审计英语
一.名词
1. Compliance
audit(复核审计) :An audit to measure the compliance of the organization
with some established criteria ;
2. Review (审阅): An
engagement designed to lend only a limited degree of assurance
relating to an assertion.
3.
Independence(独立性): A most important auditing standard, which
prohibits CPAs from expressing an opinion on financial statements
of an enterprise unless they are independent with respect to such
enterprise; independence is impaired by a direct financial
interest, service as an officer or trustee, certain loans to or
from the enterprise, and various other relationships.
4. Quality
control(质量控制): Standards for establishing quality control policies
and procedures that provide reasonable assurance that all of a CPA
firm’s engagements are conducted in accordance with applicable
professiona
l standards.
5. Negligence(过失):
Violation of a legal duty to exercise a degree of care that an
ordinarily prudent person would exercise under similar
circumstances.
6. Constructive
fraud(推定舞弊): Performing duties with such recklessness that persons
believing the duties to have been completed carefully are being
misled. Differs from fraud in that constructive fraud does not
involve knowledge of misrepresentations within the financial
statements.
7. Control
risk(控制风险): The risk that a material misstatement that could occur
in an account will not be prevented or detected on a timely basis
by internal control.
8. Material(重要性):
Of substantial importance. Significant enough to affect evaluations
or decisions by users of financial statements. Information that
should be disclosed in order that financial statements constitute a
fair presentation. Involves both qualitative and quantitative
considerations.
9. Successor
auditors(继任审计人员): The auditors who have accepted an engagement or
who have been invited to make a proposal for an engagement to
replace the CPA firm that formerly served as auditors.
10. Transaction cycle(交易循环): The sequence of
procedures applied by the client in processing a particular type of
recurring transaction. The term cycle reflects the idea that the
same sequence of procedures is applied to each similar transaction.
The auditors` consideration of internal control often is organized
around the client’s major transactions cycles.
二. 单选
a. Which of the following has primary responsibility for the
fairness of the representations made in financial statements?
1
1. Client’s management.
2. Independent auditor.
3. Audit committee.
4. AICPA
b.The most important benefit of having an annual audit by a CPA
firm is to : 1
1.Provide assurance to investors and
other outsiders that the financial statements are dependable
.
2.Enable officers and directors to avoid
personal responsibility for any misstatements in the financial
statements.
3.Meet the requirements of government
agencies.
4.Provide assurance that illegal acts, if
any exist, will be brought to light.
c.Which of these organizations is designated to issue
attestation standards? 1
1.American Institute of Certified Pubic
Accountants.
2.Governmental Accounting Standards Board.
3.Financial Accounting Standards Board.
4.General accounting Office.
d.Governmental auditing, in addition to including audits of
financial statements, often includes audits of efficiency,
effectiveness, and : 4
1.Adequacy. 2.Evaluation.
3.Accuracy. 4.Compliance.
e.In general, internal auditors’independence will be greatest
when they report directly to the : 3
1.Financial vice president.
2.Corporate controller.
3.Audit committee of the board of
directors.
4.Corporate stockholders.
f.Operational audits often have an objective of determining
whether an entity’s : 4
1.Internal control is adequately operating as
designed.
2.Operational information is in accordance with
generally accepted governmental auditing standards.
3.Financial statements present fairly the results
of operations.
4.Specific operating units are functioning
efficiently and effectively.
a.The three generally accepted auditing standards classified as
standards of fieldwork may be summarized as : 2
1.The need to maintain an independence in mental attitude
throughout the audit/
2.The criteria for audit planning and evidence
gathering .
3.The criteria for the content of the auditors’report on
financial statements.
4.The competence, independence, and professional care to be
exerted while performing the audit.
b.A basic objective of a CPA firm is to provide professional
services that conform with professional standards. Reasonable
assurance of achieving this basic objective is provided through :
2
1.Compliance with generally accepted
reporting standards.
2.A system of quality control.
3.A system of peer review.
4.Continuing professional education
c.Which of the following is not explicitly included in an
unqualified standard audit report? 3
1.The CPA’s opinion that the financial statements
comply with generally accepted accounting principles.
2.That generally accepted auditing standards were
followed during the audit.
3.That internal control of the client was
satisfactory.
4.The subjects of the audit.
d.The general group of the the generally accepted auditing
standards requires that :1
1.The auditors maintain an independent mental
attitude.
2.The audit be conducted in conformity with
generally accepted accounting principles.
3.Assistants, if any, be properly supervised.
4.The auditor obtain an understanding of internal
control.
e.Which quality control standard would most likely be satisfied
when a CPA firm maintains records indicating which partners or
employees of the firm were previously employed by the CPA firm’s
clients ? 3
1.Professional relationship.
2.Personnel management.
3.Independence, integrity, and
objectivity.
4.Monitoring.
f.An “external peer review” is most likely to be performed by :
4
1.Employees and partners of the firm who are not associated
with the audits being reviewed.
2.Audit review staff of the Securities and Exchange
Commission.
3.Audit review staff of the American Institute of Certified
Public Accountants.
4.Employees and partners of another CPA
firm.
1. As part of their
examination, auditors obtain a representation letter from their
client. Which of the following is not a valid purpose of such a
letter?
a. To
increase the efficiency of the audit by eliminating the need for
other audit procedures.
b. To remind the
client’s management of its primary responsibility for the financial
statements.
c. To document in
the audit working papers the client’s responses to certain verbal
inquiries made by the auditors during the engagement.
d. To provide
evidence in those areas dependent upon management’s future
intentions.
2. Which of the
following statements best describes why auditors investigate
related-party transactions?
a. Related-party
transactions generally are illegal acts.
b. The
substance of related-party transactions may differ from their
form.
c. All
related-party transactions must be eliminated as a step in
preparing consolidated financial statements.
d. Related-party
transactions are a form of management fraud.
3. Of the
following, which is the least persuasive type of audit
evidence?
a. Confirmations
mailed by outsiders to the auditors.
b. Correspondence
between the auditors and suppliers.
c. Copies
of sales invoices inspected by the auditors.
d. Canceled checks
returned in the year-end bank statement directly to the
client.
4. Analytical
procedures are most likely to detect:
a. Weaknesses of a
material nature in internal control.
b.
Unusual transactions.
c. Noncompliance
with prescribed control activities.
d. Improper
separation of accounting and other financial duties.
5. A primary
purpose of the audit working papers is to :
a. Aid the auditors
in adequately planning their work.
b. Provide a point
of reference for future audit engagements.
c. Support the
underlying concepts included in the preparation of the basic
financial statements.
d.
Support the auditors` opinion.
6. A difference of
opinion concerning accounting and auditing matters relative to a
particular phase of the audit arises between an assistant auditor
and the auditor responsible for the engagement. After appropriate
consultation, the assistant auditor asks to be disassociated from
the resolution of the matter. The working papers would
probably:
a. Remain silent on
the matter since it is an internal matter of the auditing
firm.
b. Note that the
assistant auditor is completely dissociated from responsibility for
the auditors’ opinion
c. Document the
additional work required, since all disagreements of this type will
require expanded substantive testing.
d.
Document the assistant auditor’s position, and how the
difference of opinion was resolved.
1. In planning and
performing an audit, auditors are concerned about risk factors for
two distinct types of fraud, fraudulent financial reporting and
misappropriation of assets. Which of the following is a risk factor
for misappropriation of assets?
a. Generous
performance-based compensation systems.
b. Management
preoccupation with increased financial performance.
c. An
unreliable accounting system..
d. Strained
relationships between management and the auditors.
2. The audit
committee of a company should normally be made up of:
a. Representatives
from the client’s management, investors, suppliers, and
customers.
b. The audit
partner, the chief financial officer, the legal counsel, and at
least one outsider.
c. Representatives
of the major equity interests, such as preferred and common
stockholders.
d.
Members of the board of directors who are not officers or
employees.
3. Which of the
following should not normally be included in the engagement letter
for an audit?
a. A description of the responsibilities of client personnel to
provide assistance.
b. An indication of the amount of the audit fee.
c. A description of the limitations of an audit.
d. A listing of the client’s branch offices selected for
testing.
4. Which portion of
an audit may not be completed before the balance sheet date?
a. Tests of
controls.
b. Issuance of a
management letter.
c.
Substantive testing.
d. Assessment of
control risk.
5. Which of the
following should the auditors obtain from the predecessor auditors
before accepting an audit engagement?
a. Analysis of
balance sheet accounts.
b. Analysis of
income statement accounts.
c. All matters of
continuing accounting significance.
d. Facts
that might bear on the integrity of management.
6. As one step in
testing sales transactions, a CPA traces a random sample of sales
journal entries to debits in the accounts receivable subsidiary
ledger. This test provides evidence as to whether:
a. Each recorded
sale represents a bona fide transaction.
b. All sales have
recorded in the sales journal.
c. All debit
entries in the accounts receivable subsidiary ledger are properly
supported by sales journal entries.
d.
Recorded sales have been properly posted to customer
accounts.
问答题
1. what
are the advantages of organizing a CPA firm as a partnership rather
than a sole proprietorship?
答：In comparison with a sole proprietorship, partnerships and
professional corporations with multiple owners have several
advantages. When two or more CPAs join forces, the opportunity for
specialization is increased, and the scope of services offered to
clients may be expanded. Also, qualified members of the staff may
be rewarded by admission to the partnership or issuance of stock..
Providing an opportunity to become part owner of the business is an
important factor in the CPA firm’s ability to attract and retain
competent personnel.
2.
Describe the various levels or positions of accountiong
personnel in a large public accounting firm?
答：1.partners. Its responsibilities conclude maintaining contacts
with clients, recruiting new staff members, general supervision of
the professional staff, reviewing audit working papers, and signing
the audit reports.
2. managers. Its responsibilities conclude reviewing the audit
working papers and discussing with the audit staff and with the
client, determining the audit procedures, maintaining uniform
standards of fieldwork, compiling and collectingthe firm’s billings
to clients.
3.senior accountants. Its responsibilities conclude planning and
conducting an audit and drafting the audit report, subject to
review and approval by the manager and partner, on-the-job staff
training, reviewing working papers shortly after they are
completed, maintaining a continuous record of the hours.
4.staff assistants. Its responsibilities are that some routine work
must be done in every audit engagement, but college graduates with
thorough training in accounting need have little fear of being
assigned for long to extensive routine procedures when they enter
the field of public accounting.
3.
Explain the basic objective of establishing quality control
procedures in the following areas.
a.
Engagement performance.
b.
Acceptance and continuation of clients and
engagements.
c.
Monitoring.
答：a.Work performed meets applicable professional
standards,regulatory repuirements,and the firm’s standards of
quality. If applicable, SEC Practice Section requirements for a
concurring partner review should be followed.
bThe likelihood of association with a
client whose management lacks integrity is minimized.
c.Policies and procedures established for
each of other elements are suitably designed and effectively
applied.
4.
Briefly describe three differences between an international
audit report and one based on the U.S. reporting
standards?
答：First,the auditors have several reporting options.
Also,the report may indicate that the
financial statements comply with the country’s relevant statutes or
laws.
In additon, the inclusion of the city in
which the auditors maintain an office is a required part of the
international report.
5. What
disclosures should be made in the financial statements regarding
material related-party transactions?
答：The nature of the relationship; a description of the
transactions, including dollar amounts; and amounts due to and from
related parties, together with the terms and manner of
settlement.
6. What
are the major functions of audit working papers?
答：Assigning and coordinating audit work.
Supervising and reviewing the work of assistants.
Supporting the report.
Complying with the standards of fieldwork.
Planning and conducting the next audit.
7. Audit
Planning?
答：Obtaining an understanding of the client’s business.
Developing an overall audit strategy.
Audit plans.
Time budgets for audit engagements
Planning a recurring engagement.
8. Audit
process?
答：1.Obtain an understanding of internal control sufficient to plan
the audit.
2.Determine the planned assessed level of control risk.
3.Design and perform additional tests of controls.
4.Reassess control risk and modify planned substantive tests.
5.Perform substantive tests and complete the audit.
6.Form an opinion and issue the audit report.
