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9_CSOE
Introduction
9_CSOE
Introduction
Introduction
9_CSOE
Introduction
Introduction
9_CSOE
Introduction
Introduction
9_CSOE
Introduction
Introduction
9_CSOE
Introduction
Introduction
9_CSOE
Introduction
Emerging Growth Companies
Introduction
Emerging Growth Companies
Note:
An emerging growth company is defined as an
issuer with total annual gross revenues of less
than $1 billion during its most recently completed
fiscal year
The phrase total annual gross revenues means
total revenues as presented on the income
statement presentation under U.S. GAAP
(or IFRS as issued by the IASB, if used as the
basis of reporting by a foreign private issuer)
9_CSOE
Introduction
Definitions
Audit committee
A committee (or equivalent body) established by
and among the board of directors of a company
for the purpose of overseeing the accounting
and financial reporting processes of the company
and audits of the financial statements of the
company
If no such committee exists with respect to the
company the audit committee is the entire board
of directors of the company
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Definitions
Definitions
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Definitions
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b. Auditor's responsibilities:
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c. An audit includes:
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c1c. To management:
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d. Management's responsibilities:
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B. Internal Audit
B. Internal Audit
In addition
AS 16 requires the auditor to communicate the
*extent* to which the auditor plans to use
the work of internal auditors
company personnel (in addition to internal
auditors) and third parties working under the
direction of management or the audit committee
when performing an audit of internal control over
financial reporting
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D. Principal Auditor
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C. Significant Unusual
Transactions
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C. Significant Unusual
Transactions
C. Significant Unusual
Transactions
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C. Significant Unusual
Transactions
D. Consideration of Communications
Made by Management
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D. Consideration of Communications
Made by Management
In addition
AS 16 includes a new requirement
related to the communication of significant
unusual transactions
D. Consideration of Communications
Made by Management
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D. Consideration of Communications
Made by Management
D. Consideration of Communications
Made by Management
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D. Consideration of Communications
Made by Management
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B. Assessment of Critical
Accounting Policies and Practices
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D. Significant Unusual
Transactions
E. Financial Statement
Presentation
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E. Financial Statement
Presentation
F. New Accounting
Pronouncements
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G. Alternative Accounting
Treatments
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A difficult issue
might not always be synonymous with a
contentious issue
Rather
a difficult issue might be a matter that requires
consultation
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A contentious issue
might be a matter that not only requires
consultation but
also leads to significant points of
disagreement
debate, or deliberation between the auditor and
management
Going Concern
Note:
Under the going concern assumption
a legal entity is viewed as continuing in business
for the foreseeable future
without the threat of liquidation for the
foreseeable future
Financial statements are usually prepared on a
going concern basis
unless management intends to liquidate the
entity or to cease operations
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Going Concern
Note:
In the AS 16 the auditor has a responsibility to
evaluate whether
there is substantial doubt about the entity's
ability to continue as a going concern
for a reasonable period of time
Going Concern
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Going Concern
Going Concern
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Going Concern
Going Concern
Additionally
the auditor should obtain information about the
plans and
consider whether it is likely that the adverse
effects will be mitigated for a reasonable period of
time
and that such plans can be effectively
implemented
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Going Concern
AS 16 requires that
if the auditor concludes, after consideration of
management's plans, that substantial doubt about
the company's ability to continue as a going
concern is alleviated
the auditor should communicate to the audit
committee the basis for the auditor's conclusion
including elements the auditor identified within
management's plans that are significant to
overcoming the adverse effects of the conditions
and events
Going Concern
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Going Concern
Going Concern
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This requirement
is intended to capture other possible material
written communications that
might occur but are not addressed by
requirements in the standard or by other PCAOB
standards
such as the management representation letter
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For purposes of AS 16
disagreements do not include differences of
opinion based on incomplete facts or preliminary
information that are later resolved by the
auditor
obtaining additional, relevant facts or
information prior to the issuance of the auditor's
report
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Difficulties Encountered in
Performing the Audit
Difficulties Encountered in
Performing the Audit
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Difficulties Encountered in
Performing the Audit
Difficulties Encountered in
Performing the Audit
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The PCAOBs intention is to promote effective twoway communication between the auditor and the
audit committee
whether through presentations, written
reports, or interactive discussions
The form of communication may depend on the
nature of the matter to be communicated
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Timing
Timing
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Timing
Timing
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Timing
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
PCAOB
Strategic Plan 2012 - 2016
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PCAOB
Strategic Plan 2012 - 2016
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