6章Audit Responsibilitiesand Objectives
审计责任和目标
1
The objective of the ordinary audit of financialstatements is the expression of an opinion ofthe fairness with which they present fairly, inall respects, financial position, result ofoperations, and its cash flows inconformity with GAAP.
一般审计财务报表的目的是表达一种公平的意见，即在所有方面，它们在财务状况、业务结果和现金流符合公认会计准则的情况下公平地呈现。
2
Steps to Develop Audit Objectives
Understand objectives andresponsibilities for the audit.
Divide financial statements into cycles
Know management assertions about accounts.
Know general audit objectives for classes of transactions and accounts
Know specific audit objectives for classes of transactions and accounts.
3
Distinguish management’s responsibility for the financial statements and internal control from the auditor’s responsibility for verifying the financial statements and effectiveness of internal control.
4
Management’s Responsibilities
Management is responsible for the financial statements and for internal control.
The Sarbanes-Oxley Act increases management’s responsibility for the financial statements.
It requires the CEO and the CFO of public companies to certify the quarterly and annual financial statements submitted to the SEC.
The Sarbanes-Oxley Act provides for criminal penalties for anyone who knowingly falsely certifies the statements.
5
Explain the auditor’s responsibility for discovering material misstatements.
Auditor’s Responsibilities
Material versus immaterial misstatements
Reasonable assurance
Errors versus fraud
Professional skepticism
Fraud resulting from fraudulent financial reporting versus misappropriation of assets
Direct-effect illegal acts
Indirect-effect illegal acts
Evidence accumulation when there is no reason to believe indirect-effect illegal act exists
Evidence accumulation and other actions when there is reason to believe direct- or indirect-effect illegal acts may exist
6
Actions when the auditor knows of an illegal act Classify transactions and account balances into financial statement cycles and identify be