{"product_id":"principles-of-external-auditing-isbn-9780470974452","title":"Principles of External Auditing","description":"\u003cp\u003e\u003ci\u003ePrinciples of External Auditing\u003c\/i\u003e has become established as one of the leading textbooks for students studying auditing. Striking a careful balance between theory and practice, the book describes and explains, in non-technical language, the nature of the audit function and the principles of the audit process.\u003c\/p\u003e \u003cp\u003eThe book covers international auditing and accounting standards and relevant statute and case law. It explains the fundamental concepts of auditing and takes the reader through the various stages of the audit process. It also discusses topical aspects of auditing such as legal liability, audit risk, quality control, and the impact of information technology.\u003c\/p\u003e \u003cp\u003eBrenda Porter is currently visiting Professor at Exeter University and Chulalongkorn University, Bangkok.\u003c\/p\u003e  About the Authors xi  \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eStructure of the Financial Reporting Council xvii\u003c\/p\u003e \u003cp\u003eGlossary of Terms xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 What is Auditing? 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Introduction 1\u003c\/p\u003e \u003cp\u003e1.2 What is an audit? 2\u003c\/p\u003e \u003cp\u003e1.3 Types of audit 3\u003c\/p\u003e \u003cp\u003e1.4 Auditing vs Accounting 8\u003c\/p\u003e \u003cp\u003e1.5 Why are external fi nancial statement audits needed? 8\u003c\/p\u003e \u003cp\u003e1.6 Benefi ts derived from external fi nancial statement audits 11\u003c\/p\u003e \u003cp\u003e1.7 Summary 18\u003c\/p\u003e \u003cp\u003eSelf-review questions 18\u003c\/p\u003e \u003cp\u003eReferences 19\u003c\/p\u003e \u003cp\u003eAdditional reading 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Development of Auditing and Its Objectives 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Introduction 23\u003c\/p\u003e \u003cp\u003e2.2 Overview of the development of company auditing 23\u003c\/p\u003e \u003cp\u003e2.3 Development of auditing in the period up to 1844 26\u003c\/p\u003e \u003cp\u003e2.4 Development of company auditing 1844–1920s 27\u003c\/p\u003e \u003cp\u003e2.5 Development of company auditing 1920s–1960s 32\u003c\/p\u003e \u003cp\u003e2.6 Development of company auditing 1960s–1990s 36\u003c\/p\u003e \u003cp\u003e2.7 Development of company auditing 1990s–present 39\u003c\/p\u003e \u003cp\u003e2.8 Summary 51\u003c\/p\u003e \u003cp\u003eSelf-review questions 52\u003c\/p\u003e \u003cp\u003eReferences 53\u003c\/p\u003e \u003cp\u003eAdditional reading 55\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 A Framework of Auditing Concepts 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Introduction 57\u003c\/p\u003e \u003cp\u003e3.2 Social purpose, postulates and framework for concepts of auditing 59\u003c\/p\u003e \u003cp\u003e3.3 Concepts relating to the credibility of auditors’ work 60\u003c\/p\u003e \u003cp\u003e3.4 Concepts relating to the audit process 70\u003c\/p\u003e \u003cp\u003e3.5 Concept relating to auditors’ communication: reporting 86\u003c\/p\u003e \u003cp\u003e3.6 Concepts relating to the standard of auditors’ performance 90\u003c\/p\u003e \u003cp\u003e3.7 Summary 94\u003c\/p\u003e \u003cp\u003eSelf-review questions 95\u003c\/p\u003e \u003cp\u003eReferences 95\u003c\/p\u003e \u003cp\u003eAdditional reading 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Threats to, and Safeguarding of, Auditors’ Independence 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Introduction 99\u003c\/p\u003e \u003cp\u003e4.2 Threats to auditors’ independence 100\u003c\/p\u003e \u003cp\u003e4.3 Steps taken by parliament and regulators to safeguard auditors’ independence 104\u003c\/p\u003e \u003cp\u003e4.4 Other proposals to strengthen auditors’ independence 140\u003c\/p\u003e \u003cp\u003e4.5 Role and responsibilities of audit committees 143\u003c\/p\u003e \u003cp\u003e4.6 Summary 151\u003c\/p\u003e \u003cp\u003eSelf-review questions 152\u003c\/p\u003e \u003cp\u003eReferences 153\u003c\/p\u003e \u003cp\u003eAdditional reading 157\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Auditors’ Legal, Regulatory and Professional Responsibilities 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Introduction 161\u003c\/p\u003e \u003cp\u003e5.2 Reporting and auditing requirements of companies 165\u003c\/p\u003e \u003cp\u003e5.3 Appointment, remuneration and removal of company auditors 181\u003c\/p\u003e \u003cp\u003e5.4 Auditor–client relationship 189\u003c\/p\u003e \u003cp\u003e5.5 Auditors’ duties and rights 191\u003c\/p\u003e \u003cp\u003e5.6 Audit fi rms’ transparency reports and governance code 207\u003c\/p\u003e \u003cp\u003e5.7 Summary 211\u003c\/p\u003e \u003cp\u003eSelf-review questions 212\u003c\/p\u003e \u003cp\u003eReferences 213\u003c\/p\u003e \u003cp\u003eAdditional reading 216\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Auditors’ Duties with Respect to Fraud and Non-compliance with Laws and Regulations 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Introduction 217\u003c\/p\u003e \u003cp\u003e6.2 Defi nition of fraud 218\u003c\/p\u003e \u003cp\u003e6.3 Development of auditors’ responsibility to detect and report fraud 220\u003c\/p\u003e \u003cp\u003e6.4 Auditors’ current responsibilities to detect and report fraud 229\u003c\/p\u003e \u003cp\u003e6.5 Aggressive earnings management 241\u003c\/p\u003e \u003cp\u003e6.6 Auditors’ responsibility to detect and report non-compliance with laws and regulations 242\u003c\/p\u003e \u003cp\u003e6.7 Auditors’ duty of confi dentiality to their clients 250\u003c\/p\u003e \u003cp\u003e6.8 Summary 253\u003c\/p\u003e \u003cp\u003eSelf-review questions 254\u003c\/p\u003e \u003cp\u003eReferences 255\u003c\/p\u003e \u003cp\u003eAdditional reading 257\u003c\/p\u003e \u003cp\u003eAppendix: Examples of fraud risk factors 258\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Overview of the Audit Process, Audit Evidence, Staffing and Documenting an Audit 261\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Introduction 261\u003c\/p\u003e \u003cp\u003e7.2 Overview of the audit process 262\u003c\/p\u003e \u003cp\u003e7.3 Clarification of some jargon 265\u003c\/p\u003e \u003cp\u003e7.4 Audit evidence 271\u003c\/p\u003e \u003cp\u003e7.5 Staffi ng an audit 277\u003c\/p\u003e \u003cp\u003e7.6 Documenting an audit 289\u003c\/p\u003e \u003cp\u003e7.7 Summary 306\u003c\/p\u003e \u003cp\u003eSelf-review questions 307\u003c\/p\u003e \u003cp\u003eReferences 309\u003c\/p\u003e \u003cp\u003eAdditional reading 310\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Commencing an Audit: Engagement Procedures, Understanding the Client and Identifying Risks 311\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Introduction 311\u003c\/p\u003e \u003cp\u003e8.2 Pre-engagement investigation 312\u003c\/p\u003e \u003cp\u003e8.3 Audit engagement letters 320\u003c\/p\u003e \u003cp\u003e8.4 Understanding the client, its business and its industry and how it evaluates its performance 325\u003c\/p\u003e \u003cp\u003e8.5 Identifying and assessing risks of material misstatement in the financial statements 332\u003c\/p\u003e \u003cp\u003e8.6 Analytical procedures 336\u003c\/p\u003e \u003cp\u003e8.7 Summary 340\u003c\/p\u003e \u003cp\u003eSelf-review questions 341\u003c\/p\u003e \u003cp\u003eReferences 342\u003c\/p\u003e \u003cp\u003eAdditional reading 342\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Planning the Audit; Materiality and Audit Risk 345\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Introduction 345\u003c\/p\u003e \u003cp\u003e9.2 Phases of planning an audit 346\u003c\/p\u003e \u003cp\u003e9.3 Impact of materiality on planning an audit 350\u003c\/p\u003e \u003cp\u003e9.4 Desired level of audit risk (desired level of assurance) 362\u003c\/p\u003e \u003cp\u003e9.5 Impact of audit risk on planning the audit 366\u003c\/p\u003e \u003cp\u003e9.6 Summary 375\u003c\/p\u003e \u003cp\u003eSelf-review questions 377\u003c\/p\u003e \u003cp\u003eReferences 377\u003c\/p\u003e \u003cp\u003eAdditional reading 378\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Internal Control and the External Audit 381\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Introduction 381\u003c\/p\u003e \u003cp\u003e10.2 The accounting system 382\u003c\/p\u003e \u003cp\u003e10.3 Conceptual aspects of internal control 385\u003c\/p\u003e \u003cp\u003e10.4 Reviewing the accounting system and evaluating its internal controls 402\u003c\/p\u003e \u003cp\u003e10.5 Developing the audit plan 411\u003c\/p\u003e \u003cp\u003e10.6 Compliance testing 415\u003c\/p\u003e \u003cp\u003e10.7 Reporting internal control deficiencies to management 419\u003c\/p\u003e \u003cp\u003e10.8 Summary 420\u003c\/p\u003e \u003cp\u003eSelf-review questions 421\u003c\/p\u003e \u003cp\u003eReferences 422\u003c\/p\u003e \u003cp\u003eAdditional reading 423\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Testing Financial Statement Assertions: Substantive Testing 425\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 Introduction 425\u003c\/p\u003e \u003cp\u003e11.2 Significance of substantive testing in the audit process 426\u003c\/p\u003e \u003cp\u003e11.3 Objectives of, and approaches to, substantive testing 428\u003c\/p\u003e \u003cp\u003e11.4 Substantive audit procedures 433\u003c\/p\u003e \u003cp\u003e11.5 Requirements of auditors when misstatements are detected 441\u003c\/p\u003e \u003cp\u003e11.6 Introduction to substantive testing of inventory and accounts receivable 443\u003c\/p\u003e \u003cp\u003e11.7 Signifi cant aspects of auditing inventory 444\u003c\/p\u003e \u003cp\u003e11.8 Signifi cant aspects of auditing accounts receivable 452\u003c\/p\u003e \u003cp\u003e11.9 Initial engagements 462\u003c\/p\u003e \u003cp\u003e11.10 Summary 463\u003c\/p\u003e \u003cp\u003eSelf-review questions 463\u003c\/p\u003e \u003cp\u003eReferences 464\u003c\/p\u003e \u003cp\u003eAdditional reading 465\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Audit Sampling and Computer Assisted Auditing Techniques (CAATs) 467\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Introduction 467\u003c\/p\u003e \u003cp\u003e12.2 Meaning and importance of sampling in auditing 468\u003c\/p\u003e \u003cp\u003e12.3 Basic terminology relating to sampling 470\u003c\/p\u003e \u003cp\u003e12.4 Judgmental sampling vs statistical sampling and sampling methods 472\u003c\/p\u003e \u003cp\u003e12.5 Designing and selecting samples 474\u003c\/p\u003e \u003cp\u003e12.6 Judgmental sampling 481\u003c\/p\u003e \u003cp\u003e12.7 Statistical sampling of attributes and variables, and pps sampling 482\u003c\/p\u003e \u003cp\u003e12.8 Following up sample results 490\u003c\/p\u003e \u003cp\u003e12.9 Computer assisted audit techniques 491\u003c\/p\u003e \u003cp\u003e12.10 Summary 495\u003c\/p\u003e \u003cp\u003eSelf-review questions 496\u003c\/p\u003e \u003cp\u003eReferences 497\u003c\/p\u003e \u003cp\u003eAdditional reading 497\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Completion and Review 499\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Introduction 499\u003c\/p\u003e \u003cp\u003e13.2 Review for contingent liabilities and commitments 501\u003c\/p\u003e \u003cp\u003e13.3 Review for subsequent events 503\u003c\/p\u003e \u003cp\u003e13.4 (re)Assessment of the going concern assumption 508\u003c\/p\u003e \u003cp\u003e13.5 Written representations 520\u003c\/p\u003e \u003cp\u003e13.6 Final review of the fi nancial statements 527\u003c\/p\u003e \u003cp\u003e13.7 Evaluation of audit evidence gathered and formation of the audit opinion 530\u003c\/p\u003e \u003cp\u003e13.8 Review of unaudited information 533\u003c\/p\u003e \u003cp\u003e13.9 Final conference 537\u003c\/p\u003e \u003cp\u003e13.10 Summary 537\u003c\/p\u003e \u003cp\u003eSelf-review questions 538\u003c\/p\u003e \u003cp\u003eReferences 539\u003c\/p\u003e \u003cp\u003eAdditional reading 540\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Auditors’ Reports to Users of Financial Statements and to Management 543\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Introduction 543\u003c\/p\u003e \u003cp\u003e14.2 Auditors’ reporting obligations under the companies act 2006 544\u003c\/p\u003e \u003cp\u003e14.3 Format and content of audit reports 549\u003c\/p\u003e \u003cp\u003e14.4 Types of audit opinion 564\u003c\/p\u003e \u003cp\u003e14.5 Different forms of modifi ed audit opinion 566\u003c\/p\u003e \u003cp\u003e14.6 Emphasis of matter and other matter paragraphs 576\u003c\/p\u003e \u003cp\u003e14.7 The audit report – the auditor’s chance to communicate 580\u003c\/p\u003e \u003cp\u003e14.8 Auditors’ communication with those charged with governance 590\u003c\/p\u003e \u003cp\u003e14.9 Summary 603\u003c\/p\u003e \u003cp\u003eSelf-review questions 604\u003c\/p\u003e \u003cp\u003eReferences 605\u003c\/p\u003e \u003cp\u003eAdditional reading 609\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Legal Liability of Auditors 611\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Introduction 611\u003c\/p\u003e \u003cp\u003e15.2 Overview of auditors’ legal liability 612\u003c\/p\u003e \u003cp\u003e15.3 Auditors’ contractual liability to their clients 615\u003c\/p\u003e \u003cp\u003e15.4 Liability to third parties under the common law 622\u003c\/p\u003e \u003cp\u003e15.5 The effect of out-of-court settlements 661\u003c\/p\u003e \u003cp\u003e15.6 Summary 663\u003c\/p\u003e \u003cp\u003eSelf-review questions 663\u003c\/p\u003e \u003cp\u003eReferences 664\u003c\/p\u003e \u003cp\u003eAdditional reading 666\u003c\/p\u003e \u003cp\u003eAppendix 1 667\u003c\/p\u003e \u003cp\u003eAppendix 2 669\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Avoiding and Limiting Auditors’ Liability 673\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Introduction 673\u003c\/p\u003e \u003cp\u003e16.2 Importance of, and responsibility for, quality control of audits 675\u003c\/p\u003e \u003cp\u003e16.3 The profession’s measures to secure high quality audits 676\u003c\/p\u003e \u003cp\u003e16.4 Regulators’ measures for securing high quality audits 689\u003c\/p\u003e \u003cp\u003e16.5 Proposals for limiting auditors’ liability 708\u003c\/p\u003e \u003cp\u003e16.6 Summary 720\u003c\/p\u003e \u003cp\u003eSelf-review questions 721\u003c\/p\u003e \u003cp\u003eReferences 722\u003c\/p\u003e \u003cp\u003eAdditional reading 725\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Corporate Responsibility Reporting and Assurance 727\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 Introduction 727\u003c\/p\u003e \u003cp\u003e17.2 Development of corporate responsibility reporting 729\u003c\/p\u003e \u003cp\u003e17.3 Why do companies publish corporate responsibility reports? 733\u003c\/p\u003e \u003cp\u003e17.4 Corporate responsibility reporting guidelines 743\u003c\/p\u003e \u003cp\u003e17.5 Corporate responsibility assurance engagements 746\u003c\/p\u003e \u003cp\u003e17.6 Why do some companies have their corporate responsibility reports independently assured while others do not? 763\u003c\/p\u003e \u003cp\u003e17.7 Relevance of corporate responsibility issues to external financial statement audits 766\u003c\/p\u003e \u003cp\u003e17.8 Summary 772\u003c\/p\u003e \u003cp\u003eSelf-review questions 773\u003c\/p\u003e \u003cp\u003eReferences 774\u003c\/p\u003e \u003cp\u003eAdditional reading 777\u003c\/p\u003e \u003cp\u003eAppendix: Brief descriptions of ‘responsible investment’ indices 777\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 The Audit Expectation-Performance Gap and Proposals for Reforming the External Audit Function 783\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 Introduction 783\u003c\/p\u003e \u003cp\u003e18.2 The audit expectation-performance gap 784\u003c\/p\u003e \u003cp\u003e18.3 Overview of proposed reforms following the global financial crisis 798\u003c\/p\u003e \u003cp\u003e18.4 Enhancing auditors’ reporting responsibilities 799\u003c\/p\u003e \u003cp\u003e18.5 Audit market concentration and strengthening auditors’ independence 816\u003c\/p\u003e \u003cp\u003e18.6 Emergence of competition from china 837\u003c\/p\u003e \u003cp\u003e18.7 Inherent conflicts in the current audit model 839\u003c\/p\u003e \u003cp\u003e18.8 Summary 841\u003c\/p\u003e \u003cp\u003eSelf-review questions 842\u003c\/p\u003e \u003cp\u003eReferences 843\u003c\/p\u003e \u003cp\u003eAdditional reading 849\u003c\/p\u003e \u003cp\u003eIndex 851\u003c\/p\u003e  \u003cp\u003e\u003cstrong\u003eBrenda Porter\u003c\/strong\u003e is Head of School of Accounting and Law at Victoria University, Wellington New Zealand. \u003c\/p\u003e\u003cp\u003e\u003cstrong\u003eJon Simon\u003c\/strong\u003e is Lecturer in Accounting \u0026amp; Finance at the University of Hull Business School \u003cstrong\u003eDavid Hatherly\u003c\/strong\u003e is Professor of Accounting at the University of Edinburgh Management School.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989851619557,"sku":"NP9780470974452","price":61.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470974452.jpg?v=1761785673","url":"https:\/\/k12savings.com\/es\/products\/principles-of-external-auditing-isbn-9780470974452","provider":"K12savings","version":"1.0","type":"link"}