Samenvatting
Samenvatting Principles of Auditing by Rick Hayes
- Vak
- Seminar Auditing
- Instelling
- Erasmus Universiteit Rotterdam (EUR)
Samenvatting/Summary van Principles of Auditing (Rick Hayes).
[Meer zien]Voorbeeld 4 van de 57 pagina's
Voorbeeld 4 van de 57 pagina's
In winkelwagengesponsord bericht van onze partner
Verkoper
VolgenVoorbeeld van de inhoud
Chapter 1: Internatinal Auditnn verviewMananement has cintril iver the acciuntnn systems, is respinsible fir the fnancial repirts, and
has the authirity ti determine the way which infirmatin is presented. Ti nive investirs and
creditirs cinfdence in fnancial statements, an auditir privides an independent and expert ipiniin
in the fairness if the repirts (audit ipiniin). The auditir’s respinsibility is ti lend them credibility.
By the audit pricess, the auditir enhances the usefulness and the value if the fnancial statements,
but he alsi increases credibility if ither nin-audited infirmatin released by mananement.
With the explisiin in the use if infirmatin techniliny the auditir needs sufcient expertse,
ciupled with the kniwledne if his client’s afairs, ti enable him ti ibtain and interpret all evidence
needed ti privide reasinable assurance that the fnancial statements are fairly presented. In the
future, they expect that cirpirate nivernance is niinn ti be mire impirtant in an audit, si the audit
becimes useful fir external and internal assessirs.
The impact that a cimpany’s actvites have in siciety and the envirinment increased. That is the
reasin why investirs have the expectatin that there has ti be mire infirmatin than just the
fnancial statements if the cimpany: is the cimpany a going concern, is it free if fraud, is it
mananed priperly, and are there adequate pricedures? These are maters if cirpirate nivernance
and are all cincerns if the auditir.
The auditir must be as cimpinent in fnancial acciuntnn, he must be an expert in decidinn what
evidence is necessary ti satsfy the assertins if the fnancial statements. Furthermire, the auditir
needs this expertse ti ibtain and interpret all the evidence needed ti privide reasinable assurance
that the fnancial statements are fairly presented.
Majir repirtnn scandals in the 21st century have led ti annual repirts, fnancial statements and
audit repirts, and directir’s repirt in cirpirate nivernance.
Auditng is a systematc pricess if ibjectvely ibtaininn and evaluatnn evidence renardinn
assertins abiut ecinimic actins and events ti ascertain the denree if cirrespindence between
these assertins and established criteria, and cimmunicatnn the results ti interested users.
Systematc appriach is a structured dicumented audit plan. This ciuld be a variety if nenerally
accepted techniques. Furthermire, the audit shiuld be an independent, ibjectve and expert
examinatin and evaluatin if evidence, si the auditirs are fair, impartal and unbiased (ibjectvely).
The auditir assesses the reliability and sufciency if the infirmatin cintained in the underlyinn
acciuntnn recirds and ither siurce data (ibtaininn and evaluatnn evidence). Ascertains the denree
if cirrespindence is testnn between assertins and established criteria with fir example physical
evidence if dicuments, cinfrmatin, inquiry, and ibservatin.
Requirements if an audit:
Cimply with relevant ethical requirements (includinn thise pertaininn independence);
Plan and perfirm audit with prifessiinal sceptcism (liik fir materially misstatements), and
prifessiinal judnement;
btain sufcient appripriate audit evidence ti draw reasinable cinclusiin fir the auditir’s
ipiniin.
1
,The ibjectve if an auditir is ti ibtain reasinable assurance abiut whether the fnancial statements
are free frim material misstatement, thereby enablinn the auditir ti express an ipiniin in whether
the fnancial statements are prepared, in all material respects, in accirdance with an applicable
fnancial repirtnn framewirk; and ti repirt in the fnancial statements, and cimmunicate.
The purpise if an audit is ti enhance the denree if cinfdence if intended users if the fnancial
statements. The auditir shiuld identfy and assess risks, ibtain sufcient and appripriate evidence
and firm an ipiniin.
The limitatins if an audit result frim such factirs as the use if testnn, the inherent limitatins if
any acciuntnn and internal cintril system, usinn judnement, and that mist audit evidence is
persuasive rather than cinclusive.
There are twi levels if risk fir an auditir: iverall fnancial statements may be misstated (cintril
envirinment, ciuld be fraud) and misstatement in relatin ti classes if transactins, acciunt
balances and disclisures (determininn the nature, tminn and extent if further audit pricedures).
There are three types if audits. Audits of financial statements examine fnancial statements ti
determine if they nive a true and fair view ir fairly present the fnancial statements in cinfirmity
with specifed criteria (such as IFRS, GAAP). An operatonal audit is a study if specifc unit if an
irnanisatin fir the purpise if measurinn its perfirmance and is a larne part if the wirk if an
internal auditir. peratinal audits review all ir part if the irnanisatin’s iperatnn pricedures ti
evaluate efectveness and efciency if the iperatin. Recimmendatins are nirmally made ti
mananement fir imprivinn iperatins. It is mire subjectve than audits if fnancial statements and
cimpliance audits because there are ni clear established criteria (such as acciuntnn principles and
laws). Compliance audit is a review if an irnanisatin’s pricedures ti determine whether the
irnanisatin is filliwinn specifc pricedures, rules ir renulatins set iut by sime hinher authirity. A
cimpliance audit measures the cimpliance if an entty with established criteria. Cimpliance audits
are usually assiciated with nivernment auditirs – fir example, the tax authirity, the nivernment
internal auditnn arm, ir audit if a bank by bankinn renulatirs (fir example: audit if a bank ti
determine if they cimply with capital reserve requirements) and are quite cimmin in nin-prift
irnanisatins funded by nivernment ti determine whether the fnancial assistance is spent in
accirdance with applicable laws and renulatins.
There are twi basic types if auditirs: independent external auditirs and internal auditirs. Internal
auditors investnate and appraise the efectveness if cimpany’s iperatins fir mananement with a
lit if atentin ti internal cintrils. They afect the fnancial statement audit: their existence and
wirk may afect the nature, tminn and extent if audit pricedures and external auditirs may use
them ti privide direct assistance.
It is the auditir’s jib ti validate mananement assertins. The auditir will identfy audit ibjectves,
which can be renarded as the auditir’s ciunterpart if mananement assertins. The auditir will
defne audit ibjectves fir existence if sales, cimpleteness if expenses, presentatin and disclisure
(based in IFRS), valuatin and rinhts, and iblinatins if inventiry. The auditir will develip these
specifc audit ibjectves fir which they must test fir evidence as priif. Afer the identfcatin if
acciunts, classes if transactins and the related mananement assertins and audit ibjectves, the
auditir will determine the nature, amiunt and tminn if the audit pricedures ti be carried iut. In
irder ti di si, he will perfirm risk analysis fir each audit ibjectve, i.e. he will determine the
2
,susceptbility if acciunt balances and transactins ti misstatement. Further, the auditir will have ti
determine the exactness with which he will perfirm his audit. The auditir will accept nreater
tilerance fir a bin enterprise. This raises the issue if materiality and if tilerable misstatements in
the audit pricess.
In desinninn an audit prinramme, the auditir starts by develipinn neneral ibjectves frim the
fnancial statements assertins if mananement. Then, specifc ibjectves are develiped fir each
acciunt under audit, and fnally, audit pricedures are desinned ti accimplish each specifc audit
ibjectve.
Audit pricedures are desinned ti ibtain evidence abiut the assertins if mananement that are
embidied in the fnancial statements. Management assertons are implied ir expressed
representatins by mananement abiut classes if transactins (e.n. sales transactins) and related
acciunts (e.n. revenue, acciunts receivable) in the fnancial statements. If they have sufcient
evidence ti suppirt each mananement assertin, they have sufcient evidence ti suppirt the audit
ipiniin.
(1) Assertins abiut classes if transactins and events fir the periid under audit: occurrence
(iccurred and pertain ti the entty), completeness (all transactins and events recirded that shiuld
be recirded), accuracy (recirded appripriately), cut-of (cirrect periid), classificaton (in the priper
acciunts).
(2) Assertins abiut acciunt balances at the periid end: existence, rights and obligatons (hilds and
cintrils the rinhts ti assets, and liabilites are the iblinatins if the entty), completeness and
valuaton and allocaton.
(3) Assertins abiut presentatin and disclisure: occurrence and rights and obligatons (disclised
events, transactins, and ither maters have iccurred and pertain ti the entty), completeness,
classificaton and understandability (appripriately presented and described, and disclisures are
clearly expressed) and accuracy and valuaton (disclised fairly and at appripriate amiunts).
In this biik, a fiur-phase standard audit pricess midel is used, based in the scientfc empirical
cycle. The phases if the audit are: (1) client acceptance, (2) planninn and desinn if an audit
appriach, (3) test fir evidence, and (4) cimpletin if the audit and issuance if an audit repirt.
These pricedures will be discussed frim Chapter 5 tll 12.
The irnanisatinal hierarchy if a typical internatinal audit frm are frim tip ti bitim: directir ir
partner, mananer, seniir acciuntants (ir supervisir), and staf acciuntants.
Chapter 2: The Audit Market
The industrial revilutin led ti the need ti liik fir external funds in irder ti fnance further
expansiin. They made a separatin between capital privisiin and mananement and there was a hinh
demand fir services if specialists in biikkeepinn and auditnn fnancial representatin.
There are fiur theiries in the demand and supply if audit services. The Policeman theory says that
an auditir’s jib is ti ficus in arithmetcal accuracy and in the preventin and detectin if fraud.
The Lending Credibility Theory says that audited fnancial statements are used by mananement ti
enhance the stakehilders’ faith in mananement’s stewardship. If stakehilders, such as stickhilders,
3
, nivernment, ir creditirs have ti make decisiins based in the infirmatin they receive, they must
have faith in a fair representatin. An audit reduces infirmatin asymmetry.
The Theory of Inspired Confidence says that the demand fir audit services is the direct cinsequence
if the partcipatin if iutside stakehilders (third partes) in the cimpany. These stakehilders
demand acciuntability frim the mananement, in return fir their cintributin ti the cimpany. Since
infirmatin privided by mananement minht be biased, because if a pissible divernence between
the interests if mananement and iutside stakehilders, an audit if this infirmatin is required. The
auditir shiuld act in such a way that he dies nit disappiint the expectatins if a ‘ratinal iutsider’,
while, in the ither hand, he shiuld nit ariuse nreater expectatins in his repirt than his
examinatin justfes. Si, niven the pissibilites if audit techniliny, the auditir shiuld di eniunh ti
meet reasinable public expectatins.
Agency theory says that a cimpany is viewed as the result if mire ir less firmal cintracts, in which
several nriups make sime kind if cintributin ti the cimpany, niven a certain price. A reputable
auditir is appiinted nit inly in the interest if third partes, but alsi in the interest if mananement.
Mananement is seen as the ‘anent’, tryinn ti ibtain cintributins frim ‘principals’ such as bankers,
stickhilders and empliyees. Cists if an anency relatinship are minitirinn cists (minitirinn the
anents), bindinn cists, and residual liss. The anency theiry can alsi be used ti explain the supply
side if the audit market. The cintributin if an audit ti third partes is basically determined by the
pribability that the auditir will detect errirs and the auditir’s willinnness ti repirt these errirs,
even anainst the wish if the auditee (auditir independence). therwise it may cist reputatin
damane.
A linn tme ani the demand and supply side were in viluntary basis. Niwadays, in mist ciuntries
audits are lenally required fir sime type if cimpanies. The requirements may vary frim state ti
state. The supply if audit services is currently renulated in mist ciuntries. In the Euripean Uniin,
statutiry audits, i.e. audits required by law, can inly be perfirmed by auditirs whi have met specifc
technical requirements with renard ti educatin and experience.
US Sarbanes- xley Act:
Act sparked by the Enrin and WirldCim acciuntnn scandals;
Intended ti establish investir cinfdence by imprivinn the quality if cirpirate disclisure
and fnancial repirtnn;
Increase the rile and respinsibility if cirpirate ifces and directirs fir fnancial statements
and cirpirate disclisures;
The Act required the SEC ti create a Public Cimpany Acciuntnn versinht Biard. This is a
biard that investnates the audits and auditirs if public cimpanies and sanctin bith frms
and individuals fir viilatins if law, renulatin and rules.
Euripean Uniin Renulatin:
Euripean Uniin directves require the applicatin if a sinnle set if internatinal auditnn
standards, updatnn educatinal requirements, etc;
Member states are niven authirizatin ti: (1) renister all auditirs and audit frms, (2) ti
adipt Internatinal Auditnn Practce Statement, (3) adipt a cimmin audit repirt fir the
audit if annual acciunts ir cinsilidated acciunts prepared in the basis if apprived IAS, (4)
decide if individual auditirs have a cimmin quality assurance, and (5) irnanize and efectve
system if public iversinht fir statutiry auditirs and audit frms in the basis if hime
ciuntry cintril;
4
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper boyanvh. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €4,99. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 67866 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen