Auditing has become an essential component in market societies and the need for auditing skills has risen in line with globalization. This textbook provides a comprehensive overview of the role of financial statement auditing in contemporary society, including the auditor’s role in evaluating the financial reporting of an auditee—a topic of central concern in the recent comprehensive review of the auditing profession in the Brydon Report (2019).

The experienced authors provide insight into auditing research to help readers understand its function, regulation, and role in theory and practice. With focus on private sector financial statement auditing and its regulation, the book includes perspectives on social theory, history, and the importance of professional standards. The thought-provoking final chapter challenges students to consider the effectiveness of auditing in evaluating increasingly risky and complex accounting estimates involving assumptions about future events.

A fundamental approach to auditing theory, this textbook will be useful reading for advanced undergraduate and postgraduate students across business and accounting fields.

chapter |3 pages


chapter Chapter 1|23 pages

History of auditing, audit research, and audit theory

chapter Chapter 3|13 pages

Professional ethics and reputation

chapter Chapter 4|19 pages

Audit regulation

chapter Chapter 5|16 pages

Auditing standards

chapter Chapter 6|17 pages

Auditor liability and litigation risk

chapter Chapter 7|15 pages

Measurement of audit quality

chapter Chapter 8|14 pages

Determination of audit fees

chapter Chapter 9|11 pages

Research on the impact of audits

chapter Chapter 10|28 pages

Audits of compliance reporting with GAAP

chapter Chapter 11|39 pages

Audits of fair presentation reporting