| Budget Amount *help |
¥1,520,000 (Direct Cost: ¥1,400,000、Indirect Cost: ¥120,000)
Fiscal Year 2007: ¥520,000 (Direct Cost: ¥400,000、Indirect Cost: ¥120,000)
Fiscal Year 2006: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 2005: ¥500,000 (Direct Cost: ¥500,000)
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| Research Abstract |
This study examines how the auditor has audited subjective accounting information, particularly accounting estimates (example, environmental cost, pension, and financial instruments, etc.) for three years. After some trial research, I select 11 U.S. SEC case from LexisNexis (Database) and analyze the content of selected cases from the character of subjective accounting information and the auditor's behavior. As a result of these analysis, auditor faces several problems concerning the audit of accounting estimates:(a) the failure of the application of auditing procedure, (b) the failure of the evaluation of obtained audit evidence, c the failure of the evaluation of accounting estimates and the treatment subsequently, (d) the lack of auditor's experience and knowledge and (e) the failure of treatment of the change in accounting method of estimates. These five problems have significant factor on the audit failure of subjective accounting information.
In addition, I examine Exposure Draft of Proposed ISA (International Standards on Auditing) 540 (Revised and Redrafted) released by IAASB (International Auditing and Assurance Standards Board) as a new phase of the audit of subjective accounting information and indicate significant implications on audit of those information.
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