arens edisi 14 chap 13
TRANSCRIPT
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 5 - 5
Overall Audit PlanOverall Audit Plan
and Audit Programand Audit Program
Chapter 13Chapter 13
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 22
Learning Objective 1Learning Objective 1
Use the fve types o audit tests toUse the fve types o audit tests to
determine hether fnancialdetermine hether fnancial
statements are airly stated!statements are airly stated!
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 33
"ypes o "ests "ypes o "ests
#is$ assessment procedures
%urther audit procedures
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 44
%urther Audit Procedures%urther Audit Procedures
and the Audit #is$ &odeland the Audit #is$ &odel
Audit ris$model
%urther audit procedures
Tests of controls
Substantivetests of
transactions
+
AAR
IR × CR= PDR
+Analytical
procedures
Tests of details of
balances
Sucientappropriate
evidence
per GASS
+ =
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 55
#is$ Assessment Procedures#is$ Assessment Procedures
A major part o these procedures aredone to obtain an understanding
o internal control!
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 -
#ole o All Audit "ests in the#ole o All Audit "ests in the
'ales and Collection Cycle'ales and Collection Cycle
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - !!
Learning Objective (Learning Objective (
'elect the appropriate types o audit'elect the appropriate types o audit
tests!tests!
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - ""
#elationship )eteen %urther#elationship )eteen %urther
Audit Procedures and *videnceAudit Procedures and *vidence
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - ##
Audit Assurance at +i,erentAudit Assurance at +i,erent
Levels o -nternal ControlLevels o -nternal Control
*,ectiveness*,ectiveness
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1010
Learning Objective 3Learning Objective 3
Understand ho inormationUnderstand ho inormation
technology a,ects audit testing!technology a,ects audit testing!
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1212
-mpact o -normation-mpact o -normation
"echnology on Audit "esting "echnology on Audit "esting
Computer5assisted audit techni6ues may beused to test automated controls or data!
#eports produced by -" may be used to testthe e,ectiveness o -" general controls!
Program change controls Access controls
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1313
Learning Objective 7Learning Objective 7
Understand the concept o evidenceUnderstand the concept o evidence
mi8 and ho it should be varied inmi8 and ho it should be varied in
di,erent circumstances!di,erent circumstances!
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1414
9ariations in *vidence &i89ariations in *vidence &i8
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1515
Learning Objective :Learning Objective :
+esign an audit program!+esign an audit program!
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 11
Audit ProgramAudit Program
Part 1; "ests o controls and substantivetests o transactions
Part (;Analytical procedures
Part 3; "ests o details and balances
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1!1!
ðodology or +esigningðodology or +esigning
Controls and 'ubstantive "estsControls and 'ubstantive "ests
h i i% ' A h + i i
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1"1"
%our5'tep Approach to +esigning%our5'tep Approach to +esigning
Control and 'ubstantive "estsControl and 'ubstantive "ests
y
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1#1#
yo )alances < Accountso )alances < Accounts
#eceivable#eceivable
y
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2020
yo )alances < Accountso )alances < Accounts
#eceivable#eceivable
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2121
Learning Objective Learning Objective
Compare and contrast transaction5Compare and contrast transaction5
related audit objectives ith balance5related audit objectives ith balance5
related and presentation andrelated and presentation anddisclosure5related audit objectives!disclosure5related audit objectives!
# l ti hi " ti# l ti hi " ti
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2222
#elationship o "ransaction5#elationship o "ransaction5
related Audit Objectives torelated Audit Objectives to
)alance5related Audit Objectives)alance5related Audit ObjectivesTransaction-relatedAuditObjective
Balance-relatedAuditObjective
Nature of Relationsi
Occurrence!o"pletenessAccuracy#ostin$ and
su""ari%ation!lassi&cationTi"in$
'(istence or co"pleteness!o"pleteness or e(istenceAccuracy)etail tie-in
!lassi&cation!uto* Reali%able valueRi$ts and obli$ation
)irect)irect)irect)irect
)irect)irectNoneNone
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2424
Phases o the Audit ProcessPhases o the Audit Process
-! Plan and design an audit approach!
--! Perorm tests o controls and
substantive tests o transactions!---! Perorm analytical procedures and
tests o details o balances!
-9! Complete the audit and issue anaudit report!
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2525
Audit ObjectivesAudit Objectives
"ransaction5related
)alance5related
Presentation and disclosure5related
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 22
"ypes o "ests "ypes o "ests
#is$ assessment procedures
"ests o controls
'ubstantive tests o transactions
Analytical procedures
"ests o details o balances
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2!2!
*vidence +ecisions*vidence +ecisions
Audit procedures
'ample si>e
-tems to select
"iming
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2"2"
Reperfor"ance
)ocu"entation
n,uiries of !lient#ysical'vidence
Analytical#rocedures
Observation
Audit
'vidence
"ypes o *vidence "ypes o *vidence
Recalculation!on&r"ation
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2#2#
Learning Objective ?Learning Objective ?
-ntegrate the our phases o the audit-ntegrate the our phases o the audit
process!process!
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 3030
'ummary o the Audit'ummary o the Audit
ProcessProcess
#ase #lan and desi$n
an audit approac
#ase
#erfor" tests of
controls andsubstantive testsof transactions
#ase
#erfor" analyticaprocedures andtests of details
of balances
#ase !o"plete te
audit and issuean audit report
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 3131
'ummary o the Audit'ummary o the Audit
Process; Phase -Process; Phase -
Accept client and perorm initial planning
Understand the client@s business and industry
Assess client@s business ris$
Perorm preliminary analytical procedures
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 3232
'ummary o the Audit'ummary o the Audit
Process; Phase -Process; Phase -
'et materiality and assess acceptableaudit ris$ and inherent ris$
Understand internal control and assess control ris$
ather inormation to assess raud ris$s
+evelop overall audit plan and audit program
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 3434
'ummary o the Audit'ummary o the Audit
Process; Phase ---Process; Phase ---
Perorm analytical procedures
Perorm tests o $ey itemsPerorm additional tests
o details o balances
Lo &ediumEigh or
un$non
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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 3535
'ummary o the Audit'ummary o the Audit
Process; Phase -9Process; Phase -9
Perorm additional tests orpresentation and disclosure
Accumulate fnal evidence
*valuate results
-ssue audit report
Communicate ith auditcommittee and management
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©2012 P ti H ll B i P bli hi©2012 P ti H ll B i P bli hi A diti 14/A diti 14/ A /Eld /B lA /Eld /B l 5 5
*nd o Chapter 13*nd o Chapter 13