Auditing,
12th Edition

1. Quality Auditing: Why It Matters.
2. The Auditor’s Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance.
3. Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor.
4. Professional Legal Liability.
5. Professional Auditing Standards and the Audit Opinion Formulation Process.
6. Audit Evidence.
7. Planning the Audit: Identifying and Responding to the Risks of Material Misstatement.
8. Specialized Audit Tools: Sampling and Generalized Audit Software.
9. Auditing the Revenue Cycle.
10. Auditing Cash and Marketable Securities.
11. Auditing Inventory, Goods and Services, and Accounts Payable: The Acquisition and Payment Cycle.
12. Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal.
13. Auditing Long-Term Liabilities and Stockholders' Equity Transactions.
14. Completing a Quality Audit.
15. Audit Reports.
ACL Appendix.
Case Index.
Why It Matters and Fraud Focus Index by Chapter.
Data Analytics cases by Chapter.
Index.

• Karla M Johnstone-Zehms

  Karla M. Zehms, Ph.D., C.P.A., is the Ernst & Young Professor of Accounting and Information Systems and the associate dean for research and Ph.D. programs at the University of Wisconsin-Madison. She teaches auditing and her research investigates auditor decision making, including auditors' client acceptance and continuance decisions, fraud brainstorming, audit planning, client–auditor negotiation and audit budget-setting processes. Dr. Zehms serves on the editorial boards of several academic journals and is active in the Auditing Section of the American Accounting Association, where she has served in various leadership roles including serving as president. In 2022, Dr. Zehms received the Outstanding Audit Educator Award from the American Accounting Association, Auditing Section. In addition to her teaching career, Dr. Zehms worked in practice as a corporate accountant and a staff auditor. She was a doctoral fellow in residence at Coopers and Lybrand.

• Audrey A. Gramling

  Audrey A. Gramling, Ph.D., C.P.A., C.I.A., is a professor and the Anadarko Petroleum Corporation Endowed Chair in the School of Accounting at Oklahoma State University, where she previously served as the head of the school and the Wilton T. Anderson Endowed Chair. Throughout her career Dr. Gramling has made numerous contributions to the accounting and academic professions. She has served a one-year term as an Academic Accounting Fellow in the Office of the Chief Accountant at the Securities and Exchange Commission (SEC), where she consulted on auditor independence, possible enforcement cases and auditing standards. Dr. Gramling has also served the public interest through setting audit standards as a member of the AICPA Auditing Standards Board (ASB). She contributed to multiple projects, including audit evidence, EER assurance, fraud and going concern. She has been a member of the Center for Audit Quality's Accounting Academic Sounding Board and served as a COSO Advisory Council Member for the 2013 Internal Control-Integrated Framework Project. Dr. Gramling has also held numerous leadership positions with the American Accounting Association. Before earning her Ph.D. at the University of Arizona, she was an external auditor at a predecessor firm of Deloitte. She also served as an internal auditor at the Georgia Institute of Technology.

• Larry E. Rittenberg

  Larry E. Rittenberg, Ph.D., C.P.A., C.I.A., is professor emeritus from the Department of Accounting and Information Systems at the University of Wisconsin-Madison. Dr. Rittenberg taught courses in auditing, risk management and corporate governance. He is also chair emeritus of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), where he has provided oversight of the development of the COSO Enterprise Risk Management Framework as well as the COSO Guidance for Smaller Businesses. Dr. Rittenberg has served as vice-chair of professional practices for the Institute of Internal Auditors (IIA) and president of the IIA Research Foundation. He has been a member of the Auditing Standards Committee of the AAA Auditing Section, the AICPA's Computer Audit Subcommittee, the Information Technology Committee and the NACD Blue Ribbon Commission on Audit Committees. He has also served as vice-president and treasurer of the American Accounting Association. He is a member of an audit committee, board and governance committee of Woodward Governor, a publicly traded company. In addition, he has consulted on audit committee, risk and control issues with the largest public company in China. He has served as one of the seven members of the International Oversight Council for Professional Practice of the IIA. In addition, Dr. Rittenberg served as staff auditor for Ernst and Young and has co-authored five books and monographs and numerous articles.

• NEW DATA ANALYTICS PROCESS FRAMEWORK COMPLEMENTS CONCEPTUAL FRAMEWORKS. A new data-analytics process framework (Ch. 1) works seamlessly with the book's professional and decision-making frameworks. This new framework helps students understand the context and phases of data analytics. Students work with real-life data sets as they practice working with the framework in subsequent chapters. End-of-chapter cases integrate both data analytics and writing skills so students learn to summarize judgements in memorandum form in preparation for the CPA exam.

• A WEALTH OF NEW EXAMPLES HIGHLIGHT THE LATEST DEVELOPMENTS AND RECENT CASES ON FRAUD. To keep content current and relevant, this edition highlights new examples from the SEC’s Accounting and Auditing Enforcement Release database, the PCAOB’s enforcement actions and the PCAOB’s inspection reports. In addition, many new examples focus on newly discovered frauds from countries all around the world.

• RELEVANT, UP-TO-DATE COVERAGE FOCUSES ON THE LATEST, EVOLVING AUDITING STANDARDS. Revised content integrates examples and coverage of new standards, including audit evidence, assessing risks of material misstatement, using the work of specialists and accounting estimates. Chapter 15, in particularly, extensively discusses the new auditor reporting model in the U.S. and internationally, both in terms of CAMs and KAMs.

• EMPHASIS ON PROFESSIONAL SKEPTICISM INTRODUCES THE PRACTICAL APPLICATIONS OF THIS CONCEPT. From a questioning mind to critical assessment of auditing evidence, this book provides your students with the tools to apply the concept of professional skepticism. The authors introduce this topic in Chapter 1, while end-of-chapter problems throughout this edition help students see the practical applications and importance of professional skepticism.

• VALUABLE LEARNING FEATURES AND CHAPTER EXHIBITS REINFORCE LEARNING WITH MEMORABLE EXAMPLES. Each chapter contains multiple "Why It Matters" and "Focus on Fraud" features and related exhibits that highlight important, relevant and practical examples as well as key information related to the chapter's topics. Selected end-of-chapter problems further reinforce this information by requiring that readers review specific features and exhibits.

• FOCUS ON DATA ANALYTICS EMPHASIZES PRACTICAL APPLICATIONS. After this edition introduces the framework for employing data analytics in Chapter 1, subsequent chapters offer cases in which students analyze real-life data from the U.S. Department of the Interior and the City of Chicago. Chapter 8 focuses on the latest developments in today's rapidly changing field of data analytics. Later chapters include end-of-chapter Tableau®-based problems to help students develop the skills necessary to become data-driven decision makers.

• GENERALIZED AUDIT SOFTWARE WORKS SEAMLESSLY WITH UPDATED CASES. The most popular audit analytics software today is available to correspond with each new text. This new edition closely integrates the use of software into both homework and cases. An appendix and tutorial located at the end of the textbook provide guidance for students unfamiliar with the software. You can provide access to the software through the ACL Academic Network program, detailed in the Interview Guide.

Cengage provides a range of supplements that are updated in coordination with the main title selection. For more information about these supplements, contact your Learning Consultant.

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