Lecture Notes for Auditing and Assurance Services, 17th Edition

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ACL Installation and Instructions
INTRODUCTION
ACL is generalized audit software used by auditors to extract and analyze data on client’s
computerized systems. Generalized audit software is discussed on pages 329 and 398
of the text.
The ACL Problems included in selected chapters (Chapters 7, 8, 10, 12, 14, 15,
16 and 17) are intended to provide you with an introduction to ACL. An in-depth study of
its use is beyond the scope of most first auditing courses. The guidance provided in this
Appendix is intended only to help you solve the problems in the text.
Downloading ACL
Complete the following steps to access the ACL software:
1. Visit the ACL Academic Network page for Professors at
https://info.acl.com/Academic-Network-for-Professors.html
2. Sign up for the ACL Academic Network.
3. You will receive two emails: the first explains your software entitlement and the
second will contain instructions on how to activate the user account and set a
password. Access to ACL software expires after six months.
4. More information on the ACL Academic Network for Students can be found here:
https://info.acl.com/Academic-Network-for-Students.html
Note that ACL is only compatible with the following versions of Windows: Windows 10,
Windows 8.1, and Windows 7. Additional support can be found at the ACL websites:
Analytics installation: https://help.highbond.com/helpdocs/analytics/14/user-guide/en-
us/Content/administration/home.htm.
GRC quick start: https://help.highbond.com/helpdocs/projects/current/user-guide/en-
us/Content/projects/quick_start/Projects_quick_start.html?cshid=pm-pm-quick-start
Opening ACL
An icon to open ACL should be on your desktop after installation. If it does not appear,
then go to Windows Start and select “Programs” to then locate the ACL link. Select the
ACL link to launch the software.
Finding Companies, Tables, and Using Commands
The main ACL screen should appear when you open the ACL software. Look at that
screen now.
On that screen, you will see a choice to create a new analytic project or open an
analytic project. Click on the link for “Open Analytic Project.” Within the “Sample Files”
you will see three projects listed. The ACL assignments in the text use only two of these
projects: ACL_Rockwood and ACL_Cypress_Pcards. Both of these projects have several
folders and files within those folders, which ACL calls tables. You will first double-click on
a project to identify the folders, which will appear in the left side of your screen window
once you double-click on the project folder. (Note: When you open ACL again, any

projects you have accessed will appear under “Recent Analytics Files” and can be
accessed using those links.)
Note: From now on, when you see italics it means you should use your computer to follow
an instruction. The arrow sign (→) indicates an additional action to be taken.
Double-Click ACL_Rockwood to open the folders under ACL_Rockwood → Click
the plus sign next to the payroll folder to view the available tables.
Observe that there are now three tables available in the payroll folder.
Double click Payroll_details and observe that a typical ACL table labeled
Payroll_details for payroll transactions opens. On the bottom row of that screen,
the number of records in the table is listed (5,801). The table includes columns
with titles and data in each column. That is the information that auditors verify using
various commands.
Click the top of the Net pay column on the table (make sure the column is now all
highlighted) → Go to the Windows drop-down options at the top of the screen and
select “Analyze” (on the Menu bar) → Under “Analyze,” select “Total” (on the drop-
down list).
The amount shown on the screen should be 7,466,987.20. You just used an ACL
command (Total) to calculate the total of the net pay amounts in the table. That sure beats
using a calculator or reentering the data in Excel.
Click the small x next to the Total tab to close that window and return to the
Payroll_details table.
→ Click the small x next to the Payroll_details tab to close the Payroll_details table.
ACL_Rockwood Project” will still be open on the left side of the screen.
→ Click the large X to exit ACL.
You will use the remainder of this material to help you answer the assigned questions in
the text. The first three functions (Quick Sort, Filters, and Computed Fields) are not
considered ACL commands. The remaining functions included here are all ACL
commands. You will use these commands in ACL homework problems that are included
in selected chapters. The descriptions below provide a brief overview of the functions that
will be used to complete those problems. Within each ACL homework problem in the text,
you will see the commands needed to answer the problem listed within parentheses in
that problem.
Quick Sort Used to sort data in any field, either from lowest to highest or vice versa.
1. Click on the column heading of the field you want to sort.
2. Right click on the top of the column to find the
→ Quick Sort Ascending or Quick
Sort Descending. (You can right click Quick Sort Off to undo the sort.)

Filters Used to ask questions of data in a table without adding a new field.
1. Click the Edit View Filter button in the row above the column headings to enter
the Edit view filter window.
2. Use the Expression box to build an expression.
3. The Expression box is where you build filters using the available fields in the
current table, as well as the operators (=, < >, AND, etc.). There are three
components to a filter: (1) field, (2) operator, and (3) a numeric value, character
value, or date.
4. In the Available Fields portion of the window, double-click the name of the field for
which you are building a filter. Notice that the field name is inserted in the
Expression box.
5. Use the operator buttons (=, +, <, >, etc.) and the numeric keypad on the keyboard
to build the filter. Note: If you are performing a recalculation to determine if the
original calculation already in the data table is correct, use <> as the operator with
no spaces between the less than and greater than signs.
6. Enter an appropriate string or value after the operator. Use the following
guidelines:
• Numeric values—enter as a number with no commas or dollar signs. For
example, to enter $1,000, type 1000.
• Character values—enclose with one or two quotations. For example, to
enter department D10, type “D10” or ‘D10’. Use the same case as is used
in the data field.
• Dates—click on the Date & Time button located just below the mathematical
operators to open the Date & Time Selector box. Click the drop-down arrow
to enter the monthly calendar box. Select the date, then click OK.
7. For more complex filters, use the AND, OR, or NOT operators and repeat the
preceding process for each portion of the filter. After selecting an AND, OR, or
NOT, it is necessary to repeat all three components [(1) field, (2) operator and
(3) a numeric value, character value, or date] of the filter.
8. An example of an expression to select all gross pay amounts greater than $1,000
for employee number 0000124921 from the Payroll_details table is as follows:
employee_number = “0000124921” AND gross_pay > 1000
9. Click OK to complete the filter.
10. If you want to change the filter, click again to return to the Edit view filter
window. Make changes in the filter and click OK.
11. You can also apply additional commands to a filtered table until you remove the
filter.
12. Click the Remove Filter button after you have completed all additional tests on
the filtered table to return to the unfiltered table.
Computed Fields Used to ask questions of data in a table by adding a new field. The
new field is derived from calculations using other fields in the table.
1. Click Edit
→ Table Layout to open the Layout Options window.

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2. Select the “Edit Fields/Expressions” tab folder on the top row of the Layout window.
3. Click the Add a New Expression button , which is the third button down on the
left side of the window under the “Edit Fields/Expressions” tab. (You may need to
expand the window to see the .)
4. Add a name for the computed field in the Name box that describes the new column.
Also add a column title in the Alternative Column Title box, which will appear in the
Table after you complete the new field.
5. Click the Expression button , which is located to the right of the Name box to
open the Expression box.
6. Build an expression in the expression box in the same way as for filters. For
example, assume you want to independently calculate the net pay. Enter “Recalc
Net Pay” in the Name box and in the Alternative Column Title box and in the
Expression builder box build an expression by double-clicking on “gross_pay”, “-”,
and “deducations” in the Available Fields box to build the following expression
(note that the field name for deductions is misspelled as “deducations”):
gross_pay – deductions
7. After building the expression, click OK to return to the original table layout window.
8. Click the Accept Entry button on the top left of the screen to save the new
computed field.
9. The new field can be added to the table view by completing the following steps:
• Close the Edit Fields/Expressions window if it is still open.
• Return to the data table which contains all the data for the file you are
examining. Place the cursor in the column heading to the right of where you
want the new computed field to appear in the table view.
• Right Click and then click Add Columns from the drop-down menu.
• Double-click on the name of the new computed field you just created.
• Click OK. The new computed field now appears in the table view.
Age Command Used to accumulate data in a table by age, usually for accounts
receivable.
1. Click Analyze
→ Age to open the Age window.
2. Use the Age On drop-down arrow to select the date field you want to run the Age
command on
3. In the Subtotal Fields portion of the command dialog, click on the name of the
numeric field you want to list for each aging interval.
4. Enter a date in the Cutoff Date box using the calendar. This date is used to
calculate the aging. It is typically the client’s year-end date.
5. Click OK to run the Age command.
Classify Command Used to count and aggregate the number and percentage of records
for each value of a character field and to subtotal the numeric fields for the field.
1. Click any cell in a column for any character field you want summarized. (Do not
click the column heading.)
2. Click Analyze
→ Classify, then select the field you want to classify on. Next click
on the quantity field in the Subtotal Field that you want summarized.

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3. Click OK.
Count Command Used to count records in a table that you have filtered. (For a table that
has not been filtered, the record count is indicated at the bottom of the open table.) After
a filter is applied to a table, observe that there is now a ?/ in the lower left corner that
replaces the original count.
1. Click Analyze
→ Count.
2. Click OK. The new count replaces ?/ in the lower left corner.
Duplicates Command Used to detect duplicates in the sequence of numbers in a table,
usually document numbers.
1. Click on the column heading for the document numbers you want to test for
duplicates.
2. Click Analyze
→ Duplicates.
3. The result is a list of duplicates if any exist. When prompted click on OK and type
any output file name such as “Duplicates.” (You can change the radio button from
“file” to “screen” under the output tab if you want to see the output on your screen
and not save it to a file.)
Gaps Command Used to detect gaps in the sequence of numbers in a table, usually
document numbers.
1. Click on the column heading for the document numbers you want to test for gaps.
2. Click Analyze
→ Gaps. The result is a table of gaps if any exist.
Statistics Command Used to identify characteristics in client data files to better
understand the data being audited.
1. Click Analyze
→ Statistics to open the Statistics window.
2. Select the numeric or date field(s) you want to generate statistics on by clicking on
the line(s) containing the field name(s). Use the Shift or Control key to select more
than one field.
3. Click OK to run the command.
Stratify Command Used to accumulate stratification of numeric information in a field.
1. Select the field on which you intend to stratify. Use Quick Sort to identify large and
small population items you want to exclude from the stratification.
2. Click Analyze
→ Stratify to open the Stratify window.
3. Use the Stratify On drop-down arrow to choose the name of the field you want to
stratify.
4. Enter the minimum and maximum values in the minimum and maximum boxes
with no dollars or commas and the number of intervals (the default is 10). You can
also highlight the entire column and click Analyze → Stratify to stratify without
having to enter values.
5. Click OK to run the Stratify command.
Summarize Command Used to count records and accumulate numeric amounts for a
character or date field.

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1. Click Analyze
→ Summarize to open the Summarize window.
2. In the Summarize On portion of the window, click on the field you want to
summarize on. For example, in the Payroll_details table in the ACL_Rockwood
Project, if you want the total amount of gross pay for each employee, you would
summarize on employee number. Click on the Summarize On dropdown arrow and
click on “employee_number” in the Name column.
3. In the Subtotal Fields portion of the window, click on the name of the numeric field
you want to accumulate for each summary category (for example, gross pay).
4. Click OK and when prompted to enter an output file name type any name for the
file you are summarizing such as “Pay_by_employee.”
5. Click OK for a new table.
Total Command Used to total one or more data fields for a table.
1. Click on the column heading for the column you want to total.
2. Click Analyze
→ Total to obtain a total.
Sampling Command Used to perform sampling for transactions or balances. First select
"Record/Monetary Unit Sampling" (you can also select "Classical Variables Sampling"
which is not illustrated in these examples).
To determine sample size:
1. Click Sampling
→ Calculate Sample Size from the menu bar.
2. Select the Monetary radio button to determine an MUS sample size; select the
Record radio button to determine a sample size for records.
3. Input the sampling parameters and select Calculate. The sample size and
sampling interval will appear below the calculate bar.
To select a sample:
1. Click Sampling
→ Sample.
2. Select the Record radio button to sample records. Select the fixed interval or
random radio button.
• For random selection, input the sample size and indicate the output file
name. (You can also indicate a random seed number, but it is not required.)
• For fixed interval selection, indicate the size of the sampling interval and
output file name. (You can also indicate a random seed number, but it is not
required.)
3. Select the MUS radio button to select an MUS sample. Also indicate the monetary
amount field to be sampled from. Select the fixed interval or random radio button.
• For random selection, input the sample size and population size and
indicate the output file name. (You can also indicate a random seed number,
but it is not required.)
• For fixed interval selection, indicate the size of the sampling interval and
output file name. (You can also indicate a random seed number, but it is not
required.)
Note: The evaluation of sample errors is not illustrated.

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Course Approach Suggestions
The purpose of the Instructor’s Resource Manual is to help you teach auditing
and other assurance services courses more efficiently. Naturally, we do not want to
interfere with your present approach or imply that our suggestions are the only good
alternatives.
This resource manual has several parts:
 Illustrative schedules for one-quarter and one-semester courses.
 Term projects we have successfully used.
 Chapter-by-chapter suggestions for teaching the content in each chapter.
The suggestions for each chapter include the following:
 Ideas we find useful in teaching introductory auditing.
 Homework problems we use most often.
 A matrix illustrating how learning objectives correlate with chapter problem
material. The matrix for each chapter is designed to provide a one -page
summary of this information in order to assist you in assigning problem
material.
 Overhead masters containing ideas we like to emphasize in class that can
be projected using a document camera or transparency machine. These are
labeled “OH” in the back of the teaching notes for each chapter. The
overhead masters can also be downloaded from the Instructor’s Resource
Center (www.pearsonhighered.com/arens).
We find that use of the overheads, especially the ones that require student
responses, are an excellent way to involve students. We use the overheads in
conjunction with the PowerPoint slides to help vary the course approach.
Many of the chapter figures and tables are included in the PowerPoint
slides for the respective chapters. Note that the Image Gallery posted at the
Instructor’s Resource Center contains every table, graph, and piece of art from the
textbook. You can use the items in the Image Gallery to create additional
PowerPoint presentations or overhead transparencies. Many of the key figures and
tables have already been included on PowerPoint slides.
The chapters are designed so that their arrangement and selection provides
maximum flexibility in course design.
Suggested Syllabi
In this section, we provide a possible schedule for use in a one-quarter course
and in a one-semester course. We also provide suggested problem assignments that
could easily be presented in your syllabus.
Following these sample syllabi, we briefly overview other teaching materials
that you might find helpful as you develop your plan for coverage of the course
content.

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vi
One-Quarter Schedule (assumes two 75-minute sessions per week)
WEEK
NO. CONTENTS
CORRESPONDING
CHAPTER IN TEXT
1 Introduction
The demand for audit and other assurance
services
The CPA profession
Audit reports
Chapter 1
Chapter 2
Chapter 3
2 Audit responsibilities and objectives
Audit evidence
Chapter 6
Chapter 7
3 Audit planning and materiality
Assessing the risk of material misstatement
Chapter 8
Chapter 9
4 Assessing and responding to fraud risks
Internal control and COSO framework
Chapter 10
Chapter 11
5 Assessing control risk and reporting on internal
controls
Midterm examination
Chapter 12
Midterm
6 Overall audit strategy and audit program
Audit of the sales and collection cycle: tests of
controls and substantive tests of transactions
Chapter 13
Chapter 14
7 Accounts receivable: tests of details of balances
Audit sampling for tests of controls and
substantive tests of transactions
Chapter 16
Chapter 15
8 Audit sampling for tests of controls and
substantive tests of transactions (cont.)
Completing the audit
Chapter 15
Chapter 24
9 Audit reporting – other assurance reports
Professional ethics
Chapter 25
Chapter 4
10 Legal liability
Internal and governmental financial auditing and
operational auditing
Chapter 5
Chapter 26

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vii
One-Semester Schedule (assumes two 75-minute sessions per week)
WEEK
NO. CONTENTS
CORRESPONDING
CHAPTER IN TEXT
1 Introduction
The demand for audit and other assurance
services
The CPA profession
Audit reports
Chapter 1
Chapter 2
Chapter 3
2 Professional ethics
Legal liability
Chapter 4
Chapter 5
3 Audit responsibilities and objectives
Audit evidence
Chapter 6
Chapter 7
4 Audit planning and materiality
Assessing the risk of material misstatement
Chapter 8
Chapter 9
5 Assessing the risk of material misstatement
(cont.)
Midterm examination #1
Chapter 9
Midterm #1
6 Assessing and responding to fraud risks
Internal control and COSO framework
Chapter 10
Chapter 11
7 Assessing control risk and reporting on internal
controls
Overall audit strategy and audit program
Chapter 12
Chapter 13
8 Audit of the sales and collection cycle: tests of
controls and substantive tests of transactions
Accounts receivable: tests of details of balances
Chapter 14
Chapter 16
9 Audit sampling for tests of controls and
substantive tests of transactions
Audit sampling for tests of details of balances
Chapter 15
Chapter 17
10 Audit sampling for tests of details of balances
(cont.)
Midterm examination #2
Chapter 17
Midterm #2
11 Audit of the acquisition and payment cycle
Completing tests in the acquisition and payment
cycle
Chapter 18
Chapter 19
12 Audit of cash and financial instruments
Completing the audit
Chapter 23
Chapter 24
13 Audit reporting – completion and other assurance
services reports
Chapter 3
Chapter 25
14 Internal and governmental financial auditing and
operational auditing
Chapter 26

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viii
One-Quarter Assignment Schedule
SESSION SUBJECT
READING
ASSIGNMENT
(CHAPTER)
PROBLEM
ASSIGNMENT
1 Introduction, audit and assurance
services, and the CPA profession
1 and 2 1-17, 1-18, 2-19,
2-20
2 Audit reports 3 3-23, 3-26, 3-27
3 Audit responsibilities and objectives 6 6-26, 6-30, 6-33,
6-34, 6-35
4 Audit evidence 7 7-26, 7-27, 7-30,
7-36, 7-38
5 Audit planning and materiality 8 8-27, 8-31, 8-34,
8-37, 8-39
6 Assessing the risk of material
misstatement
9 9-29, 9-31, 9-34,
9-37, 9-38, 9-40
7 Assessing and responding to fraud
risks
10 10-22, 10-23, 10-33,
10-34, 10-35
8 Internal control and COSO
framework
11 11-23, 11-24, 11-25
9 Assessing control risk and reporting
on internal controls
12 12-21, 12-23, 12-29,
12-35, 12-37
10 Midterm Midterm
11 Overall audit strategy and audit
program
13 13-25, 13-30, 13-32,
13-33, 13-37
12 Audit of the sales and collection
cycle: tests of controls and
substantive tests of transactions
14 14-25, 14-26, 14-30,
14-32, 14-36
13 Accounts receivable: tests of details
of balances
16 16-24, 16-28, 16-29,
16-33, 16-39
14 Audit sampling for tests of controls
and substantive tests of
transactions
15 15-31, 15-32, 15-38
15 Audit sampling for tests of controls
and substantive tests of
transactions (cont.)
15 15-39
16 Completing the audit 24 24-25, 24-27, 24-31
17 Audit reporting – completion 25 25-23, 25-25, 25-29
18 Professional ethics 4 4-22, 4-23, 4-24,
4-31
19 Legal liability 5 5-21, 5-24, 5-28
20 Internal and governmental financial
auditing and operational auditing
26 26-19, 26-22

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ix
One-Semester Assignment Schedule
SESSION SUBJECT
READING
ASSIGNMENT
(CHAPTER)
PROBLEM
ASSIGNMENT
1 Introduction, audit and assurance
services, and the CPA profession
1 and 2 1-17, 1-18, 2-19,
2-20
2 Audit reports 3 3-23, 3-26, 3-27
3 Professional ethics 4 4-22, 4-23, 4-24,
4-31
4 Legal liability 5 5-21, 5-24, 5-28
5 Audit responsibilities and objectives 6 6-26, 6-30, 6-33,
6-34, 6-35
6 Audit evidence 7 7-26, 7-27, 7-30,
7-36, 7-38
7 Audit planning and materiality 8 8-27, 8-31, 8-34,
8-37, 8-39
8 Assessing the risk of material
misstatement
9 9-29, 9-31, 9-34
9 Assessing the risk of materiality
misstatement (cont.)
9 9-37, 9-38, 9-40
10 Midterm #1 Midterm #1
11 Assessing and responding to fraud
risks
10 10-22, 10-23, 10-33,
10-34, 10-35
12 Internal control and COSO
framework
11 11-23, 11-24, 11-25
13 Assessing control risk and reporting
on internal controls
12 12-21, 12-23, 12-29,
12-35, 12-37
14 Overall audit strategy and audit
program
13 13-25, 13-30, 13-32,
13-33, 13-37
15 Audit of the sales and collection
cycle: tests of controls and
substantive tests of transactions
14 14-25, 14-26, 14-30,
14-32, 14-36
16 Accounts receivable: tests of details
of balances
16 16-24, 16-28, 16-29,
16-33, 16-39
17 Audit sampling for tests of controls
and substantive tests of
transactions
15 15-31, 15-32, 15-38,
15-39
18 Audit sampling for tests of details of
balances
17 17-25 17-26, 17-28
19 Audit sampling for tests of details of
balances (cont.)
17 17-29, 17-33, 17-35
20 Midterm #2 Midterm #2

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x
One-Semester Assignment Schedule (continued)
SESSION SUBJECT
READING
ASSIGNMENT
(CHAPTER)
PROBLEM
ASSIGNMENT
21 Audit of the acquisition and payment
cycle: tests of controls, substantive
tests of transactions and accounts
payable
18 18-21, 18-24, 18-28,
18-30
22 Completing the tests in the
acquisition and payment cycle:
verification of selected accounts
19 19-19, 19-21, 19-28,
19-29
23 Audit of cash and financial
instruments
23 23-15, 23-19, 23-20,
23-25
24 Completing the audit 24 24-25, 24-27, 24-31
25* Audit reports (continued) 3
26 Audit reporting – completion 25 25-23, 25-25, 25-29
27 Internal and governmental financial
auditing and operational auditing
26 26-19, 26-22
28 Internal and governmental financial
auditing and operational auditing
(cont.)
26 26-23
*Can be used as a catch-up session or as a review of audit reporting before covering Chapter 25 in the
next session.
Chapter Opening Vignettes ― Lessons from Practice
Each chapter begins with a short vignette that is based on a realistic situation
that auditors might expect to face in practice. In addition, each chapter contains
several mid-chapter vignettes that highlight other real-world issues that relate to the
chapter content, including recent events, news articles, fraud cases, or related
thought papers and articles. Many of these opening and mid-chapter vignettes
summarize actual company issues, while others highlight realistic judgments faced
by auditors in practice.
We have used these vignettes in our own classrooms over the years. We have
also shared them with others. One of our colleagues has used them as a “Lesson for
the Day” for students. Each vignette illustrates the point implied by its title. Thus, they
can be used by the instructor as pre-reading for discussion of a particular point or as
short cases on a stand-alone basis. In any event, we believe they are interesting and
add a flavor that does not otherwise exist in the traditional academic study of auditing,
unless significant time is spent on longer case studies.
We suggest you review all 26 opening vignettes plus the shaded mid-chapter
vignettes at the beginning of the course and decide which ones to use and how
they can be used in your auditing class. A brief discussion of many of the vignettes
appears in each chapter’s material in this resource guide. Several of them emphasize
international issues.

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xi
Data Analytics Coverage and Problems
The use of data analytics is introduced in Chapter 7 on audit evidence. Most of
the subsequent chapters include a vignette box describing how data analytics can be
integrated in the audit process. Several chapters include data analytics problems
based on a data set we have provided for the JA Tires company. These problems can
be answered using Excel, IDEA, or ACL, as well as data visualization software. The
JA Tires data analytics problems are 6-35, 7-38, 9-38, and 14-32. Additional data
analytics problems based on publicly available data or text data sets include 3-37 on
PCAOB Form AP, 10-25 on restatements, 18-29 involving acquisition transactions,
and 19-23 involving fixed asset additions.
Multiple Choice Problems from CPA Examinations and Becker CPA Exam
Review
Every chapter includes at least two sets of multiple choice questions from past
CPA examinations. These questions have been carefully selected by the author team
to cover important audit concepts. Use of polling software included with Pearson’s
MyAccountingLab or outside providers can be used to quickly review multiple choice
questions and assess student comprehension. A set of multiple choice problems from
Becker CPA Exam Review is also included with every chapter.
Concept Checks and Review Questions
Concepts checks are included in two or three places in the chapter immediately
following reading material that allow students to quickly assess their understanding
of important concepts in the reading material. The end-of-chapter material includes
an extensive number of review questions, and this manual includes suggestions as
to questions to review in class.
End-of-Chapter Discussion Problems, Research Problems, and Cases
We have used a group discussion icon to highlight problems that are
particularly well-suited for class discussion. Most chapters have at least one of
these problems. These problems are a great way to involve the class in
discussion to help them understand the application of course material.
Research problems that require students to research auditing standards and
to search for information using a number of Internet-based resources are included
in the end-of-chapter material for most chapters. Many of these assignments require
students to use the Internet to research relevant auditing standards and issues,
and other research problems expose students to real-world events, such as actual
10-K annual reports, management reports on internal control over financial reporting,
and SEC enforcement actions related to fraud investigations. These assignments
provide opportunities for students to engage in research activities outside of
traditional homework problems to become familiar with how to work with auditing
standards and to learn about issues affecting the audit process.

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xii
Most chapters include Cases that challenge students beyond what is required
in other end-of-chapter problems. They are generally more complex than other
homework problems. Thus, we sometimes assign these as group assignments that
can be worked on outside of class, or we assign them as in-class assignments
whereby students work together to develop a group solution to the case for
subsequent class discussion.
Pinnacle Manufacturing Integrated Case
For instructors who are interested in providing a more complex case that
students can work across multiple chapters, we have included the Pinnacle
Manufacturing Integrated Case. This seven-part case gives students a hands-on
experience that begins in Chapter 8 and concludes in Chapter 16. The case can be
worked individually or in small teams. We always use the Pinnacle case and assign
it to small teams of three or four students, and assign a significant percentage of the
final course grade to the case. We made additional changes to this case for the
seventeenth edition, which distinguishes this case from prior editions.
Use of ACL Software
Instructions for installing and using ACL Software are included on the text
Web site. Students use this software, which includes several hypothetical
databases, to complete ACL-based homework problems in selected chapters.
The problems that use ACL software are 7-35, 8-37, 10-34, 12-35, 14-35, 15-34, 16-
37, and 17-33. These problems include the Data Analytics icon in the margin next
to the problem and we designate them as ACL problems next to the problem number.
Instructors who want to provide more detailed coverage of ACL software can use
Data Analytics for Auditing Using ACL, Fourth Edition (2017) by Alvin A. Arens,
Randal J. Elder, and Carol J. Borsum. This resource is designed for use as a
supplement in either an undergraduate or advanced auditing course and contains
access to the most current version of the software, along with data sets for 12
companies. Students work through this 25- to 35-hour project outside of class time,
but the project also provides great flexibility for you to cover important concepts
in class. After completing Computerized Auditing Using ACL Data Analytics,
students will have an in-depth understanding of how audit software is used in
practice for both data analysis and audit testing.
Assignment of Excel Problems in the Textbook
In the chapter problem materials, there are problems that can be solved using
Excel. Most of those have a spreadsheet icon in the margin next to the problem so
that you can easily identify them. You may assign these problems to be done
manually, with the computer, or both, at your discretion. In the solutions manual, we
offer solutions on both bases. In addition, we offer the solution templates and relevant
data files on the Instructor’s Resource Center. There are other problems that do not
have the spreadsheet icon next to the problem; however, the use of Excel could be
used to solve the problem.

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The list below notes all of the problems that can be assigned for solving
with computer assistance through the use of Excel software, along with the related
solution file names on the Website.
PROBLEM
NUMBER
EXCEL
FILE NAME
7-37
7-40
8-31
8-39
12-37
15-28
15-29
15-39
16-39
17-26
17-28
17-29
17-32
17-34
17-35
18-30
21-26
21-30
23-20
23-23
24-31
P737.xls
P740.xls
P831.xls
P839.xls
P1237.xls
P1528.xls
P1529.xls
P1539.xls
P1639.xls
P1726.xls
P1728.xls
P1729.xls
P1732.xls
P1734.xls
P1735.xls
P1830.xls
P2126.xls
P2130.xls
P2320.xls
P2323.xls
P2431.xls
The files listed above are available on the Instructor’s Resource Center.
Instructor’s Resource Center
The Instructor Resource Center for the Arens/Elder/Beasley/Hogan text
(www.pearsonhighered.com/arens) includes a wide variety of resources. If needed,
periodic updates of major professional developments may be posted on the
Instructor’s Resource Center for instructor download and review.
Other Resources That We Use
In addition to the many features included in this seventeenth edition of Auditing and
Assurance Services: An Integrated Approach, there are several other resources
that we find useful as complementary materials and assignments.

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xiv
Use of Systems Understanding Aid
We find the use of the publication, Systems Understanding Aid, Alvin A. Arens
and D. Dewey Ward, Armond Dalton Publishers, Inc., (2016) to be extremely useful.
The aid is a self-study document that has students work through a simple
accounting system, including application of internal controls. It is typically assigned
to be done outside of class during the first four weeks, prior to the study of internal
control. The aid will give students an adequate familiarity with documents and
records to increase their understanding of internal control.
Use of Integrated Audit Practice Case
The Integrated Audit Practice Case, David S. Kerr, Randal J. Elder, and
Alvin A. Arens, Armond Dalton Publishers, Inc., (2017) can be used to give students
hands-on experience making audit judgments and completing audit documentation.
The case can be completed individually or in groups, and includes 10 assignments
that can be assigned throughout the semester. The assignments take students
through the planning phase, evaluation of internal control and performance of tests
of transactions, substantive tests of balances, and completing the audit. The case
includes files that allow students to complete selected assignments in Excel.
Use of Auditing Cases
Auditing Cases: An Interactive Learning Approach, Seventh Edition (2019)
by Beasley, Buckless, Glover, and Prawitt is an excellent supplement to the textbook.
This collection of 50 auditing cases addresses most major activities performed
during an audit, from client acceptance to issuance of an audit report. Many of the
cases are based on actual companies, some of which were engaged in financial
reporting fraud. Several cases involve students working with realistic audit evidence
and preparing and evaluating audit documentation. Auditing Cases: An Interactive
Learning Approach provides instructors an easy opportunity to introduce short active
learning exercises to promote in-class discussions of real-world audit issues
throughout the introductory auditing course.
Suggested Term Projects
In addition to the cases included in many of the chapters and the Pinnacle
Manufacturing Integrated Case, we identify two additional potential term projects.
1. Have students obtain a public company’s recent Form 10-K filing with the
SEC and, using a team approach, prepare an analysis of business risks
affecting the financial reporting process and develop an audit plan
(overview level) for the company selected.
2. Have students go through the audit process for the acquisition and payment
cycle of a small manufacturing company from flowcharting the system to
designing the audit program.
Syllabus excerpts for each project follow.

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xv
TERM PROJECT 1
Analysis and Audit Plan
The objectives of this project are as follows:
1. To acquaint students with the Form 10-K of a publicly held company audited
by a CPA firm.
2. To provide data for the practical application of certain steps in the audit
process.
3. To allow students to experience working in teams, as is done in actual
auditing.
Detailed Instructions
1. Form a group of four persons. Discuss how you will organize (assign
responsibilities) to complete this project in a suitable format.
2. Visit the SEC’s Web site (www.sec.gov) to obtain a copy of a recent Form
10-K filing by a publicly held company with stock actively traded on the New
York, NASDAQ, or other over-the-counter exchanges. Answer the following
questions:
a. What is the company’s industry?
b. What are its primary products?
c. What raw materials does the company use?
d. How large is the company:
■ sales
■ assets
■ employees
e. Where is the company located?
f. What other people/companies are closely associated with this company?
g. Look at the Form 10-K:
■ What information is included in Item 1 and Item 1A of the Form 10-K?
■ How might that information be useful to the audit during audit
planning?
3. Obtain outside information about the company and its industry. Answer the
following questions:
a. What are the key economic factors about the industry?
b. Where is the company in its life cycle?
c. What are the five or six most important factors for success in this
business?
d. How does this company stand with respect to these factors?
e. Describe four or five key business risks related to the client’s business
and industry.
f. What notable accounting considerations are there for companies in this
industry?
g. What legal or regulatory matters are of concern?
h. What social matters are of concern?

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4. Analyze the company’s financial strength:
a. Assess the financial strength of the company.
b. How is the financial strength likely to change in the next year or so?
c. What are its sources of capital, and what is the value of the company’s
capital?
d. How have capital markets responded to the company in the last year?
e. What is the quality of earnings?
f. How does the company compare with others in the industry?
5. Prepare a broad audit plan:
a. What material types of transactions and transaction cycles are involved?
b. What are the high-risk areas? Would you consider any of these risks to
be significant risks?
c. What are the low-risk areas?
d. If management faced tremendous pressure regarding the entity’s
financial performance, what opportunities might exist for them to engage
in fraudulent financial reporting?
e. To what extent do you believe it will be appropriate to reduce assessed
control risk?
f. How will audit effort be allocated among geographical areas?
g. What form of audit report do you expect will be issued; what does it mean?
6. Indicate as an appendix to the report how the project team was organized
and how it functioned on the project.
The project will be graded as follows:
ITEM CONTENT STYLE TOTAL
2 to 4
5
6
40%
30%
10%
80%
20%
20% 100%
This project accomplishes several purposes. First, it relates the course content to
a real (although broadly presented) situation. The students get the idea of auditing the
business, not just the books. Students are confronted – some for the first time – with
having to obtain, study, and understand content in a Form 10-K. They have to think
about such things as business risk and allocation of scarce resources as a decision-
maker.
Having the project done by teams is an important part of the approach. Audits are
done by teams and auditors must learn to operate successfully in this mode. The
team’s report determines the grade for each member of the team, regardless of how
the team allocated effort. In grading the report, 20 percent of the grade is based on
communication quality. This includes organization, style, grammar, neatness, etc.
Since effective communication is so essential in practice, this skill receives emphasis
in many ways throughout the course.

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xviii
TERM PROJECT 2
Internal Control and Audit Program Case
You are provided with the following description of the accounting system and internal
controls for materials purchases by the Johnson Machinery Company, a medium -
sized firm that builds special machinery to order.
Materials purchase requisitions are first approved by the plant foreman, who
then sends them to the purchasing department. Purchasing department employees
enter the purchase requisition information into the computer, which automatically
generates a purchase order in sequential order. The system automatically generates
an electronic copy of the purchase order, which is sent by purchasing department
employees to the vendor. The receiving department electronically accesses a copy of the
purchase order, which is printed to serve as a receiving report.
Delivered materials are immediately sent to the storeroom. The completed
receiving report, which is a printed copy of the purchase order, is sent to the purchasing
department. A copy of the receiving report is sent to the storeroom. Materials are
issued to factory employees subsequent to the verbal request by one of the foremen.
When the mailroom clerk receives vendors’ invoices, he or she forwards them
to the purchasing department employee who placed the order. The invoice is compared
with the electronic copy of the purchase order for price and terms by the employee.
The invoice quantity is compared with the receiving department’s report. After checking
footings, extensions, and discounts on the vendor invoice, the employee indicates
approval for payment by initialing the invoice. The invoice is then forwarded to the
accounting department (voucher section) where it is coded for account distribution,
assigned a voucher number, and entered into the accounting system for recording in
the voucher register. The system tracks invoices due by payment date due. The
purchase order and receiving report are filed in the purchasing department.
On payment dates, the system automatically generates a request for payment.
The system automatically prepares checks and a transaction list for preparation of a
cash disbursements journal, updates the accounts payable master file, and indicates
the payment date for the voucher register. Prenumbered checks are sent to the
cashier, who puts them through the check-signing machine. The checks are then
sent to the voucher section that makes sure that the checks were correctly prepared.
The checks are placed in envelopes and sent to the mailroom. The vouchers are
subsequently filed in numerical order. At the end of each month, a computer listing of
voucher and cash disbursement transactions, and an outstanding accounts payable
list is prepared.
The Treasurer reviews monthly reports of acquisitions by vendor to identify key
vendors. This is used to determine whether any represent key vendors that should be
disclosed, and whether the company faces risk due to overreliance on a few vendors.

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xix
Required:
1. Prepare a flowchart for the acquisition and the payment cycle for Johnson
Machinery Company.
2. List the controls in existence for each of the seven transaction-related
audit objectives for acquisitions.
3. For each control in part 2, list one test of control procedure for verifying its
effectiveness.
4. List the most important deficiencies in the acquisition and payment cycle.
5. Identify the most likely error or fraud that could result from each of the
deficiencies listed in part 4.
6. Suggest a system alteration for JMC that would correct each of the
deficiencies identified in part 4. Be sure to keep cost/benefit in mind.
7. Design an audit program to test internal control. The program should
include, but not be limited to, tests of controls from part 3 and procedures to
compensate for the deficiencies in part 4.
The solution to Term Project 2 is included on the following pages.

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xx
Solution to Term Project 2
Requirement 1Johnson Machinery Company
Materials Purchases
Purchasing DepartmentPlant Foreman Receiving
Department Storeroom Accounting (Voucher
section) CashierMailroom
Approves and
submits purchase
requisition
Purchase requisition
To vendor
Good received
Goods transferred
to storeroom
(1)
Purchase order used
as receiving reportComputer-
generated
prenumbered
purchase order
Copy of receiving
report
Vendor s invoice
Purchase order
Copy of receiving
report
Vendor s invoice
approved for
payment
(3)
System generates
checks and
disbursement listing
(4)
Checks
Disbursement listing
Update A/P
master file
Checks
PO
RR
Notes
1. Goods issued to employees on verbal
request of foreman.
2. Purchasing compares invoice to PO and RR.
3. Invoice coded for account distribution,
assigned a voucher number, and entered into
the accounting system for recording in voucher
register. System tracks payments by due date
and generates request for payment when due.
4. Cashier runs checks through check-signing
machine.
2
Receive vendor s
invoice
Vendor s invoice
Checks mailed
Checks
Verify checks are
correctly prepared
and place in
envelopes
Checks
Invoice/
voucher

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xxi
Requirements 2 and 3
Note: The focus of this problem is on the acquisitions and payments cycle. There would be other controls related
to the cash disbursements cycle.
a Tested by reperformance since no independent verification.
Transaction-Related Audit
Objective
Controls in Place (Req. 2) Test of Control
(Req.3)
1. Recorded acquisitions are for
goods and services received,
consistent with the best
interests of the client
(occurrence)
1a. Purchase requisitions
are approved by the
plant foreman
1b. Vendors’ invoices,
receiving reports, and
purchase orders are
compared for quantity,
price and terms
1a. Examine indication
of approval
1b. Examine initials
indicating
verification and
approval for
payment
2. Existing acquisition
transactions are recorded
(completeness)
2a. Purchase orders are
prenumbered
2b. Receiving reports (copy
of PO) are prenumbered
2a. Account for
sequence of
purchase orders
2b. Account for
sequence of
receiving reports
3. Recorded acquisition
transactions are accurate
(accuracy)
3a. Calculations and
amounts are verified by
purchasing department
employee
3a. Examine initials
indicating
verification and
approval for
payment
4. Acquisition transactions are
correctly included in the
accounts payable and
inventory master files and are
correctly summarized (posting
and summarization)
4. Invoices are entered into
the accounting system
by the accounting
department
4. Compare invoices to
amounts entered
into accounts
payable and
inventory master
filesa
5. Acquisition transactions are
correctly classified
(classification)
5. Accounting department
codes the invoice for
account distribution
5. Review for proper
account distributiona
6. Acquisition transactions are
recorded on the correct date
(timing)
6. Invoices are recorded
when received by the
accounting department
once approved for
payment
6. Compare dates of
receiving reports
with dates in the
acquisition journala
7. Acquisition transactions are
properly aggregated and
related disclosures in the
financial statements are
relevant and understandable
(presentation)
7. Treasurer reviews
monthly reports of
acquisitions by vendor
to determine whether
any require disclosure
7. Examine evidence of
the Treasurer’s
review to evaluate
proper disclosurea

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Requirements 4, 5 and 6
Req. 4
Deficiencies
Req. 5
Risk of Error or Fraud
Req. 6 - Potential Suggestions
for Improvement
No approvals are required
by individuals in the
purchasing department.
Only the plant foreman,
who receives custody of
the goods purchased,
approves the purchase.
The lack of approval beyond that of the plant foreman
might result in the use of company resources for the
wrong types of purchases. The foreman might make
an error in the types and quantities of items needed,
resulting in error.
Currently, there is a lack of segregation of duties given
the foreman has the ability to approve purchases and
has full access to the use of those goods. Therefore,
the foreman might order goods for personal use,
increasing the risk of fraud.
The approval of purchase requisitions
should be separated from those with custody
of the goods purchased. Purchasing
department personnel should have
responsibility for authorizing the purchase
orders based on predetermined criteria,
(such as production schedules for the plant).
Additionally, the approval of the processing
of payment should reside with someone in a
Treasurer (or other senior leadership role).
That approval would include review of the
purchase order, receiving report, and invoice
to ensure all payments are for legitimate and
appropriate business use by Johnson
Machinery Company.
There is no preapproved
list of vendors that
purchasing department
personnel are authorized
to use. There also are no
pre-established spending
thresholds of how much
can be purchased without
additional management
approvals.
Without a pre-specified list of approved vendors and
goods that are allowed for purchase, purchasing
personnel may make purchases from low-quality or
unreliable suppliers, resulting in products that may not
be acceptable or purchases from vendors who are not
able to deliver on a timely basis.
Without an approved list of vendors, purchasing
personnel might collude with illegitimate vendors to
engage in fraud, or purchasing staff might create
fictitious vendors to process fraudulent payments to
themselves.
Management should review and approve a
set of approved products and approved
vendors that satisfy pre-determined criteria,
such as type and quality of product or
service delivery, reliability timeliness, and
financial viability.
Purchasing staff would only be able to
purchase products from vendors on the pre-
approved vendor and product list; otherwise,
they would be required to obtain additional
management approvals.
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Req. 4
Deficiencies
Req. 5
Risk of Error or Fraud
Req. 6 - Potential Suggestions
for Improvement
Personnel in the receiving
department rely on a copy
of the purchase order to
serve as the receiving
report. Receiving
department personnel can
see the quantity ordered
given they have access to
the full purchase order.
Receiving department personnel may not
independently verify the types and quantities of goods
actually received when those goods arrive. Instead,
they may rely on the product and quantity descriptions
already on the purchase order to indicate what is
received. There is a risk that the types and quantities
of products received are not the same as those
ordered; however, that error may go undetected
without independent verification.
If more than the amount of product is received than
what was ordered, receiving department personnel
could fraudulently take the excess quantities for
personal use.
Receiving department personnel should only
have “READ ONLY” access to an electronic
copy of the purchase order and they should
not be able to see the quantity of products
ordered.
Receiving department personnel should
prepare a stand-alone receiving report to
record the types and quantities of products
received based on their independent
verification when the products arrive in
receiving.
Receiving reports are not
prenumbered or accounted
for.
There is no reliable method of determining the
population of outstanding receiving reports. Goods
might be received that have not been invoiced, which
may increase the risk of having unrecorded payables.
Separate prenumbered receiving reports
should be prepared and the sequence of
used and unused receiving reports should be
regularly accounted for.
Personnel in the
purchasing department
receive the invoice from
the mailroom and they
compare the invoice to the
purchase order and
receiving report (which is a
copy of the purchase
order). Accounting has no
responsibility for
independently matching
purchase order, receiving
report, and invoice.
The purchasing department may not reconcile
accurately the information on the purchase order,
receiving report, and invoice, resulting in errors that
might include payment for goods not received or
payment for goods not ordered.
There is risk of collusion between purchasing
department personnel and those in the storeroom and
receiving departments given that they could order and
receive goods for personal use, and then approve the
goods for payment.
The mailroom should forward all invoices to
the accounting department upon receipt. The
purchasing department should also forward a
copy of all purchase orders generated and
the receiving department should forward a
copy of the receiving report to the accounting
department. The accounting department
should then be responsible for the
independent matching of all three documents
to ensure agreement. The set of matched
documents should then be provided to an
individual outside of accounting with check-
signing authority for review and payment
approval. Final storage of the matched
documents should be in accounting.
xxiii

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Req. 4
Deficiencies
Req. 5
Risk of Error or Fraud
Req. 6 - Potential Suggestions
for Improvement
Materials are issued to the
factory employees based
on a verbal request by the
foreman.
Materials may be used incorrectly or inefficiently,
resulting in waste and loss.
Individuals could remove goods for fraudulent use.
Procedures for releasing materials from the
storeroom to the plant should include a series
of approvals. Products that are released
should be reconciled to a production
schedule to ensure only those products
needed for production are released.
Once the purchasing
department matches the
purchase order, receiving
report, and invoice, no one
else is involved in
approving the payment.
Payments may occur that are not for approved or
appropriate business purposes for Johnson
Machinery. Products might be ordered by the
purchasing department in error or fraudulent
purchases might be made by the purchasing
department that would go undetected.
Approval of final payment should be made by
someone in the treasury role or other
individuals who are part of the senior
management team. The ability to approve the
payment for a purchase should not reside in
accounting, purchasing, receiving, storeroom,
or plant departments.
While vouchers are filed
numerically, there is no
indication that the
sequencing of vouchers is
accounted for.
Vouchers might be missing and thus payment would
not be made to vendors on a timely basis.
Alternatively, duplicate vouchers might be created
with payment processed twice.
Establishing proper cut-off of vouchers at an
accounting period end would be difficult to establish,
potentially resulting in incorrect timing of the recording
of transactions.
Someone independent in the accounting
department should account for the
sequences of vouchers on a regular basis.
Checks signed by the
check signing machine are
forwarded to accounting
department personnel who
review the payment
accuracy and forward
checks to the mailroom.
Accounting department personnel could create false
voucher package documentation and then
fraudulently divert the checks for personal use.
The cashier should process the mailing of all
checks to the vendor after they have been
approved and signed.
xxiv

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Req. 4
Deficiencies
Req. 5
Risk of Error or Fraud
Req. 6 - Potential Suggestions
for Improvement
There is no indication that
there is any reconciliation of
computer listings (voucher,
cash disbursement, and
outstanding accounts
payable list).
There may be errors in posting transactions in the cash
disbursement transactions and in the accounts payable
listing.
Someone in the accounting department
should reconcile the cash disbursement
transactions computer listing to postings
of vendor payment in the accounts
payable list.
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xxvi
Requirement 7
Audit Program Steps
1. Randomly select a sample of transactions from the Cash Disbursements Journal
during the year. Perform the following for each transaction selected:
a. Vouch the payment in the Cash Disbursement Journals to the voucher
package and determine that approvals for the review of the voucher are
indicated on the voucher document.
b. Obtain the related invoice from accounting and determine if the purchasing
department approvals of the footings, extensions, and discounts are present
on the invoice indicating review and approval occurred. Reperform the
footings, extensions, and discounts to verify accuracy.
c. Obtain the related purchase order and receiving report documents stored in
the purchasing department. Verify that there is agreement of goods purchased
and received on the purchase order and receiving report or that discrepancies
have been reconciled by the purchasing department personnel as part of their
review.
d. Based on the review of the purchase order, receiving report, and invoice,
determine that the quantities of products received agree with those on the
invoice. Also review nature and quantity of goods purchased and received for
reasonableness and appropriateness.
e. Review the account coding indicated on the invoice for reasonableness with
the chart of accounts.
f. Verify accuracy and timeliness of the posting of the transaction in the
acquisitions journal, cash disbursements journal and accounts payable master
file.
2. Account for the sequence of outstanding receiving reports to determine if any goods
have been received that have not been invoiced or recorded in the acquisition journal.
3. Select a sample of receiving reports stored in the storeroom and trace them to the
acquisitions journal.
4. Select a sample of voucher packages with invoices and trace them to the acquisitions
journal.
5. Review the acquisitions journals, cash disbursement journal, and accounts payable
list for large or unusual amounts or items, including potential related parties.
6. Examine evidence of Treasurer’s review of monthly reports of acquisitions by vendors
to evaluate the adequacy of that review for transactions requiring disclosure in the
financial statements.

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xxvii
Summary of Additional, Changed, and Deleted Problem Material
We have added new end-of-chapter homework problems and revised others in
this seventeenth edition of Auditing and Assurance Services: An Integrated Approach.
If you have previously used the sixteenth edition of our book, you may want to review
this list of new, revised, or deleted homework problems in the seventeenth edition
relative to problems you may have used in the sixteenth edition.
Question/Problem/
Case # in 16/e
Question/Problem/
Case # in 17/e Comments
CHAPTER 1
1-15 1-16 Modified for 17/e
1-16 1-17 Modified for 17/e
1-17 through 1-19 1-18 through 1-20 Shifted number, same problem
1-20 1-21 Modified for 17/e
1-21 through 1-24 1-22 through 1-25 Shifted number, same problem
CHAPTER 2
2-16 2-16 Modified for 17/e
2-17 2-17 Modified for 17/e
2-18 2-18 Unchanged for 17/e
2-19 2-19 Modified for 17/e
2-20 2-20 Unchanged for 17/e
2-21 Deleted for 17/e
2-21 New for 17/e
2-22 New for 17/e
CHAPTER 3
3-23 3-23 Unchanged for 17/e
3-24 3-24 Modified for 17/e
3-25 Deleted for 17/e
3-26 3-26 Unchanged for 17/e
3-27 3-25 Modified for 17/e
3-27 New for 17/e
3-28 3-28 Unchanged for 17/e
3-29 3-29 Modified for 17/e
3-30 3-30 Modified for 17/e
CHAPTER 4
4-20 4-21 Shifted number, same problem
4-21 through 4-23 4-22 through 4-24 Modified for 17/e
4-24 4-25 Shifted number, same problem
4-25 4-27 Shifted number, same problem
4-26 4-26 Modified for 17/e
4-27 4-28 Shifted number, same problem
4-29 New for 17/e
4-28 through 4-30 4-30 through 4-32 Shifted number, same problem
CHAPTER 5
5-17 5-19 Shifted number, same problem

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xxviii
Question/Problem/
Case # in 16/e
Question/Problem/
Case # in 17/e Comments
5-18 5-17 Modified for 17/e
5-19 5-18 Modified for 17/e
5-20 through 5-22 5-20 through 5-22 Unchanged for 17/e
5-23 5-23 Modified for 17/e
5-24 5-24 Modified for 17/e
5-25 Deleted for 17/e
5-25 New for 17/e
5-26 New for 17/e
5-26 5-27 Modified for 17/e
5-27 5-28 Shifted number, same problem
CHAPTER 6
6-24 through 6-29 6-25 through 6-30 Shifted numbers, same problems
6-30 through 6-33 6-31 through 6-34 Modified for 17/e
6-34 Deleted for 17/e
6-35 New for 17/e
CHAPTER 7
7-25 and 7-26 7-27 and 7-28 Modified for 17/e
7-27 7-29 Shifted number, same problem
7-28 and 7-29 7-30 and 7-31 Modified for 17/e
7-30 7-32 Shifted number, same problem
7-31 7-33 Modified for 17/e
7-32 Deleted for 17/e
7-33 7-34 Modified for 17/e
7-34 and 7-35 7-36 and 7-37 Shifted number, same problem
7-36 Deleted for 17/e
7-37 7-40 Shifted number, same problem
7-38 New for 17/e
7-38 Deleted for 17/e
7-39 7-35 Shifted number, same problem
7-39 New for 17/e
CHAPTER 8
8-29 and 8-30 8-27 and 8-28 Shifted numbers, same problems
8-29 New for 17/e
8-31 and 8-32 8-30 and 8-31 Shifted numbers, same problems
8-33 Deleted for 17/e
8-34 through 8-38 8-32 through 8-36 Shifted numbers, same problems
8-39 8-38 Shifted number, same problem
8-40 8-39 Modified for 17/e
8-41 8-37 Shifted number, same problem
CHAPTER 9
9-29 through 9-31 9-29 through 9-31 Unchanged for 17/e
9-32 New for 17/e
9-32 9-33 Shifted number, same problem

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Lecture Notes for Auditing and Assurance Services, 17th Edition

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