AuditResponsibilitiesandObjectives(英文版)(ppt38页)课件.ppt

Audit Responsibilitiesand Objectives Chapter 6 Objective of Conducting an Audit of Financial Statements Steps to DevelopAudit Objectives Steps to DevelopAudit Objectives Responsibilities Auditor’s Responsibilities Definitions Fraudulent Financial Reporting - intentional or reckless conduct by act or omission that leads to materially misleading F/S Errors - unintentional misstatements. Direct-effect Illegal Acts - violations of laws or regulations that cause a direct material misstatement in F/S External Auditors and Fraud The following SASs relate to fraud: SAS 99 and 82 Considerations of fraud in financial statements SAS 54 Illegal acts by clients SAS 57 Auditing accounting estimates SAS 61 Communications with audit committees SAS 82 Fraud Considerations Understand fraud risk factors Assess fraud risks throughout audit document assessment and response to risks Use professional skepticism Design audits to provide reasonable assurance of detecting material fraud that would affect the financial statements Report fraud to appropriate persons Management one level above fraud Audit committee if management is involved. SAS 54 Illegal Acts Distinguishes between direct-effect illegal acts and illegal acts Direct-effect illegal acts have a direct affect on the F/S Treat the same as errors and fraud Illegal acts are those that are far removed from F/S Far Removed Illegal Acts Examples - insider trading, OSHA violations, EEOC violations. Auditor not responsible for detecting these types of errors. The auditor should use general awareness for these types of acts and be alert to possible contingent liabilities. SAS 57 Accounting for Estimates Related to fraud though manipulation of earnings with estimates. Auditors are responsible for the reasonableness of the estimates. Auditors should monitor: management’s estimate reasonable estimate from audit evidence track the differences for a systematic bias and other likely misstatements. The Audit Committee Subcommittee