Comprehensive integration of the fundamental auditing concepts.

Auditing and Assurance Services: An Integrated Approach presents an integrated concepts approach that shows students the auditing process from start to finish. This text prepares students for real-world audit decision making by using illustrative examples of key audit decisions, with an emphasis on audit planning, risk assessment processes and collecting and evaluating evidence in response to risks.

Integrated approach to teaching auditing: This text integrates the most important concepts of auditing in a logical manner to assist students in understanding audit decision making and evidence accumulation in today’s complex auditing environment.

The introduction of the Risk Assessment Standards: Cutting-edge coverage of Risk Assessment Standards is included in this text along with the requirements of the Risk Assessment Standards issued by the Auditing Standards Board. The Risk Assessment Standards include three categories of assertions related to transactions and events, account balances, and presentation and disclosures.

Integrated coverage of Sarbanes Oxley and Section 404: The requirements of the Sarbanes–Oxley Act, including Section 404 and PCAOB Auditing Standard 2, are integrated throughout the text. The authors provide extensive coverage of internal controls to provide students with the understanding of controls necessary to perform an integrated audit of financial statements and audit of internal control required by Section 404, as well as meet the requirements of the Risk Assessment Standards.

ACL incorporation and Homework Problems: CPA firms are increasingly using audit software to perform audit testing and to test for fraud. The authors have included selected problems using ACL Software in several chapters in the text. These problems are related to the topic of the chapter so that students can see how audit software is used to perform specific types of audit tests of files relevant to that transaction cycle. Additional guidance for students on the use of ACL is also provided.

*** The ACL Auditing Software CD is bound inside every new copy of Arens. 

The Pinnacle Manufacturing integrated case: Based on a large, multi-division company, this case includes six parts that are found at the end of the chapter homework in specific chapters that address the content relevant to each part. The case gives students hands-on experience, and the parts of the case are connected so that students will gain a better understanding of how the parts of the audit are integrated by the audit process.

Hillsburg Hardware Annual Report: This annual report is included as a four-color insert to the text. Financial statements and other information included in the annual report are used in examples throughout the text to illustrate chapter concepts. The annual report also includes management’s report on internal control required by Section 404. This shows students how the real world uses this information and helps them to understand further, how the audit process works.

OTHER POINTS OF DISTINCTION

Design focuses students on key concepts: Increased use of bullets and numbering and larger font size make this text easier to read and helps students focus on and retain key concepts.

Internet Based case homework assignments: All chapters include internet-based case/homework assignments that have students utilize the internet to research relevant real world auditing issues.

NEW! Emphasis on International Issues—This edition contains integrated coverage of developments related to international auditing standards and emphasizes issues affecting audits of multi-national entities. Several chapters throughout the book include text or mid-chapter vignette coverage of international issues, and international issues are also addressed in homework problems and Internet problems.

NEW! Revised or brand-new problems included in most chapters—Most chapters include a new homework problem, many of which emphasize new concepts and requirements of PCAOB Auditing Standard No. 5 as well as the risk assessment standards, including SAS 112 and SAS 114.

NEW! Mid-chapters vignettes included in most chapters—Many of these vignettes involve international examples, and continue to emphasize fraud and current auditing issues.