Chapter 17 - Auditing and evaluating the AIS. When you''ve finished studying this chapter, and completing the activities at its conclusion, you should be able to: Describe the various kinds of audits you might encounter in your accounting career, explain the purpose of the audit clarity project and summarize its essential components, explain ten generally accepted auditing standards & their role in a financial statement audit.
Trang 1Chapter 17 Auditing and Evaluating
the AIS
Trang 2Outline
• Learning objectives
• Types of audits
• Audit Clarity Project
• Generally accepted auditing standards
• Financial statement audit steps
Trang 3Learning objectives
1. Describe the
various kinds of
audits you might
encounter in your
accounting career.
2. Explain the
purpose of the
Audit Clarity
Project and
summarize its
essential
components.
3. Explain ten
generally
accepted auditing
standards & their
role in a financial
statement audit.
4. Discuss the basic
steps associated with a financial statement audit.
5. Explain the
connection between auditing and accounting information
systems.
Trang 4Types of audits
• Financial audit
Express an opinion
on the fairness of a
company’s financial
statements
• Operational audit
Determine if a
company’s business
processes & policies
“make sense”
• Systems audit
Ascertain whether information
technology is producing expected results
Trang 5Types of audits
• Compliance audit
Examine the AIS and
financial statements
of GNFP entities
• Management audit
Determines the way
management
decisions are
supported
• Investigative audit
Investigates the AIS and related data to determine if fraud has occurred
• International audit
Applies and combines one or more of the other types in international contexts
Trang 6Audit Clarity
Project
Four main change areas to financial statement audit
standards
• The ACP’s goals
were to make
audit standards
easier to read and
to converge them
with international
audit standards.
Trang 7Audit Clarity Project
Trang 8Audit Clarity Project
• Terminology
reporting
framework
• US GAAP
paragraph
Calls attention to something in the statements and / or the disclosures
Trang 9Audit Clarity Project
• Additional requirements
reporting framework if other than US GAAP
regarding their responsibilities for financial
statements & internal control
throughout the audit
Trang 10Audit Clarity Project
Table 17.1
Elements of the unmodified auditor’s report
Element Explanation
Title Must include the phrase “independent auditor’s report”
Addressee May be the board of directors, management or other parties
Introductory paragraph Must identify the organization, the financial statements audited and
related information Management’s
responsibilities Financial statements and internal controls
Auditor’s responsibilities Performing an audit according to generally accepted auditing standards (GAAS)
Auditor’s opinion States that, in the auditor’s opinion, the statements are fairly presented
Signature, address and
date Audit firm’s information
Trang 11Generally Accepted Auditing
Standards
Figure
17.3
Trang 12Financial statement audit steps
Figure 17.4
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