MODERN AUDITING 7th Edition：现代审计的第七版精品.pptVIP

Relationship Between Strategies and Transaction Cycles The following framework is representative of practice: CHAPTER 8MATERIALITY, RISK AND PRELIMINARY AUDIT STRATEGIES Copyright Copyright 2001 John Wiley Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley Sons, Inc. The purchaser may make backup copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. * * MODERN AUDITING 7th Edition William C. Boynton California Polytechnic State University at San Luis Obispo Raymond N. Johnson Portland State University Walter G. Kell University of Michigan Developed by: Dr. Raymond N. Johnson, CPA Gregory K. Lowry, MBA, CPA John Wiley Sons, Inc. CHAPTER 8MATERIALITY, RISK AND PRELIMINARY AUDIT STRATEGIES Materiality Audit Risk Preliminary Audit Strategies The Concept of Materiality The FASB defines materiality as The magnitude of an omission or misstatement of accounting information Influence a reasonable financial statement user. Preliminary Judgments About Materiality Planning materiality: Used for planning what is looked at how May differ from the materiality levels used at the conclusion of the audit in evaluating the audit findings because: surrounding circumstances may change and Add’l information about the client obtained during the course of the audit. Preliminary Judgments About Materiality Planning materiality -- assess materiality at the following 2 levels: 1. The financial statement level because the auditor’s opinion on fairness extends to the financial statements taken as a whole. 2. The account bala