CIMA-CO2课程 (15)

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Chapter 23,Internal an external audit,Stewardship function,-,Role of Management,Management,-all assets recorded correctly,Procedures in place to prevent fraud&errors,System is efficient&effective,No expenditure is undertaken without proper procedures for its authorization,F/Ss presented fairly,Not,profit maximization,Auditors,External Auditors,Report to the,shareholders,of,the company,-,Not,employees of the co.,-Duties imposed by statutory,Or unlimited by the directors or by the members of the company,Internal Auditors,-Report to,management,-Employees of the co.,-Duties are fixed by management,External,Audit,Role of External Auditor,-responsible to ascertain the F/Ss are properly prepared in accordance with company law&accounting standards,.(,to form an opinion for F/Ss,but not responsible for detecting fraud.),Fair presentation or true&fair,-fairly reflect the financial position of the organization,free of serious errors that will affect the actions of investors.,Fair,Information is free from discrimination and bias,Limited Co.external audit is statutory,External,Audit,Role of external auditor:,Compliance testing:,-assess the reliability of the accounting systems,control,&procedures,If system work satisfactorily,not test in detail,Substantive testing,:,-In high risk of area,do detailed test to specific transactions to ensure that they have been accounted for accurately.,Internal Auditor,an,independent appraisal,function established within an organisation to examine and evaluate its activities as a service to the organisation.,to assist members of the organisation in the effective discharge of their responsibilities.,Furnished with analysis,appraisals,recommendations,counsel and information concerning the activities reviewed,Internal,Audit,Internal auditor:,-advise on accounting system,-carry out the tests on accounting records and internal management reports,is an internal control,Is an management contrl,Audit,Value-for-money audit:,(both internal&external auditors),-to ensure its maximum effectiveness in earning profit,Whos responsibility to detect fraud?,Directors to set up an adequate system of internal control to deter and expose fraud.,Essential elements of internal audit,Independence,Staff and training,Good relationship with management,external auditors and auditing committee.,Due care,Planning,controlling and recording,Sufficient,relevant and reliable evidence,Reporting promptly,Internal Auditors Reporting,Exception reporting,show up any discrepancies in the system,Internal Control System,The whole system of controls,financial and otherwise,established in order to provide reasonable assurance of:,(a)effective and efficient operations;,(b)internal financial control;,the safeguarding of assets against unauthorised use or disposition;and,the maintenance of proper accounting records and the reliability of financial information used within the business or for publication.,(c)compliance with laws and regulations.,Controls-SPAM SOAP,Segregation of duties,Physical,Authorisation and approval,Management,Supervision,Organisation,Arithmetical and accounting,Personnel,Administrative controls and accounting controls,Administrative controls,to achieve the objectives of the organisation and with implementing policies.,Accounting controls,to provide accurate accounting records and to achieve accountability.,Detect controls and prevent controls,Detect controls,are controls that are designed to detect errors once they have happened.,E.g.bank reconciliations and checks of physical inventories against book records.,Prevent controls,are controls that are designed to prevent errors from happening in the first place.,invoices from suppliers against goods received notes before paying the invoices.,Controls over sales and receivables,Selling,Goods outwards,Accounting,Controls over purchases and payables,Buying,Goods inwards,Accounting,Audit trail,An,audit trail,is a means by which an auditor can follow through a transaction from its origin to its ultimate location or vice versa.,Manual accounting system,Computerized system,Common fraud,Ghost employees on the payroll,Miscasting of the payroll,Stealing unclaimed wages,Collusion with external parties,Teeming and lading,Altering cheques after signature,Inflating expense claims,Using the companys assets for personal gain,Stealing fully depreciated assets,Issuing false credit notes or fraudulently writing off debts,Failing to record all sales,Whenever a fraud is discovered,internal auditors should judge whether a weakness in internal controls has been highlighted,and if so what changes are needed.,Prevention of fraud,(a)A good internal control system.,(b)Continuous supervision of all employees.,(c)Surprise audit visits.,(d)Thorough personnel procedures.,