阿伦斯 审计学：一种整合的方法 课后习题答案ch03

Chapter3AuditReports ReviewQuestions3-1 Auditor'sreportsareimportanttousersoffinancialstatementsbecausetheyinformusersoftheauditor'sopinionastowhetherornotthestatementsarefairlystatedorwhethernoconclusioncanbemadewithregardtothefairnessoftheirpresentation.Usersespeciallylookforanydeviationfromthewordingofthestandardunqualifiedreportandthereasonsandimplicationsofsuchdeviations.Havingstandardwordingimprovescommunicationsforthebenefitofusersoftheauditor’sreport.Whentherearedeparturesfromthestandardwording,usersaremorelikelytorecognizeandconsidersituationsrequiringamodificationorqualificationtotheauditor’sreportoropinion.3-2 Theunqualifiedauditreportconsistsof:1. ReporttitleAuditingstandardsrequirethatthereportbetitledandthatthetitleincludesthewordindependent.2. AuditreportaddressThereportisusuallyaddressedtothecompany,itsstockholders,ortheboardofdirectors.3. IntroductoryparagraphThefirstparagraphofthereportdoesthreethings:first,itmakesthesimplestatementthattheCPAfirmhasdoneanaudit.Second,itliststhefinancialstatementsthatwereaudited,includingthebalancesheetdatesandtheaccountingperiodsfortheincomestatementandstatementofcashflows.Third,itstatesthatthestatementsaretheresponsibilityofmanagementandthattheauditor'sresponsibilityistoexpressanopiniononthestatementsbasedonanaudit.4. Scopeparagraph.Thescopeparagraphisafactualstatementaboutwhattheauditordidintheaudit.Theremainderbrieflydescribesimportantaspectsofanaudit.5. Opinionparagraph.Thefinalparagraphinthestandardreportstatestheauditor'sconclusionsbasedontheresultsoftheaudit.6. NameofCPAfirm.ThenameidentifiestheCPAfirmorpractitionerwhoperformedtheaudit.7. Auditreportdate.Theappropriatedateforthereportistheoneonwhichtheauditorhascompletedthemostimportantauditingproceduresinthefield. Thesamesevenpartsarefoundinaqualifiedreportasinanunqualifiedreport.Therearealsooftenoneormoreadditionalparagraphsexplainingreasonsforthequalifications.3-3 Thepurposesofthescopeparagraphintheauditor'sreportaretoinformthefinancialstatementusersthattheauditwasconductedinaccordancewithgenerallyacceptedauditingstandards,ingeneraltermswhatthosestandardsmean,andwhethertheauditprovidesareasonablebasisforanopinion.3-3 (continued) Theinformationinthescopeparagraphincludes:1. Theauditorfollowedgenerallyacceptedauditingstandards.2. Theauditisdesignedtoobtainreasonableassuranceaboutwhetherthestatementsarefreeofmaterialmisstatement.3. Discussionoftheauditevidenceaccumulated.4. Statementthattheauditorbelievestheevidenceaccumulatedwasappropriateforthecircumstancestoexpresstheopinionpresented.3-4 Thepurposeoftheopinionparagraphistostatetheauditor'sconclusionsbasedupontheresultsoftheauditevidence.Themostimportantinformationintheopinionparagraphincludes:1. Thewords"inouropinion"whichindicatethattheconclusionsarebasedonprofessionaljudgment.2. Arestatementofthefinancialstatementsthathavebeenauditedandthedatesthereoforareferencetotheintroductoryparagraph.3. Astatementaboutwhetherthefinancialstatementswerepresentedfairlyandinaccordancewithgenerallyacceptedaccountingprinciples.3-5 Theauditor'sreportshouldbedatedFebruary17,2006,thedateonwhichtheauditorcompletedthemostimportantauditingproceduresinthefield.3-6 Anunqualifiedreportmaybeissuedunderthefollowingfivecircumstances:1. Allstatements—balancesheet,incomestatement,statementofretainedearnings,andstatementofcashflows—areincludedinthefinancialstatements.2. Thethreegeneralstandardshavebeenfollowedinallrespectsontheengagement.3. Sufficientevidencehasbeenaccumulatedandtheauditorhasconductedtheengagementinamannerthatenableshimorhertoconcludethatthethreestandardsoffieldworkhavebeenmet.4. Thefinancialstatementsarepresentedinaccordancewithgenerallyacceptedaccountingprinciples.Thisalsomeansthatadequatedisclosureshavebeenincludedinthefootnotesandotherpartsofthefinancialstatements.5. Therearenocircumstancesrequiringtheadditionofanexplanatoryparagraphormodificationofthewordingofthereport.3-7 Theintroductory,scopeandopinionparagraphsaremodifiedtoincludereferencetomanagement’sreportoninternalcontroloverfinancialreporting,andthescopeoftheauditor’sworkandopiniononinternalcontroloverfinancialreporting.Theintroductoryandopinionparagraphsalsorefertotheframeworkusedtoevaluateinternalcontrol.Twoadditionalparagraphsareaddedbetweenthescopeandopinionparagraphsthatdefineinternalcontrolanddescribetheinherentlimitationsofinternalcontrol.3-8 Whenadherencetogenerallyacceptedaccountingprincipleswouldresultinmisleadingfinancialstatementsthereshouldbeacompleteexplanationinaseparateparagraph.Theseparateparagraphshouldfullyexplainthedepartureandthereasonwhygenerallyacceptedaccountingprincipleswouldhaveresultedinmisleadingstatements.Theopinionshouldbeunqualified,butitshouldrefertotheseparateparagraphduringtheportionoftheopinioninwhichgenerallyacceptedaccountingprinciplesarementioned.3-9 Anunqualifiedreportwithanexplanatoryparagraphormodifiedwordingisthesameasastandardunqualifiedreportexceptthattheauditorbelievesitisnecessarytoprovideadditionalinformationabouttheauditorthefinancialstatements.Foraqualifiedreport,eitherthereisascopelimitation(condition1)orafailuretofollowgenerallyacceptedaccountingprinciples(condition2).Undereithercondition,theauditorconcludesthattheoverallfinancialstatementsarefairlypresented. Twoexamplesofanunqualifiedreportwithanexplanatoryparagraphormodifiedwordingare:1. Theentitychangedfromonegenerallyacceptedaccountingprincipletoanothergenerallyacceptedaccountingprinciple.2. Asharedreportinvolvingtheuseofotherauditors.3-10 WhenanotherCPAhasperformedpartoftheaudit,theprimaryauditorissuesoneofthefollowingtypesofreportsbasedonthecircumstances.1. Noreferenceismadetotheotherauditor.Thiswilloccuriftheotherauditorauditedanimmaterialportionofthestatement,theotherauditorisknownorcloselysupervised,oriftheprincipalauditorhasthoroughlyreviewedtheotherauditor'swork.2. Issueasharedopinioninwhichreferenceismadetotheotherauditor.ThistypeofreportisissuedwhenitisimpracticaltoreviewtheworkoftheotherauditororwhenaportionofthefinancialstatementsauditedbytheotherCPAismaterialinrelationtothetotal.3. Thereportmaybequalifiediftheprincipalauditorisnotwillingtoassumeanyresponsibilityfortheworkoftheotherauditor.AdisclaimermaybeissuedifthesegmentauditedbytheotherCPAishighlymaterial.3-11 Eventhoughtheprioryearstatementshavebeenrestatedtoenhancecomparability,aseparateexplanatoryparagraphisrequiredtoexplainthechangeingenerallyacceptedaccountingprinciplesinthefirstyearinwhichthechangetookplace.3-12 Changesthataffecttheconsistencyofthefinancialstatementsmayinvolveanyofthefollowing:a. Changeinaccountingprincipleb. Changeinreportingentityc. Correctionsoferrorsinvolvingaccountingprinciples. Anexampleofachangethataffectsconsistencywouldbeachangeinthemethodofcomputingdepreciationfromstraightlinetoanacceleratedmethod.Aseparateexplanatoryparagraphisrequirediftheamountsarematerial. Comparabilityreferstoitemssuchaschangesinestimates,presentation,andeventsratherthanchangesinaccountingprinciples.Forexample,achangeintheestimatedlifeofadepreciableassetwillaffectthecomparabilityofthestatements.Inthatcase,noexplanatoryparagraphforlackofconsistencyisneeded,buttheinformationmayrequiredisclosureinthestatements.3-13 Thethreeconditionsrequiringadeparturefromanunqualifiedopinionare:1. Thescopeoftheaudithasbeenrestricted.Oneexampleiswhentheclientwillnotpermittheauditortoconfirmmaterialreceivables.Anotherexampleiswhentheengagementisnotagreeduponuntilaftertheclient'syear-endwhenitmaybeimpossibletophysicallyobserveinventories.2. Thefinancialstatementshavenotbeenpreparedinaccordancewithgenerallyacceptedaccountingprinciples.Anexampleiswhentheclientinsistsuponusingreplacementcostsforfixedassets.3. Theauditorisnotindependent.Anexampleiswhentheauditorownsstockintheclient'sbusiness.3-14 AqualifiedopinionstatesthattherehasbeeneitheralimitationonthescopeoftheauditoradeparturefromGAAPinthefinancialstatements,butthattheauditorbelievesthattheoverallfinancialstatementsarefairlypresented.Thistypeofopinionmaynotbeusediftheauditorbelievestheexceptionsbeingreporteduponareextremelymaterial,inwhichcaseadisclaimeroradverseopinionwouldbeused. AnadverseopinionstatesthattheauditorbelievestheoverallfinancialstatementsaresomateriallymisstatedormisleadingthattheydonotpresentfairlyinaccordancewithGAAPthefinancialposition,resultsofoperations,orcashflows. Adisclaimerofopinionstatesthattheauditorhasbeenunabletosatisfyhimorherselfastowhetherornottheoverallfinancialstatementsarefairlypresentedbecauseofasignificantlimitationofthescopeoftheaudit,oranonindependentrelationshipundertheCodeofProfessionalConductbetweentheauditorandtheclient. 3-14 Continued Examplesofsituationsthatareappropriateforeachtypeofopinionareasfollows:OPINIONTYPEEXAMPLESITUATIONDisclaimerMaterialphysicalinventoriesnotobservedandtheinventorycannotbeverifiedthroughotherprocedures.Lackofindependencebytheauditor.AdverseAhighlymaterialdeparturefromGAAP.QualifiedInabilitytoconfirmtheexistenceofanassetwhichismaterialbutnotextremelymaterialinvalue.3-15 Thecommondefinitionofmaterialityasitappliestoaccountingand,therefore,toauditreportingis:Amisstatementinthefinancialstatementscanbeconsideredmaterialifknowledgeofthemisstatementwouldaffectadecisionofareasonableuserofthestatements.Conditionsthataffecttheauditor'sdeterminationofmaterialityinclude: Potentialusersofthefinancialstatements Dollaramountsofthefollowingitems:netincomebeforetaxes,totalassets,currentassets,currentliabilities,andowners'equity Natureofthepotentialmisstatements—certainmisstatements,suchasfraud,arelikelytobemoreimportanttousersofthefinancialstatementsthanothermisstatements.3-16 Materialityforlackofindependenceinauditreportingiseasiesttodefine.IftheauditorlacksindependenceasdefinedbytheCodeofProfessionalConduct,itisalwaysconsideredhighlymaterialandthereforeadisclaimerofopinionisalwaysnecessary.Thatis,eithertheCPAisindependentornotindependent.ForfailuretofollowGAAP,therearethreelevelsofmateriality:immaterial,material,andhighlymaterial.3-17 Theauditor'sopinionmaybequalifiedbyscopelimitationscausedbyclientrestrictionsorbylimitationsresultingfromconditionsbeyondtheclient'scontrol.Theformeroccurswhentheclientwillnot,forexample,permittheauditortoconfirmmaterialreceivablesorphysicallyobserveinventories.Thelattermayoccurwhentheengagementisnotagreeduponuntilaftertheclient'syear-endwhenitmaynotbepossibletophysicallyobserveinventoriesorconfirmreceivables.3-17 Continued Adisclaimerofopinionisissuedifthescopelimitationissomaterialthattheauditorcannotdetermineiftheoverallfinancialstatementsarefairlypresented.Ifthescopelimitationiscausedbytheclient'srestrictiontheauditorshouldbeawarethatthereasonfortherestrictionmightbetodeceivetheauditor.Forthisreason,adisclaimerismorelikelyforclientrestrictionsthanforconditionsbeyondanyone'scontrol.Whenthereisascoperestrictionthatresultsinthefailuretoverifymaterial,butnotpervasiveaccounts,aqualifiedopinionmaybeissued.Thisismorelikelywhenthescopelimitationisforconditionsbeyondtheclient'scontrolthanforrestrictionsbytheclient.3-18 Areportwithascopeandanopinionqualificationisissuedwhentheauditorcanneitherperformproceduresthatheorsheconsidersnecessarynorsatisfyhimorherselfbyusingalternativeprocedures,duetotheexistenceofconditionsbeyondtheclient'sortheauditor'scontrol,buttheamountinvolvedinthefinancialstatementsisnothighlymaterial.Animportantpartofascopeandopinionqualificationisthatitresultsfromnotaccumulatingsufficientauditevidence,eitherbecauseoftheclient'srequestorbecauseofcircumstancesbeyondanyone'scontrol. Areportqualifiedastoopiniononlyresultswhentheauditorhasaccumulatedsufficientcompetentevidencebuthasconcludedthatthefinancialstatementsarenotcorrectlystated.Theonlycircumstanceinwhichanopiniononlyqualificationisappropriateisformaterial,butnothighlymaterial,departuresfromGAAP.3-19 Thethreealternativeopinionsthatmaybeappropriatewhentheclient'sfinancialstatementsarenotinaccordancewithGAAPareanunqualifiedopinion,qualifiedastoopiniononlyandadverseopinion.Determiningwhichisappropriatedependsentirelyuponmateriality.AnunqualifiedopinionisappropriateiftheGAAPdepartureisimmaterial(standardunqualified)oriftheauditoragreeswiththeclient'sdeparturefromGAAP(unqualifiedwithexplanatoryparagraph).AqualifiedopinionisappropriatewhenthedeviationfromGAAPismaterialbutnothighlymaterial;theadverseopinionisappropriatewhenthedeviationishighlymaterial.3-20 TheAICPAhassuchstrictrequirementsonauditopinionswhentheauditorisnotindependentbecauseitisimportantthatstockholdersandotherthirdpartiesbeabsolutelyassuredthattheauditorisunbiasedthroughouttheentireengagement.Ifusersdeveloptheattitudethatauditorsarenotindependentofmanagement,thevalueoftheauditfunctionwillbegreatlyreduced,ifnoteliminated.3-21 Whentheauditordiscoversmorethanoneconditionthatrequiresadeparturefromoramodificationofastandardunqualifiedreport,thereportshouldbemodifiedforeachcondition.Anexceptioniswhenoneconditionneutralizestheothercondition.Anexamplewouldbewhentheauditorisnotindependentandthereisalsoascopelimitation.Inthissituationthelackofindependenceovershadowsthescopelimitation.Accordingly,thescopelimitationshouldnotbementioned.3-22 Undercurrentauditingstandards,auditorsarenotrequiredtoreadinformationcontainedinelectronicsites,suchasthecompany’sWebsite,thatalsocontainthecompany’sauditedfinancialstatementsandtheauditor’sreport.Auditingstandardsdonotconsiderelectronicsitestobe“documents.”Thisisdifferentfromtheauditor’sresponsibilityforpublished(hardcopy)documentsthatcontaininformationinadditiontoauditedfinancialstatementsandtheauditor’sreport.Inthislatterexample,theauditorisresponsibleforreadingotherinformationthatispublishedwithauditedfinancialstatementsandtheauditor’sreporttodeterminewhetheritismateriallyinconsistentwithinformationintheauditedfinancialstatements. MultipleChoiceQuestionsFromCPAExaminations3-23 a. (2) b. (3) c. (3) d. (3)3-24 a. (2) b. (3) c. (1) DiscussionQuestionsandProblems3-25 a. Theopinionparagraphisnotintendedtobeacertificationoraguaranteeoftheaccuracyandcorrectnessofthefinancialstatements,butratherisintendedtobeanexpressionofprofessionaljudgmentbaseduponareasonableauditofthestatementsandunderlyingrecords.b. "Ourauditwasperformedtodetectmaterialmisstatementsinthefinancialstatements"isflawedbecausethepurposeoftheauditistodeterminewhetherfinancialstatementsarefairlystated,nottospecificallysearchformaterialerrorsandfraud.Italsofailstorecognizethestandardsusedbytheauditortoconducttheengagement. "WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica"identifiestheauditor'sresponsibilitiesforconductoftheaudit,accumulationofevidenceandreportingrequirements.Itisamuchbroaderstatementthanthealternativeclause.Italsoimpliesthatiftheauditorhasconductedtheauditinaccordancewithgenerallyacceptedauditingstandardsbutdoesnotuncovercertainmaterialerrorsorfraud,theauditorisunlikelytohaveresponsibilityforfailingtodoso.c. "Correctlystated"impliesabsoluteaccuracy,whereasthealternativereportstatesthatnomaterialmisstatementsexist.d. Thereferencetogenerallyacceptedaccountingprinciplesspecifiesrulesthatwerefollowedinaccountingforthetransactionstodate;whereas"thetrueeconomicconditions"doesnotidentifythespecificaccountingproceduresappliedtoproducethefinancialstatements.e. ThenameoftheCPAfirmratherthanthatoftheindividualpractitionershouldappearontheaccountant'sreportbecauseitistheentirefirmthatacceptsresponsibilityforthereportissued.3-26 a. Itemsthatneednotbeincludedintheauditor'sreportare:1. ThatExcelsiorispresentingcomparativefinancialstatements.(Bothyears'statementswillbereferredtointheauditreport.)2. Specificdescriptionofthechangeinmethodofaccountingforlong-termconstructioncontractsneednotbeincludedinthereportsinceitisdiscussedinthefootnotes.Theauditor'sreportmuststatethatthereisachangeinaccountingprinciplesandrefertothefootnote.3. Thefactthatnormalreceivableconfirmationprocedureswerenotusedshouldnotbedisclosedsincetheauditorwasabletosatisfyhimorherselfthroughalternateauditprocedures.4. Thelawsuitneednotbediscussedinthereportsinceithasbeenincludedinafootnote.[Note:priortotheissuanceofSAS79,theauditorwouldhavebeenrequiredtoaddanexplanatoryparagraphtotheauditreportthatreferredtothefootnote.]b. ThefollowingdeficienciesareinRoscoe'sreport:1. Theauditreportisneitheraddressednordatedanditdoesnotcontainatitle.Theauditreportdateshouldbethelastdayoffieldwork.2. Thebalancesheetisasofaspecificdate,whereastheincomestatementandthestatementofretainedearningsareforaperiodoftime.Thescopeparagraphshouldidentifytheperiodoftime(usuallyoneyear).3. Therearecomparativestatements,buttheauditreportidentifiesanddealswithonlythecurrentyear'sfinancialstatements.Anopinionmustalsobeincludedforthepriorperiodfinancialstatements.4. Thereisnoseparateintroductoryparagraphthatstatesthefinancialstatementsaudited,dates,andtheresponsibilitiesofmanagementandtheauditor.5. Thereisnoseparatescopeparagraphthatdescribeswhatanauditis.Tworequiredsentencesarecompletelyomitted:"Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation."6. TheauditwasmadeinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmericaratherthangenerallyacceptedaccountingstandards.7. Thewordmaterialisexcludedfromthescopeparagraph(freeofmaterialmisstatement).8. Anadditionalparagraphshouldbeincludedwhichdescribesthedividendrestrictionsandtherefusaloftheclienttopresentastatementofcashflows.9. Theopinionparagraphstatesthataccountingprincipleswereconsistentwiththoseusedintheprioryear.Theopinionparagraphshouldmakenoreferencetoconsistency.3-26 Continued10. Theopinionparagraphexcludestherequiredphrase,"inallmaterialrespects."11. Theopinionparagraphincludesthewords"generallyacceptedauditingstandards"ratherthanthephrase"accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica."12. Aseparateparagraphshouldbeincludedstatingthatgenerallyacceptedaccountingprincipleswerenotconsistentlyapplied.13. Theopinionshouldbequalifiedratherthanbeingunqualified.Qualificationsarecausedbythe:(a) failuretopresentastatementofcashflows.(b) failuretodisclosethedividendrestrictions.3-27(a)CONDITION(b)MATERIALITYLEVEL(c)TYPEOFREPORTCOMMENTS1. ScopeoftheaudithasbeenrestrictedHighlymaterialDisclaimerBecausetheclientrefusestoallowtheauditortoexpandthescopeofhisaudit,adisclaimerofopinionisappropriateratherthanaqualifiedastoscopeandopinion.2. ScopeoftheaudithasbeenrestrictedHighlymaterialDisclaimerTheauditorcannotissueanunqualifiedopinionontheincomestatementorthestatementofcashflowsbecauseadisclaimerofopinionisnecessaryforthebeginningbalancesheet.Theauditormayissueanunqualifiedopinionontheendingbalancesheetandadisclaimerofopinionontheincomestatement,statementofcashflows,andthebeginningbalancesheet.3. ScopeoftheaudithasbeenrestrictedHighlymaterialUnqualifiedTheauditorisabletosatisfyhimorherselfthatwiththeuseofalternativeprocedures,aqualifiedopinionisnotnecessary.4. FailuretofollowGAAPHighlymaterialormaterial.Weneedadditionalinformationregardingtheauditor'spreliminaryjudgmentaboutmaterialityAdverse(ifhighlymaterial)orQualified(ifmaterial)Thematerialityoftwentypercentofnetearningsbeforetaxeswouldbesufficientformanyauditorstorequireanadverseopinion.Thatmaterialityquestionisamatterofauditorjudgment.5. LackofindependenceNotapplicableDisclaimerLackofindependencebyauditpersonnelontheengagementmandatesadisclaimerforlackofindependence.6. NoneNotapplicableUnqualifiedThecompanyhasmadeadecisiontofollowadifferentfinancingmethod,whichisadequatelydisclosed.Thereisnochangeofaccountingprinciple.3-28(a)CONDITION(b)MATERIALITYLEVEL(c)TYPEOFREPORT(d)MODIFIEDWORDING/ADDITIONALPARAGRAPHS(&OTHERCOMMENTS)1. FailuretofollowGAAPMaterialQualifiedopiniononl