Description

For core auditing courses.

An integrated, up-to-date approach to auditing and assurance services

Auditing and Assurance Services: An Integrated Approach, the definitive introductory text on auditing, focuses on the auditor's decision-making process—whether during a financial statement audit or during an integrated audit of both financial statements and internal control over financial reporting. Comprehensive and up to date, the text uses examples from the complex, current global auditing environment, such as the United Kingdom's Financial Reporting Council highlighting a lack of skepticism as a major concern; the challenges of auditing crypto-assets; and the debate over climate-related risk assessment, to illustrate the nature and amount of evidence gathering needed at each engagement.

Using key audit decisions—like establishing the objectives in a given audit area; identifying the risks related to the engagement; determining the evidence needed; and evaluating the evidence obtained—as its foundation, this text equips students with the skills to successfully conduct an audit according to internationally recognized financial reporting frameworks.

The 18th Edition, Global Edition, contains the latest standards and codes as well as new data analysis and sample CPA-style questions to prepare students for the actual exam.

Features

Hallmark features for this title

• Core concepts and examples covering financial instruments, SOC reports, preparation services, and auditor judgement emphasize current auditing practices and issues.
• An international focus teaches students about auditing standards around the world.
• Concept Checks in every chapter highlight short-answer questions to help students recap content covered within different sections.
• An annual report and other financial statements for Starkwood Group illustrate chapter concepts.
• A Pinnacle Manufacturing integrated case gives students a better understanding of how the different parts of an audit form the auditing process.
• Datasets let students perform audit data analytics related to the sales and collection cycle for hypothetical company, JA Tire Manufacturing.

New to this Edition

New and updated features for this title

• New and updated! The 18th Edition includes the most current auditing standards, including the guidance in the recently issued SAS No. 142, Auditing Evidence, and SAS No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement. Coverage of evidence, in Chapter 7, and of risk assessment and internal control, throughout the text, has been significantly revised and updated.
• Updated! Coverage of environmental, social, and governance (ESG) reporting has been enhanced and integrated throughout. For instance, Chapter 1's case studies focus on sustainability reporting and related assurance, and a research problem is based on the Global Reporting Initiative. Chapter 8 examines how auditors consider ESG factors, while Chapter 9 looks at ESG-related risks.
• New! Auditors are increasingly using audit data analysis (ADA) and advanced technologies for better quality and efficiency. Chapter 7 features an extensive introduction to ADA and includes coverage of best practices related to accessing and preparing the data, evaluating relevance and reliability, addressing exceptions, and documenting the use of ADAs.
• Updated! Coverage of CPA Evolution, in Chapter 1, includes the latest revisions to the CPA exam and licensure process effective January 2024. The role of CPAs has changed, and the text emphasizes the deeper skill set and greater knowledge of emerging technologies that are expected of a CPA.

Table of Contents

Author

About our authors

Alvin A. Arens (Nov. 24, 1935 to Dec. 6, 2010), founding author of this textbook, was the PricewaterhouseCoopers Professor of Accounting Emeritus at Michigan State University. In addition to writing books on auditing, he was a coauthor of computerized accounting supplements and he was actively involved in the continuing education of practitioners with local and regional CPA firms. Al was a past president of the American Accounting Association and a former member of the AICPA Auditing Standards Board. He practiced public accounting with both a local CPA firm and the predecessor firm to Ernst & Young. He received many awards including the AAA Auditing Section Outstanding Educator award, the AICPA Outstanding Educator award, the national Beta Alpha Psi Professor of the Year award, and many teaching and other awards at Michigan State.

Randy J. Elder, who has served as a coauthor of this textbook since the 8th edition, is FORVIS Professor and Department Head of Accounting and Finance at the University of North Carolina at Greensboro. He teaches undergraduate auditing and graduate auditing and fraud examination courses, and has received several teaching awards. His research focuses on audit quality and current audit firm practices and he served as the team leader for the American Accounting Association Auditing Section PCAOB research synthesis teams on audit confirmations and audit sampling. He has extensive public accounting experience with a large regional CPA firm, has frequently taught continuing education for a large international CPA firm, and is a member of the AICPA.

Mark S. Beasley, who has also served as a coauthor of this textbook since the 8th edition, is the KPMG Professor of Accounting and Director of the Enterprise Risk Management Initiative at North Carolina State University. He has taught undergraduate and graduate auditing courses, and has received several teaching awards including membership in NC State's Academy of Outstanding Teachers and AAA Auditing Section Outstanding Educator award. He has extensive professional audit experience with the predecessor firm to Ernst & Young and has extensive standards-setting experience working with the Auditing Standards Board as a Technical Manager in the Audit and Assurance Division of the AICPA. He served on the ASB Fraud Standard Task Force responsible for developing SAS 99 and the Advisory Council overseeing the COSO Enterprise Risk Management—Integrated Framework project. He served over 7 years as a member of the COSO Board, representing the AAA. He currently serves on the United Nations Internal Control Advisory Group.

Chris E. Hogan joined us as a coauthor starting with the 16th edition. Chris is the Russell E. Palmer Endowed Professor of Accounting in the Eli Broad College of Business at Michigan State University. She served as Department Chair from 2017 to 2022. We are thrilled to continue the Michigan State connection started by Alvin Arens. Chris teaches graduate auditing and her research focuses on internal controls and integrated audits, audit firm client portfolios, and the impact of regulation on audit markets. Chris has auditing experience with Price Waterhouse, one of the predecessor firms to PricewaterhouseCoopers, LLP. She has served in multiple leadership roles within the American Accounting Association, including serving as President of the Auditing Section and on the Audit Committee of the AAA.