Modern Auditing [antikvár]

PREFACE MODERN AUDITING continues to offer a unique blend of the contemporary and traditional approaches to the study of auditing. It recognizes the importance of transaction cycles in the study and evaluation of internal control while retaining the time-honored balance sheet approach in the verification of transaction cycle balances. This textbook is designed primarily for the first course in auditing either at the undergraduate or graduate level. Throughout the book, every effort has been made to integrate auditing concepts with auditing methodology and auditing theory with auditing practice. In addition, emphasis is given to the professional responsibilities of the independent auditor. ORGANIZATION As in the previous editions, the book is divided into four parts: Part Subject Chapters I Fundamental Relationships 1-4 II Study and Evaluation of Internal Control 5-11 III Verification of Account Balances 12-16 IV Reporting and Other Responsibilities 17-21 This arrangement reflects both sound pedagogy and current auditing practices within the public accounting profession. Part I establishes basic auditing concepts and relationships, Part II describes interim field work, Part III explains year-end work, and Part IV emphasizes the auditor's reporting and professional responsibilities. The first three chapters in Part I are essentially new chapters. Chapter 1 describes the professional practice of auditing. It includes expanded coverage of internal, operational, and governmental auditing; identifies three sets of prescribed auditing standards; explains the public accounting profession; and discusses the regulation of the profession. Chapter 2 focuses exclusively on financial statement audits. This chapter describes the need, importance, and limitations of this type of audit; the auditor's standard report; and the auditor's responsibilities in financial statement audits. Chapter 3 covers the first two phases of an audit engagement: accepting the engagement and planning the audit. The chapter includes extensive discussion of the role of analytical review and materiality and audit risk in audit planning. Chapter 4 was chapter 3 in Preface vii