Twentieth Edition
Principles of Auditing
& Other Assurance Services
O. Ray Whittington
Kurt Pany
,Principles of
Auditing &
Other Assurance
Services
Twentieth Edition
O. Ray Whittington
CIA, CMA, CPA
DePaul University
Kurt Pany
CFE, CPA
Arizona State University
,PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES, TWENTIETH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2016 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 5
ISBN 978–0–07–772914–1
MHID 0–07–772914 –5
Senior Vice President, Products & Markets: Kurt L. Strand
Vice President, General Manager, Products & Markets: Marty Lange
Vice President, Content Design & Delivery: Kimberly Meriwether David
Managing Director: Tim Vertovec
Senior Director, Product Development: Rose Koos
Lead Product Developer: Ann Torbert
Senior Product Developer: Gail Korosa
Product Developer: Kevin Moran
Director, Digital Content Development: Patricia Plumb
Senior Digital Product Analyst: Xin Lin
Marketing Director: Brad Parkins
Director, Content Design & Delivery: Terri Schiesl
Executive Program Manager: Faye M. Herrig
Content Project Managers: Mary Jane Lampe, Sandra Schnee
Buyer: Debra R. Sylvester
Cover Design: Studio Montage
Content Licensing Specialist: Lorraine Buczek
Cover Image Title: Cityscape of Singapore, Republic of Singapore
Cover Image Credit: © George Hammerstein/Corbis/Glow Images
Compositor: MPS Limited
Typeface: 10/12 Times LT Std
Printer: R. R. Donnelley
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
Whittington, Ray, 1948-
Principles of auditing & other assurance services / O. Ray Whittington,
Kurt Pany. — Twentieth edition.
pages cm
ISBN 978-0-07-772914-1 (alk. paper)
1. Auditing. I. Pany, Kurt. II. Title. III. Title: Principles of auditing
and other assurance services.
HF5667.W39 2016
657'.45—dc23
2014042491
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.
www.mhhe.com
, About the Authors
O. Ray Whittington
O. Ray Whittington, CIA, CMA, CPA, serves as the dean of the Driehaus College of
Business at DePaul University. He received his B.B.A., M.S., and Ph.D. degrees from
Sam Houston State University, Texas Tech University, and the University of Houston,
respectively. Professor Whittington is an active textbook author on the subjects of audit-
ing and audit sampling. He has also published in a variety of journals, including The
Accounting Review, The Journal of Accounting Research, and Auditing: A Journal of
Practice and Theory. He has served as a member of the Board of Regents of The Institute
of Internal Auditors and has served as Chairman on the Auditing Standards Committee
of the Auditing Section and the Bylaws Committee, both of the American Accounting
Association. Professor Whittington has served as a member of the AICPA Auditing Stan-
dards Board and as the president of the Auditing Section of the American Accounting
Association.
Kurt Pany
Kurt Pany, CFE, CPA, is a Professor of Accounting at Arizona State University. He
received his B.S., M.B.A., and Ph.D. degrees from the University of Arizona, the Uni-
versity of Minnesota, and the University of Illinois, respectively. He has also served as
a staff accountant with Arthur Andersen and Touche Ross, as a member of the Auditing
Standards Board, and as an academic fellow with the American Institute of Certified Pub-
lic Accountants. Professor Pany has published articles on auditing in such journals as The
Journal of Accounting Research, The Accounting Review, Auditing: A Journal of Prac-
tice and Theory, The Journal of Accountancy, and The CPA Journal. He is a member of
and has served on various committees of the American Accounting Association and the
American Institute of Certified Public Accountants.
iii
Principles of Auditing
& Other Assurance Services
O. Ray Whittington
Kurt Pany
,Principles of
Auditing &
Other Assurance
Services
Twentieth Edition
O. Ray Whittington
CIA, CMA, CPA
DePaul University
Kurt Pany
CFE, CPA
Arizona State University
,PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES, TWENTIETH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2016 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 5
ISBN 978–0–07–772914–1
MHID 0–07–772914 –5
Senior Vice President, Products & Markets: Kurt L. Strand
Vice President, General Manager, Products & Markets: Marty Lange
Vice President, Content Design & Delivery: Kimberly Meriwether David
Managing Director: Tim Vertovec
Senior Director, Product Development: Rose Koos
Lead Product Developer: Ann Torbert
Senior Product Developer: Gail Korosa
Product Developer: Kevin Moran
Director, Digital Content Development: Patricia Plumb
Senior Digital Product Analyst: Xin Lin
Marketing Director: Brad Parkins
Director, Content Design & Delivery: Terri Schiesl
Executive Program Manager: Faye M. Herrig
Content Project Managers: Mary Jane Lampe, Sandra Schnee
Buyer: Debra R. Sylvester
Cover Design: Studio Montage
Content Licensing Specialist: Lorraine Buczek
Cover Image Title: Cityscape of Singapore, Republic of Singapore
Cover Image Credit: © George Hammerstein/Corbis/Glow Images
Compositor: MPS Limited
Typeface: 10/12 Times LT Std
Printer: R. R. Donnelley
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
Whittington, Ray, 1948-
Principles of auditing & other assurance services / O. Ray Whittington,
Kurt Pany. — Twentieth edition.
pages cm
ISBN 978-0-07-772914-1 (alk. paper)
1. Auditing. I. Pany, Kurt. II. Title. III. Title: Principles of auditing
and other assurance services.
HF5667.W39 2016
657'.45—dc23
2014042491
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.
www.mhhe.com
, About the Authors
O. Ray Whittington
O. Ray Whittington, CIA, CMA, CPA, serves as the dean of the Driehaus College of
Business at DePaul University. He received his B.B.A., M.S., and Ph.D. degrees from
Sam Houston State University, Texas Tech University, and the University of Houston,
respectively. Professor Whittington is an active textbook author on the subjects of audit-
ing and audit sampling. He has also published in a variety of journals, including The
Accounting Review, The Journal of Accounting Research, and Auditing: A Journal of
Practice and Theory. He has served as a member of the Board of Regents of The Institute
of Internal Auditors and has served as Chairman on the Auditing Standards Committee
of the Auditing Section and the Bylaws Committee, both of the American Accounting
Association. Professor Whittington has served as a member of the AICPA Auditing Stan-
dards Board and as the president of the Auditing Section of the American Accounting
Association.
Kurt Pany
Kurt Pany, CFE, CPA, is a Professor of Accounting at Arizona State University. He
received his B.S., M.B.A., and Ph.D. degrees from the University of Arizona, the Uni-
versity of Minnesota, and the University of Illinois, respectively. He has also served as
a staff accountant with Arthur Andersen and Touche Ross, as a member of the Auditing
Standards Board, and as an academic fellow with the American Institute of Certified Pub-
lic Accountants. Professor Pany has published articles on auditing in such journals as The
Journal of Accounting Research, The Accounting Review, Auditing: A Journal of Prac-
tice and Theory, The Journal of Accountancy, and The CPA Journal. He is a member of
and has served on various committees of the American Accounting Association and the
American Institute of Certified Public Accountants.
iii
