain a management representation letter.Consider information acc

15、ompanying the basic financial statements.Read other information in the annual reportFinal Evidence AccumulationInformation Accompanying Basic Financial StatementsBalance sheetIncome statementStatement ofcash flowsFootnotesBasicfinancialstatementsStandardauditorsreportInformation Accompanying Basic F

16、inancial StatementsDetailedcomparativestatementsStatistical dataSchedule ofinsurancecoverageInformationaccompanyingbasic financialstatementsSeparateparagraph unqualified,qualified,or disclaimerLearning Objective 5Integrate the audit evidencegathered, and evaluate theoverall audit results.Sufficiency

17、 of evidenceEvidence supports auditors opinionFinancial statement disclosuresAudit documentation reviewIndependent reviewEvaluate ResultsEvaluating Results andReaching ConclusionsActual audit evidence(by cycle, account,and objective)Audit proceduresSample sizeItems to selectTimingEvaluate results(by

18、 account and cycle)Estimated misstatement(by account)Achieved audit risk(by account and cycle)Evaluating Results andReaching ConclusionsEvaluate overallfinancial statementsEstimated misstatement(overall statements)Achieved audit risk(overall statements)IssueauditreportThe audit report is the only thing that most userssee in the audit process and the consequences ofissuing an inappropriate report can be severe.Issue the Audit ReportLearning Objective 6Communicate effectively with theau