审计学一种整合方法 阿伦斯 英文版 第12版 课后答案Chapter 11 Solutions Manual.docx

审计学一种整合方法 阿伦斯 英文版 第12版 课后答案Chapter 11 Solutions Manual.docx

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审计学一种整合方法阿伦斯英文版第12版课后答案Chapter11SolutionsManual

Chapter11

FraudAuditing

ReviewQuestions

11-1Fraudulentfinancialreportingisanintentionalmisstatementoromissionofamountsordisclosureswiththeintenttodeceiveusers.Twoexamplesoffraudulentfinancialreportingareacceleratingthetimingofrecordingsalesrevenuetoincreasedreportedsalesandearnings,andrecordingexpensesasfixedassetstoincreaseearnings.

11-2Misappropriationofassetsisfraudthatinvolvestheftofanentity’sassets.Twoexamplesareanaccountspayableclerkissuingpaymentstoafictitiouscompanycontrolledbytheclerk,andasalesclerkfailingtorecordasaleandpocketingthecashreceipts.

11-3Fraudulentfinancialreportingisanintentionalmisstatementoromissionofamountsordisclosureswiththeintenttodeceiveusers,whilemisappropriationofassetsisfraudthatinvolvestheftofanentity’sassets.Fraudsinvolvingfinancialreportingareusuallylargerthanfraudsinvolvingmisappropriationofassets,usuallyinvolvetopmanagement,anddonotdirectlyinvolvetheftofcompanyassets.

11-4Thethreeconditionsoffraudreferredtoasthe“fraudtriangle”are

（1）Incentives/Pressures;

（2）Opportunities;and（3）Attitudes/Rationalization.Incentives/Pressuresareincentivesofmanagementorotheremployeestocommitfraud.Opportunitiesarecircumstancesthatallowmanagementoremployeestocommitfraud.Attitudes/Rationalizationareindicationsthatanattitude,character,orsetofethicalvaluesexistthatallowmanagementoremployeestocommitadishonestactortheyareinanenvironmentthatimposessufficientpressurethatcausesthemtorationalizecommittingadishonestact.

11-5Thefollowingareexampleofriskfactorsforfraudulentfinancialreportingforeachofthethreefraudconditions:

Incentives/Pressures-Thecompanyisunderpressuretomeetdebtcovenantsorobtainadditionalfinancing.

Opportunities–Ineffectiveoversightoffinancialreportingbytheboardofdirectorsallowsmanagementtoexercisediscretionoverreporting.

Attitudes/Rationalization–Managementisoverlyaggressive.Forexample,thecompanymayissueaggressiveearningsforecasts,ormakeextensiveacquisitionsusingcompanystock.

11-6Thefollowingareexampleofriskfactorsformisappropriationofassetsforeachofthethreefraudconditions:

Incentives/Pressures-Theindividualisunabletomeetpersonalfinancialobligations.

Opportunities–Thereisinsufficientsegregationofdutiesthatallowstheindividualtohandlecashreceiptsandrelatedaccountingrecords.

Attitudes/Rationalization–Managementhasdisregardedtheinadequateseparationofdutiesthatallowsthepotentialtheftofcashreceipts.

11-7Auditorsuseseveralsourcestogatherinformationaboutfraudrisks,including:

Informationobtainedfromcommunicationsamongauditteammembersabouttheirknowledgeofthecompanyanditsindustry,includinghowandwherethecompanymightbesusceptibletomaterialmisstatementsduetofraud.

Responsestoauditorinquiriesofmanagementabouttheirviewsoftherisksoffraudandaboutexistingprogramsandcontrolstoaddressspecificidentifiedfraudrisks.

Specificriskfactorsforfraudulentfinancialreportingandmisappropriationsofassets.

Analyticalproceduresresultsobtainedduringplanningthatindicatepossibleimplausibleorunexpectedanalyticalrelationships.

Knowledgeobtainedthroughotherproceduressuchasclientacceptanceandretentiondecisions,interimreviewoffinancialstatements,andconsiderationofinherentorcontrolrisks.

11-8SAS99requirestheauditteamtoconductdiscussionstoshareinsightsfrommoreexperiencedauditteammembersandto“brainstorm”ideasthataddressthefollowing:

1.Howandwheretheybelievetheentity’sfinancialstatementsmightbesusceptibletomaterialmisstatementduetofraud.Thisshouldincludeconsiderationofknownexternalandinternalfactorsaffectingtheentitythatmight

createanincentiveorpressureformanagementtocommitfraud.

providetheopportunityforfraudtobeperpetrated.

indicateacultureorenvironmentthatenablesmanagementtorationalizefraudulentacts.

2.Howmanagementcouldperpetrateandconcealfraudulentfinancialreporting.

3.Howassetsoftheentitycouldbemisappropriated.

4.Howtheauditormightrespondtothesusceptibilityofmaterialmisstatementsduetofraud.

11-9Auditorsmustinquirewhethermanagementhasknowledgeofanyfraudorsuspectedfraudwithinthecompany.SAS99alsorequiresauditorstoinquireoftheauditcommitteeaboutitsviewsoftherisksoffraudandwhethertheauditcommitteehasknowledgeofanyfraudorsuspectedfraud.Iftheentityhasaninternalauditfunction,theauditorshouldinquireaboutinternalaudit’sviewsoffraudrisksandwhethertheyhaveperformedanyprocedurestoidentifyordetectfraudduringtheyear.SAS99furtherrequirestheauditortomakeinquiriesofotherswithintheentitywhosedutieslieoutsidethenormalfinancialreportinglinesofresponsibilityabouttheexistenceorsuspicionoffraud.

11-10Thecorporatecodeofconductestablishesthe“toneatthetop”oftheimportanceofhonestyandintegrityandcanalsoprovidemorespecificguidanceaboutpermittedandprohibitedbehavior.Examplesofitemstypicallyaddressedinacodeofconductincludeexpectationsofgeneralemployeeconduct,restrictionsonconflictsofinterest,andlimitationsonrelationshipswithclientsandsuppliers.

11-11Managementandtheboardofdirectorsareresponsibleforsettingthe“toneatthetop”forethicalbehaviorinthecompany.Itisimportantformanagementtobehavewithhonestyandintegritybecausethisreinforcestheimportanceofthesevaluestoemployeesthroughouttheorganization.

11-12Managementhasprimaryresponsibilitytodesignandimplementantifraudprogramsandcontrolstoprevent,deter,anddetectfraud.Theauditcommitteehasprimaryresponsibilitytooverseetheorganization’sfinancialreportingandinternalcontrolprocessesandtoprovideoversightofmanagement’sfraudriskassessmentprocessandantifraudprogramsandcontrols.

11-13Thethreeauditorresponsestofraudare:

（1）changetheoverallconductoftheaudittorespondtoidentifiedfraudrisks;

（2）designandperformauditprocedurestoaddressidentifiedrisks;and（3）performprocedurestoaddresstheriskofmanagementoverrideofcontrols.

11-14Auditorsarerequiredtotakethreeactionstoaddresspotentialmanagementoverrideofcontrols:

（1）examinejournalentriesandotheradjustmentsforevidenceofpossiblemisstatementsduetofraud;

（2）reviewaccountingestimatesforbiases;and（3）evaluatethebusinessrationaleforsignificantunusualtransactions.

11-15Threemaintechniquesusetomanipulaterevenueinclude:

（1）recordingoffictitiousrevenue;

（2）prematurerevenuerecognitionincludingtechniquessuchasbill-and-holdsalesandchannelstuffing;and（3）manipulationofadjustmentstorevenuesuchassalesreturnsandallowanceandothercontraaccounts.

11-16Cashregisterreceiptsareparticularlysusceptibletotheft.Thenotice“yourmealisfreeifwefailtogiveyouareceipt”isdesignedtoensurethateverycustomerisgivenareceiptandallsalesareenteredintotheregister,establishaccountabilityforthesale.

11-17Thethreetypesofinquiryareinformational,assessment,andinterrogative.Auditorsuseinformationalinquirytoobtaininformationaboutfactsanddetailsthattheauditordoesnothave.Forexample,iftheauditorsuspectsfinancialstatementfraudinvolvingimproperrevenuerecognition,theauditormayinquireofmanagementastorevenuerecognitionpolicies.Theauditorusesassessmentinquirytocorroborateorcontradictpriorinformation.Inthepreviousexample,theauditormayattempttocorroboratetheinformationobtainedfrommanagementbymakingassessmentinquiriesofindividualsinaccountsreceivableandshipping.Interrogativeinquiryisusedtodetermineiftheintervieweeisbeingdeceptiveorpurposefullyomittingdisclosureofkeyknowledgeoffacts,events,orcircumstances.Forexample,aseniormemberoftheauditteammightmakeinterrogativeinquiriesofmanagementorotherpersonnelaboutkeyelementsofthefraudwhereearlierresponseswerecontradictoryorevasive.

11-18Whenmakinginquiriesofadeceitfulindividual,threeexamplesofverbalcuesarefrequentrephrasingofthequestion,fillertermssuchas“well”or“totellthetruth,”andforgetfulnessoracknowledgementsofnervousness.Threeexamplesofnonverbalcuesbytheindividualarecreatingphysicalbarriersbyblockingtheirmouth,leaningawayfromtheauditor,andsignsofstresssuchassweatingorfidgeting.

11-19Whentheauditorsuspectsthatfraudmaybepresent,SAS99requirestheauditortoobtainadditionalevidencetodeterminewhethermaterialfraudhasoccurred.SAS99alsorequirestheauditortoconsidertheimplicationsforotheraspectsoftheaudit.Whentheauditordeterminesthatfraudmaybepresent,SAS99requirestheauditortodiscussthematterandauditapproachforfurtherinvestigationwithanappropriatelevelofmanagementthatisatleastonelevelabovethoseinvolved,andwithseniormanagementandtheauditcommittee,evenifthemattermightbeconsideredinconsequential.Forpubliccompanyauditors,thediscoveryoffraudofanymagnitudebyseniormanagementisatleastasignificantdeficiencyandmaybeamaterialweaknessininternalcontroloverfinancialreporting.Thisincludesfraudbyseniormanagementthatresultsinevenimmaterialmisstatements.Ifthepubliccompanyauditordecidesthefraudisamaterialweakness,theauditor’sreporton