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Principles of External Auditing (Second Edition) Brenda Porter, Jon Simon and David Hatherly, John Wiley & Sons: Chichester, UK, 2003, ix+608pp
Auditing practitioners and academics might find it interesting to take a look at a different approach to auditing, in a UK auditing textbook. They might find this especially so when it is One of the leading textbooks for students studying auditing in the United Kingdom and Ireland', according to the back cover, and has a New Zealand connection through Brenda Porter.
It has many features that are fresh and appealing. I enjoyed its coverage of topics like the debate over auditor independence and its clear explanations. Like many current books, it avoids excessive detailed coverage of transaction cycles, and this is also a strength.
The book starts with five chapters on the backdrop to auditing, including the definition of auditing, a conceptual framework, independence, and legal and professional duties. These are areas where there are many significant issues at present, so this extended discussion is valuable. These are followed by seven chapters presenting a walkthrough of the process of auditing a company's financial statements and then four chapters on current issues. Two of the current issues chapters discuss auditors' liability, one is on internal auditing and one is on environmental auditing.
The discussion of auditor independence includes a strong...