文档介绍：窗体底部
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AUDITING PANIES
  
 
OVERVIEW OF THE INDUSTRY
  
ACCOUNTING PRINCIPLES AND PRACTICES
(a) Acquisition Costs
(b) Exploration Costs
(c) Development Costs
(d) Determining the Start of the Production Phase
(e) Environmental Remediation Liabilities
  
RISK FACTORS AND AUDIT REACTION
(a) Inherent Risks
(i) Asset Realization
(ii) Contingencies
(iii) Disclosures
(b) Audit Strategy
  
TYPICAL TRANSACTIONS, INTERNAL CONTROL, AND SUBSTANTIVE TESTS
(a) Revenue
(i) Sales of Metals and Minerals
(ii) Tolling
(iii) Royalties
(iv) Mineral Property Conveyances
(v) Gains and Losses from Hedging Transactions
(b) Expenditures
(i) Acquisition, Exploration, and Development Costs
(ii) Inventory
(1) Metals and Minerals
(2) Materials and Supplies
(iii) Liabilities Other than e Taxes
(iv) e Tax Liabilities
(c) Disclosure of Risks and Uncertainties
  
      
  
  OVERVIEW OF THE INDUSTRY
  
The principal difference between panies panies involved in oil and gas producing activities relates to the nature, timing, and extent of expenditures incurred for exploration, development, production, and processing of minerals. Generally in the mining industry, a period of as long as several years elapses between the time exploration costs are incurred to discover mercially viable body of ore and the expenditure of development costs, which are usually substantial, plete the project. Therefore, the economic benefits derived from a project are long term and subject to the uncertainties inherent in the passage of time. In contrast, the costs related to exploring for deposits of oil and gas are expended over a relatively short time frame.
The mining industry is capital intensive. Substantial investments in property, plant, and equipment are required; usually they represent more than 50 percent of a pany's total assets. The significant capital investments of panies and the related risks inherent in any long-term project may affect the reco