TAILIEUCHUNG - Lecture Auditing and assurance services (Second international edition) - Chapter 14: Auditing financing/investing process

Chapter 14 - Auditing financing/investing process: Prepaid expenses, intangible assets and goodwill, and property, plant and equipment. In this chapter, the learning objectives are: Know the various types of prepaid expenses, deferred charges, and intangible assets; understand the auditor's approach to auditing prepaid insurance and intangible assets; develop an understanding of the property management process;. | Auditing the Financing/Investing Process: Prepaid Expenses; Intangible Assets and Goodwill; and Property, Plant and Equipment Chapter Fourteen Auditing Prepaid Expenses Other assets that provide economic benefit for less than a year are classified as current assets. Prepaid expenses are a common other asset. Examples include: Prepaid insurance. Prepaid rent. Prepaid interest. Insurance Policy Inherent Risk Assessment – Prepaid Expenses The inherent risk associated with prepaid expenses is generally assessed as low because the accounts do not involve any complex or contentious accounting issues. Control Risk Assessment – Prepaid Expenses Because prepaid expenses are normally processed through the purchasing process, control activities in purchasing should ensure that each item is properly authorized and recorded. Substantive Procedures – Prepaid Insurance Tests of Details of the Prepaid Insurance Account Audit testing begins by obtaining a detail schedule of the prepaid insurance account. Existence and Completeness Confirm policy with insurance broker, examine supporting source documents. Rights and Obligations Confirm policy beneficiary with the insurance broker. Valuation Determine unexpired portion of policy and insurance expense. Classification Determine propriety of distribution between manufacturing overhead and SG&A expense. Auditing Intangible Assets and Goodwill Intangible assets are identifiable assets that provide economic benefit for longer than a year, but lack physical substance (IFRS), for example: Marketing – trademark, brand name, and Internet domain names. Customer – customer lists, order backlogs, and customer relationships. Artistic – items protected by copyright. Contract – licenses, franchises, and broadcast rights. Technology – patented and unpatented technology. Goodwill represents the difference between the acquisition price for a company and the fair value of the identifiable tangible and intangible assets and liabilities (IFRS).

• Kế toán - Kiểm toán
• Assurance services
• Financial statement auditing
• Auditing services
• Auditing business processes
• Auditing financing
• Investing process
• Assurance services profession
• Audit process
• Assurance framework
• Accounting information
• Financial statement audit
• Auditing and assurance services
• Auditing environment
• Professional standards
• Auditing standards
• Auditing internal control
• Internal auditing services
• Contemporary auditing environment
• Attestation engagements
• Account balances
• Structure of the profession
• Audit firms
• Corporate governance
• Professional ethics
• Legal liability
• Liability to clients
• Financial repport audit process
• Financial report assertions
• The business
• Strategic business risk
• Inherent risk assessment
• Inherent risk
• Internal control structure
• Assessing control risk
• Tests of controls
• Sales cycle
• Substantive tests
• Substantive tests of transactions
• Audit sampling
• Sampling theory
• Adjusting events
• Financial report
• Auditor’s reporting obligations
• Professional reporting obligations
• Prospective financial information
• Highlight information
• Institute of internal auditors
• Government accounting
• Reporting duties