Auditing: A Practical Approach

Auditing: a Practical Approach 2e focuses on how audits are conducted in practice. In addition to covering the essential topics of auditing, the text provides greater insight into how an audit is conducted and the issues that are of greatest concern to practising auditors. As each chapter unfolds, students are introduced to the various stages of an audit. Key auditing concepts are addressed in a succinct manner, making them easily understandable. To underpin this approach, each chapter begins with a diagrammatic representation of the stages of an audit, with the current stage highlighted as we progress through the text. The diagram provides a useful reference point to ground the discussion in each chapter to the relevant stage in the audit process.

To underpin the discussion of how an audit is conducted, the authors have used a case study of a hypothetical client, Cloud 9. The discussion in each chapter is kept general, with our case study providing an example of how the general principles behind each audit may be applied in practice. By using this approach, students are provided with a continuing example of how the concepts discussed may apply in practice.

The Cloud 9 case study provides a flexible learning tool to be used within an auditing and assurance course. Details about Cloud 9 and its audit are provided in each chapter to give an insight into how an audit is conducted, the issues that auditors face at each stage of an audit, and the processes used to gather evidence and arrive at conclusions. The case materials can form the basis of class discussions, student role plays or online exchanges between students. At the end of each chapter, a case-study problem is set using Cloud 9 as a basis. These problems can be used as part of the weekly tutorial program, or as an assignment for students to work on individually or in groups (or some combination of the two).

Robyn Moroney, BEc (Hons), MCom, PhD, CA, CPA, is anAssociate Professor in the Department of Accounting at MonashUniversity. Before commencing her academic career, Robyn worked asan auditor at Arthur Young, now Ernst & Young. With over 25years’ academic experience, Robyn has previously heldpositions at The University of Melbourne, The University ofAuckland, The University of New South Wales and La TrobeUniversity. Robyn is a member of the Institute of CharteredAccountant’s Quality Review Committee and Higher EducationAdvisory Committee. Her areas of research interest are in auditorjudgment and decision-making processes, audit quality, auditregulation, industry specialisation, assurance of environmentaldisclosures and corporate governance.

Robyn has published widely in various journals includingAuditing: A Journal of Practice & Theory , BehavioralResearch in Accounting,  Advances in AccountingBehavioral Research and Accounting & Finance .

Fiona Campbell, BCom, FCA, is an Assurance Partner withErnst & Young in Melbourne. Fiona has been client serving inthe assurance practice since 1991 and has worked on audit clientsprimarily in the retail, manufacturing, consumer and industrialproducts industries, as well as not-for-profit sectororganisations. She has considerable experience providingprofessional services to Australian and foreign-controlledcompanies, including large publicly listed and private companies.Fiona is also responsible for the assurance methodology at Ernst& Young in Australia, and has been involved in designing thefirm’s global audit methodology for the past 16 years,including ensuring compliance with both international and localauditing standards.

Jane Hamilton, BBus, MAcc, PhD, CPA, is Professor ofAccounting at the Bendigo campus of La Trobe University, andpreviously held academic positions at the University of Technology,Sydney. Jane has over 20 years’ experience in teaching andhas published the results of her auditing research in severalAustralian and international journals.