EarthWear Case

The EarthWear Clothiers integrated case is based on a real-world company and is used to demonstrate important auditing concepts throughout the book. The company's 2005 Annual Report is bound into the book following Chapter 1, where the case is introduced. A homepage for the company contains extensive information on EarthWear, and a homepage for the company's auditors, Willis & Adams, CPA's, contains extensive audit-related information (mhhe.com/messier4e). The web site will contain an assignment that allows students to perform risk analysis for EarthWear including assessment of the five internal control components. Additionally, numerous problems and Internet assignments related to EarthWear are found throughout the text.

Expanded Student Supplement Package.

NEW! ACL™ audit software is packaged for free with every new copy of the 4^th edition. Basic ACL assignments are found on the text Online Learning Center (mhhe.com/messier4e) for each chapter of the text. These assignments will allow students to test controls, perform audit sampling and conduct other analysis. Some chapters will lend themselves better to ACL, depending on content, but every chapter will offer at least 1-2 assignments.

NEW! The Study Guide/Casebook, developed by Helen Roybark of Radford University, consists of two parts: Section I includes a detailed case study entitled "Townsend Office Supplies and Equipment, Inc.," and Section II includes a unit for each chapter in the textbook. Each chapter unit in Section II includes a chapter summary, true/false questions, multiple choice questions, short essay questions, a crossword puzzle to test terminology, and a case activity for Townsend, Inc. Solutions are included.

Problem material.

The end-of-chapter materials contain review questions, multiple-choice questions from CPA examinations, problems, Internet assignments, and discussion cases.

• Review questions allow students to quickly test their knowledge of the learning objectives for each chapter and provide a basis for meaningful in-class discussion.
• Multiple choice questions provide a sound basis for testing understanding of the chapter material.
• Problems are drawn from the CPA and CIA examinations and require relatively in-depth application of chapter material.
• Internet assignments involve solving problems related to the EarthWear case and accessing various types of accounting and industry information online.
• Discussion cases are based on real-world examples and require the student to research solutions using various information sources.

ACL™ assignments are located on the text Online Learning Center (mhhe.com/messier4e).

Student Engagement

The authors believe students are best served by understanding the basic concepts that underlie the audit process and how to apply those concepts to various audit and assurance services. The primary purpose for an auditing text is to facilitate student learning, and this text is written accordingly. The text is intended to be accessible to students through straightforward writing and through the use of engaging, relevant real-world examples, illustrations, and analogies. Additionally, the case for EarthWear Clothiers, a mail-order retailer, has been updated and integrated throughout the book and Online Learning Center.

A Systematic Approach

The text continues to take a systematic approach to the audit process by first introducing the three underlying concepts: audit risk, materiality, and evidence. These concepts are then applied to each major business process and related account balances using a risk-based approach. The text has been revised to include the risk assessment process proposed by the Auditing Standards Board and adopted by the International Auditing and Assurance Standards Board. The assessment of control risk is then described, followed by discussion of the nature, timing, and extent of evidence necessary to reach the appropriate level of detection risk.

Decision Making

In covering these important concepts and their applications, the book focuses on critical judgments and decision-making processes followed by auditors. Much of auditing practice involves the application of auditor judgment. If a student understands these basic concepts and how to apply them to an audit engagement, he or she will be more effective in today's dynamic audit environment.