{"product_id":"principles-of-external-auditing-9780470974452","title":"Principles of External Auditing","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003ePrinciples of External Auditing has become established as one of the leading textbooks for students studying auditing. Striking a careful balance between theory and practice, the book describes and explains, in non-technical language, the nature of the audit function and the principles of the audit process.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003eAbout the Authors xi  \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eStructure of the Financial Reporting Council xvii\u003c\/p\u003e \u003cp\u003eGlossary of Terms xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 What is Auditing? 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Introduction 1\u003c\/p\u003e \u003cp\u003e1.2 What is an audit? 2\u003c\/p\u003e \u003cp\u003e1.3 Types of audit 3\u003c\/p\u003e \u003cp\u003e1.4 Auditing vs Accounting 8\u003c\/p\u003e \u003cp\u003e1.5 Why are external fi nancial statement audits needed? 8\u003c\/p\u003e \u003cp\u003e1.6 Benefi ts derived from external fi nancial statement audits 11\u003c\/p\u003e \u003cp\u003e1.7 Summary 18\u003c\/p\u003e \u003cp\u003eSelf-review questions 18\u003c\/p\u003e \u003cp\u003eReferences 19\u003c\/p\u003e \u003cp\u003eAdditional reading 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Development of Auditing and Its Objectives 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Introduction 23\u003c\/p\u003e \u003cp\u003e2.2 Overview of the development of company auditing 23\u003c\/p\u003e \u003cp\u003e2.3 Development of auditing in the period up to 1844 26\u003c\/p\u003e \u003cp\u003e2.4 Development of company auditing 1844–1920s 27\u003c\/p\u003e \u003cp\u003e2.5 Development of company auditing 1920s–1960s 32\u003c\/p\u003e \u003cp\u003e2.6 Development of company auditing 1960s–1990s 36\u003c\/p\u003e \u003cp\u003e2.7 Development of company auditing 1990s–present 39\u003c\/p\u003e \u003cp\u003e2.8 Summary 51\u003c\/p\u003e \u003cp\u003eSelf-review questions 52\u003c\/p\u003e \u003cp\u003eReferences 53\u003c\/p\u003e \u003cp\u003eAdditional reading 55\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 A Framework of Auditing Concepts 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Introduction 57\u003c\/p\u003e \u003cp\u003e3.2 Social purpose, postulates and framework for concepts of auditing 59\u003c\/p\u003e \u003cp\u003e3.3 Concepts relating to the credibility of auditors’ work 60\u003c\/p\u003e \u003cp\u003e3.4 Concepts relating to the audit process 70\u003c\/p\u003e \u003cp\u003e3.5 Concept relating to auditors’ communication: reporting 86\u003c\/p\u003e \u003cp\u003e3.6 Concepts relating to the standard of auditors’ performance 90\u003c\/p\u003e \u003cp\u003e3.7 Summary 94\u003c\/p\u003e \u003cp\u003eSelf-review questions 95\u003c\/p\u003e \u003cp\u003eReferences 95\u003c\/p\u003e \u003cp\u003eAdditional reading 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Threats to, and Safeguarding of, Auditors’ Independence 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Introduction 99\u003c\/p\u003e \u003cp\u003e4.2 Threats to auditors’ independence 100\u003c\/p\u003e \u003cp\u003e4.3 Steps taken by parliament and regulators to safeguard auditors’ independence 104\u003c\/p\u003e \u003cp\u003e4.4 Other proposals to strengthen auditors’ independence 140\u003c\/p\u003e \u003cp\u003e4.5 Role and responsibilities of audit committees 143\u003c\/p\u003e \u003cp\u003e4.6 Summary 151\u003c\/p\u003e \u003cp\u003eSelf-review questions 152\u003c\/p\u003e \u003cp\u003eReferences 153\u003c\/p\u003e \u003cp\u003eAdditional reading 157\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Auditors’ Legal, Regulatory and Professional Responsibilities 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Introduction 161\u003c\/p\u003e \u003cp\u003e5.2 Reporting and auditing requirements of companies 165\u003c\/p\u003e \u003cp\u003e5.3 Appointment, remuneration and removal of company auditors 181\u003c\/p\u003e \u003cp\u003e5.4 Auditor–client relationship 189\u003c\/p\u003e \u003cp\u003e5.5 Auditors’ duties and rights 191\u003c\/p\u003e \u003cp\u003e5.6 Audit fi rms’ transparency reports and governance code 207\u003c\/p\u003e \u003cp\u003e5.7 Summary 211\u003c\/p\u003e \u003cp\u003eSelf-review questions 212\u003c\/p\u003e \u003cp\u003eReferences 213\u003c\/p\u003e \u003cp\u003eAdditional reading 216\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Auditors’ Duties with Respect to Fraud and Non-compliance with Laws and Regulations 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Introduction 217\u003c\/p\u003e \u003cp\u003e6.2 Defi nition of fraud 218\u003c\/p\u003e \u003cp\u003e6.3 Development of auditors’ responsibility to detect and report fraud 220\u003c\/p\u003e \u003cp\u003e6.4 Auditors’ current responsibilities to detect and report fraud 229\u003c\/p\u003e \u003cp\u003e6.5 Aggressive earnings management 241\u003c\/p\u003e \u003cp\u003e6.6 Auditors’ responsibility to detect and report non-compliance with laws and regulations 242\u003c\/p\u003e \u003cp\u003e6.7 Auditors’ duty of confi dentiality to their clients 250\u003c\/p\u003e \u003cp\u003e6.8 Summary 253\u003c\/p\u003e \u003cp\u003eSelf-review questions 254\u003c\/p\u003e \u003cp\u003eReferences 255\u003c\/p\u003e \u003cp\u003eAdditional reading 257\u003c\/p\u003e \u003cp\u003eAppendix: Examples of fraud risk factors 258\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Overview of the Audit Process, Audit Evidence, Staffing and Documenting an Audit 261\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Introduction 261\u003c\/p\u003e \u003cp\u003e7.2 Overview of the audit process 262\u003c\/p\u003e \u003cp\u003e7.3 Clarification of some jargon 265\u003c\/p\u003e \u003cp\u003e7.4 Audit evidence 271\u003c\/p\u003e \u003cp\u003e7.5 Staffi ng an audit 277\u003c\/p\u003e \u003cp\u003e7.6 Documenting an audit 289\u003c\/p\u003e \u003cp\u003e7.7 Summary 306\u003c\/p\u003e \u003cp\u003eSelf-review questions 307\u003c\/p\u003e \u003cp\u003eReferences 309\u003c\/p\u003e \u003cp\u003eAdditional reading 310\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Commencing an Audit: Engagement Procedures, Understanding the Client and Identifying Risks 311\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Introduction 311\u003c\/p\u003e \u003cp\u003e8.2 Pre-engagement investigation 312\u003c\/p\u003e \u003cp\u003e8.3 Audit engagement letters 320\u003c\/p\u003e \u003cp\u003e8.4 Understanding the client, its business and its industry and how it evaluates its performance 325\u003c\/p\u003e \u003cp\u003e8.5 Identifying and assessing risks of material misstatement in the financial statements 332\u003c\/p\u003e \u003cp\u003e8.6 Analytical procedures 336\u003c\/p\u003e \u003cp\u003e8.7 Summary 340\u003c\/p\u003e \u003cp\u003eSelf-review questions 341\u003c\/p\u003e \u003cp\u003eReferences 342\u003c\/p\u003e \u003cp\u003eAdditional reading 342\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Planning the Audit; Materiality and Audit Risk 345\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Introduction 345\u003c\/p\u003e \u003cp\u003e9.2 Phases of planning an audit 346\u003c\/p\u003e \u003cp\u003e9.3 Impact of materiality on planning an audit 350\u003c\/p\u003e \u003cp\u003e9.4 Desired level of audit risk (desired level of assurance) 362\u003c\/p\u003e \u003cp\u003e9.5 Impact of audit risk on planning the audit 366\u003c\/p\u003e \u003cp\u003e9.6 Summary 375\u003c\/p\u003e \u003cp\u003eSelf-review questions 377\u003c\/p\u003e \u003cp\u003eReferences 377\u003c\/p\u003e \u003cp\u003eAdditional reading 378\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Internal Control and the External Audit 381\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Introduction 381\u003c\/p\u003e \u003cp\u003e10.2 The accounting system 382\u003c\/p\u003e \u003cp\u003e10.3 Conceptual aspects of internal control 385\u003c\/p\u003e \u003cp\u003e10.4 Reviewing the accounting system and evaluating its internal controls 402\u003c\/p\u003e \u003cp\u003e10.5 Developing the audit plan 411\u003c\/p\u003e \u003cp\u003e10.6 Compliance testing 415\u003c\/p\u003e \u003cp\u003e10.7 Reporting internal control deficiencies to management 419\u003c\/p\u003e \u003cp\u003e10.8 Summary 420\u003c\/p\u003e \u003cp\u003eSelf-review questions 421\u003c\/p\u003e \u003cp\u003eReferences 422\u003c\/p\u003e \u003cp\u003eAdditional reading 423\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Testing Financial Statement Assertions: Substantive Testing 425\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 Introduction 425\u003c\/p\u003e \u003cp\u003e11.2 Significance of substantive testing in the audit process 426\u003c\/p\u003e \u003cp\u003e11.3 Objectives of, and approaches to, substantive testing 428\u003c\/p\u003e \u003cp\u003e11.4 Substantive audit procedures 433\u003c\/p\u003e \u003cp\u003e11.5 Requirements of auditors when misstatements are detected 441\u003c\/p\u003e \u003cp\u003e11.6 Introduction to substantive testing of inventory and accounts receivable 443\u003c\/p\u003e \u003cp\u003e11.7 Signifi cant aspects of auditing inventory 444\u003c\/p\u003e \u003cp\u003e11.8 Signifi cant aspects of auditing accounts receivable 452\u003c\/p\u003e \u003cp\u003e11.9 Initial engagements 462\u003c\/p\u003e \u003cp\u003e11.10 Summary 463\u003c\/p\u003e \u003cp\u003eSelf-review questions 463\u003c\/p\u003e \u003cp\u003eReferences 464\u003c\/p\u003e \u003cp\u003eAdditional reading 465\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Audit Sampling and Computer Assisted Auditing Techniques (CAATs) 467\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Introduction 467\u003c\/p\u003e \u003cp\u003e12.2 Meaning and importance of sampling in auditing 468\u003c\/p\u003e \u003cp\u003e12.3 Basic terminology relating to sampling 470\u003c\/p\u003e \u003cp\u003e12.4 Judgmental sampling vs statistical sampling and sampling methods 472\u003c\/p\u003e \u003cp\u003e12.5 Designing and selecting samples 474\u003c\/p\u003e \u003cp\u003e12.6 Judgmental sampling 481\u003c\/p\u003e \u003cp\u003e12.7 Statistical sampling of attributes and variables, and pps sampling 482\u003c\/p\u003e \u003cp\u003e12.8 Following up sample results 490\u003c\/p\u003e \u003cp\u003e12.9 Computer assisted audit techniques 491\u003c\/p\u003e \u003cp\u003e12.10 Summary 495\u003c\/p\u003e \u003cp\u003eSelf-review questions 496\u003c\/p\u003e \u003cp\u003eReferences 497\u003c\/p\u003e \u003cp\u003eAdditional reading 497\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Completion and Review 499\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Introduction 499\u003c\/p\u003e \u003cp\u003e13.2 Review for contingent liabilities and commitments 501\u003c\/p\u003e \u003cp\u003e13.3 Review for subsequent events 503\u003c\/p\u003e \u003cp\u003e13.4 (re)Assessment of the going concern assumption 508\u003c\/p\u003e \u003cp\u003e13.5 Written representations 520\u003c\/p\u003e \u003cp\u003e13.6 Final review of the fi nancial statements 527\u003c\/p\u003e \u003cp\u003e13.7 Evaluation of audit evidence gathered and formation of the audit opinion 530\u003c\/p\u003e \u003cp\u003e13.8 Review of unaudited information 533\u003c\/p\u003e \u003cp\u003e13.9 Final conference 537\u003c\/p\u003e \u003cp\u003e13.10 Summary 537\u003c\/p\u003e \u003cp\u003eSelf-review questions 538\u003c\/p\u003e \u003cp\u003eReferences 539\u003c\/p\u003e \u003cp\u003eAdditional reading 540\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Auditors’ Reports to Users of Financial Statements and to Management 543\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Introduction 543\u003c\/p\u003e \u003cp\u003e14.2 Auditors’ reporting obligations under the companies act 2006 544\u003c\/p\u003e \u003cp\u003e14.3 Format and content of audit reports 549\u003c\/p\u003e \u003cp\u003e14.4 Types of audit opinion 564\u003c\/p\u003e \u003cp\u003e14.5 Different forms of modifi ed audit opinion 566\u003c\/p\u003e \u003cp\u003e14.6 Emphasis of matter and other matter paragraphs 576\u003c\/p\u003e \u003cp\u003e14.7 The audit report – the auditor’s chance to communicate 580\u003c\/p\u003e \u003cp\u003e14.8 Auditors’ communication with those charged with governance 590\u003c\/p\u003e \u003cp\u003e14.9 Summary 603\u003c\/p\u003e \u003cp\u003eSelf-review questions 604\u003c\/p\u003e \u003cp\u003eReferences 605\u003c\/p\u003e \u003cp\u003eAdditional reading 609\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Legal Liability of Auditors 611\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Introduction 611\u003c\/p\u003e \u003cp\u003e15.2 Overview of auditors’ legal liability 612\u003c\/p\u003e \u003cp\u003e15.3 Auditors’ contractual liability to their clients 615\u003c\/p\u003e \u003cp\u003e15.4 Liability to third parties under the common law 622\u003c\/p\u003e \u003cp\u003e15.5 The effect of out-of-court settlements 661\u003c\/p\u003e \u003cp\u003e15.6 Summary 663\u003c\/p\u003e \u003cp\u003eSelf-review questions 663\u003c\/p\u003e \u003cp\u003eReferences 664\u003c\/p\u003e \u003cp\u003eAdditional reading 666\u003c\/p\u003e \u003cp\u003eAppendix 1 667\u003c\/p\u003e \u003cp\u003eAppendix 2 669\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Avoiding and Limiting Auditors’ Liability 673\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Introduction 673\u003c\/p\u003e \u003cp\u003e16.2 Importance of, and responsibility for, quality control of audits 675\u003c\/p\u003e \u003cp\u003e16.3 The profession’s measures to secure high quality audits 676\u003c\/p\u003e \u003cp\u003e16.4 Regulators’ measures for securing high quality audits 689\u003c\/p\u003e \u003cp\u003e16.5 Proposals for limiting auditors’ liability 708\u003c\/p\u003e \u003cp\u003e16.6 Summary 720\u003c\/p\u003e \u003cp\u003eSelf-review questions 721\u003c\/p\u003e \u003cp\u003eReferences 722\u003c\/p\u003e \u003cp\u003eAdditional reading 725\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Corporate Responsibility Reporting and Assurance 727\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 Introduction 727\u003c\/p\u003e \u003cp\u003e17.2 Development of corporate responsibility reporting 729\u003c\/p\u003e \u003cp\u003e17.3 Why do companies publish corporate responsibility reports? 733\u003c\/p\u003e \u003cp\u003e17.4 Corporate responsibility reporting guidelines 743\u003c\/p\u003e \u003cp\u003e17.5 Corporate responsibility assurance engagements 746\u003c\/p\u003e \u003cp\u003e17.6 Why do some companies have their corporate responsibility reports independently assured while others do not? 763\u003c\/p\u003e \u003cp\u003e17.7 Relevance of corporate responsibility issues to external financial statement audits 766\u003c\/p\u003e \u003cp\u003e17.8 Summary 772\u003c\/p\u003e \u003cp\u003eSelf-review questions 773\u003c\/p\u003e \u003cp\u003eReferences 774\u003c\/p\u003e \u003cp\u003eAdditional reading 777\u003c\/p\u003e \u003cp\u003eAppendix: Brief descriptions of ‘responsible investment’ indices 777\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 The Audit Expectation-Performance Gap and Proposals for Reforming the External Audit Function 783\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 Introduction 783\u003c\/p\u003e \u003cp\u003e18.2 The audit expectation-performance gap 784\u003c\/p\u003e \u003cp\u003e18.3 Overview of proposed reforms following the global financial crisis 798\u003c\/p\u003e \u003cp\u003e18.4 Enhancing auditors’ reporting responsibilities 799\u003c\/p\u003e \u003cp\u003e18.5 Audit market concentration and strengthening auditors’ independence 816\u003c\/p\u003e \u003cp\u003e18.6 Emergence of competition from china 837\u003c\/p\u003e \u003cp\u003e18.7 Inherent conflicts in the current audit model 839\u003c\/p\u003e \u003cp\u003e18.8 Summary 841\u003c\/p\u003e \u003cp\u003eSelf-review questions 842\u003c\/p\u003e \u003cp\u003eReferences 843\u003c\/p\u003e \u003cp\u003eAdditional reading 849\u003c\/p\u003e \u003cp\u003eIndex 851\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default 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