| Description |
xxvi, 829 pages : illustrations ; 26 cm |
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regular print |
| Contents |
Contents note continued: 10.1.5.The relationship between materiality and audit evidence -- 10.2.Audit strategies -- 10.2.1.Developing the audit strategy -- 10.2.2.The relationship between strategies and transaction classes -- 10.3.Audit evidence -- 10.3.1.Auditor's objectives as responses to assessed risks -- 10.3.2.The nature of audit evidence -- 10.3.3.The auditing standard applying to evidence -- 10.3.4.Types of corroborating information -- 10.4.Auditing procedures -- 10.4.1.Types of auditing procedures -- 10.4.2.The relationships among auditing procedures, types of evidence and assertions -- 10.4.3.Classification of auditing procedures -- 10.4.4.Evaluation of evidence obtained -- pt. 3 AUDIT TESTING METHODOLOGY -- 11.Tests of controls -- 11.1.Control risk assessment and audit strategy -- 11.1.1.Assessing the control risk -- 11.1.2.Audit strategy -- 11.2.Tests of controls -- 11.2.1.Designing tests -- 11.2.2.Audit programs for tests of controls -- |
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Contents note continued: 11.3.Using internal auditors -- 11.3.1.Coordination with internal auditors -- 11.4.Final assessment of control risk -- 11.4.1.Documenting the assessed level of control risk -- 11.5.Communication of internal control matters -- 11.6.Types of controls in an information technology environment -- 11.7.Computer-assisted audit techniques -- 11.7.1.Test data -- 11.7.2.Integrated test facility -- 11.7.3.Parallel simulation -- 11.7.4.Continuous monitoring of online real-time systems -- 11.7.5.Assessing and testing IT controls -- 12.Designing substantive procedures -- 12.1.Assessing the risk of material misstatement -- 12.1.1.The type of potential misstatement -- 12.1.2.The magnitude of potential misstatements -- 12.1.3.The likelihood of material misstatement -- 12.2.Determining detection risk -- 12.2.1.Predominantly substantive approach -- 12.3.Designing substantive procedures -- 12.3.1.Nature -- 12.3.2.Timing -- 12.3.3.Extent -- |
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Contents note continued: 12.3.4.Computer-assisted audit techniques as substantive procedures -- 12.3.5.Audit risk and choice of substantive procedures -- 12.4.Developing audit programs for substantive procedures -- 12.4.1.Framework for developing audit programs -- 12.4.2.Audit programs in initial engagements -- 12.4.3.Assertions, audit objectives and substantive procedures -- 12.4.4.Illustrative audit program -- 12.5.Special considerations when designing substantive procedures -- 12.5.1.Income statement accounts -- 12.5.2.Accounts involving accounting estimates including fair value accounting estimates and related disclosures -- 12.5.3.Fair value accounting estimates and related disclosures -- 12.5.4.Related parties -- 12.5.5.Specific considerations tor inventory and segment information -- 12.5.6.External confirmations -- 13.Audit sampling -- 13.1.Basic concepts of sampling -- 13.1.1.Sampling risk and non-sampling risk -- 13.1.2.Statistical and non-statistical sampling -- |
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Contents note continued: 13.1.3.Types of testing -- 13.2.Use of samples for audit tests -- 13.2.1.Planning the sample -- 13.2.2.Selecting and testing the sample -- 13.2.3.Evaluating the results -- 13.3.Statistical sampling techniques -- 13.3.1.Attribute sampling plans -- 13.3.2.Variable sampling plans -- 13.3.3.Probability-proportional-to-size sampling -- 13.3.4.Choice of statistical sampling method -- 13.4.Non-statistical sampling techniques -- 13.4.1.Why use non-statistical sampling? -- 13.4.2.Formal and informal non-statistical sampling -- pt. 4 AUDITING TRANSACTIONS AND BALANCES -- 14.Auditing sales and receivables -- 14.1.Brief summary of audit procedures -- 14.2.Audit objectives -- 14.3.Sales, cash receipts and sales adjustment transactions -- 14.3.1.Credit sales transactions -- 14.3.2.Cash receipts transactions -- 14.3.3.Sales adjustment transactions -- 14.4.Developing the audit plan -- 14.4.1.Understanding the entity and the identification of inherent risks -- |
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Contents note continued: 14.4.2.Internal control components -- 14.4.3.Assessment of control risk -- 14.4.4.Tests of operating effectiveness -- 14.4.5.Final assessment -- 14.5.Substantive procedures -- 14.5.1.Determining detection risk -- 14.5.2.Designing substantive procedures -- 15.Auditing purchases, payables and payroll -- 15.1.Brief summary of audit procedures -- 15.2.Audit objectives -- 15.3.Purchase, payment and purchase adjustment transactions -- 15.3.1.Purchase transactions -- 15.3.2.Payment transactions -- 15.4.Payroll transactions -- 15.5.Developing the audit plan -- 15.5.1.Understanding the entity and the identification of inherent risks -- 15.5.2.Internal control environment -- 15.5.3.Assessment of control risk -- 15.5.4.Final assessment -- 15.6.Substantive procedures -- 15.6.1.Determining detection risk -- 15.6.2.Designing substantive procedures -- 16.Auditing inventories and property, plant and equipment -- 16.1.Brief summary of audit procedures -- 16.2.Inventory -- |
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Contents note continued: 16.2.1.Audit objectives -- 16.2.2.Recording inventory transactions -- 16.2.3.Developing the audit plan -- 16.2.4.Substantive procedures for inventories -- 16.3.Property, plant and equipment -- 16.3.1.Audit objectives -- 16.3.2.Developing the audit plan -- 16.3.3.Substantive procedures for property, plant and equipment -- 17.Auditing cash and investments -- 17.1.Brief summary of audit procedures -- 17.2.Cash -- 17.2.1.Audit objectives -- 17.2.2.Developing the audit plan -- 17.2.3.Substantive procedures for cash balances -- 17.2.4.Other issues -- 17.3.Investments -- 17.3.1.Audit objectives -- 17.3.2.Developing the audit plan -- 17.3.3.Substantive procedures for investments -- 17.3.4.Substantive procedures for consolidated financial statements -- pt. 5 COMPLETING THE AUDIT -- 18.Completing the audit -- 18.1.Completing the fieldwork -- 18.1.1.Undertaking a review of subsequent events -- 18.1.2.Considering the appropriateness of the going concern assumption -- |
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Contents note continued: 18.1.3.Reviewing for contingent liabilities -- 18.1.4.Written representations -- 18.1.5.Performing analytical procedures -- 18.2.Evaluating the findings -- 18.2.1.Making the final assessment of materiality and audit risk -- 18.2.2.Undertaking the technical review of the financial statements -- 18.2.3.Undertaking the final review(s) of working papers -- 18.2.4.Formulating an opinion and drafting the auditor's report -- 18.3.Communicating with the entity -- 18.3.1.Communication of audit matters with those charged with governance -- 18.3.2.Communicating matters with the audit committee |
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Contents note continued: 2.2.2.The role of the auditor in enterprise governance -- 2.2.3.Corporate governance (conformance) and the auditing function -- 2.2.4.Business governance (performance) and auditing and assurance services -- 2.2.5.The audit trinity concept -- 2.3.Issues in governance -- 2.3.1.Risk management and internal control -- 2.3.2.Financial misstatements --- earnings management -- 2.4.Internal and operational auditing in the governance process -- 2.4.1.Internal auditing -- 2.4.2.Operational auditing -- 2.4.3.The widening role of internal audit -- 2.5.Enhancing accountability through the audit committee -- 2.5.1.The role and objectives of the audit committee -- 2.6.Governance in the public sector -- 2.6.1.The requirements of public accountability -- 2.6.2.Parliamentary committees -- 2.6.3.The auditor-general and the Australian National Audit Office -- 2.6.4.Audit mandates -- 2.6.5.Financial statement audits -- 2.6.6.Performance auditing -- |
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Contents note continued: 2.6.7.Performance engagements -- 3.Professional ethics, independence and audit quality -- 3.1.The role of the professional accountant -- 3.1.1.The concept of a profession -- 3.1.2.The duties of a professional accountant -- 3.2.Professional ethics and the accountant -- 3.2.1.An understanding of ethics and ethical issues -- 3.2.2.Professional ethics for accountants -- 3.2.3.The Code of Ethics for Professional Accountants -- 3.3.Professional independence -- 3.3.1.Statutory provisions enhancing auditors' independence -- 3.3.2.Independence of mind and in appearance -- 3.3.3.Independence for audit and review engagements --- a conceptual approach -- 3.3.4.Other current recommendations for enhancing independence -- 3.3.5.Monitoring auditor independence -- 3.4.Corporate collapses and reforms -- 3.4.1.Accounting crises and corporate collapses -- 3.4.2.The ASIC surveillance program -- 3.4.3.The spate of reforms -- 3.5.Audit quality -- 3.5.1.Technical competence -- |
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Contents note continued: 3.5.2.Ethical competence the --- the significance of ethical values in auditing -- 3.5.3.Quality controls in auditing firms -- 3.6.Professional discipline -- 3.6.1.Disciplinary procedures -- 4.Other assurance engagements and quality standards -- 4.1.Assurance engagement standards -- 4.1.1.The assurance engagement framework -- 4.1.2.Categories of assurance engagements -- 4.2.Assurance engagements involving historical financial information -- 4.2.1.Audits of historical financial information -- 4.2.2.Review engagements relating to financial reports and other historical financial information -- 4.3.Assurance engagements other than audits or reviews of historical financial information -- 4.4.Examples of assurance engagements other than those relating to historical financial information -- 4.4.1.Compliance engagements -- 4.4.2.Performance engagements -- 4.4.3.Prospective financial information -- 4.4.4.Effectiveness of control procedures -- |
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Contents note continued: 4.4.5.Sustainability assurance reports -- 4.4.6.Forensic auditing engagements -- 4.4.7.Continuous audit -- 4.5.Quality management and the assurance practitioner -- 4.5.1.The ISO standards -- 4.5.2.Total quality management and the assurance practitioner -- 5.The auditor's legal liability -- 5.1.The legal environment -- 5.1.1.The litigation crisis -- 5.1.2.The professional standards legislation -- 5.1.3.The impact of the CLERP 9 Act -- 5.2.Liability to shareholders and auditees -- 5.2.1.Due care -- 5.2.2.Negligence -- 5.2.3.Privity of contract -- 5.2.4.Causal relationship -- 5.2.5.Contributory negligence -- 5.2.6.Damages -- 5.3.Liability to third parties -- 5.3.1.Proximity -- 5.3.2.Avoidance of litigation -- 5.4.Competition and consumer legislation -- 5.5.The global financial crisis (GFC) and potential liabilities for auditors -- pt. 2 AUDIT PLANNING -- 6.Overview of the audit of financial reports -- 6.1.The appointment of an independent auditor -- |
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Contents note continued: 6.1.1.Principles of the appointment of auditors -- 6.1.2.The removal and resignation of auditors -- 6.1.3.The registration of auditors -- 6.2.Duties of an independent auditor -- 6.2.1.The duty to use reasonable care and skill -- 6.2.2.The duly to be independent -- 6.2.3.Statutory duties to report to members and to ASIC -- 6.2.4.Professional duties -- 6.3.Auditing standards -- 6.3.1.The standard-setting framework -- 6.3.2.The development and importance of auditing standards -- 6.4.Independent auditor relationships -- 6.4.1.Shareholders -- 6.4.2.The board of directors and audit committee -- 6.4.3.Internal auditors -- 6.4.4.Management -- 6.5.Management and the auditor --- responsibilities -- 6.5.1.The relationship between accounting and auditing -- 6.5.2.The division of responsibility -- 6.6.Benefits and limitations of an audit -- 6.6.1.Benefits -- 6.6.2.Limitations -- 6.7.An overview of the audit process -- 7.The auditor's report -- |
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Contents note continued: 7.1.Standards of reporting -- 7.1.1.Financial statements -- 7.1.2.Accounting standards -- 7.1.3.Relevant statutory and other requirements -- 7.2.The auditor's report and communication with management -- 7.2.1.Forming an opinion -- 7.2.2.Expression of opinion -- 7.2.3.Unmodified auditor's report -- 7.2.4.Modified auditor's report -- 7.2.5.Circumstances to modify -- 7.2.6.Form and content of modifications -- 7.2.7.Emphasis of matter and other matter in the independent auditor's report -- 7.3.Other reporting considerations for corporate entities -- 7.3.1.Reporting on consolidated statements -- 7.3.2.Comparatives -- 7.3.3.Initial engagements (opening balances) -- 7.3.4.Half-year statements -- 8.Client evaluation and planning the audit -- 8.1.Acceptance and continuance of client relationships -- 8.1.1.Client evaluation -- 8.1.2.Ethical and legal considerations -- 8.2.Audit engagement letters -- 8.3.Steps in planning an audit -- |
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Contents note continued: 8.4.Understanding the entity and its environment -- 8.4.1.Industry, regulatory and other external factors -- 8.4.2.The nature of the entity, including its selection and application of accounting policies -- 8.4.3.The entity's objectives, strategies and related business risks -- 8.4.4.Measurement and review of the entity's financial performance -- 8.5.Analytical procedures in planning -- 8.6.Consideration of fraud risk in planning -- 8.6.1.Fraudulent financial reporting -- 8.6.2.Misappropriation of assets -- 8.6.3.Auditing for fraud -- 8.7.Audit documentation -- 8.7.1.The purpose and function of working papers -- 8.7.2.Working paper files -- 8.7.3.Preparing working papers -- 8.7.4.Reviewing working papers -- 8.7.5.Ownership and custody of working papers -- 9.Audit risk assessment -- 9.1.Risk assessment and financial statement assertions -- 9.1.1.Managements financial statement assertions -- 9.2.Business risk assessment -- 9.3.Risk assessment procedures -- |
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Contents note continued: 9.3.1.Enquiries -- 9.3.2.Analytical procedures -- 9.3.3.Observations and inspections -- 9.4.Internal control -- 9.4.1.The importance of internal control -- 9.4.2.Internal control system -- 9.4.3.Limitations of control -- 9.5.Understanding internal control -- 9.5.1.What to understand about internal control -- 9.5.2.Procedures to obtain an understanding -- 9.5.3.Documenting the understanding -- 9.6.Preliminary assessment of control risk -- 9.6.1.The purpose of the preliminary assessment -- 9.6.2.The process of assessing control risk -- 9.7.Audit risk -- 9.7.1.Audit risk components -- 9.7.2.The relationships among risk components -- 10.Materiality and audit evidence -- 10.1.Materiality -- 10.1.1.The concept of materiality -- 10.1.2.Preliminary judgements about materiality -- 10.1.3.Materiality for the financial report as a whole -- 10.1.4.Materiality for particular classes of transactions, account balances or disclosures -- |
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Machine generated contents note: pt. 1 THE AUDITING AND ASSURANCE ENVIRONMENT -- 1.An overview of auditing -- 1.1.Auditing fundamentals -- 1.1.1.What is an audit? -- 1.1.2.What does an audit provide? -- 1.1.3.Why is there a demand for audits? -- 1.1.4.Who provides audits? -- 1.2.What is assurance? -- 1.3.The auditing environment -- 1.3.1.The accounting profession -- 1.3.2.Case law -- 1.3.3.The early 2000s --- challenges and changes -- 1.3.4.Regulation and other oversight -- 1.4.Auditing standards -- 1.4.1.Australian auditing standards -- 1.4.2.International auditing standards -- 1.4.3.The Clarity project -- 1.5.Does the audit meet the demands of users? -- 1.5.1.Who are the users of audits? -- 1.5.2.Do audits provide good value? -- 1.5.3.The audit expectation gap -- 2.Governance and the auditor -- 2.1.What is governance? -- 2.1.1.Enterprise governance: a framework -- 2.2.The auditor and governance -- 2.2.1.Overall objectives of the auditor -- |
| Summary |
"Modern Auditing & Assurance Services, 6th edition, is written for courses in auditing and assurance at undergraduate, postgraduate and professional levels. The practice of auditing is explained in the context of auditing theory, concepts and current practice, with appropriate reference to the Australian auditing standards and the respective international standards on auditing. Auditors play a vital role in the current economic environment, with increasing responsibility for ensuring market integrity. The development of auditing practice reflects how the accounting profession responds to the complex demands of information, competition, corporate failures and technology. Auditing continues to evolve in response to the changing business and regulatory landscape to maintain its relevance and importance. This book is a comprehensive guide to the development and practice of audits of a financial report, with an authoritative insight into the fundamental role of auditors, the influences on audits, and related issues."--Publisher's website |
| Analysis |
Australian |
| Notes |
Previous edition: 2011 |
| Bibliography |
Includes bibliographical references and index |
| Audience |
Undergraduate, postgraduate and professional levels |
| Subject |
Accountants -- Professional ethics
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Accounting -- Moral and ethical aspects -- Australia.
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Accounting -- Standards -- Australia.
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Auditing -- Textbooks.
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Auditing -- Moral and ethical aspects -- Australia.
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Auditing -- Standards -- Australia.
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Auditing -- Study and teaching (Higher)
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Auditing.
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| Genre/Form |
Textbooks.
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| Author |
Cooper, Barry J. (Barry John), 1948- author
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Coram, Paul, author
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Richardson, Peter (Peter D.), author
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Global Accounting Alliance (Firm)
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Institute of Chartered Accountants in Australia, issuing body
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| ISBN |
9781118615249 (paperback) |
