Prin. of Auditing & Other Assu
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About the Authors
Book Preface
Feature Summary
MH Connect Accounting

Student Edition
Instructor Edition
Principles of Auditing & Other Assurance Services, 18/e

O. Ray Whittington, DePaul University-School of Accountancy & MIS
Kurt Pany, Arizona State University

ISBN: 007811103x
Copyright year: 2012

Feature Summary

New Features:

The 18th edition has been thoroughly revised to reflect two very major changes in auditing:

  1. The AICPA's "clarity project" which has resulted in complete revision and recodification of the Auditing Standards Board's standards (1) to make standards easier to read, understand, and apply, and (2) to converge those standards with the International Standards of Auditing to the extent considered desirable. Almost all outstanding Statements on Auditing Standard were revised, with an effective date for audits of periods ending after December 15, 2012.
  2. Modification of the CPA exam's Auditing and Attestation section content, including elimination of 2 "long" simulations on each exam and replacement with 6-7 shorter, completely objective form simulations.

Modifications to Reflect Changes in the Auditing Standards:

The broad scope of the clarity project has resulted in changes to each chapter--some relatively minor, but others very major. Among the most major clarity project changes are:

  • Chapter 2: Professional Standards This chapter is rewritten to reflect the Auditing Standards Board’s elimination of the longstanding "ten generally accepted auditing standards"--that is, the three general standards, three field work standards, and the four reporting standards. For purposes of AICPA professional standard coverage the chapter now discusses in detail the new Principles Underlying an Audit Conducted in Accordance with Generally Accepted Auditing Standards that replaced the ten standards. Yet, because the PCAOB standards continue to be structured about the ten standards, those standards remain in place for public company audits and are also discussed in the chapter. In addition, coverage includes presentation of the new "standard" audit report and modified reports. An appendix has been added to this chapter to compare major differences between international and US standards.
  • Chapter 17: Auditors' Reports. Changes in AICPA terminology reflected here better align U.S. GAAS with international standards. For example, an unqualified report is now an unmodified report; an explanatory paragraph is now an emphasis of matter, an other matter paragraph or a basis for modification paragraph; an audit involving other auditors is now a group audit. But there have also been many other changes, including changes in the standard audit report's wording and changes in requirements in a number of areas in which a report other than "standard" is issued.
  • Chapter 19: Additional Assurance Services: Historical financial Information. The clarity standards, following the international standard approach, use the term “financial reporting framework” to represent the standards used to prepare historical financial information. In essence the "financial reporting framework" becomes the “suitable criteria” for historical financial information. This results in a number of changes relating to this chapter, including elimination of "special reports" and replacement with "special purpose financial reporting frameworks."

In addition, two other key changes include:

  • Chapter 19: Additional Assurance Services: Historical financial Information. In addition to the Chapter 19 clarity changes, modification of compilation and review standards are reflected in the chapter. This area is of particular importance to students who plan to take the CPA exam as the new content specification outline shows that the degree of coverage of this area is significant.
  • Chapter 20: Additional Assurance Services: Other Information is rewritten to reflect the fact that the nature of these other services is evolving as at this point some services seem to have gained a degree of market acceptance (e.g., SysTrust, PrimePlus/Elder Care) while others have not (e.g., WebTrust). Additional new products such as providing assurance relating to XBRL are discussed.

Modifications to reflect CPA Exam Question Format Changes:

  • The CPA exam's coverage of shorter simulations has resulted in the replacement of the "long" simulations in the text with a variety of shorter objective questions. We entitle them "other objective format questions" in that they are "objective," yet in general not structured completely as multiple choice questions. The questions in the back of every chapter now include other objective format questions. A number of these are "simulation" questions that meet the new criteria for CPA exam inclusion. Others are brief, and yet consistent with the new simulation approach. In addition, every chapter of the instructor's test bank now includes one or more other objective format questions.
  • The clarity modifications presented force the CPA exam to update its questions to reflect new terminology and requirements. We have revised the text and instructor test bank questions to reflect these changes.
  • Connect Accounting and Connect Plus Accounting – new to this edition! Includes end-of-chapter, study guide, and test bank material.

Retained Features:

  • ACL™ audit software is packaged at no extra cost with every new copy of the 18th edition. The text website includes two standalone modules: 1) auditing sampling and 2) overall ACL skills, to integrate ACL into text and course coverage. For instructors who wish to use ACL, the authors provide for several possible levels of use which range from using it only with chapter 9 on sampling, to a more integrated use throughout the course.
  • CPA Exam Support: Kaplan’s new auditing simulations can be accessed via the Online Learning Center. These prepare students to sit for the computerized CPA exam by working problems in a web-based interface identical to that used in the exam. Additionally, the text’s multiple choice and other objective format questions are aimed at helping students to pass the CPA exam.
  • Compliance auditing coverage: Chapter 21 coverage of compliance auditing uses the input of Mr. Norwood J. Jackson, retired KPMG partner, formerly a member of the Auditing Standards Board and the Deputy Controller, Office of Federal Financial Management, United States Office of Management and Budget.
  • Sarbanes Oxley Act of 2002 on public company audits is covered in full.
  • Fraud: A logo is used to highlight sections where one will find significant coverage of this essential topic.
  • Illustrative Audit Case: Keystone Computers & Networks, Inc. case is integrated into selected chapters, providing students with hands-on audit experience.
  • Actual business and accounting examples are used to illustrate key chapter concepts, including real-world fraud examples such as WorldCom, Enron, Andersen, etc.
  • Industry Focus Cases: These cases use examples from specific industries to provide students with detailed, “real world” illustration of points emphasized in the text and show the importance of having a thorough knowledge of the audit client’s business.
  • Illustrative Documents in the procedural chapters (11-17) provide concise, realistic examples of the documents associated with the various transaction cycles.
  • Authors-written supplements: Whittington and Pany continue to author all of their own supplements, ensuring that the text, study guide, and test bank material are consistent throughout the package.

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