Bahan Kuliah | Berbagi Hobiku
Audit
Responsibilities
and Objectives
Chapter 6
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-1
Learning Objective 1
Explain the objective of
conducting an audit of
financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-2
Objective of Conducting an Audit
of Financial Statements
The primary objective of the audit
is to express an opinion on the
financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-3
Steps to Develop
Audit Objectives
1
Understand objectives and
responsibilities for the audit.
2
Divide financial statements
into cycles.
3
Know management
assertions about accounts.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-4
Steps to Develop
Audit Objectives
4
Know general audit objectives for
classes of transactions and accounts.
5
Know specific audit objectives for
classes of transactions and accounts.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-5
Learning Objective 2
Distinguish management’s
responsibilities for preparing
financial statements from the
auditor’s responsibilities for
verifying those financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-6
Responsibilities
Management is responsible
for the financial statements,
and for internal control.
Auditors issue an
opinion on fairness
of the financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-7
Learning Objective 3
Explain the auditor’s
responsibility for discovering
material misstatements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-8
Auditor’s Responsibilities
Material versus immaterial misstatements
Reasonable assurance
Errors versus fraud
Professional skepticism
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-9
Responsibilities for Discovering
Illegal Acts
Direct-effect illegal acts
Indirect-effect illegal acts
Evidence accumulation
when there is no reason
to believe indirect-effect
illegal act exists
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 10
Responsibilities for Discovering
Illegal Acts
Evidence accumulation and
other actions when there is
reason to believe direct- or
indirect-effect illegal acts
may exist
Actions when the auditor
knows of an illegal act
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 11
Learning Objective 4
Classify transactions and account
balances into financial statement
cycles and identify benefits of a cycle
approach to segmenting the audit.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 12
Transaction Flow Example
Transactions
Journals
Sales
Sales
journal
Cash
receipts
Cash receipts
journal
Acquisition
of goods
and services
Acquisitions
journal
Ledger, Trial Balance, and
Financial Statements
General ledger
and subsidiary
records
General ledger
trial balance
Financial
statements
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 13
Transaction Flow Example
Transactions
Journals
Cash
disbursements
Cash disbursements journal
Payroll
services and
disbursements
Payroll
journal
Allocation and
adjustments
General
journal
Ledger, Trial Balance, and
Financial Statements
General ledger
and subsidiary
records
General ledger
trial balance
Financial
statements
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 14
Relationships Among Transaction
Cycles
General
cash
Capital acquisition
and repayment cycle
Sales and
collection
cycle
Acquisition
and payment
cycle
Payroll and
personnel
cycle
Inventory and
warehousing
cycle
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 15
Learning Objective 5
Describe why the auditor obtains
a combination of assurance by
auditing classes of transactions
and ending balances in accounts.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 16
Balance and Transactions Affecting
Balances Example
Accounts Receivable (in thousands)
Beginning balance
Sales
Ending balance
$ 19,454
144,328
$ 20,197
139,020
Cash
receipts
1,242
Sales returns
and allowances
3,328
Charge-off of
uncollectible
debts
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 17
Learning Objective 6
Distinguish among
the five categories of
management assertions
about financial information.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 18
Management Assertions
1. Existence or occurrence
2. Completeness
3. Valuation or allocation
4. Rights and obligations
5. Presentation and disclosure
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 19
Learning Objective 7
List the six general transactionrelated audit objectives to the
five management assertions.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 20
Transaction-Related
Audit Objectives
Existence
Recorded
transactions exist.
Completeness
Existing transactions
are recorded.
Accuracy
Recorded transactions
are stated at the
correct amount.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 21
Transaction-Related
Audit Objectives
Classification
Transactions are
properly classified.
Timing
Transactions are recorded
on the correct dates.
Posting and
summarization
Transactions are included
in the master files and
are correctly summarized.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 22
Transaction-Related Audit Objectives
and Management Assertions
Management
Assertions
Existence or occurrence
Completeness
Valuation or allocation
Rights and obligations
Presentation and disclosure
General TransactionRelated Audit Objectives
Existence
Completeness
Accuracy, Classification timing,
Posting and summarization
N/A
N/A
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 23
Learning Objective 8
Link the nine general balancerelated audit objectives to the
five management assertions.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 24
General Balance-Related
Audit Objectives
Existence
Amounts
included exist.
Completeness
Existing amounts
are included.
Accuracy
Amounts included
are stated at the
correct amounts.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 25
General Balance-Related
Audit Objectives
Classification
Amounts are
properly classified.
Cutoff
Transactions are recorded
in the proper period.
Detail tie-in
Account balances agree
with master file amounts,
and with the general ledger.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 26
General Balance-Related
Audit Objectives
Realizable
value
Assets are included at
estimated realizable value.
Rights and
obligations
Assets must be owned.
Presentation
and
disclosure
Account balances and
disclosures are presented
in financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 27
Assertions and Balance-Related
Audit Objectives
Management
Assertions
Existence or occurrence
Completeness
Valuation or allocation
Rights and obligations
Presentation and disclosure
General BalanceRelated Audit Objectives
Existence
Completeness
Accuracy, Classification, Cutoff,
Detail tie-in, Realizable value
Rights and obligations
Presentation and disclosure
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 28
Learning Objective 9
Explain the relationship
between audit objectives
and the accumulation
of audit evidence.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 29
How Audit Objectives
Are Met
Auditors plan the combination
of objectives and evidence by
following an audit process.
An audit process is a methodology
for organizing an audit.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 30
Four Phases of an Audit
Phase I
Plan and design
an audit approach.
Phase II
Perform tests of
controls and
substantive tests
of transactions.
Phase III
Perform analytical
procedures and
tests of details
of balances.
Phase IV
Complete the
audit and issue
an audit report.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 31
End of Chapter 6
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 32
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 33
Responsibilities
and Objectives
Chapter 6
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-1
Learning Objective 1
Explain the objective of
conducting an audit of
financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-2
Objective of Conducting an Audit
of Financial Statements
The primary objective of the audit
is to express an opinion on the
financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-3
Steps to Develop
Audit Objectives
1
Understand objectives and
responsibilities for the audit.
2
Divide financial statements
into cycles.
3
Know management
assertions about accounts.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-4
Steps to Develop
Audit Objectives
4
Know general audit objectives for
classes of transactions and accounts.
5
Know specific audit objectives for
classes of transactions and accounts.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-5
Learning Objective 2
Distinguish management’s
responsibilities for preparing
financial statements from the
auditor’s responsibilities for
verifying those financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-6
Responsibilities
Management is responsible
for the financial statements,
and for internal control.
Auditors issue an
opinion on fairness
of the financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-7
Learning Objective 3
Explain the auditor’s
responsibility for discovering
material misstatements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-8
Auditor’s Responsibilities
Material versus immaterial misstatements
Reasonable assurance
Errors versus fraud
Professional skepticism
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6-9
Responsibilities for Discovering
Illegal Acts
Direct-effect illegal acts
Indirect-effect illegal acts
Evidence accumulation
when there is no reason
to believe indirect-effect
illegal act exists
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 10
Responsibilities for Discovering
Illegal Acts
Evidence accumulation and
other actions when there is
reason to believe direct- or
indirect-effect illegal acts
may exist
Actions when the auditor
knows of an illegal act
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 11
Learning Objective 4
Classify transactions and account
balances into financial statement
cycles and identify benefits of a cycle
approach to segmenting the audit.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 12
Transaction Flow Example
Transactions
Journals
Sales
Sales
journal
Cash
receipts
Cash receipts
journal
Acquisition
of goods
and services
Acquisitions
journal
Ledger, Trial Balance, and
Financial Statements
General ledger
and subsidiary
records
General ledger
trial balance
Financial
statements
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 13
Transaction Flow Example
Transactions
Journals
Cash
disbursements
Cash disbursements journal
Payroll
services and
disbursements
Payroll
journal
Allocation and
adjustments
General
journal
Ledger, Trial Balance, and
Financial Statements
General ledger
and subsidiary
records
General ledger
trial balance
Financial
statements
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 14
Relationships Among Transaction
Cycles
General
cash
Capital acquisition
and repayment cycle
Sales and
collection
cycle
Acquisition
and payment
cycle
Payroll and
personnel
cycle
Inventory and
warehousing
cycle
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 15
Learning Objective 5
Describe why the auditor obtains
a combination of assurance by
auditing classes of transactions
and ending balances in accounts.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 16
Balance and Transactions Affecting
Balances Example
Accounts Receivable (in thousands)
Beginning balance
Sales
Ending balance
$ 19,454
144,328
$ 20,197
139,020
Cash
receipts
1,242
Sales returns
and allowances
3,328
Charge-off of
uncollectible
debts
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 17
Learning Objective 6
Distinguish among
the five categories of
management assertions
about financial information.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 18
Management Assertions
1. Existence or occurrence
2. Completeness
3. Valuation or allocation
4. Rights and obligations
5. Presentation and disclosure
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 19
Learning Objective 7
List the six general transactionrelated audit objectives to the
five management assertions.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 20
Transaction-Related
Audit Objectives
Existence
Recorded
transactions exist.
Completeness
Existing transactions
are recorded.
Accuracy
Recorded transactions
are stated at the
correct amount.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 21
Transaction-Related
Audit Objectives
Classification
Transactions are
properly classified.
Timing
Transactions are recorded
on the correct dates.
Posting and
summarization
Transactions are included
in the master files and
are correctly summarized.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 22
Transaction-Related Audit Objectives
and Management Assertions
Management
Assertions
Existence or occurrence
Completeness
Valuation or allocation
Rights and obligations
Presentation and disclosure
General TransactionRelated Audit Objectives
Existence
Completeness
Accuracy, Classification timing,
Posting and summarization
N/A
N/A
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 23
Learning Objective 8
Link the nine general balancerelated audit objectives to the
five management assertions.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 24
General Balance-Related
Audit Objectives
Existence
Amounts
included exist.
Completeness
Existing amounts
are included.
Accuracy
Amounts included
are stated at the
correct amounts.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 25
General Balance-Related
Audit Objectives
Classification
Amounts are
properly classified.
Cutoff
Transactions are recorded
in the proper period.
Detail tie-in
Account balances agree
with master file amounts,
and with the general ledger.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 26
General Balance-Related
Audit Objectives
Realizable
value
Assets are included at
estimated realizable value.
Rights and
obligations
Assets must be owned.
Presentation
and
disclosure
Account balances and
disclosures are presented
in financial statements.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 27
Assertions and Balance-Related
Audit Objectives
Management
Assertions
Existence or occurrence
Completeness
Valuation or allocation
Rights and obligations
Presentation and disclosure
General BalanceRelated Audit Objectives
Existence
Completeness
Accuracy, Classification, Cutoff,
Detail tie-in, Realizable value
Rights and obligations
Presentation and disclosure
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 28
Learning Objective 9
Explain the relationship
between audit objectives
and the accumulation
of audit evidence.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 29
How Audit Objectives
Are Met
Auditors plan the combination
of objectives and evidence by
following an audit process.
An audit process is a methodology
for organizing an audit.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 30
Four Phases of an Audit
Phase I
Plan and design
an audit approach.
Phase II
Perform tests of
controls and
substantive tests
of transactions.
Phase III
Perform analytical
procedures and
tests of details
of balances.
Phase IV
Complete the
audit and issue
an audit report.
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 31
End of Chapter 6
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 32
©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
6 - 33