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Montgomery's Auditing, Revised College Version , 11th Edition

ISBN: 978-0-471-50706-2
912 pages
May 1990, ©1991
Montgomery
This Third College Version offers a rigorous and highly readable introduction to the theory and practice of auditing. Using both the transaction cycle and account balance approaches, it emphasizes the development of judgment by the auditor and provides aids for enhancing decision-making skills. Flexible, current and prepared by a distinguished team of academicians and practicing accountants, it provides students with the ideal mix of theory and practice. A number of changes have been incorporated, including relevant CPA exam questions up to and including the May 1989 exam; the expansion of the Quinn Hardware case through eight chapters covering risk assessment, testing the control structure, auditing the major transaction cycles, completing the audit and drafting the audit report; new developments including the expectation gap standards issued by the AICPA in 1988 and significant new legal cases that affect auditor liability; revisions of chapters 7-9 to conform to the 1988 SASs; and more.
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THE AUDIT ENVIRONMENT.

The Organization and Structure of the Auditing Profession.

Auditing Standards and Professional Conduct.

Professional Responsibility and Legal Liability.

THEORY AND CONCEPTS.

The Audit Process.

Audit Risk, Materiality, and Engagement Strategy.

The Internal Control Structure.

Assessing Inherent and Control Risk.

Controlling Detection Risk: Substantive Tests.

The Extent of Testing: Audit Sampling.

Auditing in an EDP Environment.

AUDITING SPECIFIC CYCLES AND ACCOUNTS.

Auditing the Revenue Cycle.

Auditing the Buying Cycle.

Auditing the Production Cycle, Cost of Sales, and Inventory Balances.

Auditing Cash Balances and Property, Plant, and Equipment.

Auditing Investments, Prepayments and Accruals, Taxes, and Debt and Equity Accounts.

COMPLETING THE WORK AND REPORTING THE RESULTS.

Completing the Audit.

The Auditor's Report.

Responsibilities in Other Engagements.

Appendices.

Index.
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