审计英语10年一节.docVIP

Section 7　Concept of materialityAn item is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. 　　In planning the audit, the auditor therefore needs to establish materiality levels to ensure that any material misstatement or omissions in the accounting records are discovered.　　Materiality will also be relevant to the internal auditor, although more from quantifying risk exposure of general findings to management rather than form the point of view of the financial statements. 　　Notes:　　Materiality:重要性　　Omission：遗漏　　Misstatement：错报　　Materiality level:重要性水平　　Influence：影响　　Economic decision：经济决策　　Therefore：因此　　Ensure：确保　　Discover：发现　　Rather than：除了、而不是　　Risk exposure：风险敞口　　Point of view：观点　　Establishing materiality levels　　建立重要性水平　　There are two levels of materiality to be considered:　　1.Materiality at the overall financial statement level　　2.Material for individual balances and classes of transactions　　Overall：全部、整体　　Individual：各个　　The latter is usually derived from the former.　　Latter：后者　　Derive:得到；源于　　Former：前者　　There is an inverse relationship between materiality and the level audit risk. The higher the materiality level, the lower the audit risk, and vice versa. 　　Where, for example, materiality is low, audit risk is increased and the auditor can compensate for this by either carrying out additional test of control, or by increasing substantive procedures. Either will have the effect of reducing the assessed level of control risk. 　　Notes:　　Inverse:相反的　　Vice versa:反之亦然　　Compensate for:补偿　　Derive from:源于　　Materiality at the planning stage is often set at a lower level than is strictly necessary in order to reduce the risk of undiscovered misstatements. This also helps to deal with the potential problem of having to adjust materiality levels at a later date in the light of evidence obtained. 　　Set：设置　　Strictly：严格地　　Deal with：处置　　Undiscovered