Aud_ch11_5ed审计学课件.ppt

Special Note: The Existence Assertion Confirmation Bank accounts, receivables can be confirmed. Assets at other locations or in the hands of custodians can also be confirmed. Enquiry Enquire as to agreements regarding minimum balances, pledging of receivables, pledging of other assets. Special Note: The Existence Assertion Inspection of documents (vouching) Examine title documents, collateral, pledges. Inspection of documents (scanning) Look for misclassified assets, uncharacteristic balances, errors or overpayments, or related party transactions and balances. Special Note: The Existence Assertion Analysis Comparison of assets to related revenues or expenses, expenses with revenues, contra revenues with revenues, and write-offs. Special Note: Using Confirmations Confirmation is considered to be a required generally accepted audit procedure. For cash and loan balances, a standard bank confirmation form is used for confirmation of deposit and loan balances. There are sections on the form for: deposits and overdrafts, loans and other direct or contingent liabilities, and exceptions and comments. Confirmation of Accounts and Notes Receivable Confirmations can provide evidence about existence and valuation of accounts and notes receivable. Statistical methods can be used to determine the size and selection of accounts to be confirmed. Confirmations may make use of positive confirmations or negative confirmations. Confirmation will not provide sufficient evidence regarding ownership. Positive Confirmations A positive confirmation requires a response in all cases, whether the balance is correct or incorrect. Used where individual balances are large, or where accounts are in dispute. The confirmation may ask for information on balances or specific invoices depending on knowledge of the customer’s accounting records. Generally produces high quality evidence. Negative Confirmations The negative confirmation form only requires a response if the customer disagrees with th