1 Opening balance (ISA510) - 针对SOFP

1.1 对于审计程序性质和范围的总体要求

The nature and extent of audit procedures necessary to obtain sufficient appropriate audit evidence on opening balances depends on matters such as

• The accounting policies followed by the entity
• The nature of the account balances, classes of the transactions and the disclosures and the risks of material misstatement in the current period's FS
• The significance of the opening balances relative to the current period's FS
• Whether the prior period's financial statements were audited, if so, whether the predecessor auditor's opinion was modified
• Performing additional audit procedures to determine the effect of misstatement of opening balances on current period's FS

1.2 具体审计程序

审计师应当对于期初余额是否包含着可以对当期财报产生重大影响的错报获取充分恰当的审计证据，包括三个方面：

• Determine whether prior period's closing balances have been correctly brought forward to the current period or have been restated when appropriate
• Determine whether the opening balances reflect the application of appropriate accounting policies
• Performing one or more of following
  • Where the prior period FS are audited, reviewing the predecessor auditor's working papers to obtain evidence regarding the opening balances
  • Evaluate whether audit procedures performed in the current period provide evidence relevant to the opening balances
  • Performing specific procedures to obtain evidence

1.3 两种情况下所要执行的审计程序

1.3.1 Preceding period FS were not audited

• current assets / liabilities
  可以从本期的审计中获取审计证据，e.g. 应收收回，应付付出
• non-current assets / liabilities
  examining the accounting records and other information, e.g. confirmation from third parties, for long-term debts and investments
• Inventories
  • Observing a current physical inventory count and reconciling it back to the opening inventory quantities (roll-back method)
    即今年的存货+已经发出的存货-增加的存货=期初存货
  • Performing audit procedures on the valuation of opening inventory items 针对存货的计价
  • Performing audit procedures on gross profit and cut-off 针对利润与截止

1.3.2 Preceding period FS were audited by other auditor

期初余额审计方法

引入新审计人员，需要在其他事项段 'Other Matters Paragraph'中表明

1.4 Audit conclusion and reporting

• 审计范围受限，无法获取充分恰当审计证据
  • Material but not pervasive ➡️ Qualified opinion
  • Material and pervasive ➡️ Disclaimer of opinion
• 存在重大错报
  • Material but not pervasive ➡️ Qualified opinion
  • Material and pervasive ➡️ Adverse opinion

2 Comparative information 可比数据审计 (ISA710)

2.1 概念区分

• Corresponding figures, as part of current period FS
• Comparative financial statements, separately as an entire statement

2.2 可比数据审计关注要点

Auditors must assess whether

• Accounting policies used for corresponding figures是否具有一惯性
• Corresponding figures与上一期的列表或披露一致

2.3 两种情况下所要进行的披露

2.3.1 Preceding period FS were not audited

其他事项段中需说明可比数据未经过审计，但审计师的责任并没有因此减轻

2.3.2 Preceding period FS were audited

1. by another firm
   其他事项段中需说明是其他事务所审计的，并说明所出具的意见，如果不是标准无保留，要说明修改意见的原因和出具审计报告的日期
2. by ourself
   • Modified opinion in prior period
     • Matter is still unresolved ➡️ Modified opinion
     • Matter has been resolved ➡️ No effect on current period opinion
   • Unmodified opinion in prior period, but auditor becomes aware of a material misstatement in the prior period
     • Corresponding figures not restated ➡️ Modified opinion
     • Corresponding figures restated with appropriate disclosures ➡️ No effect on current period opinion but with Emphasis of Matter

如果是采用comparative financial statement，即附上整个以前年度的报表，审计师应指明每个报表的期间，以及审计意见是针对哪一期报表出具的。

如果审计师本期针对上一期财报的审计意见与上一期审计意见不一致，应调查并披露原因，并在其他事项段中加以说明。

3 Overall review of the financial statements

在得出审计意见之前，审计师必须执行对于财报的总体复核并进行记录。复核应由项目组的senior member执行，该senior member应具有相应的技能和经验。

3.1 Review procedures

3.1.1 Compliance with accounting regulations (use a checklist)

• Accounting policies employed are in accordance with accounting standards, properly disclosed, consistently applied and appropriate to the entity
• Adequate disclosure has been made and there is proper classification and presentation of information
• The information presented in the FS is in accordance with local/national statutory requirements
• Information included in the accounts is compatible with audit findings

3.1.2 Review for consistency and reasonableness

whether the FS are consistent with their knowledge of the entity's business and with the results of other audit procedures, and the manner of disclosure is fair

3.1.3 Analytical procedures (Ratio analysis)

3.1.4 Summarizing misstatements

• Material misstatement should be adjusted, otherwise the auditor should consider the impact on the audit report.
• Immaterial adjustments should be recorded and aggregated prior to completion. If the aggregate total of unadjusted immaterial errors is material, then all the adjustments should be posted.

3.1.5 Audit clearance meeting

between auditor and management/governance to ensure there's no misunderstandings

4 Subsequent Events (ISA560)

• Subsequent events include
  • Events occur between the period end and the date of auditor's report
  • Facts discovered after the date of auditor's report

审计的报告期间和责任

• IAS10 Events after the reporting period identifies two types of event
  • Adjusting events: events that provide further evidence of conditions that existed at the end of the reporting period, e.g. customer becomes insolvent after period end; trade receivable at period end is uncollectible
  • Non-adjusting events: events that are indicative of conditions arose after the reporting period, e.g. inventory lost in fire after period end because the inventory still existed at the end of period

5 Going concern (ISA570) - 经营状况持续恶化时需考虑

5.1 The going concern assumption

Enterprise will continue in operational existence for the foreseeable future (12 months).

5.2 责任划分

• Management responsibility
  Assess entity's ability to continue as a going concern and present FS accordingly
• Auditor responsibility
  Get sufficient appropriate evidence for adequacy of going concern

5.3 Objectives of the auditor

• To obtain sufficient appropriate audit evidence regarding the appropriateness of management's use of the going concern assumption in the preparation of FS
• To conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern
• To determine the implications for the auditor's report

5.4 Conditions threaten going concern

• Financial - cashflow
• Operating - Porter's five force
• Other
  • Non-compliance
  • Pending legal or regulatory proceedings
  • Changes in law or regulation
  • Uninsured or underinsured catastrophes

5.5 Auditor's opinion

• Use of going concern appropriate but a material uncertainty exists
  • Adequate disclosure ➡️ Unmodified opinion with Emphasis of Matter paragraph
  • Inadequate disclosure ➡️ Qualified opinion / Adverse opinion
• Use of going concern inappropriate
  • FS prepared on going concern basis ➡️ Adverse opinion
  • FS prepared on break-up basis ➡️ Unmodified opinion with Emphasis of Matter paragraph

6 Other information (ISA720)

除财报和审计报告之外的其他财务和非财务信息

其他信息

6.1 Material inconsistency

If material inconsistency between other information and audited FS, the auditor shall determine whether FS or other information needs to be revised.

• Audited FS ➡️ Qualified / Adverse opinion
• Other information ➡️ Include an other matter paragraph / Withdraw from the engagement

6.2 Material misstatement of fact

• If apparent material misstatement of fact but not material inconsistency, the auditor shall

  • discuss the matter with management
  • consult with a qualified third party

• If management refuse to correct, the auditor should notify those charged with governance and consider obtaining advice from own legal counsel.

审计师对other information没有直接责任