| Description |
xxxii, 786 pages : illustrations ; 29 cm + 1 CD-ROM (4 3/4 in.) |
|
4 3/4 in |
| Contents |
Machine derived contents note: Table of Contents -- Part I Introduction To Financial -- Statement Auditing -- 1 -- 1 An Introduction to Assurance and Financial Statement -- Auditing 2 -- The Study of Auditing 4 -- The Demand for Auditing and Assurance 5 -- Principals and Agents 5 -- The Role of Auditing 6 -- An Assurance Analogy: The Case of the House Inspector 8 -- Characteristics 8 -- Desired Characteristics of the House Inspection Service 9 -- Relating the House Inspection Analogy to Financial Statement -- Auditing 9 -- Management Assertions and Financial Statements 10 -- Auditing, Attest, and Assurance Services Defined 11 -- Auditing 11 -- Attestation 12 -- Assurance 13 -- Fundamental Concepts in Conducting a Financial Statement Audit 14 -- Audit Risk 14 -- Materiality 15 -- Evidence Regarding Management Assertions 16 -- Sampling: Inferences Based on Limited Observations 16 -- The Audit Process 17 -- Overview of the Financial Statement Auditing Process 17 -- Major Phases of the Audit 18 -- The Unqualified Audit Report 22 -- Other Types of Audit Reports 24 -- Conclusion 24 -- Key Terms 25 -- Review Questions 26 -- Multiple-Choice Questions 27 -- Problems 29 -- Discussion Case 30 -- Internet Assignments 31 -- Hands-On Cases 31 -- 2 The Financial Statement Auditing Environment 32 -- Seller Assertions, Information Asymmetry, and Inspector -- 34 -- A Series of Scandals 34 -- Government Regulation 35 -- Back to Basics 35 -- The Context of Financial Statement Auditing 36 -- Business as the Primary Context of Auditing 36 -- A Model of Business 36 -- Corporate Governance 36 -- 37 -- A Model of Business Processes: Five Components 37 -- The Financing Process 37 -- The Purchasing Process 39 -- The Human Resource Management Process 39 -- The Inventory Management Process 39 -- The Revenue Process 39 -- Relating the Process Components to the Business Model 39 -- Management Assertions 40 -- Auditing Standards 41 -- The Roles of the ASB and the PCAOB 41 -- The 10 Generally Accepted Auditing Standards 41 -- Three General Standards 41 -- 42 -- Four Standards of Reporting 43 -- Statements on Auditing Standards?Interpretations of GAAS 43 -- Ethics, Independence, and the Code of Professional Conduct 45 -- 46 -- Public Accounting Firms 46 -- Organization and Composition 47 -- Other Audit Services 48 -- Attest Services 49 -- Assurance Services 50 -- Other Nonaudit Services 51 -- 52 -- External Auditors 52 -- Internal Auditors 53 -- Government Auditors 54 -- Forensic Auditors 54 -- 55 -- Securities and Exchange Commission (SEC) 55 -- 55 -- Public Company Accounting Oversight Board (PCAOB) 58 -- 58 -- Conclusion 58 -- Review Questions 60 -- A Time of Challenge and Change for Auditors -- Objectives, Strategies, Processes, Controls, Transactions, and Reports -- Three Standards of Field Work -- The Auditor?s Responsibility for Errors, Fraud, and Illegal Acts -- Types of Other Audit, Attest, and Assurance Services 48 -- Types of Auditors -- Organizations That Affect the Public Accounting Profession -- American Institute of Certified Public Accountants (AICPA) -- Financial Accounting Standards Board (FASB) -- Key Terms 59 -- Multiple-Choice Questions 60 -- Problems -- Discussion Case 64 -- Internet Assignments 65 -- Hands-On Cases 66 -- Part Ii -- 67 -- 3 Risk Assessment and Materiality 68 -- Audit Risk 70 -- The Audit Risk Model 71 -- Use of the Audit Risk Model -- Limitations of the Audit Risk Model 74 -- 74 -- Business Risk and the Risk of Material Misstatement -- Understanding the Entity and Its Environment 75 -- 79 -- Identifying Business Risks 80 -- Assessing the Risk of Material Misstatement Due to Error or Fraud 81 -- 82 -- Conditions Indicative of Material Misstatement Due to Fraud -- The Fraud Risk Identification Process 84 -- 84 -- Inquiries of Management and Others 85 -- Fraud Risk Factors 86 -- 90 -- 92 -- 92 -- Communications about Fraud to Management, the Audit Committee, -- and Others 94 -- Materiality 94 -- Steps in Applying Materiality 96 -- An Example 99 -- Advanced Module: The Relationships within the Audit Risk Model 101 -- 101 -- Review Questions 102 -- Multiple-Choice Questions 103 -- Problems 104 -- Discussion Cases 107 -- Internet Assignments 108 -- Hands-On Cases 109 -- 4 Audit Evidence and Audit Documentation 110 -- The Relationship of Audit Evidence to the Audit Report 112 -- Management Assertions 113 -- 62 -- Basic Auditing Concepts: Risk Assessment, -- Materiality, And Evidence -- 72 -- The Auditor?s Risk Assessment Process -- Management?s Strategies, Objectives, and Business Risks 74 -- 75 -- Auditor?s Risk Assessment Procedures -- Types and Causes of Misstatements -- 83 -- Discussion among the Audit Team -- The Auditor?s Response to the Results of the Risk Assessments -- Evaluation of Audit Test Results -- Documentation of the Auditor?s Risk Assessment and Response -- Key Terms -- the Period 114 -- Assertions about Account Balances at the Period End 115 -- Assertion about Presentation and Disclosure 116 -- Audit Procedures 117 -- The Concepts of Audit Evidence 118 -- The Nature of Audit Evidence 118 -- 119 -- The Evaluation of Audit Evidence 121 -- Audit Procedures for Obtaining Audit Evidence 121 -- Inspection of Records or Documents 122 -- 123 -- Observation 123 -- Inquiry 123 -- Confirmation 124 -- Recalculation 124 -- Reperformance 125 -- Analytical Procedures 125 -- Scanning 125 -- 126 -- Audit Documentation 126 -- Objectives of Audit Documentation 126 -- Content of Audit Documentation 127 -- Examples of Audit Documentation 129 -- Format of Audit Documentation 131 -- Organization of Audit Documentation 131 -- Ownership of Audit Documentation 133 -- Audit Document Archiving and Retention 133 -- 134 -- Review Questions 135 -- Multiple-Choice Questions 136 -- Problems 137 -- Discussion Cases 139 -- Internet Assignments 141 -- Hands-On Cases 141 -- Part Iii -- And Auditing Internal Control 143 -- 5 144 -- Client Acceptance and Continuance 146 -- Prospective Client Acceptance 146 -- Continuing Client Retention 147 -- Establishing an Understanding with the Client 148 -- The Engagement Letter 148 -- Internal Auditors 148 -- The Audit Committee 152 -- Assertions about Classes of Transactions and Events during -- The Sufficiency and Appropriateness of Audit Evidence -- Inspection of Tangible Assets -- Reliability of the Types of Evidence -- Key Terms -- Planning The Audit, And Understanding -- Audit Planning and Types of Audit Tests -- Preliminary Engagement Activities 153 -- Requirements 153 -- Assess Compliance with Ethical Requirements, including -- Independence 153 -- Assess Risks and Establish Materiality 154 -- Planning the Audit 154 -- Assess the Need for Specialists 155 -- Assess the Possibility of Illegal Acts 155 -- Identify Related Parties 156 -- Conduct Preliminary Analytical Procedures 157 -- 158 -- and Prepare Audit Programs 158 -- 159 -- Risk Assessment Procedures 159 -- 159 -- Substantive Procedures 161 -- 161 -- Substantive Analytical Procedures 162 -- Analytical Procedures 162 -- Purposes of Analytical Procedures 162 -- Substantive Analytical Procedures 163 -- Final Analytical Procedures 173 -- 173 -- An ?Assurance Bucket? Analogy 175 -- Advanced Module: Selected Financial Ratios 177 -- Selected Financial Ratios Useful as Analytical Procedures 177 -- 177 -- Activity Ratios 178 -- Profitability Ratios 179 -- Coverage Ratios 180 -- 180 -- Review Questions 181 -- Multiple-Choice Questions 181 -- Problems 184 -- Discussion Cases 187 -- Internet Assignments 188 -- Hands-On Cases 189 -- 6 Internal Control in a Financial Statement Audit 190 -- Introduction 192 -- Internal Control 192 -- Definition of Internal Control 192 -- Controls Relevant to the Audit 192 -- Components of Internal Control 193 -- 194 -- Determine the Audit Engagement Team -- Consider Additional Value-Added Services -- Document the Overall Audit Strategy, Audit Plan, -- Types of Audit Tests -- Tests of Controls -- Dual-Purpose Tests -- The Audit Testing |
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Hierarchy -- Short-Term Liquidity Ratios -- Key Terms -- The Effect of Information Technology on Internal Control -- Planning an Audit Strategy 195 -- Substantive Strategy 197 -- Reliance Strategy 198 -- Obtain an Understanding of Internal Control 199 -- Overview 199 -- Control Environment 200 -- 204 -- Information System and Communication 204 -- Control Activities 206 -- Monitoring of Controls 207 -- 207 -- 208 -- Documenting the Understanding of Internal Control 209 -- Assessing Control Risk 211 -- 211 -- 211 -- Concluding on the Achieved Level of Control Risk 212 -- Documenting the Achieved Level of Control Risk 212 -- An Example 212 -- Substantive Procedures 213 -- 214 -- 214 -- Interim Substantive Procedures 215 -- Auditing Accounting Applications Processed by Service -- Organizations 216 -- Communication of Internal Control?Related Matters 217 -- 218 -- General Controls 219 -- Application Controls 220 -- 223 -- Symbols 223 -- Organization and Flow 223 -- 224 -- Review Questions 225 -- Multiple-Choice Questions 226 -- Problems 228 -- Discussion Case 230 -- Hands-On Cases 231 -- 7 Auditing Internal Control over Financial Reporting in -- Conjunction with an Audit of Financial Statements 232 -- Management Responsibilities under Section 404 234 -- Auditor Responsibilities under Section 404 and AS5 234 -- Internal Control over Financial Reporting Defined 235 -- Internal Control Deficiencies Defined 235 -- Control Deficiency 235 -- 236 -- The Entity?s Risk Assessment Process -- The Effect of |
| Notes |
Revised in the same publication year as the 5th ed. to reflect the shift in auditing standards that occurred this past summer with the change from AS2 to AS5 |
| Bibliography |
Includes bibliographical references and index |
| Notes |
System requirements: PC with Pentium class processor (or higher); minimum 32 MB of RAM, minimum 26 MB hard disk space for storing the ACL program and related files; Windows 2000 (SP4) or XP (SP2) |
| Subject |
Auditing.
|
| Author |
Glover, Steven M., 1963-
|
|
Prawitt, Douglas F.
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| LC no. |
2007039931 |
| ISBN |
0073526908 (alk. paper) |
|
9780073526904 (alk. paper) |
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