Auditing & Assurance Services: A Systematic Approach, 10th Edition

The fundamental values central to the Messier Jr./Glover/Prawitt text include: student engagement, a systematic approach, and decision making.Student Engagement: The authors believe students are best served by acquiring a strong understanding of the basic concepts that underlie the audit process and how to apply those concepts to various audit and assurance services. The text is accessible to students through straightforward writing and the use of engaging, relevant real-world examples, illustrations, and analogies. The text explicitly encourages students to “stop and think” at important points in the text to help them apply principles covered and also helps students see the application of concepts in a practical setting through “practice insight” boxes.

A Systematic Approach: The authors first introduce the three underlying concepts of audit risk, materiality, and evidence, then follow with a discussion of audit planning, the assessment of control risk, and a discussion of the nature, timing, and extent of evidence necessary to reach the appropriate level of detection risk. These concepts are then applied to each major business process and related account balances using a risk-based approach, (in following with the new standards adopted by the various auditing boards).

Decision Making: Since much of auditing practice involves the application of auditor judgment, the authors focus on critical judgments and decision-making processes. 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. The new edition even includes a full advanced module on Professional Judgment.

Table of Contents

PART 1 Introduction to Assurance and Financial Statement Auditing
Chapter 1 An Introduction to Assurance and Financial Statement Auditing
Chapter 2 The Financial Statement Auditing Environment

PART 2 Audit Planning and Basic Auditing Concepts
Chapter 3 Audit Planning, Types of Audit Tests, and Materiality
Chapter 4 Risk Assessment
CHAPTER 5 Evidence and Documentation

PART 3 Understanding and Auditing Internal Control
Chapter 6 Internal Control in a Financial Statement Audit
Chapter 7 Auditing Internal Control over Financial Reporting

PART 4 Statistical and Nonstatistical Sampling Tools for Auditing
Chapter 8 Audit Sampling: An Overview and Application to Tests of Controls
Chapter 9 Audit Sampling: An Application to Substantive Tests of Account Balances

PART 5 Auditing Business Processes
Chapter 10 Auditing the Revenue Process
Chapter 11 Auditing the Purchasing Process
Chapter 12 Auditing the Human Resource Management Process
Chapter 13 Auditing the Inventory Management Process
Chapter 14 Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment
Chapter 15 Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders’ Equity, and Income Statement Accounts
Chapter 16 Auditing the Financing/Investing Process: Cash and Investments

PART 6 Completing the Audit and Reporting Responsibilities
Chapter 17 Completing the Audit Engagement
Chapter 18 Reports on Audited Financial Statements

PART 7 Professional Responsibilities
Chapter 19 Professional Conduct, Independence, and Quality Control
Chapter 20 Legal Liability

PART 8 Assurance, Attestation, and Internal Auditing Services
Chapter 21 Assurance, Attestation, and Internal Auditing Services

Advanced Module: Professonal Judgment Framework—Understanding and Developing Professional Judgment in Auditing