Auditing Theory and Practice,
1st Edition

Michael Pratt, Karen Van Peursem, Mukesh Garg

ISBN-13: 9780170458955
Copyright 2023 | Published
464 pages | List Price: USD $78.25

Auditing Theory and Practice incorporates the standards set by Australia's AUASB (Auditing and Assurance Standards Board) and New Zealand's NZAuASB (New Zealand Auditing and Assurance Standards Board). The reader-friendly text teaches you about the four major phases of the audit and includes dedicated chapters on fraud and sustainability audits, public-sector and non-profit-sector audits and internal audit, for both AUASB and NZAuASB. By linking theory – through historical context and examples – to practice, you learn why a particular practice is important, giving examples of audit failures, and then how to apply it. This approach enhances understanding of the application of professional scepticism in auditing and prepares you for real-world auditing.


1 Introduction to audit
2 Audit concepts, role and history
3 Statutory law
4 Audit professionalism and firms
5 The courts: legal liability of auditors

6 Audit risk
7 Audit judgement and materiality
8 Audit evidence and testing
9 Audit process overview
10 Audit planning procedures

11 Principles of internal control
12 Internal control and the auditor
13 Audit sampling
14 Systems I: sales, purchases payroll
15 Systems II: warehousing, financing, fixed assets

16 Completion and review
17 Report and opinion

18 Internal audit
19 Social audit
20 Fraud audit

  • Michael Pratt

    Professor Michael J. Pratt, D.Com, FCA, former Professor at Waikato Management School, University of Waikato, has extensive editorial, professional, educational, management and leadership experience and is the author of numerous publicly acclaimed academic, educational and professional publications in sustainability management, leadership, auditing and accounting.

  • Karen Van Peursem

    Professor Karen A. Van Peursem, PhD, CA (NZ), CPA (US) has extensive public and private accounting experience, and has published numerous academic and professional publications in auditing and professional practice, performance measurement, public sector, education, financial accounting and tax.

  • Mukesh Garg

    Mukesh Garg is a Senior Lecturer in the Department of Accounting at Monash University. He joined Monash University in 2006 and previously was a lecturer at Victoria University. Mukesh teaches in auditing, financial reporting, forensic accounting, financial statement analysis and valuation. His areas of research interest include reporting regulations, internal control disclosures, earnings quality, auditing, climate change, cost of capital, and valuation of listed companies. He has several publications in ‘A*’ and ‘A’ ranked national and international journals. Mukesh is also the Director of Programs in the Department of Accounting and Chair of the Academic Progress Committee in the Faculty of Business and Economics. He holds a PhD in Accounting and Finance from Monash University and is a qualified member of CPA Australia. He has industry and accounting standard-setting experience with the Australian Accounting Standards Board as Research and Education Principal.

  • Coverage of both Australian and New Zealand Standards, and related accounting and assurance standards including international standards and standard setting boards, this resource can be used across the ANZ market and uses examples that are relevant to local students

  • 'Auditing in practice' examples provide students with insightful real-world examples of auditing situations and concepts

  • The theme of professional scepticism features throughout the content to promote discussion of judgement, logic of this and how to practically apply professional scepticism

  • The comprehensive Delos case is designed to give the learner a full audit practice-like experience from planning to completion

  • MindTap. Premium online teaching and learning tools are available on the MindTap platform. MindTap for Pratt's Auditing Theory and Practice is full of innovative resources to support critical thinking and help your students move from memorisation to mastery! Includes: Pratt's Auditing Theory and Practice eBook, scenarios, concept checks, case studies, and CAATs for Classrooms - excel subroutines and exercises offer audit judgement and toolbox learning opportunities for computer lab or at-home online learning. Contact your Cengage learning consultant to find out how MindTap can transform your course.

  • Instructor website. Your #1 resource for your course. This tailored collection of teaching tools includes downloadable PowerPoint lecture slides, Solutions Manual, Delos Case Study and CAATs for Classrooms an excel subroutine and exercise program and Test Bank with customisable questions for quizzes and assessments. Log in or request an account to access instructor resources at for Australia or for New Zealand.

  • Cognero Test Bank. A bank of questions has been developed in conjunction with the text for creating quizzes, tests and exams for your students. Create multiple test versions in an instant and deliver tests from your LMS, your classroom, or wherever you want using Cognero. Cognero test generator is a flexible online system that allows you to import, edit, and manipulate content from the text's test bank or elsewhere, including your own favourite test questions.

Cengage provides a range of supplements that are updated in coordination with the main title selection. For more information about these supplements, contact your Learning Consultant.

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