The 10th Edition includes the following important features and enhancements:
∙ A “professional judgment” module, designed to accelerate the development of the student’s profes- sional judgment and based on the AAA Deloitte/Wildman Award-winning KPMG Professional Judg- ment monograph, is now included in the print version of the book. Additional resources relating to this module are available through KPMG’s University Connection website.
∙ Increased use of “Stop and Think” questions throughout the book to encourage students to more fully internalize key concepts.
∙ User-focused, user-friendly improvements. ∙ Chapter 2 has been updated for recent changes in the audit environment, Chapter 3 presents the latest
information available on major firms’ audit guidance relating to materiality, Chapter 6 reflects COSO’s new internal control framework, and Chapter 19 includes coverage of professional conduct consistent with the AICPA’s newly reorganized Code of Professional Conduct.
∙ Increased use of Practice Insights that provide a link from the textbook material to the real world. ∙ The introduction of IDEA audit software. IDEA is a powerful and user-friendly data analysis tool
designed to help auditors perform data analysis, audit sampling, and other audit procedures efficiently and effectively. IDEA is illustrated in Chapters 8 and 9 and there are end-of-chapter IDEA assignments and problems for hands-on application throughout the book.
∙ Improved descriptions of the hands-on EarthWear Mini-Cases that provide students with opportunities to apply audit professional judgment and practice audit procedures.
∙ Clarified explanations of technical business and accounting jargon. ∙ Improved linkage between chapter content and end-of-chapter material. ∙ References to auditing standards reflect the new codification of AICPA ASB clarity standards.
Here is a sampling of the improvements made in recent editions:
Chapter 1, An Introduction to Assurance and Financial Statement Auditing ∙ Discussion of fundamental concepts of auditing streamlined and clarified
Chapter 2, The Financial Statement Auditing Environment ∙ Updated to reflect changes in audit environment ∙ Includes AICPA’s “principles underlying an audit” in addition to PCAOB’s traditional set of “generally
accepted auditing standards”
Chapter 3, Audit Planning, Types of Audit Tests, and Materiality ∙ Revised engagement letter for an integrated audit ∙ Discussion of the current practices of the major auditing firms based on a recent article by Aasmund