Unit 19 An Overview of Auditing
一、1 .What is the final stage of auditing?
A. Audit plan B. Overall audit strategy C. Analytical procedures D. Reporting
2. Which of the following statements is not correct?
A. The auditor must have an independent mental attitude.
B. Auditors must have a broad range of knowledge to be qualified to conduct an operational audit.
C? Results of compliance audit are generally reported to someone within the organizational unit being audited.
D. The auditee in the financial statement audit is always a company. 3. The evaluation of organization structure is an example of audit from A. Operational audit B. Compliance audit
C. Audit of Financial Statements D. Assurance services
4. At the completion of an operational audit, what are normally expected? A. Reporting B. Recommendation to management C. Audit objectives D. Audit process
II ? Translate the following accounting terms into English
1.. 精神上的独立性 Independent mental attitude 2. 经营审计 Operational audit
3. 数量化信息 Quantifiable information 4. 既定标准 Established Criteria 5. 经济实体 Economic entity 6. 合规审计 Compliance audit
7. 财务报表审计 Audit of Financial Statements 8. 管理建议书 Recommendation to management
9. 固定资产的重置成木 Replacement cost of fixed assets 10. 纳税申报单Tax return
ITI. Translate the following sentences into English
1. 审计是一个过程，在这个过程中，胜任的，独立的人员就一个经济实体的数 量化的
信息进行证据的收集和评价，以确定这些信息与既定标准的一致程度, 并就此提出'市'计报告。Auditing is a process by which a competent, independent person
accumulates and evaluates about quantifiable information related to a specific economic entity for the purpose of determining and reporting on the degree of correspondence between the quantifiable information and established criteria ? 2. 审计证据是指审计人员用来确定被审查的资料与有关标准的符合程度所运用 的全部
资料。Evidence is defined as any in formation used by the auditor to determine whether the quantifiable information being audited is stated in accordance with the established criteria.
3 ?经营审计是为了评价一个组织的经菅效率和效果而对该组织的经营程序和方 法111 的任何?一部分所进行的审计。An operational audit is a review of any part of an
organization operating procedures and methods for the purpose of evaluating efficiency and effectiveness
IV. Answer the following questions
1. Explain the essential elements of an audit?
(1) Quantifiable information and established Criteria.(2) Economic entity.
(3)Accumulating and evaluating evidence.(4) Competent, independent person. (5) Reporting.
2. Tell the differences among the operational audits, compliance audits and financial statement audits.
An operational audit is a review of any part of an organization operating procedures and methods for the purpose of evaluating efficiency and effectiveness. At the completion of an operational audit , recommendation to management for improving are normally expected. The purpose of a compliance audit is to determine whether the auditee is following procedures or rules set down by some higher authority. An audit of financial statements is conducted to determine whether the overall financial statements—the quantifiable information being verified一are stated in accordance with specified criteria. The conduct of an operational audit and the reported results are less easily defined than either of the other two types of audits. Efficiency and effectiveness of operations are far more difficult to evaluate objectively than compliance or the presentation of financial statements in accordance with generally accepted accounting principles; and establishing criteria for evaluating the quantifiable information in an operational audit is an extremely subjective matter.
V ? Translate the follows into Chinese
An audit of financial statements is conducted to determine whether the overall financial statements—the quantifiable information being verified一are stated in accordance with specified criteria. Normally, the criteria are generally accepted accounting principles, although it is also common to conduct audits of financial statements prepared using the cash basis or some other basis of accounting appropriate for the organization. The assumption underlying an audit of financial statements is that they will be used by different groups for different purposes. Therefore, it is more efficient to have one auditor perform an audit and draw conclusions that can be relied upon by all users than to have each user perform his or her own audit.财务报表审计是
为了确定被审查信息，即财务报表是否符合特定 的标准而进行的审计。在通常情况下，这种特定的标准就是一般公认会计原则， 尽管财务报表审计也包括对按收付实现制或其它适用的会计基础编制的财务报 表的审计。由注册会计师进行财务报表审计是基于这样一种假设，即财务报表的 使用着不同，使用的F1的也不同。因此，由审计人员对财务报表进行审计，得出 所有报表使用者都可以信赖的结论，比让每一位报表使用者都亲IH去进行审计要 有效得多。
Unit 20 Professional Ethics
I .Multiple choice questions
1. Which of the following statements is not correct?
A. To act professionally by a CPA means that he observes the code of professional
conduct strictly in providing professional services.
B. The public accounting profession needs to follow the same ethical standards as the
public do.
C? The principle of objectivity does not allow bias, conflicts of interest or undue
influence of others to override professional or business judgments.
D. When there is a lawsuit or intent to start a lawsuit between a CPA firm and its client,
the ability of the CPA firm and client to remain objective is questionable. 2. Which is not the major threats to independence? A. Familiarity B? Intimidation C. Advocacy D. Confidentiality
3. Which is the most important characteristic of an auditor? A. Integrity B. Objectivity C. Independence D. confidentiality
4 . If the audit firm owns shares in the client, what kind of threat will occer? A. Self-interest B. Self-review C. Familiarity D. Intimidation 5. Which of the following acts violates the confidentiality? A. Obtained consent from the client.
B. Obtained consent from the chief accountant. C. There is a public duty to disciose.
D. There is a legal or professional right or duty to disclose.
6. Which is the most obvious example of an intimidation threat? A. The client threatens to suey or indeed sues.
B. The auditor provide the client with preparing accounting records.
C. The audit firm has a material financial interest in a joint venture with the client. D. The assurance firm promotes a position or opinion to the point that subsequent objectivity is compromised.
7. Professional competence can be divided into ?
A. The attainment of professional competence and the use of professional competence.
B. The attainment of professional competence and the improvement of professional competence.
C. The attainment of professional competence and the maintenance of professional competence.
D. The maintenance of professional competence and the maintenance of professional competence.
S.Which is the requirement for professional behavior?
A. To be straightforward and honest in professional and business relationships. B. To maintain professional knowledge and skill at the level required.
C. To refrain from disclosing information acquired in the course of professional work.
D? To comply with relevant laws and regulations and avoid any action that may bring discredit to the profession.
II. Translate the following accounting terms into English
职业道德 Professional ethics 职业道徳守则 Code of professional conduct 专业胜任能力Professional competence 应有的关注 Due care 保密原则 Confidentiality 职业彳亍为 Professional behavior 自我利益关系Self-interest 自我评价Self-review
III. Translate the following sentences into English
1. 职业道德守则旨在为一个组织的全体成员提供行为准则。-般来说，职业道 德守则
即包括职业道德的基本原则，也包括具体的道德要求。The code of professional conduct is meant to provide a standard of conduct for all members of an
organization. Generally, the code includes fundamental principle of professional ethics and specific ethical requirements.
2. 客观性要求所有审计人员不得由于偏见，利益冲突或他人的不当影响而损害 自己卑
职业判断或业务判断。审计人员在履行职业责任时，应为保持客观性 且不受利益冲突的影响。Objectivity imposes an obligation on all members of the profession
not to compromise their professional or business judgement because of bias, conflict of intrest or the undue influence of others. Auditoers should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities.
3. 自身利益关系威胁包括注册会计师与客户有经济利益关系，密切的经营关系， 接受
客户的礼品与款待，客户欠费，过度依赖某以客户，或有收费等。
Self-interest threats include financial interest, close business relationships, gifts and hospitality, overdue fees, high percentage of fees, contingent fees, and etc.
IV. Answer the following questions
1. Distinguish between independence in fact and independence in appearance.
Independence in fact exists when the auditor is actually able to maintain an unbiased attitude throughout the audit, whereas independence in appearance ia the result of othersinterpretations of this independence.
2. Why is there a special need for ethical behavior by CPAs?
Enforced code of professional conduct serves as a guide to behavior and instill public confidence in the profession. The credibility of the profession is adversely affected when a CPA does not act professionally.
V ? Translate the follows into Chinese
Objectivity is closely related to independence requirement. Objectivity is a state of mind, but in certain roles the preservation of objectivity has to be shown by the maintenance of independence from those influences which could impair objectivity. Not only must auditors be independent in fact, but they must also be independent in appearance. Independence in fact exists when the auditor is actually able to maintain an unbiased attitude throughout the audit, whereas independence in appearance ia the
result of others9 interpretations of this independence.
独立性要求和客观性是密切相关的。客观性是一?种心理状态，但是在某些情况下, 审计师必须在面对可能损害独立性的外部影响吋保持独立性以显示自己的客观 性。审计师必须在实质上保持独立性，同时还要在形式上保持独立性。如果审计 师在审计过程屮始终能够保持不偏不依的态度，那么他就具备了实质上的独立 性，而形式上的独立性则是他人对其是否具有独立性的看法。
Unit 21 Audit Objectives
I .Multiple choice questions
1. When inventory is listed on the balance sheet as $100000, how many assertions are
being made?
A. Two B. Four C. Five D. Three
2. Which of the following statements about management assertions is wrong?
A. Management assertions are not directly related to applicable accounting standards. B. In a sense, auditing is a comparison of information to established criteria. C? Auditors must understand the assertions. D. There are five broad categories of assertions.
3. That long-term liabilities in balance sheet will not mature within 1 year is an example of which management assertions? A. Completeness B. Rights and obligations C. Valuation or allocation D. Disclosure and presentation
4. The violations of which assertions relate to accounts overstatements? A. Valuation or allocation B. Disclosure and presentation C. Existence or occurrence D. Completeness
5. Which of the following items does not belong to management assertions? A. Existence or occurrence B Objectivity C? Completeness D. Valuation or allocation
6. Which objective applies only to asset accounts and is also a part of the valuation or allocation assertion? A. Timing B. Realizable value C. Accuracy D? Completeness
7. Which two audit objectives pertain to disclosure and presentation assertions? A. Classification and disclosure B. Classification and timing C. Existence and disclosure D. Existence and timing 8. Which of the following statements is not correct?
A. Valuation assertion is matched by three audit objectives including accuracy, timing and realizable value?
B? Specific audit objectives are determined by applying the general audit objectives to each item on the financial statements.
C. Valuation or allocation assertions deal with whether assets, liabilities, equities,
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