Cengage Learning

Higher Education

Contemporary Auditing: Real Issues & Cases, Update, 7th Edition

  • Michael C. Knapp University of Oklahoma
  • ISBN-10: 143907819X  |  ISBN-13: 9781439078198
  • 576 Pages
  • Previous Editions: 2009, 2007, 2004
  • © 2010 | Published
  • Newer Edition Available



Knapp’s CONTEMPORARY AUDITING: REAL ISSUES AND CASES, UPDATE, 7th Edition helps students recognize the red flags that often accompany problem audits. The use of real-world cases acquaints students with the work environment of auditors. The updated 7th edition offers an exciting new case describing the 2007 collapse of New Century Financial Corporation which signaled the beginning of the subprime mortgage crisis in the United States. The new case addresses Section 404 of the Sarbanes-Oxley Act and PCAOB AS #5 to keep you up-to-date. In addition, a new "International Cases" section examines auditing challenges in Australia, China, India, Japan, Russia, South Africa, and several others. The updated 7th Edition fully integrates risk assessment standards recently adopted by the auditing community. Professors can use this casebook to supplement the first undergraduate auditing course, as a primary text for a second undergraduate auditing course, or a graduate-level auditing seminar. Selected cases in this text also are suitable for use in financial accounting courses and may be customized into a unique casebook at http://custom.cengage.com/makeityours/knapp7e/.

Features and Benefits

  • KEY AUDITING PRACTICES & PROCEDURES: The case format helps students better understand auditing practices by presenting key auditing elements and procedures in real-world situations. Studying problem audits also provides students with a dose of reality by illustrating the serious consequences that can result from "busted" audits and/or unethical conduct.
  • WELL ORGANIZED: Cases are organized into eight sections to help instructors easily identify cases best suited for their purposes and to readily mix and match cases from semester to semester.
  • DETAILED INSTRUCTOR’S MANUAL: The instructor’s manual provides a detailed solution for each case. Each case solution includes a case synopsis, list of key facts (that can be used as a teaching template), list of instructional objectives, suggestions for use (tips on how to integrate the given case into a course), and suggested answers to each case question. The instructor’s manual also includes a syllabus for a semester-long auditing course based on this text that could be offered either at the graduate or undergraduate level.

Table of Contents

1.1: Enron Corporation.
1.2: Just for Feet, Inc.
1.3: Jamaica Water Properties.
1.4: Health Management, Inc.
1.5: The Leslie Fay Companies.
1.6: Star Technologies, Inc.
1.7: Lincoln Savings and Loan Association.
1.8: Crazy Eddie, Inc.
1.9: ZZZZ Best Company, Inc.
1.10: United States Surgical Corporation.
1.11: New Century Mortgage.
2.1: Jack Greenberg, Inc.
2.2: Golden Bear Golf, Inc.
2.3: Happiness Express, Inc.
2.4: CapitalBanc Corporation.
2.5: SmarTalk Teleservices, Inc.
2.6: CBI Holding Company, Inc.
2.7: Campbell Soup Company.
2.8: Rocky Mount Undergarment Company, Inc.
3.1: The Trolley Dodgers.
3.2: Howard Street Jewelers, Inc.
3.3: Saks Fifth Avenue.
3.4: Triton Energy Ltd.
3.5: Goodner Brothers, Inc.
3.6: Troberg Stores.
4.1: Creve Couer Pizza, Inc.
4.2: F&C International, Inc.
4.3: Suzette Washington, Accounting Major.
4.4: Oak Industries, Inc.
4.5: Wiley Jackson, Accounting Major.
4.6: Arvel Smart, Accounting Major.
4.7: David Quinn, Tax Accountant.
4.8: Jack Bass, Accounting Professor.
4.9: Thomas Forehand, CPA.
5.1: Cardillo Travel Systems, Inc.
5.2: Mallon Resources Corporation.
5.3: The North Face, Inc.
5.4: NextCard, Inc.
5.5: Koger Properties, Inc.
5.6: American Fuel & Supply Company, Inc.
6.1: Leigh Ann Walker, Staff Accountant.
6.2: Bill DeBurger, In-Charge Accountant.
6.3: David Myers, WorldCom Controller.
6.4: Tommy O’Connell, Audit Senior.
6.5: Avis Love, Staff Accountant.
6.6: Charles Tollison, Audit Manager.
6.7: Hamilton Wong, In-Charge Accountant.
7.1: PricewaterhouseCoopers Securities, LLC.
7.2: Stephen Gray.
7.3: Scott Fane.
7.4: Hopkins v. Price Waterhouse.
7.5: Sarah Russell.
7.6: Bud Carriker.
7.7: National Medical Transportation Network.
7.8: Fred Stern & Company, Inc. (Ultramares).
7.9: First Securities Company of Chicago (Hochfelder).
8.1: Livent, Inc.
8.2: Royal Ahold, N.V.
8.3: Kansayaku.
8.4: Registered Auditors, South Africa.
8.5: Zuan Yan.
8.6: Kaset Thai Sugar Company.
8.7: Australian Wheat Board .
8.8: OAO Gazprom.
8.9: Tata Finance Limited.
8.10: Baan Company N.V.
8.11: Institute of Chartered Accountants of India.

What's New

  • NEW CASES: This edition features 15 new cases, including an "International Cases" section. These cases incorporate the eight new auditing standards that came into effect on December 15, 2007 by the Auditing Standards Board.
  • CUSTOMIZED VERSIONS: Knapp suggests several versions of a customized textbook for various accounting courses in the preface.
  • NEW INDICES: Two new indices help instructors and students locate cases by topic or topics by case.


All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Instructor’s Manual (Web Only)  (ISBN-10: 0324594976 | ISBN-13: 9780324594973)

The Instructor’s Manual includes a solution for each case. Each case solution contains five sections: A Synopsis, Key Facts, Instructional Objectives, Suggestions for Use, and Suggested Solutions to Case Questions. You will also find information on the "case method" approach to using cases in accounting courses and how to "get started" using cases. The author provides 13 strategies or tactics for using cases. A Summary of Topics by Case and a Suggested Syllabus for a Graduate Auditing Course completes the Instructor’s Manual. The Instructor’s Manual is found on the text companion website: http://academic.cengage.com/accounting/knapp.

Meet the Author

Author Bio

Michael C. Knapp

Michael Knapp has taught undergraduate and graduate auditing courses for more than twenty years. He has developed numerous online CPE courses and has testified in several major litigation cases involving accounting and auditing issues. His honors at the University of Oklahoma include the Merrick Foundation Teaching Award; Arthur Andersen Faculty Fellow, School of Accounting; Honorary Faculty Member, Golden Key National Honor Society; Distinguished Educator Award, School of Accounting; John E. Mertes, Jr., Presidential Professor; Delta Sigma Pi Professor of the Year, Price College of Business; and McLaughlin Chair in Business Ethics.