What's New in Auditing & Assurance Services, 4e

Chapter 1

• Provides an overview of the recent events that are powerfully reshaping the profession
• A new introduction to auditing and auditors allows students to develop an intuitive understanding of the demand for assurance and the characteristics of audits and auditors.
• The overview of the audit process and of fundamental auditing concepts (audit risk, materiality, and evidence) has been moved from chapter 2 to chapter 1 to give immediacy to the central focus of the text and to pique student interest
• The chapter uses plain language, clear illustrations, and intuitive analogies to make a compelling case for auditing as a dynamic, challenging, and valuable service to society

Chapter 2

• Restructured to help students understand the context in which financial statement auditing takes place
• Provides a high-level model of business (including governance, objectives, strategy, business processes, transactions, risk management, and control) as the primary context for the financial statement audit
• Explains the responsibilities, standards, and key organizations affecting the auditor's work environment
• Offers an overview of the various types of assurance services and assurance providers in the broader world of auditors and auditing
• Gives an overview of the new CPA Exam

Chapter 3

• The chapter has been revised to present the risk assessment process before introducing the discussion of materiality.
• The discussion of the auditor's risk assessment process has been substantially revised based on standards proposed by the ASB and adopted by the IAASB.
• Expanded coverage of fraud.
• The description for establishing and evaluating materiality has been revised to better reflect current audit practice and to be clearer to students.
• New real world cases (Tyco and Nortel) included to illustrate concepts.

Chapter 4

• Chapter 4 has been revised in accordance with the new standard on audit evidence proposed by the ASB and adopted by the IAASB.
• The chapter presents the new categories for management assertions and types of audit evidence.
• Expanded coverage of audit documentation requirements by the PCAOB.
• For simplicity and to better reflect current practice, rather than elaborate on both "assertions" and "audit objectives," the text now focuses only on assertions.

Chapter 5

• The discussion of the audit planning process has been revised and updated.
• The discussion of analytical procedures has been substantially revised to better reflect current audit practice.
• To help students better understand the various testing methods we introduce two conceptual aids: the "Audit Testing Hierarchy" and "Assurance Buckets."

Chapter 6

• Updated for recent changes in internal controls.
• Presents a base for assessing internal control for financial statement audits and audits of internal control over financial reporting.

Chapter 7

• This is a new chapter containing a detailed presentation of audits of internal control over financial reporting based on the PCAOB's Auditing Standard No. 2.

Chapter 8

• Before getting into the statistical terms and technical concepts, we now illustrate the fundamental concepts of sampling in a nontechnical, intuitive and interactive manner using straightforward illustrations and analogies.
• The discussion of attributes sampling has been simplified and updated to better reflect current practice.

Chapter 9

• The discussion of monetary unit sampling has been simplified and updated to better reflect practice.
• Classical variables sampling now begins with a review of the theory of sampling distributions.

Chapters 10 - 16 (Business Process Chapters)

• The business process chapters (cycles) have been updated to reflect the changes made in Chapters 3-5 for the auditor's risk assessment process, management assertions, and types of evidence.
• Several new real world cases have been inserted to illustrate concepts.

Chapter 17

• Added completion procedures and communications associated with an audit of internal controls over financial reporting.
• New working paper archiving and retention requirements outlined.

Chapter 18

• Updated to include reports for an integrated audit and the audit of internal controls over financial reporting.

Chapter 19

• Clarified discussion of fundamental ethical and moral theories.
• Updated to reflect new independence rules imposed by the SEC and PCAOB after the Sarbanes-Oxley Act of 2002
• Reorganized presentation for enhanced clarity

Chapter 20

• New Advanced Module provides an in-depth look at an actual trial where auditors are convicted on fraud charges.
• Some of the historical cases are now covered on the book's website (mhhe.com/messier4e).
• General updating to reflect new auditor liability cases (e.g., Andersen and Enron) as well as the new requirements and liability under Sarbanes Oxley.

Chapter 21

• New section on internal auditing and the Institute of Internal Auditors