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Auditing: The Art and Science of Assurance Engagements, Canadian Edition, 16th edition

Published by Pearson Canada (March 15, 2024) © 2025

  • Alvin A. Arens Michigan State University
  • Randal J. Elder The University of North Carolina Greensboro
  • Mark S. Beasley North Carolina State University
  • Chris E. Hogan Michigan State University
  • Joanne C. Jones York University
  • Bartosz M. Amerski York University

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For core courses in auditing.

An integrated, up-to-date approach to auditing and assurance services

Comprehensive and up-to-date, including discussion of new standards, codes, and concepts, Auditing and Assurance Services: An Integrated Approach presents an integrated approach to auditing that details the process from start to finish. Based on the authors’ belief that the fundamental concepts of auditing center on the nature and amount of evidence that auditors should gather in specific engagements, the text’s primary objective is to illustrate auditing concepts using practical examples and real-world settings. Using key real audit decisions as their foundation, students can successfully conduct an audit according to a financial reporting framework.

Hallmark features of this title

  • Still Confused? Read This. We have developed several conversations in which the two junior auditors, Mitch and AJ, ask questions about various concepts that, through our years of teaching, we have found students tend to find confusing. The conversations are light in tone, but are designed to provide analogies or examples that students can relate to and, hopefully, they will “get it.” We cover questions such as “Audit Opinions – Clean or Dirty?” and “Data Analytics and Artificial Intelligence in Audit, What, How, and Why?”
  • Applying Your Professional Judgement 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 judgement and answer the related questions. Many of the questions highlight issues that have occurred due to the impact of COVID on Hillsburg's operations.
  • Problems and Cases. All chapters include several new and revised professional judgment problems and cases. Many of the problems are based upon actual companies. Additionally, each chapter identifies new or revised Discussion Questions and Problems that instructors can use in class to generate discussion about important topics. These problems are highlighted by an “in-class” discussion icon in the margin next to the related question.

New to this Edition

  • Up-to-Date Coverage of Auditing Standards. New auditing standards are released without regard to text-book revision cycles. As auditing instructors, we appreciate how critical it is to have the most current content available and to capture the emerging issues. This edition includes coverage of the most recent standards released and that are effective January 1, 2024, (early adoption is encouraged). The edition has been revised to include the new quality management standards (CSQC 1 and CSQC 2) as well as the proposed changes to CAS 500, Audit Evidence and the proposed international sustainability assurance standard ISSA 5000, General Requirements for Sustainability Engagements (which Canada plans to adopt). As with the previous edition, we continue to revise the book so that the concepts and terminology are closely aligned with the Canadian Audit Standards.
  • A Refresh of Audit Evidence. Chapter 5, Audit Evidence and the Technology-Driven Audit, has been significantly revised to reflect the wider variety of information now available to auditors and the greater use of technology. The chapter incorporates all the proposed revisions to CAS (Canadian Auditing Standard) 500, Audit Evidence, which now includes both the client's and auditor's use of technology and how it impacts the audit process. To promote deeper learning, the chapter provides numerous practical examples and introduces a principles-based framework to evaluate the relevance and reliability of information used as audit evidence and to determine if sufficient and appropriate evidence has been obtained.
  • The Technology-Driven Audit. Building upon previous editions, we continue to update and develop our discussion of the technology-driven audit. The increasing use of automated tools and techniques (ATTs), which include audit data analytics (ADAs) and advanced technologies, allow auditors to increase both audit quality and efficiency. We build upon the material related to ATTs that was introduced in the 15th edition and demonstrate how new technologies can im-prove the quality of audit evidence and can create new opportunities for auditors to provide in-sights to their clients.
  • The Impact of the Rapid Change and Unexpected Events. Recent events, such as the COVID-19 pandemic, the Russo-Ukrainian war, and various natural disasters, all represent rapid and unexpected change. These events provides a unique opportuni-ty to address the challenges auditors face when an auditor's past assessment of risk or past his-torical financial information are no longer relevant in identifying the risk of material misstatement or evaluating estimates. Throughout the textbook, we have provided numerous examples of these types of changes along with questions, Concept Checks, and Auditing in Ac-tions to help students develop their change-management skills.

Important Digital Assets in MyLab Accounting

  • 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.
  • Data Analytics Projects. 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 Power BI. Using Power BI, 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.
  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 Nonassurance Services (Available Online in MyLab Accounting)

Al Arens (1935 to 2010), founding author of this textbook, was the PricewaterhouseCoopers Professor of Accounting Emeritus at Michigan State University. In addition to writing books on auditing, he was a coauthor of computerized accounting supplements and he was actively involved in the continuing education of practitioners with local and regional CPA firms. Al was a past president of the American Accounting Association and a former member of the AICPA Auditing Standards Board. He practiced public accounting with both a local CPA firm and the predecessor firm to Ernst & Young. He received many awards including the AAA Auditing Section Outstanding Educator award, the AICPA Outstanding Educator award, the national Beta Alpha Psi Professor of the Year award, and many teaching and other awards at Michigan State.

Randy Elder, who has served as a coauthor of this textbook since the 8th edition, is Dixon Hughes Goodman Professor and Department Head of Accounting and Finance at the University of North Carolina at Greensboro. He teaches undergraduate and graduate auditing courses, and has received several teaching awards. His research focuses on audit quality and current audit firm practices and he served as the team leader for the American Accounting Association Auditing Section PCAOB research synthesis teams on audit confirmations and audit sampling. He has extensive public accounting experience with a large regional CPA firm, frequently teaches continuing education for a large international CPA firm, and is a member of the AICPA.

Mark Beasley, who has also served as a coauthor of this textbook since the 8th edition, is the Deloitte Professor of Enterprise Risk Management and Professor of Accounting at North Carolina State University. He has taught undergraduate and graduate auditing courses, and has received several teaching awards including membership in NC State's Academy of Outstanding Teachers. He has extensive professional audit experience with the predecessor firm to Ernst & Young and has extensive standards-setting experience working with the Auditing Standards Board as a Technical Manager in the Audit and Assurance Division of the AICPA. He served on the ASB Fraud Standard Task Force responsible for developing SAS 99, the ASB Antifraud Programs and Controls Task Force, and the Advisory Council overseeing the COSO Enterprise Risk Management: Integrated Framework project. He served over 7 years as a member of the COSO Board, representing the AAA.

Chris Hogan joined as a coauthor starting with the 16th edition. Chris is the Russell E. Palmer Endowed Professor of Accounting and Department Chairperson in the Eli Broad College of Business at Michigan State University. Chris teaches graduate auditing and her research focuses on internal controls and integrated audits, audit firm client portfolios, and the impact of regulation on audit markets. Chris has auditing experience with Price Waterhouse, one of the predecessor firms to PricewaterhouseCoopers, LLP. She has served in multiple leadership roles within the American Accounting Association, including serving as President of the Auditing Section and on the Audit Committee of the AAA.

Joanne C. Jones. This is the fourth Canadian edition to be authored by Joanne C. Jones, who is an associate professor of auditing at York University. Joanne teaches graduate and undergraduate auditing and her research focuses on issues such as professionalism and ethics in accounting, audit practice, and globalization and the diversity of the accounting profession. She also investigates academic ethics and accounting education and has published several instructional audit cases in academic peer-reviewed journals. Joanne is an active reviewer for several academic journals and currently serves as an editor for Issues in Accounting Education and is an associate editor at Accounting Perspectives. Prior to earning her PhD, she worked for several years as an external auditor with KPMG and as the associate director of education with the Institute of Chartered Accountants of Ontario (now CPA Ontario).

Bartosz Amerski. We are again pleased to have Bartosz Amerski as contributing author for the Sixteenth Canadian Edition. Bartosz teaches graduate and undergraduate auditing and accounting at York University, where he has received recognition and awards for his excellence in teaching and creating a positive learning environment for his students. Bartosz also teaches in the CPA Ontario's Professional Educational Program (PEP). He has completed a Masters of Laws (LL.M.) at Osgoode Hall Law School and was an audit director with the office of the Auditor General of Ontario. Prior to that, Bartosz worked at Ernst & Young as an external auditor. He is a proud father of two children, Emilia and Nicolas.

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