Auditing Fundamentals in a South African Context

Second Edition

Content editor Pieter von Wielligh, Frans Prinsloo, Gerrit Penning, and Rika Butler

New to this Edition:

The text is thoroughly revised and updated to reflect recent regulatory developments and changes.
The second edition addresses the recommendations of the King IV Report on Corporate Governance, and introduces new discussions relating to governance principles. In particular, the text discusses non-compliance with laws and regulations, and issues related to the rotation and independence of auditors.
The text reflects the amended code of professional conduct introduced by the IRBA Committee for Auditor Ethics.
The second edition offers additional examples of substantive procedures, and provides explanation of how financial reporting standards and provisions of the Companies Act are applied when formulating substantive procedures.
The second edition includes a new appendix, which addresses basic systems and control theory, and the components and operation of computerised accounting information systems. This material will equip readers with a basic knowledge of these aspects in order to be able to (1) understand an IT system and the related controls in the role of an accountant or auditor and then to use this understanding to (2) assess risks arising from the IT system and related controls. The body of the text will include references to the appendix where appropriate.
Supporting student success and effective learning, the text's pedagogical value is enhanced with new examples and learning features, as well as student-driven, automated online formative assessment.

Auditing Fundamentals in a South African Context

Second Edition

Content editor Pieter von Wielligh, Frans Prinsloo, Gerrit Penning, and Rika Butler

Description

Auditing Fundamentals in a South African Context 2e is a practical, applied and engaging introductory textbook that supports students throughout the undergraduate level of the Auditing curriculum. The text is designed to enhance learning by supporting holistic understanding: theory is presented within the framework of the real-world business environment, assisting students to apply principles and standards with an understanding of their context.

The text offers a clear pedagogical framework, which supports applied learning and develops independent, critical and reflective engagement with the subject matter. A continuing case study, which follows each stage of the audit of a South African company, demonstrates the practical application of learned principles and the integration of the auditing process with a typical audit client's business.

The second edition is comprehensively revised to reflect all relevant, recent changes in the requirements of legislation, financial reporting and auditing pronouncements and codes, and addresses the new Code of Professional Conduct which was issued by the SA Institute of Chartered Accountants in the final quarter of 2018.

Additional educational resources support teaching and learning, assisting students to develop the academic skills required to master their studies.

Auditing Fundamentals in a South African Context

Second Edition

Content editor Pieter von Wielligh, Frans Prinsloo, Gerrit Penning, and Rika Butler

Part A: The context within which the external auditor operates
Chapter 1: Introduction
Chapter 2: Ethics
Chapter 3: Legal responsibilities of the auditor

Part B: The auditee's responsibility for financial information
Chapter 4: Basic concepts of governance and internal control
Chapter 5: Introduction to risks and internal controls in a computerized environment
Chapter 6: Revenue and receipts cycle
Chapter 7: Purchases and payments cycle
Chapter 8: Inventory and production cycle
Chapter 9: Human resources cycle
Chapter 10: Investment and financing cycle

Part C: The external audit process
Chapter 11: Overview of the audit process
Chapter 12: Pre-engagement and planning activities
Chapter 13: Audit procedures: essential concepts
Chapter 14: Audit procedures: specific considerations
Chapter 15: Completion of the audit
Chapter 16: The independent review

Appendix: examples of cycle documentation related to the business cycles