Contents
Preface
List of figures and tables
1. An introduction to auditing and assurance
Learning objectives
Introduction
Questions about the critical role of auditors
The nature and objectives of auditing
Recent changes in the audit environment
A theoretical approach towards auditing
Debating the historical perspective of auditing concepts
The demand for assurance services: An economic explanation
Attestation services
Concluding remarks
Review Questions
Discussion Questions
Bibliography
Notes
2.Demand for and supply of external audit services
Learning objectives
Introduction
Debating audit expectations
Demand and supply of audit
Parties demanding financial statement information
The problem of Information asymmetry
The economics of information
Supply of financial statement information (mandatory and voluntary disclosures)
Factors affecting corporate financial disclosure
External auditors and supply and demand of financial information
Demand for auditing
Conditions creating demand for auditing
Theoretical explanations of the demand for audit services
Concluding remarks
Review questions
Discussion questions
Bibliography
Notes
3.Auditing, organization and governance
Leaning objectives
Introduction
Auditing and organizations
The economics of corporate governance
The governance malaise
Essential elements of corporate governance
Corporate governance and corporate reporting
External auditing and corporate governance as a multidisciplinary field
Concluding remarks
Review questions
Discussion questions
Bibliography
Notes
4.The audit committee, internal and external auditing
Learning Objectives
Introduction
Overview of governance mechanisms
An overview of audit committee and its place in corporate governance structure
Basic functions of the audit committee
Evolution of the role of the audit committee
Audit committee independence
Economic determinants of audit committee independence
Oversight role of the audit committee in corporate financial reporting
The relationship between the audit committee and internal auditing
Oversight role of the audit committee in the area of the companys financial risks and internal control
The audit committee and independent auditors
Audit committee and compliance with laws and codes of conduct
Concluding remarks
Review questions
Discussion questions
Appendices
Bibliography
Notes
5.International Auditing and Assurance Services
Learning objectives
Introduction
Generally Accepted Auditing Standards in the US
The IFAC and the international harmonization of auditing standards
International Standards on Auditing (ISAs)
The role of the International Auditing Practices Committee in setting International Standards on Auditing
The role, composition, and objectives of the IAASB
The frameworkof International Standards on Auditing
General principles of an audit
The International Standard on Assurance Engagements (ISAE 3000)
Principles and essential procedures for assurance engagements
Harmonization of accounting standards
Concluding remarks
Review questions
Discussion questions
Bibliography
Notes
