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mes32502_fm_i-xxx.indd i 10/20/15 11:48 AM

Auditing & Assurance Services A S Y S T E M A T I C A P P R O A C H

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mes32502_fm_i-xxx.indd ii 10/20/15 11:48 AM

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William F. Messier, Jr. University of Nevada, Las Vegas

Department of Accounting and

Norwegian School of Economics Department of Accounting, Auditing and Law

Steven M. Glover Brigham Young University

Marriott School of Management School of Accountancy

Douglas F. Prawitt Brigham Young University

Marriott School of Management School of Accountancy

TENTH EDIT ION

Auditing & Assurance Services A S Y S T E M A T I C A P P R O A C H

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AUDITING & ASSURANCE SERVICES: A SYSTEMATIC APPROACH, TENTH EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2017 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2014, 2012, and 2010. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6

ISBN 978-0-07-773250-9 MHID 0-07-773250-2

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All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.

Library of Congress Cataloging-in-Publication Data

Messier, William F., author. Auditing & assurance services : a systematic approach / William F. Messier, Jr., Steven M. Glover, Douglas F. Prawitt.—Tenth edition. pages cm ISBN 978-0-07-773250-9 (alk. paper) 1. Auditing. I. Glover, Steven M., 1963- author. II. Prawitt, Douglas F. author. III. Title. IV. Title: Auditing and assurance services. HF5667.M46 2016 657’.45–dc23 2015028419

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.

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William F. Messier, Jr. holds the Kenneth and Tracy Knauss Endowed Chair in Account- ing at the Department of Accounting, University of Nevada, Las Vegas. He is also an Adjunct Professor at the Department of Accounting, Auditing and Law at the Norwegian School of Economics. Professor Messier holds a B.B.A. from Siena College, an M.S. from Clarkson University, and an M.B.A. and D.B.A. from Indiana University. He is a CPA in Florida and has held faculty positions at the University of Florida (Price Waterhouse Professor) and Georgia State University (Deloitte & Touche Professor). Professor Messier was a visiting faculty member at SDA Bocconi in Milan and the Universities of Luxembourg and Michigan. Professor Messier served as the Academic Member of the AICPA’s Auditing Standards Board and as Chair of the AICPA’s International Auditing Standards Subcommittee. He is a past editor of Auditing: A Journal of Practice & Theory and formerly President of the Audit- ing Section of the American Accounting Association. Professor Messier was the recipient of the American Accounting Association’s Outstanding Accounting Educator Award (2015), AICPA’s Distinguished Achievement in Accounting Education Award (2012), AAA Audit- ing Section’s Outstanding Educator Award (2009) and the Distinguished Service in Auditing Award (2008). In 2011, Professor Messier was awarded an honorary doctorate from the Nor- wegian School of Economics and Business Administration. Professor Messier has also served as an expert witness in audit litigation cases.

Professor Steven M. Glover is the K. Fred Skousen Professor and Associate Dean of the Marriott School of Management, Brigham Young University. Professor Glover is a CPA in Utah and holds a PhD and BS from the University of Washington and an AA in Business from BYU – Idaho. He previously worked as an auditor for KPMG LLP and as a director in the national office of PwC LLP. Professor Glover is currently serving on the AICPA Auditing Standards Board and has served on the audit committee of a nonprofit organization. He has served on the board of advisors for technology companies and he actively consults with public companies and public accounting firms. He has also served as an expert witness. Professor Glover is a past President of the Auditing Section of the American Accounting Association and he has been on auditing-related task forces of the AICPA. Professor Glover is or has served on the editorial boards of Auditing: A Journal of Practice & Theory, The Accounting Review, Current Issues in Auditing, and the review board of the AAA/CAQ Access to Audit Personnel Program. He has authored or coauthored over 40 articles and books primarily focused in the areas of auditor decision making, audit education, and audit practice. Together with Professor Prawitt and KPMG, LLP, he co-authored an award-winning monograph designed to acceler- ate the professional judgment of auditors and auditing students, as well as a monograph on professional skepticism commissioned by the Standards Working Group of the GPPC, an international consortium of the six largest public accounting network firms.

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