lemontree

 

审 计

Chap. 1

“四大”会计师事务所：普华永道 Princewater - houseCoopers

 安永 Ernst & Young

 毕马威 KPMG

 德勤 Deloitte Touche Tohmatsu

 安达信 Arthur Anderson

 安然 Enron

 世通 worldcom

国际机构的名称：

国际会计师联合会 IFAC

国际会计师联合会下设的国际审计和鉴证准则理事会 IAASB

美国注册会计师协会 AICPA

中国注册会计师协会 CICPA

审计 audit

内部审计 internal audit

政府审计 public sector audit

账项基础审计 accounting number-based audit

风险导向审计方法 risk-oriented audit approach

Chap. 2

其他鉴证业务 audit related services

审阅业务 review

有限责任公司制 limited liability companies, LLCs

有限责任合伙制 limited liability partnerships, LLPs

Chap. 3

注册会计师职业道德规范 code of ethics for professional accountants

 Rules of professional conduct

独立 independence

客观 objectivity

公正 integrity

专业胜任能力 professional competence

应有关注 due care

保密 confidentiality confidence

职业行为 professional conduct

技术准则 technical standards

保持实质上的独立和形式上的独立

 The member is, and is seen to be independent

费用 fee

佣金 commission

经济利益 interest

经济利益的冲突 conflicts of interest

舞弊 fraud: refers to intentional acts which may involve the falsification of

documents and records, the misappropriation of assets, or misapplication of

accounting policies.

差错 error: refers to the unintentional misapplication of accounting policies,

oversights or misinterpretations of fact and clerical errors.

更换会计师事务所 Changes in professional appointments

Chap.4

国际趋同 global convergence /international convergence

鉴证业务 assurance services

全面质量管理 quality control of audit

 Enforce the ethical guidance

Chap. 5

注册会计师的法律责任

Professional responsibility

“深口袋”理论 deep-pocket theory

创新会计处理 creative accounting

诉讼爆炸 litigation explosion

违约 breach the contract

过失 negligence

 Misconduct

欺诈 cheat / illegal acts

Chap. 6

审计目标 audit objectives

怀疑态度 suspend

财务报表认定： financial statement assertions

存在 existence

权利与义务 rights and obligations

发生 occurrence

完整性 completeness

准确性和计价 measurement and valuation

分类和可理解性 classification and understandability

presentation and disclosure

财务报表循环 cycles

Sales and receivables cycle

Purchases and payables cycle

Wages and salaries cycle

Petty cash cycle

Inventory recording cycle

截止 cut-off

审计任务约定书 the letter of engagement

管理层声明书 report of the directors’ responsibilities for the financial statement

Chap. 7

审计证据 audit evidence

审计工作底稿 audit working paper

审计记录 audit records

Chap. 8

计划工作 planning

重要性 material: information is material if its omission or misstatement

could influence the economic decisions of users taken on the basis of the financial

statements.

审计风险 audit risk

检查风险 detection risk

重大错报风险 risk of material misstatement in audit report

Chap. 9

风险评估 risk evaluation

分析复核程序 analytical review procedures

内部控制 internal control

局限性 limitation

控制环境 control environment

信息系统与沟通 information system and communication

符合性测试 compliance test

Chap. 10

控制测试 control test

报表层次重大错报 material misstatement on level of financial statement

认定层次重大错报 material misstatement on level of assertion

实质性程序 substantial procedures

Chap. 11

舞弊 fraud

Chap. 12

审计抽样 sampling

抽样风险 sampling risk

非抽样风险 non-sampling risk

统计抽样 statistical sampling

非统计抽样 non-statistical sampling

Chap. 13 Sales and receivables cycle

Chap.14 Purchases and payables cycle

Chap.15 Inventory recording cycle

监盘 physical inspection

Chap.16 Investment and finance cycle

Chap.17 Audit of monetary assets

Chap.18 完成审计工作 finish the audit work

期初余额 opening balance

期后事项events after the balance sheet date

Balance sheet

date

Up to the date of

the audit report

After the date of the

audit report but before

the financial statements

are issued

After the financial

statements are

issued

或有事项contingent evens

试算平衡表trail balance

Chap.19

审计报告

Audit report

审计报告的要素

标题 title

收件人 receiver

引言段 introduction

管理层对财务报表的责任段 management’s responsibility for the financial

statements

注册会计师的责任段 auditor’s responsibility

审计意见段 opinion

注册会计师的监管和盖章auditor’s signature

会计师事务所的名称、地址和盖章auditor’s address

报告日期 date of the Auditor’s report

无保留意见 unqualified audit report

非无保留意见 modified audit report

保留意见 qualified opinion

无法表示意见 disclaimer

否定意见 adverse

DEPENDENT AUDITOR’S REPORT

[Appropriate Addressee]

Report on the Financial Statements

We have audited the accompanying financial statements of ABC Company, which comprise the

balance sheet as at December 31, 20X1, and the income statement, statement of changes in

equity and cash flow statement for the year then ended, and a summary of significant

accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial

statements in accordance with Chinese Accounting Standard. This responsibility includes:

designing, implementing and maintaining internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to

fraud or error; selecting and applying appropriate accounting policies; and making accounting

estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with PRC auditing Standards. Those standards require

that we comply with ethical requirements and plan and perform the audit to obtain reasonable

assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the

financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

entity’s internal control. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates made by management, as well

as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of (or “present fairly, in all

material respects,”) the financial position of ABC Company as of December 31, 20X1, and of its

financial performance and its cash flows for the year then ended in accordance with Chinese

Accounting Standards.

Report on Other Legal and Regulatory Requirements

[Form and content of this section of the auditor’s report will vary depending on the nature of the

auditor’s other reporting responsibilities.]

[Auditor’s signature]

[Date of the auditor’s report]

[Auditor’s address]

Speech by Mr. Ian Ball, IFAC Chief Executive on the Release Ceremony forChinese Accounting Standards System for Business Enterprises and

Chinese Auditing Standards System

Beijing, China – February 15, 2006

Thank you very much, Dr Chen, for that kind introduction.

As the IFAC President, Graham Ward, said earlier, we are both pleased andgreatly honored to be here today as the Ministry of Finance of the People’sRepublic of China and the Chinese Institute of Certified Public Accountantsannounce their intention to converge Chinese auditing standards withInternational Standards on Auditing.

Your enormous achievements to date in strengthening the Chinese accountancyprofession through convergence towards international standards should not beviewed as an isolated event. It is significant and fundamental to the furtherdevelopment of your country’s capital marketsand is, I believe, fully consistent

with the reforms the People’s Republic of China has advanced in the last decade.

The reforms, including opening your door to increased trade, authorizing theprivate ownership of business entities, and encouraging foreign direct investment

by the establishment of free enterprise zones in coastal regions, have enhancedyour country’s role and reputation in the global markets. Adhering to high-quality

auditing standards is another way to strengthen your financial architecture and

confidence in your capital markets.

International Auditing and Assurance Standards Board Chairman John Kellas willaddress you in a few moments on the work of the IAASB and on InternationalStandards on Auditing. The focus of my comments today is on IFAC, on our

initiatives to strengthen our standard-setting processes, and on the significance of

your most recent actions.

Let me first turn to IFAC, for those of you who may have limited knowledge aboutour organization. IFAC is comprised of 160 memberorganizations in 120

countries, most of which are national professional accountancy institutes, such asthe CICPA. These member bodies represent more than 2.5 million accountantsworldwide in business, industry, public practice, government, and academia.

IFAC’s mission is, in brief, to protect the public interest in order to contribute toeconomic growth and social stability worldwide. The primary means by which weaccomplish this is through our international standard-setting activities.

In addition to setting International Standards on Auditing, IFAC, through itsindependent standard-setting boards, also establishes ethical, education andpublic sector accounting standards. Our ethical and education standards alsosupport high-quality performance by auditors. The IFAC Code of Ethics for

Professional Accountants is frequently updated to ensure that all professionalaccountants – whether in public practice, business or government – have clear,

relevant and high-quality ethical guidance. The Code specifically addresses those

areas where the public interest is most significant, for example, matters relating toauditor independence. The International Accounting Education Standards Boardestablishes the standards necessary to ensure that professional accountants are

properly trained, both prior to their professional certification and throughout theircareers. Most recently, guidance on audit competence has been developed.

IFAC standard setters well recognize that use of our guidance is dependent on itsquality, which, in turn is dependent on our due process. John Kellas will bediscussing this in greater detail, but I think it is important to emphasize threecharacteristics of our standard-setting processes: 1) The processes are highlytransparent; 2) The individuals who have been selected to serve on ourstandard-setting boards have been selected because they are the best person forthe job, meaning they have the necessary skills and expertise; and 3) Projects areprioritized based on their contribution to the public interest.

Over the last year, all of IFAC’s independent standard-setting boards – the

IAASB, the International Ethics Standards Board for Accountants, theInternational Accounting Education Standards Board and the International PublicSector Accounting Standards Board –have enhanced the transparency of their

operations, increased input from stakeholders and the public, and strengthenedtheir consultative processes. All of these boards have public members serving onthem. They have consultative advisorygroups comprised of relevant stakeholders

who can provide meaningful input on the work programs of each group from apublic interest perspective. And each makes publicly available on the IFACwebsite agenda items and background materials for its meetings, as well as

exposure drafts of proposed standards. These initiatives make thesestandard-setting groups among the most transparent in the world, and their dueprocess, with significant public input, demonstrates that these boards are looking

outward to the needs of investors and others who rely on the work of accountantsand auditors.

I believe that the CICPA and its standard setters, like all standard settersworldwide, should continue to look outward, as it is doing, to consider the needsand expectations of both domestic and foreign investors. As you respond to thoseneeds, you will continue to build confidence in your accountancy profession and inyour markets.

Public interest oversight is another means of enhancing credibility. As IFACPresident Graham Ward pointed out, in February 2005, an independentinternational Public Interest Oversight Board, comprised of members nominatedby international organizations and regulators, was formally established to providepublic interest oversight of the IAASB, Ethics and Education Standards Boards

and the IFAC Member Body Compliance Program. This oversight will give thepublic greater confidence both in the standard-setting process and in the work

output itself – the standards.

Before I close, I would like to comment on the work of IFAC’s International Public

Sector Accounting Standards Board, which develops International Public SectorAccounting Standards (IPSASs) and whose work is closely related to that of theInternational Accounting Standards Board. These IPSASs are designed to

improve public sector financial management and accountability. This is anincreasingly important area of IFAC activity. Public sector financial reporting is anactivity which can contribute much to global economic management, whenupwards of 30 percent of resources in most economies are consumed by the

public sector. Ultimately, the consequences of poor financial reporting and poorfinancial management within governments are arguably even more serious than aloss of confidence in securities markets.

An important IPSASB objective is facilitating convergence with InternationalFinancial Reporting Standards, upon which the IPSASs are based. Our aim is thatgovernmental reporting and private sector reporting should be as comparable aspossible. We look forward to continuing to work with the Ministry of Finance andthe CICPA in this area, and we value very much your interest and yourcontribution in this area.

In closing, I would like to emphasize that China’s commitment to high-quality,

internationally respected, accounting and auditing standards that are consistentwith those developed by the IAASB and IASB, provides inspiration to thosecountries who also aspire to strengthen their financial systems and build investorconfidence.

There are numerous benefits to the actions you are taking today – · Investors will

have better information for decision making. · Companies too, will have improvedmanagement information for decision making. · In addition, Chinese companiesare likely to have better access to capital, particularly from foreign sources; thecost of capital may be reduced as well. · Your country will have increased accessto international capital markets. · There will also be greater credibility andimproved economic prospects for the accountancy profession. · Lastly, your

country can further enhance its competitiveness, which, in turn, can lead to

greater prosperity for all citizens.

I would like to conclude by saying that, with your release today on the newstandards of accounting and auditing, you are positioning China to have an evenbetter future.

I congratulate the Ministry of Finance and the CICPA for their leadership, for theirforesight, and for the very great achievements that today’s ceremony celebrates.

Thank you.

Speech made by Mr. Wang Jun

Assistant Minister of Ministry of Finance of P.R.C

at the ICAEW’ 125th Anniversary Conference at London, U.K.

Distinguished Mr. President

Ladies and Gentlemen,

I am delighted to attend the ICAEW’ 125th anniversary conference and to have this

opportunity to discuss the development of the accountancy profession with all of

you here today. I would like to brief you on the development and roles of

accounting and auditing standards in China and to share with you our viewpoints

on the international convergence of accounting and auditing standards.

1. Rapid development of the Chinese economy has driven reform and

progress in the accountancy profession

Since the implementation of its reform and open-door policy in 1978, China has

made enormous achievements in its economic development. Between the 26

years from 1978 to 2004, the Chinese GDP grew from USD147.3billion to

USD1.6trillion, taking 6th place in the world with an annual growth rate of 9.4%;

aggregate import and export grew from USD20.6 to USD1.1trillion, taking 3rd place

in the world with an annual growth rate of over 16%; and foreign exchange

reserves grew from USD167million to USD609.9billion, ranking 2nd place in the

world. At the same time, the Chinese economy has become increasingly

integrated into the world economy. By the end of 2004, China had utilized in real

terms, a cumulative amount of USD562.1billion foreign direct investment (FDI) and

approved over 510,000 foreign-invested companies, while more than 7,700

Chinese companies had invested overseas with non-financial outbound investment

totaling USD37billion. China has also achieved positive results by participating in

the formulation of, and strictly complying with international trade rules.

While giving rise to enormous demand for development in the accountancy

profession, rapid economic development in China has also effectively brought

along and promoted continuous reforms and progress to the profession.

With regard to the development of accountancy standards, building on the

successful transformation of accounting from a planned economic pattern to one

of a market economy, with particular attention being placed upon continuous

harmonization by actively drawing upon the achievements of international

accounting standards，we have promulgated and enforced 16 specific accounting

standards and 3 sets of accounting treatment and reporting regulations (one for

the SME, one for enterprises in the financial sector and one for various other

areas) . As such, a preliminary mode ofaccountancy and a system of accounting

standards has taken shape, oriented to a market economy and specifically geared

to China’s economic development.

With regard to the development of auditing standards, since the publication of the

first batch of independent auditing standards, we have developed and published a

further 48 of these, covering technical standards, professional ethics, quality

control and CPE. So far, a primary system has been established with emphasis

placed upon harmonization with international standards in terms of basic principles

and essential procedures.

With respect to the development of accountancy and the CPA profession, China

has intensified its efforts in training accountants and auditors, responding to the

demands of economic development, particularly in the specialized human resource

field; and examination and a continued professional education system have been

established. At the moment, 363 higher education establishments nationwide offer

an accounting major, of which 22 provide a CPA major. In addition, 3 National

Accounting Institutes (NAIs) have been specially set up for training senior

accounting and auditing multi-disciplined talents that enjoy a comprehensive grasp

of relevant knowledge and expertise. By the end of 2004, 9.56 million accountants

had acquired practicing licenses, over 140,000 people had obtained the CPA

qualification; and 5,249 accounting firms had been established.

With regard to the opening up of the accounting market, there are 27 member

firms, 7 liaison firms and 20 representative offices for international accounting firms

in China. Hundreds of overseas candidates have passed the Chinese CPA

examinations, with 32 of these having succeeded in applying for the Chinese CPA

practicing license.

Reforms and progress in the Chinese accounting profession play an important role

in facilitating and ensuring the development of a market economy and maintenance

of good market order in China, in increasing confidence of domestic and overseas

investors in the Chinese market, in providing a transparent, fair, facilitating and

efficient investment environment, and in promoting a continued opening up of

China.

2. International convergence of accounting and auditing standards is

necessitated by economic globalization.

Taking a broad view of the current world, we find that the pattern of economic

operation featuring global allocation of resources and expansion of the market has

become an important trait and trend in the world economy. Tariff and non-tariff

barriers that affect trade have been significantly reduced, which has given rise to

an increasingly high degree of trade liberalization; development of the international

capital market, cross-border M & A and strategic alliance have enabled more

convenient and efficient global flow of production means such as capital and labor,

which has driven forward international convergence of various criteria and systems

in the economic field; and information resources, shared in more regions by more

extensive groups, have increasingly become an international public product. All

these have necessitated new requirements for and inserted new vitality into the

internationalization of professional services that feature knowledge and information

orientation.

Accounting is an important professional services area. As the “infrastructures” of

the market economy system, a public information resource and internationally

applied business language, the accounting service plays an important role in the

integrated development of national economies and indeed the global economy. In

fact, decision-making on worldwide allocation of resources is largely based on

financial statements. In today’s world, convergence of international financial

reporting standards and auditing standards has become an inevitable

trend. Genuine convergence will make it easier for investors to compare different

investment opportunities, however far away such opportunities are from each other

geographically. Investors will promote convergence of accounting systems and

pursue higher transparency. In other words, capital always flows to where it is

welcomed and stays where it is better treated.

We have recognized the important transformation of international accounting and

auditing standards from harmonization to convergence. Here, I would like to

illustrate my basic understanding of such international convergence.

First of all, convergence represents progress, and is the right

direction. Convergence furthers harmonization and embodies the requirements

of integrating international economies. Any organization that hopes to remain in the

international market cannot afford to disregard the trend of international

convergence. However, convergence requires concerted and maximum effort to

be realized.

Secondly, convergence does not equal ‘identical-ness’. Countries differ in

economic environments, legal systems, cultural philosophies, regulatory

structures, users of accounting information and quality of accountants. Without

paying due attention to national situations, accounting/audit development status or

environmental features, we will be unable to achieve true convergence.

Thirdly, convergence requires a process. Due to different national

characteristics, countries in the world need to continuously and actively carry out

voluntary cooperation, study new situations, address new issues and innovate new

mechanisms to create a structure which meets such requirements as international

efficiency, equitability, sovereignty, and development of global diversity.

Fourthly, convergence means interaction.Convergence does not mean

one-way movement. It means interaction between different countries, between

individual countries and IASB, and between IASB and regional professional

accounting bodies. They need to communicate with each other, to draw upon from

each other, and to obtain mutual recognition from each other. International

convergence in the context of a world of diversities is an objective law. By

complying with it, we can make better progress. Otherwise, effectiveness and

efficiency may be compromised.

3. Chinese measures for promoting international convergence of accounting

and auditing standards

Based on the above philosophies and understandings, we will actively promote

development and international convergence of Chinese accounting and auditing

standards. Our basic principle is to improve the Chinese systems of accounting

and auditing standards and accelerate their convergence with international

standards in line with the development process of China’s market economy, and by

responding to the overall trend of economic globalization.

Specifically, we will do the following.

First, use our best efforts to realize convergence. Where the basic principles

and approaches of an international standard fit an actual Chinese situation, we will

draw upon this standard. Where the basic principle and approach of an

international standard fit a Chinese situation but some technical details of the

standard fail to fit the Chinese reality, we will draw upon it to the fullest extent

possible and add, explain or modify it in accordance with the Chinese reality.

Meanwhile, we will actively advocate that the concerned international organization

consider the Chinese situation when revising this standard. Where the subjects of

an international standard are non-existent or have just started to emerge in China,

we will produce a relevant exposure drafton the basis of the international standard

to reflect the completeness of our national system of standards and officially issue

and implement the standard when relevant conditions allow.

Secondly, allow differences. Where the basic principle and approach of an

international standard do not realistically fit a Chinese situation, we will produce our

own solutions based on the Chinese reality and at the same time refer the case to

the bodies for setting international standards for consideration, when the latter

related standards have been developed. Moreover, a standard should comply

with the requirements of Chinese law in terms of its format and layout. The wording

and writing style should reflect the Chinese cultural tradition and linguistic habits to

make the standards easily understandable to users and to facilitate its

implementation.

Thirdly, innovate with enthusiasm. We will try to make innovations to the

structure and content of accounting/auditing standards. We will take full

advantage of being a late starter, carry out in-depth analysis, and produce systems

of standards that are complete in content and reasonable in structure in

accordance with the internal logic of accounting and auditing engagements and

transactions. Additionally, we will actively innovate the content of the standards.

For engagements or transactions unique to China, we will generate our own

solutions according to the Chinese situation.

Our planned objectives are as follows:

.. Draw upon high-quality international accounting standards that are

extensively applied or accepted worldwide such as International Financial

Reporting Standards, accelerate the development of Chinese accounting

standards and revise/supplement existing general and specific accounting

standards. We hope that by the end of 2005 we will have established a system

of Chinese accounting standards that matches the development stages of the

Chinese socialist market economy, covers various economic transactions of all

types of enterprises and is capable of independent implementation.

.. In accordance with requirements of international convergence, we will revise

some existing audit standards, develop a batch of new standards, and issue

some exposure drafts. We will endeavor to establish a primary system of

independent auditing standards that is catered to the development of the

Chinese economic system and responds to demands of international

convergence by the end of this year.

Ladies and gentlemen,

In the 21st century, China will stride into the great wave of world economic

development with a broader horizon and a more open

posture. Internationalization of the Chinese accounting profession is the objective

& subjective goal as well as the practical & strategic response as the Chinese

economy integrates into the world economy. Reciprocal cooperation and

interrelation among different economies will surely create a more promising future

for global economic growth. We hope that countries all over the world will jointly

write a new chapter in the historical development of accountingand auditing with a

broad mind that advocates modesty and cooperation and the grand devotion to the

recreation of an accounting/auditing civilization. We are more than happy to join

with all countries in the world to further reinforce exchanges with professional

accounting organizations and accountancy bodies, carry out sincere cooperation

as always, accelerate international convergence of accounting and auditing

standards and make new contributions to economic globalization.

Thank you, Mr. Chairman!

Thank you for your attention!