Name: Principles of External Auditing By Brenda Porter
SKU: 9780470974452
Price: 11.69 USD
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Principles of External Auditing Summary

Principles of External Auditing by Brenda Porter

Principles of External Auditing 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. The 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. Brenda Porter is currently visiting Professor at Exeter University and Chulalongkorn University, Bangkok.

About Brenda Porter

Brenda Porter is Head of School of Accounting and Law at Victoria University, Wellington New Zealand.

Jon Simon is Lecturer in Accounting & Finance at the University of Hull Business School David Hatherly is Professor of Accounting at the University of Edinburgh Management School.

About the Authors xi Preface xiii Structure of the Financial Reporting Council xvii Glossary of Terms xix 1 What is Auditing? 1 1.1 Introduction 1 1.2 What is an audit? 2 1.3 Types of audit 3 1.4 Auditing vs Accounting 8 1.5 Why are external fi nancial statement audits needed? 8 1.6 Benefi ts derived from external fi nancial statement audits 11 1.7 Summary 18 Self-review questions 18 References 19 Additional reading 20 2 The Development of Auditing and Its Objectives 23 2.1 Introduction 23 2.2 Overview of the development of company auditing 23 2.3 Development of auditing in the period up to 1844 26 2.4 Development of company auditing 1844 1920s 27 2.5 Development of company auditing 1920s 1960s 32 2.6 Development of company auditing 1960s 1990s 36 2.7 Development of company auditing 1990s present 39 2.8 Summary 51 Self-review questions 52 References 53 Additional reading 55 3 A Framework of Auditing Concepts 57 3.1 Introduction 57 3.2 Social purpose, postulates and framework for concepts of auditing 59 3.3 Concepts relating to the credibility of auditors work 60 3.4 Concepts relating to the audit process 70 3.5 Concept relating to auditors communication: reporting 86 3.6 Concepts relating to the standard of auditors performance 90 3.7 Summary 94 Self-review questions 95 References 95 Additional reading 98 4 Threats to, and Safeguarding of, Auditors Independence 99 4.1 Introduction 99 4.2 Threats to auditors independence 100 4.3 Steps taken by parliament and regulators to safeguard auditors independence 104 4.4 Other proposals to strengthen auditors independence 140 4.5 Role and responsibilities of audit committees 143 4.6 Summary 151 Self-review questions 152 References 153 Additional reading 157 5 Auditors Legal, Regulatory and Professional Responsibilities 161 5.1 Introduction 161 5.2 Reporting and auditing requirements of companies 165 5.3 Appointment, remuneration and removal of company auditors 181 5.4 Auditor client relationship 189 5.5 Auditors duties and rights 191 5.6 Audit fi rms transparency reports and governance code 207 5.7 Summary 211 Self-review questions 212 References 213 Additional reading 216 6 Auditors Duties with Respect to Fraud and Non-compliance with Laws and Regulations 217 6.1 Introduction 217 6.2 Defi nition of fraud 218 6.3 Development of auditors responsibility to detect and report fraud 220 6.4 Auditors current responsibilities to detect and report fraud 229 6.5 Aggressive earnings management 241 6.6 Auditors responsibility to detect and report non-compliance with laws and regulations 242 6.7 Auditors duty of confi dentiality to their clients 250 6.8 Summary 253 Self-review questions 254 References 255 Additional reading 257 Appendix: Examples of fraud risk factors 258 7 Overview of the Audit Process, Audit Evidence, Staffing and Documenting an Audit 261 7.1 Introduction 261 7.2 Overview of the audit process 262 7.3 Clarification of some jargon 265 7.4 Audit evidence 271 7.5 Staffi ng an audit 277 7.6 Documenting an audit 289 7.7 Summary 306 Self-review questions 307 References 309 Additional reading 310 8 Commencing an Audit: Engagement Procedures, Understanding the Client and Identifying Risks 311 8.1 Introduction 311 8.2 Pre-engagement investigation 312 8.3 Audit engagement letters 320 8.4 Understanding the client, its business and its industry and how it evaluates its performance 325 8.5 Identifying and assessing risks of material misstatement in the financial statements 332 8.6 Analytical procedures 336 8.7 Summary 340 Self-review questions 341 References 342 Additional reading 342 9 Planning the Audit; Materiality and Audit Risk 345 9.1 Introduction 345 9.2 Phases of planning an audit 346 9.3 Impact of materiality on planning an audit 350 9.4 Desired level of audit risk (desired level of assurance) 362 9.5 Impact of audit risk on planning the audit 366 9.6 Summary 375 Self-review questions 377 References 377 Additional reading 378 10 Internal Control and the External Audit 381 10.1 Introduction 381 10.2 The accounting system 382 10.3 Conceptual aspects of internal control 385 10.4 Reviewing the accounting system and evaluating its internal controls 402 10.5 Developing the audit plan 411 10.6 Compliance testing 415 10.7 Reporting internal control deficiencies to management 419 10.8 Summary 420 Self-review questions 421 References 422 Additional reading 423 11 Testing Financial Statement Assertions: Substantive Testing 425 11.1 Introduction 425 11.2 Significance of substantive testing in the audit process 426 11.3 Objectives of, and approaches to, substantive testing 428 11.4 Substantive audit procedures 433 11.5 Requirements of auditors when misstatements are detected 441 11.6 Introduction to substantive testing of inventory and accounts receivable 443 11.7 Signifi cant aspects of auditing inventory 444 11.8 Signifi cant aspects of auditing accounts receivable 452 11.9 Initial engagements 462 11.10 Summary 463 Self-review questions 463 References 464 Additional reading 465 12 Audit Sampling and Computer Assisted Auditing Techniques (CAATs) 467 12.1 Introduction 467 12.2 Meaning and importance of sampling in auditing 468 12.3 Basic terminology relating to sampling 470 12.4 Judgmental sampling vs statistical sampling and sampling methods 472 12.5 Designing and selecting samples 474 12.6 Judgmental sampling 481 12.7 Statistical sampling of attributes and variables, and pps sampling 482 12.8 Following up sample results 490 12.9 Computer assisted audit techniques 491 12.10 Summary 495 Self-review questions 496 References 497 Additional reading 497 13 Completion and Review 499 13.1 Introduction 499 13.2 Review for contingent liabilities and commitments 501 13.3 Review for subsequent events 503 13.4 (re)Assessment of the going concern assumption 508 13.5 Written representations 520 13.6 Final review of the fi nancial statements 527 13.7 Evaluation of audit evidence gathered and formation of the audit opinion 530 13.8 Review of unaudited information 533 13.9 Final conference 537 13.10 Summary 537 Self-review questions 538 References 539 Additional reading 540 14 Auditors Reports to Users of Financial Statements and to Management 543 14.1 Introduction 543 14.2 Auditors reporting obligations under the companies act 2006 544 14.3 Format and content of audit reports 549 14.4 Types of audit opinion 564 14.5 Different forms of modifi ed audit opinion 566 14.6 Emphasis of matter and other matter paragraphs 576 14.7 The audit report the auditor s chance to communicate 580 14.8 Auditors communication with those charged with governance 590 14.9 Summary 603 Self-review questions 604 References 605 Additional reading 609 15 Legal Liability of Auditors 611 15.1 Introduction 611 15.2 Overview of auditors legal liability 612 15.3 Auditors contractual liability to their clients 615 15.4 Liability to third parties under the common law 622 15.5 The effect of out-of-court settlements 661 15.6 Summary 663 Self-review questions 663 References 664 Additional reading 666 Appendix 1 667 Appendix 2 669 16 Avoiding and Limiting Auditors Liability 673 16.1 Introduction 673 16.2 Importance of, and responsibility for, quality control of audits 675 16.3 The profession s measures to secure high quality audits 676 16.4 Regulators measures for securing high quality audits 689 16.5 Proposals for limiting auditors liability 708 16.6 Summary 720 Self-review questions 721 References 722 Additional reading 725 17 Corporate Responsibility Reporting and Assurance 727 17.1 Introduction 727 17.2 Development of corporate responsibility reporting 729 17.3 Why do companies publish corporate responsibility reports? 733 17.4 Corporate responsibility reporting guidelines 743 17.5 Corporate responsibility assurance engagements 746 17.6 Why do some companies have their corporate responsibility reports independently assured while others do not? 763 17.7 Relevance of corporate responsibility issues to external financial statement audits 766 17.8 Summary 772 Self-review questions 773 References 774 Additional reading 777 Appendix: Brief descriptions of responsible investment indices 777 18 The Audit Expectation-Performance Gap and Proposals for Reforming the External Audit Function 783 18.1 Introduction 783 18.2 The audit expectation-performance gap 784 18.3 Overview of proposed reforms following the global financial crisis 798 18.4 Enhancing auditors reporting responsibilities 799 18.5 Audit market concentration and strengthening auditors independence 816 18.6 Emergence of competition from china 837 18.7 Inherent conflicts in the current audit model 839 18.8 Summary 841 Self-review questions 842 References 843 Additional reading 849 Index 851

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Sku

CIN0470974451G

ISBN 13

9780470974452

ISBN 10

0470974451

Title

Principles of External Auditing by Brenda Porter

Author

Brenda Porter

Condition

Used - Good

Binding type

Paperback

Publisher

John Wiley & Sons Inc

Year published

20140207

Number of pages

882

Prizes

N/A

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Book picture is for illustrative purposes only, actual binding, cover or edition may vary.

Note

This is a used book - there is no escaping the fact it has been read by someone else and it will show signs of wear and previous use. Overall we expect it to be in good condition, but if you are not entirely satisfied please get in touch with us

Principles of External Auditing Brenda Porter

Principles of External Auditing by Brenda Porter

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