Here are the essential steps that accounting firms must take to improve audit quality. The author provides detailed coverage of important topics such as risk-based auditing techniques, analytical procedures, technology, and internal controls. After explaining why frequently used audit approaches are inadequate for detecting material fraud, the author: Provides specific and practical guidance to help auditors conduct higher quality audits Offers guidance to financial executives on ways to evaluate their independent audits Describes the steps that accounting firms must take to implement these much-needed changes Order your copy today!…mehr
Here are the essential steps that accounting firms must take to improve audit quality. The author provides detailed coverage of important topics such as risk-based auditing techniques, analytical procedures, technology, and internal controls. After explaining why frequently used audit approaches are inadequate for detecting material fraud, the author: Provides specific and practical guidance to help auditors conduct higher quality audits Offers guidance to financial executives on ways to evaluate their independent audits Describes the steps that accounting firms must take to implement these much-needed changes Order your copy today!
THOMAS P. HOUCK, CPA, is the Chairman of AuditWatch, Inc., the premier training firm in the audit profession. Widely recognized as one of America's top experts on auditing, Mr. Houck is often quoted and interviewed, and is a frequent speaker at major conferences. He has advised hundreds of accounting firms on techniques and approaches needed to conduct more effective and efficient audits, and led research efforts to identify new approaches for conducting such audits. In addition to authoring the successful subscription newsletter, The Efficient Auditor, from 1993 to 2003, Mr. Houck has contributed to Guide to Risk-Based Audits and Guide to Value-Added Audits.
Inhaltsangabe
Preface vii
1. A WAKE-UP CALL FOR ALL AUDITORS 1
"Please, Don't Compare Us to Andersen!" 4
Fundamental Change Is Still Needed 7
Purpose of This Book 9
2. RISK-BASED AUDITING: SAVIOR OR VILLAIN? 13
Why Many Firms Resist Risk-Based Auditing 16
Progress Must Be Made 19
3. THE RISK OF "COOKING THE BOOKS" 21
General Methods of Cooking the Books 24
Why Companies Cook the Books 27
How Auditors Should Assess the Risk that a Client
Has Cooked the Books 35
Tailoring Audit Programs 47
4. OTHER RISKS AND CONSIDERATIONS 53
Ask "Anticipation" Questions 56
Perform Proactive Research about the Client's Business57
Perform a Diligent Preliminary Analytical Review 62
Risk Assessments During Fieldwork 63
5. THE MANY BENEFITS OF ANALYTICAL PROCEDURES 67
Quality 71
Efficiency 74
Client Service 76
Staff Morale 78
6. COMMON PITFALLS OF ANALYTICAL PROCEDURES 81
Uncorroborated Client Explanations 84
Imprecise Explanations 89
Lack of Informed Expectations 93
Setting Scopes for Variance Analyses 101
7. AN EASY APPROACH TO IMPLEMENTING ANALYTICAL PROCEDURES103
Step One: Think Analytical First 105
Step Two: Determine the Proper Strength 119
Step Three: Test and Evaluate Results 123
Lousy Internal Controls 129
Closing Thoughts 132
8. INTERNAL CONTROL:THE MISUNDERSTOOD CHILD 135
Types of Controls 139
Minimum Audit Requirements 146
9. TO TEST OR NOT TO TEST 155
A Four-Step Approach to Testing Controls 159
Step One: Evaluate Cost-Benefits 159
Step Two: Identify Specific Controls to Test 164
Step Three: Select and Perform Control Tests 169
Step Four: Arrive at Conclusions 173
Conclusion 175
10. TALKIN' TO THE CLIENT 177
Who Should Ask the Questions? 180
How Reliable Is the Evidence Source? 181
Do You Hear What I Hear? 182
11. DATA EXTRACTION SOFTWARE 187
Purpose of This Chapter 190
Benefits of Data Extraction Software 191
Case Study 196
How to Proceed 199
12. ACTION STEPS 207
Thinkers and Robots 209
Three Essential Steps for Transforming Your Firm 211
