This new updated edition now incorporates the content offered in the supplementary 80 page booklet which was previously provided packaged with the text and will be available for courses commencing semester 2, 2011. This includes a fully revised Chapter 2, Audit Reports.
Auditing, Assurance Services and Ethics in Australia: Clarity Standards Update Edition provides updated references to the Australian Auditing Standards (ASAs) as appropriate throughout the text. The book is a comprehensive introduction to auditing for students who have not had significant experience in the field. It is also appropriate for introductory professional development courses for public accounting firms, internal auditors and government auditors.
Background
In 2004, the International Auditing and Assurance Standards Board (IAASB) commenced a program to improve the clarity and consistent application of its International Standards on Auditing (ISAs), called the ‘Clarity Project’.
In accordance with the strategic direction provided by the Financial Reporting Council, the Auditing and Assurance Standards Board (AUASB) has revised and redrafted 41 ASAs. Each ASA uses the equivalent ISA as the underlying standard and accordingly conforms with the equivalent ISA. The revised and redrafted Australian Auditing standards are effective for audits of financial reports for periods beginning on or after 1 January 2010 and are referenced as appropriate throughout the 8e Clarity Update edition.
The primary emphasis in this text is on the auditor’s decision-making process. The purpose is to integrate the most important concepts of auditing with certain practical aspects in a logical manner to assist students in understanding audit decision-making and evidence accumulation.
Technology, e-commerce, and fraud issues are also integrated throughout the chapters, making it one of the most up-to-date texts, not only in current standards, but in keeping up with the digital world.
ACL version 9 student software and activities on CD ROM with this edition help develop proficiency in this internationally market leading audit software to enhance students’ future employment prospects.
Website to accompany the book
PART I: The Auditing Profession
1. Demand for audit and assurance services
2. Audit reports
3. Auditors’ legal environment
4. Audit quality and ethics
PART II: The Audit Process
5. Audit responsibilities and objectives
6. Audit evidence
7. Audit planning and documentation
8. Materiality and risk
9. Internal control and control risk
10. Fraud auditing
11. The impact of information technology on the audit process
12. Overall audit plan and audit program
PART III: Application of the Audit Process to the Sales and Collection Cycle
13. Audit of the sales and collection cycle: tests of controls and substantive tests of transactions
14. Completing the tests in the sales and collection cycle: accounts receivable
15. Audit sampling
PART IV: Application of the Audit process to Other Cycles
16. Audit of transaction cycles and financial balance statements I
17. Audit of transaction cycles and financial balance statements II
PART V: Completing the Audit
18. Completing the audit
PART VI: Other Assurance and Nonassurance Services
19. Other assurance engagements and environments
Lecturers: Does this table of contents fit your course?
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New to the Clarity Update Edition:
- Chapter two on Audit Reports has been thoroughly updated to reflect recent changes.
- Incorporates new and re-named Auditing standards for each chapter.
Features from the 8th edition:
- Recently issued auditing standards (ASAs, ASREs and ASAEs) and guidance statements (AGSs and GSs) are incorporated into the text to make it the most up to date book available.
- The Learning Objectives in each chapter are now linked directly to Auditing standards and are clearly signposted in the margins.
- Greater focus on environmental issues: Chapter 19 has been updated to incorporate coverage of ICAA's current position on assurance of carbon emission reporting and carbon trading.
- More than half of the chapter-opening vignettes are brand new!
- Boxed features such as Auditing in the News, Real Auditing Example, and Auditing FYI give students a greater insight into how companies in the ‘real-world’ are affected by auditing and assurance.
- New section within the Fraud Auditing Chapter on the use of ACL audit software for detecting fraud.
- New Mid-chapter Fraud vignettes with real world examples.
- New Questions and activities on ACL are now included in every chapter to encourage students to practice what they have just learned.
- More service industry examples have been added to balance coverage between the manufacturing/retail industries and services.
- End-of-chapter questions have been updated and also graded into ‘easy’, ‘intermediate’ and ‘challenging’.
- Chapter-opening vignettes take students into the real; world of accounting and introduce them to the main theme of the chapter.
- Learning objectives are clearly signposted in the margins to alert students to key concepts.
- Margin definitions give students a quick reference guide when they are unsure of a key word or meaning.
- Professional Standards issued by the Accounting Professional and Ethical Standards Board (APESB) include Accounting Professional and Ethical Standards (APES) and Other Professional Statements (APSs) and Guidance Notes (GNs) are listed at the beginning of each chapter that they appear in.
- Auditing Standards issued by the Australian Auditing Standards Board (AuASB) are clearly signposted in the margins so that students can see the exact standards that the text is referring to.
- Auditing in the News boxes are included throughout the chapters to add immediacy and relevance to the discussion. They highlight recent cases and other auditing items of interest from the media.
- Real Auditing examples show excerpts from real auditing cases, standards and reports in various chapters to show auditing in action.
- Auditing FYI boxes contain additional information to get students thinking or examples of auditing documents.
- End of Chapter Summaries allow students a quick and easy revision of the chapter they have just read so that they are sure they have understood and remembered it all.
- Questions and Problems at the end of each chapter allow students to test their knowledge and reinforce what they have just learnt before moving on to the next section. They are all clearly linked to the Learning Objectives and include the following:
- Review Questions
- Multiple Choice Questions
- Discussion Questions & Problems
- Internet Problem
- Case Study
- Pinnacle Manufacturing running case study occurs after a number of chapters. The parts of the case are connected so that students will gain a better understanding of how the parts of the audit are interrelated and integrated by the audit process.
- Hillsburgh Hardware Case. HH financial statements are integrated through the text and used in examples to illustrate chapter concepts.
- ACL Desktop 9 (edu) software and data files including Tutor which takes students through the process of setting up projects on the software and how to accomplish audit tests. Major Projects and Fraud Projects provide realistic exercises to test for audit objectives or evidence of fraud respectively. Lecturers are provided with suggested solutions and output.
Peter Best (BCom, MEngSci, PhD, FCPA) is Professor and Head of the School of Accounting, Economics and Finance at the University of Southern Queensland. He has taught accounting at the University of Queensland, University of Newcastle, University of Adelaide, Flinders University, Queensland University of Technology and USQ. Peter is a Fellow of CPA Australia and an Associate of the ICAA. He has acted as consultant to a variety of accounting firms and government departments both here and overseas. His specialist teaching areas include accounting information systems, auditing, information systems auditing, SAP enterprise systems and business forensics. Peter is co-author of Auditing Computer Based Systems, many editions of both Horngren’s Accounting and Financial Accounting and the previous editions of Auditing and Assurance Services in Australia: An Integrated Approach.
Greg Shailer (BCom, MCom, PhD, FCPA) is a Reader in the School of Accounting and Business Information Systems at The Australian National University, where he co-ordinates the Corporations, Governance & Society Research Group. He has taught in prominent Australian, UK and US universities. His specialist teaching areas are corporate governance and auditing. Greg’s research focuses on corporate governance, auditing, and regulation. He is a member of the ARC Governance Research Network and the European Corporate Governance Institute. He is a Fellow of CPA Australia and has prior experience with both small and large public accounting firms, and as a consultant to private sector firms and government agencies. Greg is author of An Introduction to Corporate Governance in Australia and co-author of the previous editions of Auditing and Assurance Services in Australia: An Integrated Approach.
Brenton Fiedler (BA Acc, MBus, FCA) is an Associate Professor in the School of Commerce at the University of South Australia. Brenton is a fellow of the ICAA, and is a former senior manager in the Adelaide audit division of KPMG. His specialist teaching areas include auditing, financial accounting, and corporate strategy, and he has taught both locally and overseas. Brenton is also the author of the Student Guide to Auditing and Assurance Services in Australia: An Integrated Approach.