Higher Education

Contemporary Auditing, 9th Edition

  • Michael C. Knapp University of Oklahoma
  • ISBN-10: 1133187897  |  ISBN-13: 9781133187899
  • 592 Pages
  • © 2013 | Published
  • College Bookstore Wholesale Price = $134.00
  • Newer Edition Available
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The Ninth Edition of Knapp's CONTEMPORARY AUDITING: REAL ISSUES AND CASES utilizes real-world cases to highlight the work environment of auditors. These cases help students to identify audit problem areas by using real-world examples and pointing out potential red flags. With thirteen new cases, Knapp's CONTEMPORARY AUDITING: REAL ISSUES AND CASES contains the most recent, compelling, and up-to-date examples, including Lehman Brothers Holdings Inc., First Keystone Bank, Foamex International Inc., Phillips Petroleum Company, and Freescale Semiconductor Inc. Five new cases have also been added to the "Audits of High-Risk Accounts" section, examining well-known companies such as General Motors, Lipper Holdings, LLC, Geo Securities, Inc., Belot Enterprises, and Regina Company, Inc. The ninth edition fully integrates all recent risk assessment standards recently adopted by the auditing community. This casebook can be used to supplement the first undergraduate auditing course, as a primary text for a second undergraduate auditing course, or for a graduate-level auditing seminar. Selected cases in this text are also suitable for use in financial accounting courses and may be customized into a unique casebook at http://www.cengage.com/custom/makeityours/knapp.

Features and Benefits

  • CUSTOMIZED VERSIONS: Using the "Make It Yours" program, instructors are able to build their own casebook, including only the cases needed for their course. Michael C. Knapp suggests several versions of a customized textbook for various accounting courses in the preface. Visit http://www.cengage.com/custom/makeityours/knapp to get started.
  • KEY AUDITING PRACTICES & PROCEDURES: The case format helps students better understand auditing practices by presenting key auditing elements and procedures in real-world contexts. 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 organize their course around learning objectives and to readily mix and match cases from semester to semester.
  • DETAILED SOLUTIONS MANUAL: The solutions 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

Section 1: Comprehensive Cases – Enron Corporation, Lehman Brothers Holdings Inc, Just for FEET, Inc, Health Management, Inc, The Leslie Fay Companies, NextCard, Inc, Lincoln Savings and Loan Association, Crazy Eddie, Inc, ZZZZ Best Company, Inc, Gemstar-TV Guide International, Inc, New Century Financial Corporation, Madoff Securities.
Section 2: Audits of High-Risk Accounts – Jack Greenberg, Inc, Golden Bear Golf, Inc., Happiness Express, Inc., General Motors Company, Lipper Holdings, LLC, CBI Holding Company, Inc., Geo Securities, Inc., Belot Enterprises, Regina Company, Inc.
Section 3: Internal Control Issues – The Trolley Dodgers, Howard Street Jewelers, Inc., United Way of America, First Keystone Bank, Goodner Brothers, Inc., Buranello's Ristorante, Foamex International Inc.
Section 4: Ethical Responsibilities of Accountants – Creve Couer Pizza, Inc., F&C International, Inc., Suzette Washington, Accounting Major, Freescale Semiconductor, Inc., Wiley Jackson, Accounting Major, Arvel Smart, Accounting Major, David Quinn, Tax Accountant.
Section 5: Ethical Responsibilities of Independent Auditors – Cardillo Travel Systems, Inc., American International Group, Inc., The North Face, Inc., Waverly Holland, Audit Senior, Phillips Petroleum Company, American Fuel & Supply Company, Inc.
Section 6: Professional Roles – Leigh Ann Walker, Staff Accountant, Bill DeBurger, In Charge Accountant, Hamilton Wong, In-Charge Accountant, Tommy O'Connell, Audit Senior, Avis Love, Staff Accountant, Charles Tollison, Audit Manager.
Section 7: Professional Issues – Ligand Pharmaceuticals, Sarah Russell, Staff Accountant, Bud Carriker, Audit Senior, Hopkins v. Price Waterhouse, Fred Stern & Company, Inc. (Ultramares Corporation v. Touche et al.), First Securities Company of Chicago (Ernst & Ernst v. Hochfelder et al.).
Section 8: International Cases – Livent, Inc., Parmalat Finanziaria, S.p.A., Kansayaku, Registered Auditors, South Africa, Zuan Yan, Kaset Thai Sugar Company, Republic of Somalia, OAO Gazprom, Societe Generale, Institute of Chartered Accountants of India, Republic of the Sudan, Shari'a, Mohamed Salem El-Hadad, Internal Auditor, Tae Kwang Vina.

What's New

  • NEW CASES: This edition features thirteen new cases, including Lehman Brothers Holdings Inc., First Keystone Bank, Foamex International Inc., Phillips Petroleum Company, and Freescale Semiconductor Inc.
  • NEW AUDITS OF HIGH-RISK ACCOUNTS CASES: Five new cases have also been added to the "Audits of High-Risk Accounts" section, examining well-known companies such as General Motors, Lipper Holdings, LLC, Geo Securities, Inc., Belot Enterprises, and Regina Company, Inc.
  • IMPROVED INSTRUCTOR POWERPOINT DECK: Revamped PowerPoint slides highlight the key information for each case, allowing the instructor to quickly explain each case. These are available on the instructor companion site.


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

Solution Manual  (ISBN-10: 1133187927 | ISBN-13: 9781133187929)

The printed Solution's Manual includes a solution for each case, in addition to instructor notes. 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 thirteen strategies or tactics for using cases. A Summary of Topics by Case and a Suggested Syllabus for a Graduate Auditing Course completes the Solutions Manual. The Solutions Manual is available to order in hard copy.

Meet the Author

Author Bio

Michael C. Knapp

Michael Knapp has taught undergraduate and graduate auditing courses for more than thirty years. He has developed numerous 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. Recently, he accepted an invitation from the FBI to speak 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 MBA Professor (determined by a vote of OU’s MBA students), the Outstanding Oklahoma Accounting Educator (awarded by the Oklahoma Society of CPAs), the Delta Sigma Pi Professor of the Year (awarded by the OU 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.