Timothy J. Louwers,
James Madison University Robert J. Ramsay,
University of Kentucky David H. Sinason,
Northern Illinois University Jerry R. Strawser,
Texas A & M University
In early December 2007, the third edition of Auditing & Assurance Services by Louwers, Ramsay, Sinason and Strawser will publish. Given the importance of the updated Auditing Standard 5, we have posted an early PDF version of our fully updated chapter 5 (Risk Assessment: Internal Control Evaluation), the chapter most affected by the standard. Please note that this is an early, uncorrected version of the chapter. Following are some of the chapter updates:
Krispy Kreme’s management report on the company’s numerous internal control deficiencies provides the introduction for the chapter.
The chapter has an increased focus on assessing the risk of material misstatement (not just control risk).
Two Auditing Insights for internal controls have been added, highlighting real world examples of control deficiencies.
A new discussion of Entity-Level Controls has been added.
The section discussing additional procedures required for publicly traded companies has been completely rewritten as a result of the issuance of AS 5.
A summary of Moody’s report on internal control deficiencies has been added.
The definitions of significant deficiencies and material weaknesses have been amended and examples of each have been provided.
A summary of evidence is provided on the question of whether Sarbanes-Oxley is working or not.
Reports on internal control over financial reporting have been moved from Chapter 12 and expanded for more extensive coverage.
New AS 5 questions have been added to EOC materials.
These proofs are being made available in this uncorrected form to provide you with the latest coverage on AS 5 as quickly as possible. Thank you for your continued use of Louwers, Ramsay, Sinason and Strawser.
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Chapter 5 Proof
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2007 McGraw-Hill Higher Education