Principles of External Auditing has become established as one of the leading textbooks for students studying auditing. Striking a careful balance between theory and practice, the book describes and explains, in non-technical language, the nature of the audit function and the principles of the audit process.
The book covers international auditing and accounting standards and relevant statute and case law. It explains the fundamental concepts of auditing and takes the reader through the various stages of the audit process. It also discusses topical aspects of auditing such as legal liability, audit risk, quality control, and the impact of information technology.
Brenda Porter is currently visiting Professor at Exeter University and Chulalongkorn University, Bangkok.
 
About the Authors xi
Preface xiii
Structure of the Financial Reporting Council xvii
Glossary of Terms xix
1 What is Auditing? 1
1.1 Introduction 1
1.2 What is an audit? 2
1.3 Types of audit 3
1.4 Auditing vs Accounting 8
1.5 Why are external fi nancial statement audits needed? 8
1.6 Benefi ts derived from external fi nancial statement audits 11
1.7 Summary 18
Self-review questions 18
References 19
Additional reading 20
2 The Development of Auditing and Its Objectives 23
2.1 Introduction 23
2.2 Overview of the development of company auditing 23
2.3 Development of auditing in the period up to 1844 26
2.4 Development of company auditing 1844–1920s 27
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