For undergraduate and graduate Auditing, Professional Research Case or capstone courses.
Step through real auditing cases one by one in this comprehensive text.
Auditing Cases 4/e, through a unique active learning approach, provides a comprehensive case book focusing on various auditing activities. Students learn to think critically and develop their interpersonal skills, which are increasingly important in the workplace.
For the fourth edition, cases have been updated to reflect changes in professional standards. Cases dealing with real companies reflect the most recent real-world developments, and new cases have been added to provide timely coverage of high profile events.
Table of Contents:
Section 1 Client Acceptance
Cases included in this Section
1.1 Ocean Manufacturing, Inc
The New Client Acceptance Decision
Section 2 Understanding the Client’s Business and Assessing Risk
Cases included in this Section
2.1 Your1040Return.com
Evaluating eBusiness Revenue Recognition, Information Privacy,
and Electronic Evidence Issues
2.2 Dell Computer Corporation
Evaluation of Client Business Risk
2.3 Flash Technologies, Inc
Risk Analysis and Resolution of Client Issues
2.4 Asher Farms Inc
Understanding of Client’s Business Environment
Section 3 Professional and Ethical Issues
Cases included in this Section
3.1 A Day in the Life of Brent Dorsey
Staff Auditor Professional Pressures
3.2 Nathan Johnson’s Rental Car Reimbursement
Solving Ethical Dilemmas—Should He Pocket the Cash?
3.3 The Anonymous Caller
Recognizing It’s a Fraud and Evaluating What to Do
3.4 WorldCom
The Story of a Whistleblower
3.5 Hollinger International
Realities of Audit-Related Litigation
Section 4 Accounting Fraud and Auditor Legal Liability
Cases included in this Section
4.1 Enron Corporation and Andersen, LLP
Analyzing the Fall of Two Giants
4.2 Comptronix Corporation
Identifying Inherent Risk and Control Risk Factors
4.3 Cendant Corporation
Assessing the Control Environment and Evaluating Risk of Financial Statement Fraud
4.4 Waste Management, Inc
Manipulating Accounting Estimate
4.5 Xerox Corporation
Evaluating Risk of Financial Statement Fraud
4.6 Phar-Mor, Inc
Accounting Fraud, Litigation, and Auditor Liability
Section 5 Internal Control over Financial Reporting
Cases included in this Section
5.1 Simply Steam, Co
Evaluation of Internal Control Environment
5.2 Easy Clean, Co
Evaluation of Internal Control Environment
5.3 Red Bluff Inn & Café
Establishing Effective Internal Control in a Small Business
5.4 St. James Clothiers
Evaluation of Manual and IT-Based Sales Accounting System Risks
5.5 Collins Harp Enterprises
Recommending IT Systems Development Controls
5.6 Sarbox Scooter, Inc
Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting
5.7 Société Générale
How a Low-Risk Trading Area Caused a $7.2 Billion Loss
Section 6 The Impact of Information Technology
Cases included in this Section
6.1 Harley-Davidson, Inc
Identifying eBusiness Risks and Related Assurance Services for the eBusiness Marketplace
6.2 Jacksonville Jaguars
Evaluating IT Benefits and Risks and Identifying Trust Services Opportunities
Section 7 Planning Materiality
Cases included in this Section
7.1 Anne Aylor, Inc
Determination of Planning Materiality and Tolerable Misstatement
Other cases that discuss topics related to this section
5.6 Sarbox Scooter, Inc
Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting
12.1 EyeMax Corporation
Evaluation of Audit Differences
12.2 Auto Parts, Inc.
Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures
Section 8 Analytical Procedures
Cases included in this Section
8.1 Laramie Wire Manufacturing
Using Analytical Procedures in Audit Planning
8.2 Northwest Bank
Developing Expectations for Analytical Procedures
8.3 Burlingham Bees
Using Analytical Procedures as Substantive Tests
Other cases that discuss topics related to this section
1.1 Ocean Manufacturing, Inc.
The New Client Acceptance Decisio
2.3 Flash Technologies, Inc
Risk Analysis and Resolution of Client Issues
Section 9 Auditing Cash and Revenues
Cases included in this Section
9.1 Wally’s Billboard & Sign Supply
The Audit of Cash
9.2 Henrico Retail, Inc.
Understanding the IT Accounting System and Identifying Audit Evidence for Retail Sales
9.3 Longeta Corporation
Auditing Revenue Contracts
9.4 Bud's Big Blue Manufacturing
Accounts Receivable Confirmations
Other cases that discuss topics related to this section
8.2 Northwest Bank
Developing Expectations for Analytical Procedures
8.3 Burlingham Bees
Using Analytical Procedures as Substantive Tests
Section 10 Planning and Performing Audit Procedures in the Revenue and Expenditure Cycles
An Audit Simulation
Cases included in this Section
10.1 Southeast Shoe Distributor, Inc
Identification of Tests of Controls for the Revenue Cycle
(Sales and Cash Receipts)
10.2 Southeast Shoe Distributor, Inc
Identification of Substantive Tests for the Revenue Cycle
(Sales and Cash Receipts)
10.3 Southeast Shoe Distributor, Inc
Selection of Audit Tests and Risk Assessment for the Revenue Cycle
(Sales and Cash Receipts)
10.4 Southeast Shoe Distributor, Inc
Performance of Tests of Transactions for the Expenditure Cycle
(Acquisitions and Cash Disbursements)
10.5 Southeast Shoe Distributor, Inc
Performance of Tests of Balances for the Expenditure Cycle
(Acquisitions and Cash Disbursements)
Section 11 Developing and Evaluating Audit Documentation
Cases included in this Section
11.1 The Runners Shop
Litigation Support Review of Audit Documentation for Notes Payable
Other cases that discuss topics related to this section
9.1 Wally’s Billboard & Sign Supply
The Audit of Cash
9.2 Henrico Retail, Inc
Understanding the IT Accounting System and Identifying Audit Evidence for Retail Sales
9.3 Longeta Corporation
Auditing Revenue Contracts
9.4 Bud's Big Blue Manufacturig
Accounts Receivable Confirmations
10.1-5 Southeast Shoe Distributor, Inc.
An Audit Simulation
Section 12 Completing the Audit, Reporting to
Management, and External Reporting
Cases included in this Section
12.1 EyeMax Corporation
Evaluation of Audit Differences
12.2 Auto Parts, Inc.
Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures
12.3 K&K Inc.
Leveraging Audit Findings to Provide Value-Added Insights
12.4 Surfer Dude Duds, Inc
Considering the Going-Concern Assumption
12.5 Murchison Technologies, Inc
Evaluating an Attorney’s Response and Identifying the Proper Audit Report
