Introduction to auditing(审计概述)【key words and phrases】1. Audit - the objective of an audit of financial statements is to enable the CPA to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework. 审计2. CPA - Certified Public Accountant or independent CPA, the CPA is the person with final responsibility for the audit. 注册会计师3. Attestation - CPAs are engaged to issue a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party. 鉴证4. Assurance - CPAs evaluate or measure a subject matter through the application of independent professional judgment to enhance the credibility of information about subject matter and thereby to improve the likelihood that the information will meet the needs of an intended use. 可信性保证5. Audit of financial statements - the CPA's performance of the necessary audit procedures to obtain sufficient appropriate audit evidence on the entity's financial statements in accordance with the requirements of the Independent Auditing Standards, and the expression of an audit opinion on the financial statements, following the CPA's acceptance of the engagement in accordance with relevant laws an regulations. 会计报表审计6. Financial statements - the annual financial statements which need to be audited by the CPA. They include the balance sheet, the profit and loss account (or the income statement), the statement of changes in financial position(or the cash flow statement), notes to the financial statements and relevant appendices. 会计报表7. Agreed-upon procedures - an CPA is engaged to vary out those procedures of an audit nature to which the CPA and the entity and any appropriate third parties have agreed and to report on factual findings. 执行商定程序8. Compilation - in a compilation engagement, the accountant is engaged to use accounting expertise as opposed to auditing expertise to collect, classify and summarize financial information. 编制9. High levels of assurance - any assurance engagement intended to provide a high, but not absolute, level of assurance. The professional accountant has obtained sufficient appropriate evidence to conclude that the subject matter conforms in all maturate respects with identified suitable criteria. 高保证水平10. Moderate levels of assurance - the professional accountant has obtained sufficient appropriate evidence to be satisfied that the subject matter is plausible in the circumstances. 中等保证水平11. Credibility 可信性、可信程度12. Reliability 可靠性、可靠程度13. Relevance 相关、相关性Introduction to CPAs(注册会计师)【key words and phrases】1. continuing professional education(CPE)-the study and research undertaken by CPAs with a view to maintaining and improving their professional competence and the standard of their professional work, and obtaining and applying relevant new knowledge, skills, laws and regulation. 职业后续教育2. A uniform CPA examination- a uniform CPA examination administered once a year by the Chinese Institute of Certified Public Accountants for state boards of accountancy to enable them to issue CPA licenses. 统一的注册会计师考试3. Professional skepticism -an attitude that includes a questioning mind and a critical assessment of audit evidence. 职业谨慎4. Objectivity - a combination of impartiality, intellectual honesty and a freedom from conflicts of interest. 客观，客观性5. Professional competence - any CPA performing independent audit work should possess professional knowledge and experience, receive appropriate professional training and possess adequate analytical capability and judgment. 专业胜任能力6. Senior/CPA-in-charge - the senior/CPA-in-charge is an individual qualified to assume responsibility for planning and conducting an audit and drafting the audit report, subject to review and approval by the manager and partner. 项目经理Audit engagement letters(审计业务约定书)【key words and phrases】1. audit engagement letter - a written agreement or contract(usually acknowledged and accepted by the client as indicated by the client's signature)that documents and confirms the CPA's acceptance of the engagement, the objective and scope of the audit, the extent of the CPA's responsibilities to the client, and the form of any reports. 业务约定书2. recurring audit - an audit performed by a continuing CPA who also performed the prior year audit. 常年审计,连续审计3. the client - the entity or individual who engages the accounting firm and signs the audit engagement letter with the accounting firm. 委托人4. the nominated CPA 被提名审计师5. change CPA 更换审计师6. the existing CPA 现任审计师7. the successor CPA - the auditors who have accepted an engagement or who have been invited to make a proposal for an engagement to replace the CPA firm that formerly served as auditors. 后任审计师8. the preceding CPA(The predecessor CPA) - the CPA firm that formerly served as CPA but has resigned from the engagement or has been notified that its services have been terminated. 前任审计师9. audit appointment 审计委托10. the agreed term 约定条款11. accept an audit engagement 接受业务委托12. the objective of the engagement 委托目的13. the scope of the audit - the review procedures deemed necessary in the circumstances to achieve the objective of the audit. 审计范围14. issue the audit report 出具审计报告15. other CPA - the CPA of another accounting firm who is responsible for performing an audit on the accounting information of one or more components of the entity 其他注册会计师16. expert - a person or firm possessing special skill or knowledge in a field other than accounting or auditing, such as an actuary. 专家17. withdraw 撤消18. an initial audit 初次审计19. the board of directors 董事会20. a change in engagement 变更约定书21. shareholder 股东22. component - the entity's division, branch, subsidiary of associated company etc. Whose accounting information is included in the financial statements as a whole, audited by the principal CPA. 组成部分Knowledge of the entity's business【key words and phrases】1. knowledge of then entity's business - a general understanding of the economic environment and the industry within which the entity operates, and a more detailed understanding of the entity's internal condition. 了解被审计单位情况2. performing an audit of financial statements 实施财务报表审计3. assess inherent and control risks 评估固有风险和控制风险4. determine the nature, timing and extent of the audit procedures 确定审计程序的性质、时间和范围5. a general knowledge of...，a preliminary knowledge of 初步了解...的情况6. a more particular knowledge of ... 进一步了解...的情况7. prior to accepting an engagement 承接业务委托前8. following acceptance of the engagement 承接业务委托后9. update and reevaluate information gathered previously 更新并重新评价以前收集的信息10. the prior year's working papers 以前年度工作底稿11. director 董事12. senior operating personnel 高级管理人员13. internal audit personnel, internal audit's —— corporation employees who design and execute audit programs to test the effectiveness and efficiency of all aspects of internal control. The primary objective of internal audit is to evaluate improve the effectiveness and efficiency of the various operating units of an organization rather than to express an opinion as to the fairness of financial statements. 内部审计人员，内部审计师14. internal audit reports 内部审计报告15. minutes of meeting 会议纪要16. material sent to shareholders or filed with regulatory authorities 寄送给股东或报送监管部门备案的资料17. interim financial reports 中期财务报告18. management policy manual 管理政策手册19. chart of accounts 会计科目表20. exercise professional judgement 作出专业判断21. business risks (of the client) ——the risk assumed by investors or creditors that is associated with the company's survival and profitability. 经营风险22. management response thereto 管理当局的对策23. appropriateness ——the measure of the quality of audit evidence and its relevance to a particular assertion and its reliability. 适当性24. accounting estimate 会计估计25. management representations ——representations provided by management to the CPA that are related to the financial statements, either unsolicited or in response to specific inquiries. 管理当局声明26. related party ——parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions. 关联方27. related party transaction ——a transfer of resources or obligations between related parties, regardless of whether a price is changed. 关联交易28. going concern assumption —— under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws or regulations. 持续经营假设Audit planning【key words and phrases】1. audit plan ——a work plan, prepared by the CPA before performing detailed audit procedures, for completing an audit engagement of annual financial statements and achieving the expected audit objectives. 审计计划2. the overall audit plan —— the overall audit plan gives guidance on the expected scope of the audit and the way to perform the audit tests. It is a comprehensive plan of what the CPA's work basically involves throughout the whole process, from the acceptance of an audit engagement to the issuance of an audit report. 总体审计计划3. the detailed audit paln ——the detailed plan is prepared based on the overall audit plan. it sets out a detailed descriptionof the approach, nature, timing and extent of the audit procedures required in implementing the overall audit plan. 具体审计计划4. efficient audit (Audit in an effective manner) ——an effective audit that is performed at the lowest possible cost. 提高审计效率5. the size of the entity 被审计单位的规模6. the complexity of the audit 审计的复杂程度7. the specific methodology and technology 具体方法和技术8. financial performance 财务业绩9. material misstatement 重大虚假陈述10. significant audit areas 重点审计领域11. accounting estimate 会计估计12. coordination 协调13. review 复核14. statutory responsibility 法定责任15. time budget ——an estimate of the time required to perform each step in the audit 时间预算Error and Fraud【key words and phrases】1. error ——error refers to an unintentional misstatements or omissions in financial statements. 错误2. fraud ——fraud refers to intentional act which results in a misrepresentation of financial statement. 舞弊3. modified or additional procedures 修改或追加审计程序4. plan and perform audit procedure 计划和实施审计程序5. adequate accounting and internal control system 适当的会计和内部控制系统6. reduce but not eliminate 减少但不能消除7. manipulation 篡改8. falsification 伪造9. alteration of records or documents 更改记录和凭证10. misapproporation of assets 侵占资产11. transaction without substance 虚假交易12. misapplication of accounting policies 滥用（误用）会计政策13. the underlying records 原始凭证14. oversight or misinterpretation 疏忽或误解15. unusual pressures 异常压力16. accounting policy alternative 会计政策变更17. unusual transactions 异常交易18. incomplete files 不完整的档案19. out of balance control accounts 账户余额不平衡20. lack of proper authorization 缺乏适当的授权21. computer information systems environment 计算机信息系统环境22. inherent limitations of audit test 审计测试的固有限制23. discuss with management 与管理当局讨论24. the remedial action 纠正措施25. seek legal advice 寻求法律咨询Noncompliance with laws and regulations【key words and phrases】1. laws and regulations —— state laws, administrative regulations, departmental rulesand local laws and regulations other than the Accounting Standards for Business Enterprises and other relevant financial and accounting laws and regulations promulgated by the State. 法律与规章2. noncompliance ——noncompliance refers to acts of omission or commissionby the entity being audited, either intentional or unintentional, which are contrary to the prevailing laws or regulations. Such acts, include transtractions entered into by, or in the name of, the entity or on its behalf by its management or employees. 违反，不遵守3. withdrawal from the engagement 报销审计约定4. board of directors 董事会5. senior management 高级管理层6. detect noncompliance laws and regulations 发现违反法律和规章的行为7. deliberate failure to record transactions 故意漏记交易8. senior management override of control 高级管理层逾越控制9. intentional misrepresentations being made to the CPA 故意对注册会计师作出错误的陈述10. written representation 管理当局声明11. the suspected noncompliance 涉嫌存在违法行为12. audit committee ——a committee of a corporation's board of that engages independent auditors, reviews audit findings monitors activities of the internal staff, and intervenes in any disputes between management and the independent auditors. Preferably, members of the audit committee are directors, that is, members of the board of directors who do not also serve as corporate officers. 审计委员会13. supervisory board 监事会14. regulatory and enforcement authorities 监管和执法部门Audit materiality【key words and phrases】1. materiality ——the seriousness of misstatements or omissions in the entity's financial statements. The degree of the seriousness may affect the judgement or decisions made by users of financial statements in certain specific circumstances. 重要性2. exceed the materiality level 超过重要性水平3. approach the materiality level 接近重要性水平4. an acceptably low level 可接受水平5. the overall financial statement level and in related account balances and transaction levels 会计报表层面和相关账户、交易层面6. misstatement or omissions 错报或漏报7. the detected but uncorrected misstatements or omissions 已发现但尚未调整的错报或漏报8. the detected and the projected misstatements or omissions 已发现的和推断的错报或漏报9. aggregate 总计、合计10. subsequent events —— both events occurring between the balance sheet date andthe date of the audit report and events occurring between the date of the audit report and the date the financial statements are issued, which have an impact on the financial statements. 期后事项11. contingencies 或有事项12. extend the scope of the substantive test 扩大实质性测试范围13. adjust the financial statements 调整会计报表14. perform additional audit procedures 实施追加的审计程序15. carry out extended or additional tests of control 实施扩大或追加的控制测试16. modify the nature, timing and extent of planned substantive procedures. 修改计划的实质性测试程序的性质、时间和范围Audit risk【key words and phrases】1. audit risk ——the risk that the CPA gives an inappropriate audit opinion when the fianncial statements are materially misstated. Audit risk has three components: inherent risk, control risk and detection risk 审计风险2. inherent risk —— the susceptibility of an account balance or class of transactions to misstatement that could be material, individually or when aggregated with misstatements in other balances or classes, assuming that there were no related internal controls. 固有风险3. control risk ——the risk that a misstatement, that could occur in an account balance or class of transactions and that could be material individually or when aggregated with misstatements in other balances or classes, will not be prevented or detected and corrected on a timely basis by the accounting and internal control systems. 控制风险4. detection risk —— the risk that an CPA's substantive procedures will not detect a misstatement that exists in an account balance or class of transactions that could be material, individually or when aggregated with misstatements in other balances or classes. 检查风险5. an acceptably low level 可接受的低水平6. inappropriate audit opinion 不适当的审计意见7. material misstatement 重大的错报8. analytical procedures risk 分析性测试风险9. substantive tests of the detail risk 实质性测试风险10. tolerable misstatement 可容忍误差11. the combined level of inherent and control risks 固有风险和控制风险的综合水平12. the acceptable level of detection risk 可接受的检查风险13. planned assessed level of control risk ——the level of control risk auditor uses in developing a preliminary audit strategy which includes an appropriate combination of tests of controls and substantive tests. 控制风险的评估水平14. small business ——a business that has a low level of turnover or of total assets, few employees and limited segregation of duties. 小规模企业Internal control【key words and phrases】1. accounting system ——the series of tasks and records of an entity by which transactions are processed as a means of maintaining financial records. Such systems identify, assemble, analyze, calculate, classify, record, summarize and report transactions and other events.2. internal control system ——all the policies and procedures (internal controls) adopted by the management of an entity to assist in achieving management's objective of ensuring, as far as practicable, the orderly and efficient conduct of its business, including adherence to management policies, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.3. control environment —— the overall attitude, awareness and actions of directors and management regarding the internal control system and its importance in the entity.4. control procedures ——those policies and procedures in addition to control environment which management has established to achieve the entity's specific objectives.5. compliance test6. test of control ——tests directed toward the design or operation of a control to assess its effectiveness in preventing or detecting material misstatements of financial statement assertions.7. walk-through test ——a test of the accuracy and completeness of the CPAs' working paper description of internal control. A walk-through is performed by tracing several transactions through each step of the related transaction cycle, noting whether the sequence of procedures actually performed corresponds to that described in the audit working papers.8. management letter —— a report to management containing the written recommendations made by the CPA with respect to material internal control weaknesses identified during the audit, which may result in material misstatements or omissions in the entity's financial statements9. material weakness in internal control —— a reportable condition in which the risk that material errors or irregularities might occur and not be detected.10. risk assessment —— the identification, analysis, and management of risk relevant to the preparation of financial statements that are fairly presented.11. control activities —— the policies and procedures that help ensure that necessary actions are taken to address the risks involve in the achievement of the entity's objectives.12. information —— the information system relevant to financial reporting objectives, which includes the accounting system, consists of methods and records established to record, process, summarize, and report an entity's transactions and to maintain accountability for the related assets and liabilities.13. communication ——communication involves providing an understanding of individual roles and responsibilities pertaining to internal control over financialreporting.14. monitoring ——monitoring is a process that assesses the quality of internal control over time.15. procedures manual16. job descriptions17. flow chart —— a graphic representation of the major steps and logic of a system or a series of procedures.18. written narrative ——memoranda that describe the flow of transaction cycles, identifying the employees performing various tasks, documents prepared, records maintained, and the division of duties. Written narratives are more flexible than questionnaires, but by themselves are practical only for describing relatively small, simply systems.19. questionnaire —— questionnaires are usually designed to describe internal control in audit working papers so that "no" answers prominently identify weaknesses in internal control.20. reperformance of internal control21. computer-assisted audit techniques22. communication with management —— a CPA's enquiring or informing the entity's management of matters relevant to the audit of financial statements or discussing such matters with the entity's management.Audit evidence【key words and phrases】1. audit evidence ——the information obtained by the CPA in arriving at the conclusions on which the audit opinions is based. 审计证据21. enquiry —— enquiry consists of the CPA questioning the relevant staff in written form of orally. 询问22. confirmation ——confirmation consists of the CPA's written correspondence with third parties to corroborate information contained in the entity's accounting records. 函证23. computation ——computation consists of the CPA checking the arithmetical accuracy of the data in the entity’s source documents and accounting records, or of the CPA performing independent calculations. 计算24. analytical procedures ——analytical procedures consist of the CPA analyzing material ratios or trends, including the investigation of unusual fluctuations and their differences from the expected amounts and relevant information. 分析性程序25. vouch ——to verify the accuracy and authenticity of entries in the accounting records by examining the original source documents supporting the entries. 核对26. aged trial balance —— a listing of individual customers’accounts classified by the number of days subsequent to billing, that is, age, serves as a preliminary step in estimating the collectibles of accounts receivable. 账龄分析表27. trace —— the direction of testing is from selecting an accounting transaction( a source document) to the journal or ledger. 追查Audit sampling【key words and phrases】1.audit sampling —— the CPA’s performance of tests on certain number of sampleitems selected from the population when the CPA performs the audit procedures.The CPA then projects the characteristics of the population based on the results of the tests. 审计抽样2.error ——either control deviations, when performing tests of control, ormisstatements, when performing substantive procedures. Similarly, total error is used to mean either the rate of deviation or total misstatement. 误差3.anomalous error ——an error that arises from an isolated event that has notrecurred other than on specifically identifiable occasions and is therefore not representative of errors in the population. 偶发性误差4.expected error —— the error that the CPA expects to present in the population.预期误差5.population —— the entire set of data from which a sample is selected and aboutwhich the CPA wishes to draw conclusions. For example, all of the items in an account balance or a class of transactions constitute a population. A population may be divided into strata, or sub-populations, with each stratum being examined separately. The term population is used to include the term stratum. 总体6.sampling risk —— arises from the possibility that the CPA’s conclusion, based ona sample may be different from the conclusion reached if the entire populationwere subjected to the same audit procedures. 抽样风险7.non-sampling risk ——arises from factors that cause the CPA to reach anerroneous conclusion for any reason not related to the size of the sample. For example, most audit evidence is persuasive rather than conclusive, the CPA might use inappropriate procedures, or the CPA might misinterpret evidence and fail to recognize an error. 非抽样风险8.sampling unit ——the individual items constituting a population, for examplechecks listed on deposit slips, credit entries on bank statements, sales invoices or debtor s’ balances, or a monetary unit. 抽样单位9.statistical sampling ——any approach to sampling that has the followingcharacteristics: (1)random selection of a sample; and (2)use of probability theory to evaluate sample results, including measurement of sampling risk. 统计抽样A sampling approach that does not have characteristics (1) and (2) isconsidered non-statistical sampling. (非统计抽样)10.stratification —— the process of dividing a population into subpopulations, eachof which is a group of sampling units which have similar characteristics (often monetary) 分层11.tolerable error —— the maximum error in population that the CPA is willing toaccept. 可容忍误差12.the risk of under reliance ——because of the sample result, the CPA does notadequately rely on the internal controls which could actually be relied upon. 信赖不足风险13.the risk of over reliance —— because of the sample result, the reliance the CPAplaces on the internal controls exceeds the reliance exceeds the reliance that should actually be placed on them. 信赖过度风险14.the risk of incorrect rejection ——although the sample result supports theconclusion that an account balance is materially misstated, in fact it is not materially misstated. 误拒风险15.the risk of incorrect acceptance ——although the sample result supports theconclusion that an account balance is not materially misstated, in fact it is materially misstated. 误受风险16.the rate of deviation 偏离程度17.sample size 样本量18.required confidence level 可信赖水平19.the number of sampling units in the population 总体中样本单位的数量20.methods used 所选用的方法21.effective audit —— an audit that achieves the planned degree of effectiveness indetecting any material misstatement in the client’s financial statements. 审计效果22.efficient audit —— an effective audit that is performed at the lowest possible cost.审计效率Audit working papers【key words and phrases】1.audit working papers (documentation) ——the audit working records andmaterials prepared, or obtained, by CPA in connection with the performance of the audit. 审计工作底稿2.working trial balance ——the working trial balance links the amounts in thefinancial statements to the audit working papers. It contains columns for working paper references, the prior year’s balance, the unadjusted current-year balances, and columns for adjusting and reclassification entries. 试算平衡表3.adjusting and reclassification entries ——adjusting entries are made to correcterrors in the client’s records. Reclassification entries are made to provide proper presentation of information on the financial statements. Adjusting entries are posted in both the client’s records and the working trial balance. Reclassification entries are not posted to the client’s records. 调整和重分类分录4.audit mark —— CPAs use audit marks as a way of documenting work performed.Audit mark is typically explained or defined at the bottom of the working paper, although many firms use a standard set of audit marks. 审计标识5.indexing and cross-referencing ——this process of indexing andcross-referencing provides a trail from the financial statements to the individual working papers that a reviewer can easily follow. 索引和交叉索引6.permanent audit files —— those audit files which contain information that is notfrequently changed and is referred to cover a long period of time. They also contain information of continuing relevance to, or with a direct impact on, succeeding audits. 永久性档案7.current audit files ——those audit files, the contents of which vary frequently.They are primarily used for the audit of the current period and for reference in thenext subsequent period. 当期档案prehensive working papers —— audit working papers prepared by the CPAduring the audit planning and reporting states. They are used for planning, controlling and concluding the audit engagement as a whole and for documenting the audit opinion. 综合类工作底稿9.audit-oriented working papers ——audit working papers prepared by the CPAregarding his performance of specific audit procedures during the audit implementation stage. 业务性工作底稿10.reference working papers —— the audit working papers used merely for referencewhich are prepared by the CPA in the course of the audit. 备查类工作底稿11.the use of standardized working papers 使用标准的工作底稿12.checklists 核对用清单Audit reporting【key words and phrases】1.audit report —— the written document which expresses the CPA’s audit opinionon the entity’s annual financial statements, following the performance of the necessary audit procedures in accordance with the requirements of the Independent Auditing Standards. 审计报告2.the truthfulness of the audit report ——the requirement that the audit reportshould objectively reflect the CPA’s scope and basis of the audit, the audit procedures performed and the audit opinion that should be expressed. 审计报告的真实性3.the legitimacy of the audit report ——the requirement that the preparation andissuance of the audit report should be in accordance with the requirements of both the Law of PRC on CPA and the Independent Auditing Standards. 审计报告的合法性4.entity —— an enterprise, or an institution managed on a commercial basis, whichis responsible for the preparation and submission of financial statements and audited by the CPA. 被审计单位，客户5.addressee of the audit report ——the client of the audit engagement. The fullname of the addressee should be stated in the audit report. 审计报告的收件人6.unqualified opinion ——an unqualified opinion should be expressed when theCPA concludes that。
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