For the core auditing course for accounting majors.
This Global Edition has been edited to include enhancements making it more relevant to students outside the United States
An integrated and current approach to auditing.
Auditing and Assurance Services: An Integrated Approach presents an integrated concepts approach that shows students the auditing process from start to finish. This text prepares students for real-world audit decision making by using illustrative examples of key audit decisions, with an emphasis on audit planning, risk assessment processes and collecting and evaluating evidence in response to risks
Features
Keep it current: This edition has been thoroughly updated to reflect the latest information in auditing. Highlights include:
Coverage of PCAOB Auditing Standard No. 5—An Audit of Internal Control Over Financial Reporting That is Integrated with an Audit of Financial Statements.
New standards related to communications to those charged with governance (SAS Nos. 114 and 115).
Since the adoption of the Sarbanes-Oxley Act, Arens has committed to continually providing students with only the most up-to-date content in the dynamic auditing environment.
Offer integrated coverage of Sarbanes Oxley and Section 404. The requirements of the Sarbanes Oxley Act, including Section 404 and PCAOB Auditing Standard 2, are integrated throughout the text. The authors provide extensive coverage of internal controls to provide students with the understanding of controls necessary to perform an integrated audit of financial statements and audit of internal control required by Section 404, as well as meet the requirements of the Risk Assessment Standards.
Highlight international issues. Consistent with the convergence toward international accounting and auditing standards, this edition contains integrated coverage of developments related to international auditing standards and emphasizes issues affecting audits of multi-national entities.
Appeal to the visual learners. Increased use of bullets and numbering, and larger font size make this text easier to read and helps students focus on and retain key concepts.
Promote active research: Internet-based case homework assignments. All chapters include internet-based case/homework assignments that have students use the Internet to research relevant real world auditing issues.
Emphasize fraud and current auditing issues: Mid-chapter vignettes. Many of the vignettes in this text involve international examples, and continue to emphasize fraud and current auditing issues.
New To This Edition
New Coverage of Financial Instruments: With the increasing volume and complexity of various types of financial instruments and challenges associated with fair value accounting, Chapter 23 has been substantially revised to add important new coverage of issues associated with auditing financial instruments and obtaining sufficient appropriate audit evidence for fair value account estimates. The authors believe this will help strengthen student understanding of the challenges associated with auditing financial instruments.
Other Assurance Services: Chapter 25 highlights emerging opportunities for CPAs to provide assurance about corporate social responsibility and sustainability reports. Additionally, both Chapters 10 and 25 reflect the new guidance for service auditors who are reporting on internal controls at service organizations. Chapter 25 also reflects the updated standard compilation and review reports recently issued by the AICPA Accounting and Review Services Committee.
ACL Problems: CPA firms continue to use audit software to perform audit testing including tests for fraud. The authors have included selected problems using ACL in several chapters in the text. These problems are related to the topic of the chapter so that students can see how audit software is used to perform specific types of audit tests. Additional guidance for students on the use of ACL is included both on the text Web site and as an appendix to the text. The educational version of ACL software is included with every new copy of this edition.
Hillsburg Hardware Annual Report: The annual report for the Hillsburg Hardware Company is included as a four-color insert to the text. Financial statements and other information included in the annual report are used in examples throughout the text to illustrate chapter concepts. The annual report also includes management’s report on internal control required by Section 404a and the auditor’s report required by Section 404b consistent with
PCAOB Auditing Standard No. 5.
Pinnacle Manufacturing Integrated Case: The Pinnacle Manufacturing integrated case is based on a large, multi-division company. The case has been revised and expanded to now consist of seven parts included at the end of the chapter to which that part relates. Each part of the case is designed to give students hands-on experience, and the parts of the case are connected so that students will gain a better understanding of how the parts of the audit are integrated by the audit process.
New and Revised Homework Problems: All chapters include a research problem that requires students to use the Internet to research relevant auditing issues. All chapters include several new or revised problems. The use of bullets and numbering and a large font size enhance the readability of the text and help students retain key concepts.
