Contemporary Auditing,
12th Edition

Michael C. Knapp

ISBN-13: 9780357515402
Copyright 2022 | Published
592 pages | List Price: USD $187.95

Prepare for the challenging responsibilities in public accounting today as Knapp’s CONTEMPORARY AUDITING, 12E exposes you to a variety of high-risk audits. Numerous high-profile and current cases teach you to recognize red flags common in accounting fraud, including missing documents, porous or nonexistent internal controls and implausible relationships between key financial statement items and financial data that are literally "too good to be true." You also examine the most common causes of failures in independent audits: client personnel who intentionally subvert an audit or auditors who fail to follow professional responsibilities. This edition discusses and dissects challenging circumstances that arise in audits to prepare you to handle problematic situations in your own career. You acquire an understanding of auditing standards, audit procedures and ethical principles related to independent auditing that can translate to improved performance on the CPA exam and even career success.



  • Michael C. Knapp

    Michael Knapp has taught undergraduate and graduate auditing courses for more than 35 years. He has developed dozens of online CPE courses that focus on a wide range of auditing topics, including the COSO internal control framework, the most common types of accounting frauds and the impact cognitive biases have on the quality of professional audit services. Professor Knapp has also testified in several major litigation cases involving accounting and auditing issues. For three years he served as a consultant with the FBI on a major white-collar criminal case. He has spoken at a national conference attended by more than 500 FBI agents and other federal law enforcement officers. His honors at the University of Oklahoma include, among many others, the Harold E. Hackler Outstanding M.B.A. Professor (determined by a vote of O.U.’s M.B.A. students), the Outstanding Oklahoma Accounting Educator (awarded by the Oklahoma Society of C.P.A.s), the Delta Sigma Pi Professor of the Year (awarded by the O.U. undergraduate business students’ honor society), the David Ross Boyd Professorship (a university-wide designation for teaching excellence awarded to one professor annually) and the McLaughlin Chair in Business Ethics.

  • NEW CASES AND CONTENT HIGHLIGHT CURRENT AND CHALLENGING AUDITING, ACCOUNTING AND ETHICAL SITUATIONS. Your students will recognize most of the settings and companies featured in this edition's new cases. These cases immediately engage readers and reinforce the importance of the principles they are learning.

  • NEW WELLS FARGO & CO. CASE EXAMINES THE RESULTS WHEN AUDITORS FAIL TO DISCLOSE INTERNAL CONTROL PROBLEMS. Students learn how the auditors in this case were criticized for failing to disclose pervasive internal control problems that allowed the client’s high-pressure and illegal sales tactics to continue unchecked for years.

  • NEW CATERPILLAR CASE TAKES A LOOK AT AN AUDITOR'S RELEASE OF INCRIMINATING INFORMATION TO THE MEDIA. This engaging new case follows an auditor whose conscience drove him to turn over an incriminating computer file to a journalist. This file documented hundreds of questionable tax-avoidance plans marketed to huge, international companies by the auditor's employer.

  • NEW EQUIFAX CASE DOCUMENTS ONE OF THE LARGEST CYBERATTACKS IN HISTORY. Students learn how countless U.S. citizens fell victim to this significant cyberattack made on information held by Equifax. Equifax’s auditors were berated for failing to disclose the significant cybersecurity risks this organization faced.

  • NEW AMTRUST CASE HIGHLIGHTS A MULTI-YEAR CLANDESTINE OPERATION BETWEEN AN AUDITOR AND THE FBI. Student read how an AmTrust auditor funneled incriminating information regarding his client to the FBI for three years. Students remain engaged with captivating details, such as how the auditor used a recording device, disguised as a Starbucks gift card, to record conversations with his colleagues.

  • NEW HERBALIFE CASE EXPLORES AN FBI INVESTIGATION INTO A SUPERVISING AUDITOR SELLING CONFIDENTIAL INFORMATION. Students read how the FBI filmed a prominent audit partner, who supervised an audit staff of 500 professionals, receiving a bundle of cash from an individual to whom he had given confidential "inside" information regarding multiple audit clients.

  • NEW "ZERO TOLERANCE" CASE EXAMINES THE ACTIONS OF FIVE PARTNERS FOR A BIG FOUR AUDIT FIRM. Readers learn how these five partners, including the partner in charge of "audit quality" for the firm, conspired to obtain a list of their firm’s audits that the PCAOB intended to inspect.

  • "THE RED CARPET" CASE REVIEWS HOW AN AUDITOR ERROR HALTED THE ACADEMY AWARDS ON LIVE TELEVISION. Students see how a small, but high-profile, error can cause significant results. This case profiles how the Academy Awards ceremony was disrupted on live television when a Big Four partner handed the wrong envelope to Warren Beatty and Faye Dunaway, the two celebrities chosen to announce the Academy Award for Best Picture.

  • NUMEROUS NEW OR REVISED CASES INCREASE THIS EDITION'S TOTAL TO 88 AUDIT OR AUDIT-RELATED CASES. This edition's significant number of cases gives you the flexibility to select those cases that correspond most closely with your course and instructional needs. The fifteen new cases in this edition address current circumstances and settings not addressed within earlier cases.

  • THE AUTHOR TAKES A "NO-HOLDS-BARRED" APPROACH TO CASES THAT DIFFERENTIATES THIS BOOK. As Professor Knapp developed this edition's cases, he took a candid, direct approach to the casework, including any poor, negligent, or even fraudulent decisions made by auditors.

  • RELAXED, ENJOYABLE WRITING STYLE APPEALS TO AND ENGAGES READERS. The author uses an entertaining writing style and pertinent details to capture your students' attention and encourage further reading. In addition, you can find more detailed suggested solutions to case questions and a wider range of strategies within the Instructor's Resources to guide you in seamlessly integrating this edition's cases into your auditing course.

  • TODAY'S KEY AUDITING PRACTICES AND PROCEDURES ARE PRESENTED IN REAL-WORLD CONTEXT. By embedding key auditing elements and issues in real-world contexts, Knapp’s cases capture students’ attention and enhance their comprehension of these topics. The actual, recognizable settings also allow students to identify factors and circumstances that undercut the quality of independent audits and result in serious and undesirable consequences for audit clients, audit firms and individual auditors.

  • LAUNCH STRATEGIES PROMPT DISCUSSION AND ASSIST IN YOUR PREPARATION. This book’s invaluable Instructor’s Manual identifies thirteen strategies or tactics that you can use to launch in-class coverage and productive discussion of Knapp’s cases. To maintain students’ interest, you can employ a variety of these techniques to introduce the individual cases assigned in your course.

  • DETAILED INSTRUCTOR’S MANUAL WITH SOLUTIONS OFFERS TRUSTED SOLUTIONS AND TEACHING AIDS. This edition's updated Instructor’s Manual provides a detailed solution for each case. Every case solution includes a case synopsis, a list of key facts (that can be used as a teaching template), a list of instructional objectives, suggestions for use (with tips on how to integrate the case into your course) and suggested answers to each case question that include precise and extensive references to the relevant authoritative standards.

  • TURNKEY SYLLABUS IS IDEAL FOR YOUR GRADUATE COURSE. The Instructor’s Manual includes a "turnkey" syllabus for a semester-long graduate auditing course that offers challenging, meaningful content organized around this edition.

  • IMPROVED INSTRUCTOR POWERPOINT SLIDES PROVIDES IMPORTANT VISUAL SUPPORT FOR YOUR COURSE. Revamped PowerPoint slides highlight the key facts and circumstances for each case, allowing you to explain or review each case efficiently. These slides are available on the Instructor Companion Site for your convenience.

  • USE OF CASES LEADS TO IMPROVED COURSE EVALUATIONS AND STUDENT SATISFACTION. Instructors, like you, consistently report that the use of this book’s auditing cases favorably impacts both students’ course evaluations and instructor evaluations.

  • TIMELY CASEBOOK CONSISTENTLY PRESENTS THE MOST RECENT CASES. To highlight today's most current auditing issues, this edition features fifteen new cases and three revised cases from earlier editions. Cases highlight Wells Fargo & Co.; Weatherford International; Caterpillar Inc.; Gemstar; Hampton & Worley; Blakely Markets; Equifax Inc.; Aaron Elrod, Sole Practitioner; AmTrust Financial Services, Inc.; Herbalife International; Antoine Deltour; Universal American Corporation; Zero Tolerance; Kayleigh Caudell, Audit Senior; Brian Reynolds, Audit Senior; The Red Carpet; Razia and The Bank of Tokyo.

  • CLEAR ORGANIZATION OF CASEBOOK OFFERS YOU FLEXIBILITY IN PRESENTATION. This edition's cases are organized into eight sections to help you mix and match cases from semester to semester. In addition, two indexes -- Summary of Topics by Case and Summary of Cases by Topic -- help you quickly identify the cases that best meet your specific course needs.

  • CUSTOMIZED VERSIONS ENABLE YOU TO BUILD YOUR OWN CASEBOOK. You can use the Compose program to customize this book and include only the cases you need for your individualized course. In the preface, Knapp suggests several versions of this customized textbook for specific accounting courses. Visit to get started.

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.

Instructor's Companion Website for Knapp's Contemporary Auditing

Cengage eBook: Contemporary Auditing 12 Months