Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Ass > CHAP 3: PLANNING THE ASSIGNMENT > Flashcards

CHAP 3: PLANNING THE ASSIGNMENT Flashcards

1
Q

High level assurance engagement hay low level assurance engagement cần nhiều procedure hơn

A

high bởi vì muốn kết luận là true&fair thì phải rất thận trọng và đánh giá nhiều

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Định nghĩa audit strategy và audit plan.
Cách phân biệt

A

Audit strategy: The formulation of the general strategy for the audit, which sets the scope, timing and direction of the audit and guides the development of the audit plan.
Audit plan: An audit plan is more detailed than the strategy and sets out the nature,
timing and extent of audit procedures (including risk assessment procedures) to beperformed by engagement team members in order to obtain sufficient appropriate audit evidence.
Cách pb: audit plan show how overall audit strategy will be implemented.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Audits are planned để lj

A

 Ensure appropriate attention is devoted to important areas of the audit
 Identify potential problems and resolve them on a timely basis
 Ensure that the audit is properly organised and managed
 Assign work to engagement team members properly
 Facilitate direction and supervision of engagement team members
 Facilitate review of work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Internal audit là j. Pb internal và external audit

A

là kiểm toán nội bộ bên trong cty, ktra và đảm bảo hệ thống kế toán của công ty.
Kiểm toán độc lập là được công ty thuê để đánh giá tính minh bạch FS của công ty, internal audit có thể thực hiện nhiều lần trong năm tùy nhu cầu cty nhưng external audit thường chỉ làm 1 lần 1 năm và là bắt buộc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

4 stage để planning an audit

A

Step 1: Ensuring that ethical requirements continue to be met
Step 2: Ensuring the terms of the engagement are understood
Step 3: Establishing the overall audit strategy
Step 4: Developing an audit plan include risk assessment procedures, audit test, other procedures comply with ISA
Lưu ý: audit plan và các sửa đổi audit plan phải được documented

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Các bước cần làm để establish overall audit strategy

A

1, identify relevant characteristics of engagement vd: reprorting framework
2,discovering key date for reporting and other communication
3,determining materiality, preliminary risk assessment, internal control
4,consideration khi nào thì work carried out
5, consideration team member available, their skill, how they will be used,…

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Key contents of an overall audit strategy

A

Sách trang 56

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Objective của auditor theo ISA 315

A

The objective of the auditor is to identify and assess the risks of material
misstatement, whether due to fraud or error, at the financial statement and
assertion levels thereby providing a basis for designing and implementing
responses to the assessed risks of material misstatement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Why auditors must obtaining an understanding the entity and its environment

A

 To identify and assess the risks of material misstatement in the financial
statements
 To enable the auditor to design and perform further audit procedures
 To provide a frame of reference for exercising audit judgement, for example,
when setting audit materiality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What auditors must obtaining to an understanding the entity and its environment ( xem kĩ hơn ở bảng 3.1 sách t61)

A

1,Industry, regulatory and other
external factors, including the
applicable financial reporting
framework
- Market and competition
- Product technology
- Accounting principles
- Tax/legislation
- Interest rates/inflation,…
2,Nature of the entity
- Revenue sources
- Products or services
- Locations
- Key customers/suppliers
- Financing
- Investment,…
3,Objectives and strategies and related business risks
- New products/services
- Expansion
- Use of IT,…
4,Measurement and review of the entity’s financial performance
- Trends
- Ratios, KPIs
- Budgets and forecasts,…
5, Internal control
- control activities
-monitoring of control
-internal audit
-control environment
-entity risk asessment process
6, Selection and application of accounting policies
- Changes in accounting
policies
- New legislation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How auditors obtaining an understanding the entity and its environment

A

 Inquiries of management and others within the entity
 Analytical procedures
 Observation and inspection
 Prior period knowledge
 Discussion of the susceptibility of the financial statements to material misstatement among the engagement team

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Định nghĩa analytical procedure

A

Analytical procedures means evaluation of financial informationthrough the study of plausible relationships among both financial
and non-financial data.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Analytical procedure bao gồm những type of comparison nào

A
  • Prior periods
  • Budgets and forecasts
  • Industry information
  • Predictive estimates
  • Relationships between elements of financial information, ie ratio analysis
  • Relationships between financial and non-financial information, ie payroll
    costs to the number of employees
  • Investigation of unusual/significant changes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

việc chọn procedure is a matter của cj

A

auditor professional judgement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Auditor use analytical procedure lj

A

 auditor to use analytical procedures (preliminary
analytical procedures) => Risk assessment procedures
 auditors to apply analytical procedures as substantive procedures (substantive analytical procedures)
 auditors to apply analytical procedures in the overall review at the end of the audit (review analytical
procedures)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Analytical sẽ giúp auditor phân tích thông tin j của client

A

1, interim financial information
2,budget
3,management account
4,non-financial ìnformation
5,bank and cash record
6,VAT return
7,board minute( biên bản họp HĐQT)
8,discussion,correspond with client ( thảo luận, thư từ với client)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Return on cap

A

profit before interest, tax/ equity+net debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Return on shareholder fund

A

net profit/share cap+reserve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Gross profit margin

A

(Gross profit/Rev)x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

COS percentage

A

COSx100/Rev

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Operating cost percentage

A

OCx100/Rev

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Net margin

A

Profit before interest,tax x100/ Rev

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Current ratio

A

Current asset/currrent lia

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

quick ratio

A

receivable+current invest+cash/current lia

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Gearing ratio

A

net debt/100xequity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Interest cover

A

profit before interest payable/ interest payable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Net asset turnover

A

Rev/ cap employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Inventory turnover

A

COS/Inventoris

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Inventories day

A

Average in/365x COS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

TR collection period

A

TRx365/Rev

31
Q

TP payment period

A

TPx365/credit purchase

32
Q

Định nghĩa materiality

A

Materiality: An expression of the relative significance or importance of a particular matter in the context of financial statements as a whole.

33
Q

Một matter ntn thì được coi là material

A

a matter is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.

34
Q

Định nghĩa performance materiality

A

: The amount or amounts set by the auditor at less
than materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a
whole.

35
Q

‘materiality and audit risk are considered throughout the
audit( xuyên suốt cả quá trình planning và implement),when

A

‘materiality and audit risk are considered throughout the
audit, in particular, when:
 Identifying and assessing the risks of material misstatement;
 Determining the nature, timing and extent of further audit procedures;
 Evaluating the effect of uncorrected misstatements, if any, on the financial statements and in forming the opinion in the auditor’s report’.

36
Q

Materiality consideration during audit planning có tác dụng j

A

It is very important, assessment materiality based on recent and reliable financial information, will help determine an effective and efficient audit approach

37
Q

Materiality assessment help auditor decide j

A

1, how many and what item to examine
2, whether to use sampling technique
3,what level of misstatement is likely to lead to an auditor to say FS dont give a true&fair view

38
Q

Materiality được tính dựa trên being a percentage of item in FS?

A

FALSE because materiality have qualitative( nature) and quantitative

39
Q

How to set level of materiality

A

To set the materiality level they need to decide the level of error (quantitative)which would distort the view given by the financial statements.

40
Q

why the level of materiality is often( chỉ often thoi chứ always là sai nha) expressed as a proportion of profit?

A

 Because many users of financial statements are primarily interested in the profitability of the company, the level is often expressed as a proportion of profit; however, the auditors will often calculate a range of values, such as those shown below, and then take a weighted average of all the figures.

41
Q

Định nghĩa tolerable misstatement

A

 Tolerable misstatement: is the maximum misstatement that an auditor is prepared to accept in a class of transactions or balances in the FSs

42
Q

Phân biệt 3 loại mistatement

A

tolerabable mis: ngưỡng sai phạm có thể bỏ qua dk, tuy nhiên, đến giai đoạn kết thúc kì kiểm toán, nếu cộng tổng các sai phạm này lớn hơn ngưỡng materiality thì phải xem xét, test sample item
performance mis: tập trung vào sự khác nhau giữa tolerable mis and actual mis, kiểu là ở giữa, apply cho các khoản mục trong FS, test all item
materiality:ngưỡng trọng yếu cho cả FS nói chung

43
Q

Tại sao phải thường xuyên review materiality?

A

The level of materiality must be reviewed constantly as the audit progresses, and changes may be required because:
* Draft financial statements are altered (due to material error and so on) and therefore overall materiality changes
* External factors may cause changes in risk estimates
Such changes may be caused by errors or misstatements found during testing.

44
Q

Mức materiality càng thấp chứng tỏ điều j?

A

chứng tỏ sự thận trong của auditor trong việc phòng ngừa những misstatement khó phát hiện được, mức càng thấp thì càng phải thu thập nhiều evidence

45
Q

Ai là người setting ngưỡng materiality, dựa vào đâu để set?

A

Leader của team audit, mỗi cty có 1 cách tính toán riêng, có thể tính dựa theo % 1 item nào đó trong FS và phải dựa vào professional judgement để set

46
Q

Định nghĩa audit risk

A

: The risk that the auditor expresses an inappropriate audit
opinion when the financial statements are materially misstated.
the auditor should plan and performthe audit toreduce audit risk to an acceptably low level.

47
Q

risk-based approach là j

A

Auditors follow a risk-based approach to auditing. In the risk-basedapproach, auditors analyse the risks associated with the client’s business,
transactions and systems which could lead to misstatements in the financial
statements, and direct their testing to risky areas

48
Q

Inherent risk là j

A

Inherent risk: The susceptibility of an assertion about a class of transaction, account balance or disclosure to a misstatement that could be material, either individually or when aggregated with other misstatements, before consideration of any related controls.

49
Q

2 major component of audit risk

A

1, Risk of material misstatement của FS, gồm inherent risk và control risk
2, Detection risk : risk mà auditor k phát hiện dk

50
Q

Tại sao lại có inherent risk. Vd các TH gây ra inherent risk

A

Inherent risk is the risk that items will be misstated due to characteristics of those items.
Example of issues that might increase inherent risk are: * Balance is, or includes, an estimate
* Balance is important in the account
* Financial statements are liable to misstatement because:
o company is in trouble
o company is seeking to raise finance
o other motivations for directors to misstate the figures (such as profit targets or profit related bonuses)
* Financial statements contain balances with complex financial accounting requirements or a choice of treatment( những khoản mục hạch toán phức tạp)

51
Q

Nếu k dùng professional judgement và knowledge để assess inherent risk thì điều j xảy ra

A

khả năng xảy ra inherent risks cao

52
Q

spectrum of inherent risk là j

A

1 range of possible risk , sắp xếp theo thứ tự từ significant risk

53
Q

Inherent risk affected by cj

A

nature of entity

54
Q

Định nghĩa control risk

A

Control risk: The risk of a misstatement that could occur in an assertion about a class of transactions, account balance or disclosure, and that could be material, either individually or when aggregated with other misstatements,
and not being prevented, or detected and corrected, on a timely basis by the entity’s internal control

55
Q

Phân biệt risk at FS level và risk at assertion level

A
  • At FS level :risk pervasive (lan tỏa) khắp FS và liên quan đến consideration của auditor về các mistatement gây ra bởi fraud
  • At assertion level: là inherent risk và control risk lquan đến nature of company với internal control of company
56
Q

Định nghĩa detection risk

A

Detection risk: The risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement that exists and that this error could be material, either individually or when combined with other factors.

57
Q

How to lower the detection risk

A

The auditor therefore manages overall audit risk by manipulating detectionrisk, the only element of audit risk the auditor has control over. This is
because, the more audit work the auditors carry out, the lower detection riskbecomes, although it can never be entirely eliminated due to the inherent
limitations of an audit.

58
Q

Giải thích CT: Audit risk= Inherent risk x Control risk x Detection risks

A

Nếu inherent vs control risk cao , cto khả năng nhiều material misstatement nên detection risk phải thấp để assess dk mấy cái misstatement đấy , đồng nghĩa với việc auditor phải thu thập nhiều evidence

59
Q

4 steps để identiy and assessing risk

A

1,Identify risks throughout the process of obtaining
an understanding of the entity and its environment
2,Assess the identified risks and link them to what
can go wrong at the assertion level
3,Consider whether the risks are of a magnitude that could
result in a material misstatement
4,Consider the likelihood of the risks causing a material misstatement

60
Q

Định nghĩa significant risk

A

Significant risk: An identified risk of material misstatement […] for which the assessment of inherent risk is close to the upper end of the spectrum of inherent risk due to the degree to which inherent risk factors affect the combination of the likelihood of a misstatement occurring and the magnitude of the potential misstatement should that
misstatement occur

61
Q

1 risk ntn dk coi là significant

A

The following inherent risk factors should be used to determine the significance of a risk:
* complexity
* subjectivity
* change
* uncertainty
* susceptibility to misstatement due to management bias or other fraud risk factors

62
Q

Unusual transaction là significant risk vì

A

1, management intervention
2,manual intervention
3,complex accounting principle&calculation
4,control procedure not to be followed

63
Q

related party transaction là loại risk nào

A

inherent risk

64
Q

các related party transaction có phải disclose hết trên FS không

A

có

65
Q

climate-related risks have any influence on:

A

climate-related risks have any influence on:
* The entity’s business model (such as the entity’s supply chain)
* Industry factors (such as competitive environment, supplier and customer relationships, and technological developments)
* Regulatory factors (such as climate-related laws and regulations)
* Other external factors (such as the economic conditions, interest rates and availability of financing, commodity prices and inflation or currency revaluation)

66
Q

Climate change risk có ảnh hưởng đến FS k

A

k ảnh hưởng trực tiếp đến FS, ảnh hưởng gián tiếp qua going concern

67
Q

vd về các risk gây ra từ climate issue

A

SGK t76

68
Q

Phân biệt fraud and error

A

Fraud: An intentional act by one or more individuals among
management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage.
Error: An unintentional misstatement in financial statements, including the omission of an amount or a disclosure.

69
Q

phân loại fraud

A
  • Fraudulent financial reporting: involves intentional misstatements, including omissions of amounts or disclosures in financial statements, to deceive financial
    statement users. ( vd: làm gian lận FS, cái này nghiêm trọng hơn, chỉ director mới làm dk)
  • Misappropriation of assets: involves the theft of an entity’s assets and is often perpetrated by employees in relatively small and immaterial amounts. However, it can
    also involve management who are usually more capable of disguising or concealing misappropriations in ways that are difficult to detect.( vd: biển thủ tài sản, có thể là mấy thứ lặt vặt như lấy đồ cty về dùng)
70
Q

Who responsible for preventing and detecting both fraud and error. How they preventing and detecting?

A

Company management and those charge with governance
They do this by putting in place a system of internal control over the company’s transactions and exercising oversight over this system, and by creating a culture of honesty and ethical behaviour.

71
Q

Tại sao material misstatement from fraud khó detect hơn from error

A

vì là những gian lận cố ý, thông đồng thực hiện và đặc biệt là management có thể cố ý manipulate accounting record hoặc overide control pocedure
e auditor may also have a responsibility to report a fraud to an external, relevant authority

72
Q

Àuditor objective lquan đến fraud

A
  • To identify and assess the risks of material misstatement due to fraud
  • To obtain evidence regarding these risks by designing and implementing appropriate responses
  • To respond appropriately to any actual or suspected fraud identified during the audit
73
Q

cách các auditor đối mặt với fraud

A

Luôn giữ thái độ professional sceticism
a discussion among the engagement team about
where fraud might take place at the entity, which is usually done during the planning phase.

Ass (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions