Auditing and Assurance Services: A Systematic Approach, 4/e
William F. Messier,
Georgia State University Steven Glover,
Brigham Young University--Provo Douglas Prawitt,
Brigham Young University--Provo
ISBN: 0073137537 Copyright year: 2006
What's New
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
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