Description

This new book analyses the role of external auditors in a rapidly changing environment and the need to expand their role beyond traditional financial statement audits. It presents external auditing in an innovative manner, with heavy emphasis on theoretical and international issues. The focus is on coverage of fundamental issues with regard to the framework and conceptual structure of auditing, rather than the details of traditional audit approaches. The book provides a carefully balanced presentation of auditing theory and practice.
This book is suitable for undergraduate and postgraduate students studying courses in auditing as a part of an accounting or business-related degree. It will also be of interest to practitioners, researchers and managers who are interested in current issues of auditing.  

Features

• Unique it its extensive coverage of international and theoretical issues, providing an understanding of the evolution of auditing.
• Innovative approach covering recent audit and governance regulations offers awareness of the challenges the auditing profession faces in a changing environment.
• The multidisciplinary approach, covering the relationships between auditing and organisation, corporate governance, financial reporting and IT, enables the role of auditing within its wider context to be fully understood and appreciated.
• Learning objectives, end of chapter summaries, and explanations of key terms are provided for each chapter to reinforce learning.
• Case studies and samples of audit reports from different countries give understanding of real-world practice.
• Extensive references for further reading are supplied to enable more advanced study of the subject.
• End of chapter review and discussion questions allow students to test their learning and facilitate classroom discussion.

Table of Contents

Contents

 

Preface

List of figures and tables

 

1. An introduction to auditing and assurance

Learning objectives

Introduction

Questions about the critical role of auditors

The nature and objectives of auditing

Recent changes in the audit environment

A theoretical approach towards auditing

Debating the historical perspective of auditing concepts

The demand for assurance services: An economic explanation

Attestation services

Concluding remarks

Review Questions

Discussion Questions

Bibliography

Notes

 

2. Demand for and supply of external audit services

Learning objectives

Introduction

Debating audit expectations

Demand and supply of audit

Parties demanding financial statement information

The problem of “Information asymmetry”

The economics of information

Supply of financial statement information (mandatory and voluntary disclosures)

Factors affecting corporate financial disclosure

External auditors and supply and demand of financial information

Demand for auditing

Conditions creating demand for auditing

Theoretical explanations of the demand for audit services

Concluding remarks

Review questions

Discussion questions

Bibliography

Notes

 

3. Auditing, organization and governance

Leaning objectives       

Introduction

Auditing and organizations

The economics of corporate governance

The governance malaise

Essential elements of corporate governance

Corporate governance and corporate reporting

External auditing and corporate governance as a multidisciplinary field

Concluding remarks

Review questions

Discussion questions

Bibliography

Notes

 

4. The audit committee, internal and external auditing

Learning Objectives

Introduction

Overview of governance mechanisms

An overview of audit committee and its place in corporate governance structure

Basic functions of the audit committee

Evolution of the role of the audit committee

Audit committee independence

Economic determinants of audit committee independence          

Oversight role of the audit committee in corporate financial reporting

The relationship between the audit committee and internal auditing         

Oversight role of the audit committee in the area of the company’s financial risks and internal control

The audit committee and independent auditors

Audit committee and compliance with laws and codes of conduct

Concluding remarks

Review questions

Discussion questions

Appendices

Bibliography

Notes

 

5. International Auditing and Assurance Services

Learning objectives

Introduction

Generally Accepted Auditing Standards in the US

The IFAC and the international harmonization of auditing standards

International Standards on Auditing (ISAs)

The role of the International Auditing Practices Committee in setting International Standards on Auditing

The role, composition, and objectives of the IAASB     

The frameworkof International Standards on Auditing

General principles of an audit

The International Standard on Assurance Engagements (ISAE 3000)

Principles and essential procedures for assurance engagements

Harmonization of accounting standards

Concluding remarks

Review questions

Discussion questions

Bibliography

Notes

 

Back Cover

Auditing: An International Approach

Bahram Soltani

The business world is changing rapidly, but recent corporate failures and scandals have demonstrated, in dramatic fashion, that auditing is lagging behind. Financial markets need, now more than ever, reliable auditing that delivers high quality information. For economies to operate effectively, investors need control over company executives.

Auditing: An International Approachtreats auditing as a whole discipline – the theory and the practice – rather than discussing only auditing techniques. This approach raises the essential question of what auditing ‘ought to be’ and how it should keep pace with change. The book discusses auditing concepts for a changing environment and how auditing is responding to public expectations. It analyzes the role of external auditors today as a vital part of decision making in the market economy and the need to expand their role beyond traditional financial statement audits.

Most importantly, the book presents external auditing in a new way, with a focus on fundamental, theoretical issues pertaining to the framework and conceptual structure of auditing on a global scale. This is balanced with a thorough and careful consideration of audit practices in the new millennium.

Features

The major feature of the book is its coverage of four fundamental areas in auditing: international issues including international standards, theoretical as well as practical aspects of auditing, major research work in auditing, and multidisciplinary topics. Unique in its extensive coverage of international, theoretical and multidisciplinary topics, the book aims at providing a clear understanding of the evolution of auditing in a changing environment. Each chapter includes:

• Learning objectives, end-of-chapter summaries and explanations of key terms to reinforce learning.
• Summaries of key topics on almost every page.
• Extensive references to guide further reading, research work and advanced studies.
• End-of-chapter review and discussion questionsto allow the students and other users to test their learning and to facilitate classroom discussion.
• An extensive glossary.
• Up-to-date citations of key regulators and scholars who specialize in different areas of auditing.

Audience

The book has been created for advanced auditing and accounting courses (and business-related degrees) at upper undergraduate and post-graduate levels. With its extensive coverage of auditing and assurance services in today’s uncertain business environment the book should also be of interest to audit professionals, corporate managers, regulatory bodies, and researchers.

Bahram Soltani is Associate Professor of Accounting and Finance at the University of Paris I-Panthéon Sorbonne.