Prepare students for the real world of auditing with a decision-making approach

MyLab Accounting with Pearson eText for Auditing: The Art and Science of Assurance Engagements, Fifteenth Canadian Edition

Alvin Arens, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones, Bartoz M. Amerski

Intended for one or two-semester introductory auditing courses at the undergraduate or graduate level, the primary emphasis of Auditing: The Art and Science of Assurance Engagements is on teaching students the auditor’s decision-making process.

Despite its practical nature, many students often view auditing as an abstract subject. To address this, the authors have worked to ensure that the 15Ce is more relatable and understandable to students than ever before by integrating course-specific digital tools designed to help students apply what they’ve learned and practice their decision-making skills in order to succeed.

Features New to the Edition Sneak peek Table of Contents

Request a Desk Copy

FEATURES of this fully integrated learning program

MyLab Accounting is a teaching and learning platform that empowers instructors to reach every student. By combining trusted author content with interactive course-specific digital tools, MyLab Accounting personalizes the learning experience and improves results for each student.

Request a Demo Learn more at MyLab Accounting

Pearson eText

Pearson eText. The Pearson eText gives students access to their textbook anytime, anywhere. In addition to note taking, highlighting, and bookmarking, the Pearson eText offers interactive and sharing features. Instructors can share their comments or highlights, and students can add their own, creating a tight community of learners within the class.

Powerful Homework and Test Manager

A powerful homework and test manager lets instructors create, import, and manage online homework assignments, quizzes, and tests that are automatically graded. Instructors can choose from a wide range of assignment options, including time limits, proctoring, and maximum number of attempts allowed. The new MyLab Accounting means less time grading and more time teaching.

Personalized Study Plan

The Study Plan helps students monitor their own progress, letting them see exactly which topics they need to practice, at-a-glance. MyLab Accounting generates a personalized Study Plan for each student based on his or her test results, and the Study Plan links directly to interactive, tutorial exercises for topics the student hasn't yet mastered.

Dynamic Study Modules

New chapter-specific Dynamic Study Modules help students study effectively on their own by continuously assessing their activity and performance in real time. Here’s how it works: Students complete a set of questions with a unique answer format that also asks them to indicate their confidence level. Questions repeat until the student can answer them all correctly and confidently. Dynamic Study Modules explain the concept using materials from the text. These are available as graded assignments and are accessible on smartphones, tablets, and computers.

Question Help

Question help consists of homework and practice questions to give students unlimited opportunities to master concepts. If students get stuck, learning aids like Help Me Solve This, eText Pages, and a Calculator walk them through the problem and show them helpful info in the text — giving them assistance when they need it most.

Partnership with MindBridge Ai

We've created a new case that provides students hands-on experience with using the machine learning tool, MindBridge Ai. We introduce the case in Chapter 6 and provide information on the company and its environment. In this component of the case, students learn how to use MindBridge Ai and perform preliminary analytical review of five years of general ledger data to identify high risk areas.

Applying Your Professional Judgment to Hillsburg Hardware Limited

We continue to develop Hillsburg Hardware Limited, which has been a feature of this book for a very long time, to reflect the ever-evolving Canadian business environment. At the end of each chapter, we provide a transcript of a conversation among the various audit team members that cover the concepts in the chapters. Students are then asked to apply their professional judgment and answer the related questions. Many of the questions highlight issues that have occurred due to the impact of COVID on Hillsburg’s operations. 

Audit Data Analytics Projects

Audit Data Analytics Projects offer students hands-on practice in mining, analyzing, and reporting on data. Each project contains a list of requirements, a dataset from a real company, and instructions for using Excel. Students learn how to extract and examine key information about a company related to its products, operations, and consumer buying habits. With this experience and knowledge, students make smarter business decisions and are better prepared for the workforce.

New to the Fifteenth Canadian Edition:

Current Coverage of Auditing Standards. New auditing standards are released without regard to textbook revision cycles. As auditing instructors, we appreciate how critical it is to have the most current content available. This edition includes coverage of the most recent standards released and that are effective January 1, 2022, (early adoption is encouraged). The edition has been revised to include CAS 315, Identifying and Assessing Risks of Material Misstatement, CSRS 4200, Compilation Engagements and CSRS 4600, Agreed-Upon Procedures Engagements. As with the previous edition, we continue to revise the book so that the concepts and terminology are closely aligned with Canadian Audit Standards.

New Coverage of Audit Data Analytics and Other Automated Tools and Techniques. The Internet and extensive use of technologies and automation by entities to engage in all types of business transactions and services have dramatically increased the amount of data available for analysis. The audit profession is rapidly exploring how audit data analytics (ADAs) and advanced technologies might allow them to increase both audit quality and effi ciency. The 15th edition of this textbook includes new coverage of how ADAs are being used in all phases of the audit, spanning from initial planning through the completion of the audit.

New Dataset for Students to Perform Audit Data Analytics. To provide students hands-on experience in using various audit data analytics tools, we have developed an entirely new dataset that includes different files of transaction data related to the sales and collection cycle for a hypothetical company, JA Tire Manufacturing. This dataset, which students can access from the textbook website, includes different sub-files that contain transaction data related to JA Tire Manufacturing’s sales orders, bills of lading, invoices, cash receipts, customer master file, and product master file (an excerpt of a summary of the sub-files is shown below). We have developed several new homework problems included in chapters 5, 6, 7, and 12 that require students to analyze data in the various sub-files of the dataset for JA Tire Manufacturing. Because the dataset is in Excel, the new homework problems allow students to use any software, such as AuditBond (formerly ACL), Excel, IDEA, Power BI or Tableau, to conduct their data analysis.

New Case for Students to use MindBridge Ai. In partnership with MindBridge Ai Auditor, the world’s first AI-powered auditing solution, we’ve created a new case that provides students with hands-on experience using this machine learning tool. The new case is introduced in Chapter 6 and provides information on the company and its environment. In this component of the case, students learn how to use MindBridge Ai and perform preliminary analytical review of five years of general ledger data to identify high risk areas.

Additional Audit Data Analysis Problems. In addition to the new JA Tire Manufacturing homework problems and the MindBridge Ai case, we have also included several other problems in the text that can be completed using Excel templates that are available in MyLab.

Emerging Technologies and Cyber Security Risk. Building upon the 14th edition, we continue to emphasize the role of the IT system and provide new material on the entity’s use of information technology, including emerging technologies, and its impact on the system of internal control and the conduct of the audit. We provide new material on cyber security risk, the internet of things, smart contracts and blockchain, and artificial intelligence. We have also developed vignettes to illustrate the challenges of auditing in complex IT environments.

Table of Contents

1 The Demand for Audit and Other Assurance Services
2 The Public Accounting Profession and Audit Quality
3 Professional Ethics and Legal Liability
4 Audit Responsibilities and Objectives
5 Audit Evidence
6 Client Acceptance, Planning, and Materiality
7 Assessing the Risk of Material Misstatement
8 Internal Control and COSO Framework
9 Assessing Control Risk and Designing Tests of Controls
10 Develop Risk Response: Audit Strategy and Audit Program

11 Audit Sampling Concepts
12 Audit of the Revenue Cycle
13 Audit of the Acquisition and Payment Cycle
14 Audit of the Inventory and Distribution Cycle
15 Audit of the Human Resources and Payroll Cycle
16 Audit of the Capital Acquisition and Repayment Cycle
17 Audit of Cash Balance
18 Completing the Audit
19 Audit Reports on Financial Statements
20 Other Assurance and Non-Assurance Services

Sneak peek

Take a walk through Auditing: The Art and Science of Assurance Engagements, Fifteenth Canadian Edition.

Read the preface

Read a sample chapter
(Chapter 7 - Risk Assessment and Inherent Risk)

Request Your Copy