Auditing and Assurance in Hong Kong 6th ed

Auditing and Assurance in Hong Kong explains the practices of auditing and non-auditing engagements using the most updates International and Hong Kong Auditing Standards.

Key Features:

• Coverage of latest auditing and assurance standards by updating with all new HKSQMs issued in April 2021 (to align with the International Standards on Quality Management finalised and issued in December 2020), and other revised HKSAs, including HKSA 220 (Revised), HKSA 315 (Revised 2019), HKSA 540 (Revised), HKSRS 4400 (Revised) and the relevant conforming amendments
• Coverage of the latest standards on forming an opinion and reporting on financial statements, mpodifications to the opinion in the independant auditor's report, communicating key audit matters in the independant auditor;s report, the auditor's respoonsibilities relating to other information, assurance engagements other than audits or reviews of historical financial information, acountants' reports on historical financial information in investment circulars, and reporting on profit forecasts, statement of sufficiency of working capital and statement of indebtedness
• Coverage of the Companies Ordinance (Chapter 622)
• Numerous illustrative examples, figures and diagrams
• Tailor-made illustrative flowcharts incorporated to help readers easily understand the complicated requirements of the professional standards
• Real-life cases sources from companies listed on the Hong Kong Stock Exchange Limited
• Inclusion of recent QP and ACCA exam questions

For Practitioners
Practitioners will find the concepts and explanations in this book useful in their daily work, and they can use the book as a guide in performing various audit and non-audit engagements. The examples and real-life cases from various sources should be a rich database for them to use for practical guidance and reference.

For Academics
Professors and lecturers teaching auditing and assurance should find this a good textbook for their undergraduate and postgraduate auditing courses. Each chapter of this book can serve a single topic, and the examples and real-life cases can enhance their sharing and presentation to be more practical and lively and stimulate students’ interest.

Many review questions and case studies are incorporated in this book for students' class discussion, homework and practice excercises. A supplementary guide will also be provided to professors and lecturers using the book; this guide will contain answers to all case studies. Moreover, PowerPoint presentations for each chapter of the book have been created and are available to professors and lecturers,

For Students
Students learning auditing in universities or taking professional examinations offered by professional accounting institutions, for example, ACCA and HKICPA, should consider this book as a good textbook and reference for their understanding of auditing to help them pass their professional examinations. The review questions and case studies can help them practice and understand the concepts and examination requirements. In addition, questions from past professional examinations are also adapted and included in each chapter for students’ practice and understanding.

table of content

Structure of the Book

The 54 chapters of this book are structured into the following eight parts:

Part I: Introduction to Auditing and Assurance (Chapter 1) provides an overview of auditing, especially on how auditing is different from accounting and why there is a great demand of auditing.

Part II: The Legal Framework of Auditing (Chapters 2-4) discusses independent auditors’ professional liability, their responsibility in relation to fraud and their role in the prevention, detection and reporting of fraud, and the relevant provisions in relation to independent auditors under the Hong Kong Companies Ordinance.

Part III: The Professional Framework of Auditing and Assurance (Chapters 5-11) briefly describes auditing and assurance standards as well as the relevance of financial reporting standards. This part also presents the latest Code of Professional Ethics and covers the topics of terms of engagement, quality management and practice review.

Part IV: The Audit Process (Chapters 12-29) provides a review of the whole audit process from planning, risk assessment, the auditor’s response to assessed risks to the issuance of the auditor’s report. This part also provides a comprehensive coverage of the audit of major accounting cycles and selected items of the statement of financial position, including financial instruments.

Part V: The Reporting Framework of Auditing (Chapters 30-35) discusses audit reporting and related issues on subsequent events, going concern, opening balances, comparatives, and communication with those charged with governance.

Part VI: Special Audit Situations (Chapters 36-41) covers the audit of group financial statements, the first audit engagement, the audit of small companies, the audit of summary financial statements, the audit of special purpose financial statements, and the audit of a single financial statement or of a specific element, account or item of a financial statement.

Part VII: Special Audit Topics (Chapters 42-50) examines the audit of accounting estimates and related disclosures, the auditor’s responsibilities relating other information, related parties, consideration of laws and regulations, using the work of an audit’s expert service organization and outsourcing. Using the work of internal auditors, corporate governance and audit committees.

Part VIII: Non-Audit Engagements (Chapter 51-54) discusses compilation and agreed-upon procedures engagements, review and other assurance engagements, prospectus reports and letters, and report on the compilation of pro forma financial information included in a prospectus.