The Eighth Edition of Auditing bridges the gap between students' knowledge of accounting principles and the professional practice of auditing in the working world. The text covers both the concepts and the procedures of auditing and reflects the challenges inherent in accounting and auditing practice, particularly in public accounting firms. Auditing begins with an introduction to practice, audit standards, and reports; continues through the basic concepts of audit planning, analytical procedures, risk, materiality, control risk assessment, sampling, and fraud awareness; and then proceeds directly to technical applications in several cycles and the completion of an audit. The remaining chapters deal with statistical sampling and computer auditing, operational auditing, professional ethics, and legal liability. This organization is designed to facilitate a basic emphasis on audit performance, while providing other topics for insertion as instructors desire.


Table of Contents

Ch. 1 Professional Practice
Ch. 2 Audit, Attestation and Quality Control Standards
Ch. 3 Reports on Audited Financial Statements
Ch. 4 Audit Objectives, Procedures and Working Papers
Ch. 5 Audit Planning with Analytical Procedures, Risk and Materiality
Ch. 6 Internal Control Evaluation: Assessing Control Risk
Ch. 7 Audit Sampling
Ch. 8 Fraud Awareness Auditing
Ch. 9 Revenue and Collection Cycle
Ch. 10 Acquisition and Expenditure Cycle
Ch. 11 Production and Payroll Cycle
Ch. 12 Finance and Investment Cycle
Ch. 13 Completing the Audit
Ch. 14 Test of Controls with Attribute Sampling
Ch. 15 Test of Balances with Dollar-Value Sampling
Ch. 16 Audit Planning in a Computer Environment
Ch. 17 Auditing in a Computer Environment
Ch. 18 Other Public Accounting Services and Reports
Ch. 19 Operational Auditing: Governmental and Internal Audits
Ch. 20 Professional Ethics
Ch. 21 Legal Liability

Appendix Solution Facilities Student Manual
Key Terms Reference
Index