To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.

com

Solutions Manual

Auditing and
Assurance Services
Thirteenth Edition
Global Edition

Alvin A. Arens
Randal J. Elder
Mark S. Beasley

Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com

This work is protected by United States and International copyright laws

and is provided solely for the use of instructors in teaching their courses
and assessing student learning. Dissemination or sale of any part of this
work (including on the World Wide Web) will destroy the integrity of the
work and is not permitted. The work and materials from it should never be
made available to students except by instructors using the accompanying
text in their classes. All recipients of this work are expected to abide by
these restrictions and to honor the intended pedagogical purposes and the
needs of other instructors who rely on these materials.
If you purchased this work within the United States or Canada you should be aware
that it has been imported without the approval of the Publisher or the Author.
Editorial Director: Natalie Anderson
Acquisitions Editor: Julie Broich
Editorial Project Manager: Karen Kirincich
Production Project Manager: Judy Leale
Operations Specialist: Ben Smith
Copyright 2010, 2008, 2006, 2005, 2003 Pearson Education, Inc., publishing as
Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights
reserved. This publication is protected by Copyright, and permission should be obtained
from the publisher prior to any prohibited reproduction, storage in a retrieval system, or
transmission in any form or by any means, electronic, mechanical, photocopying,
recording, or likewise. To obtain permission(s) to use material from this work, please
submit a written request to Pearson Education, Inc., Permissions Department, One Lake
Street, Upper Saddle River, New Jersey 07458.
Many of the designations by manufacturers and seller to distinguish their products are
claimed as trademarks. Where those designations appear in this book, and the publisher
was aware of a trademark claim, the designations have been printed in initial caps or all
caps.

10 9

ISBN-13:
ISBN-10:

978-0-13-611920
0-13-6119121

To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com

CONTENTS
I.

THE AUDITING PROFESSION

1
2
3
4
5

The Demand for Audit and Other Assurance Services .................

The CPA Profession.........................................................
Audit Reports .................................................................
Legal Liability .................................................................
Professional Ethics ..........................................................

1-1
2-1
3-1
4-1
5-1

II. THE AUDIT PROCESS

6
7
8
9
10
11
12
13

Audit Responsibilities and Objectives .....................................

Audit Evidence ...............................................................
Audit Planning and Analytical Procedures................................
Materiality and Risk .........................................................
Section 404 Audits of Internal Control and Control Risk ................
Fraud Auditing ...............................................................
The Impact of Information Technology on the Audit Process ..........
Overall Audit Plan and Audit Program ....................................

6-1
7-1
8-1
9-1
10-1
11-1
12-1
13-1

III. APPLICATION OF THE AUDIT PROCESS TO THE SALES AND

COLLECTION CYCLE
14
15
16
17

Audit of the Sales and Collection Cycle: Tests of Controls

and Substantive Tests of Transactions ...................................
Auditing Sampling for Tests of Controls
and Substantive Tests of Transactions ...................................
Completing the Tests in the Sales and Collection Cycle:
Accounts Receivable ........................................................
Audit Sampling for Tests of Details of Balances .........................

14-1
15-1
16-1
17-1

IV. APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES

18

19
20
21
22
23

Audit of the Acquisition and Payment Cycle:

Tests of Controls, Substantive Tests of Transactions,
and Accounts Payable ......................................................
Completing the Tests in the Acquisition and Payment Cycle:
Verification of Selected Accounts ..........................................
Audit of the Payroll and Personnel Cycle .................................
Audit of the Inventory and Warehousing Cycle ..........................
Audit of the Capital Acquisition and Repayment Cycle .................
Audit of Cash Balances .....................................................

18-1
19-1
20-1
21-1
22-1
23-1

V. COMPLETING THE AUDIT

24

Completing the Audit ........................................................

24-1

VI. OTHER ASSURANCE AND NONASSURANCE SERVICES

25
26

Other Assurance Services ..................................................

Internal and Governmental Financial Auditing
and Operational Auditing ...................................................

25-1
26-1