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 .. 1Oe
Aud1t1ng,
Assurance Services
& Ethics
in Australia
Arens Best f Shailer Fiedler Elder f Beasley
 C ONTENTS IN FU LL vii

Summary 165 C HAPTER S Internal control and

Questions and problems 166 control risk 264
Online issue 177
Client and auditor concerns 265
Appendix: Common financial ratios 178
Effect of information technology on internal
control 268
PART 2 THE AUDIT PROCESS: Components of internal control 269
DECISIONS AND Procedures to obtain an understanding of
PLANNING 181 internal control 279
Assessing control risk 284
C HAPTE R 6 Audit planning and
Tests of controls 290
documentation 183
Summary 292
Planning 185
Questions and problems 294
Accepting audit engagement and performing
Online issue 303
initial audit planning 186
Case study: Integrated case application-
Understanding the client's business and industry 191
Pinnacle Manufacturing: Part III 303
Assessing client business risk 196
Performing preliminary analytical procedures 197 C HAPTER 9 Fraud auditing 306
Purposes of audit documentation 199
Types of fraud 307
Content and organisation of audit files 200
Conditions for fraud 309
Effect of technology on audit evidence and audit
Assessing the risk of fraud 312
documentation 206
Corporate governance oversight to reduce fraud
Summary 208
risks 316
Questions and problems 209
Responding to the risk of fraud 321
Online issue 217
Specific fraud risk areas 323
Case study: Integrated case application-
Responsibilities when fraud is suspected 329
Pinnacle Manufacturing: Part l 217
Summary 331
CHAPTE R 7 Materiality and risk 221 Questions and problems 332
Materiality 223 Online issue 338
Materiality for financial statements as a whole 224
C HAPTER 10 The impact of information
Determine performance materiality 227
technology on the audit
Estimate misstatement and compare with
preliminary judgment 230
process 339
Audit risk 232 How information technologies enhance internal
Audit risk model for planning 232 control 341
Assessing acceptable audit risk 236 Assessing the risks of information technology 341
Assessing inherent risk 239 Internal controls specific to IT 343
Relationship of risks to evidence and factors Impact of IT on the audit process 349
influencing risks 242 Auditing with use of the computer 352
Relationship of risk and materiality to Using a microcomputer as an audit tool 362
audit evidence 246 Issues for different IT environments 365
Summary 247 Summary 370
Questions and problems 248 Questions and problems 370
Online issue 262 Online issue 382
Case study: integrated case application- Appendix: Other computer-assisted audit
Pinnacle Manufacturing: Part II 262 techniques 382

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 viii I COl'<TENT S IN Fuu.

CHAPTER 11 Overall audit plan and audit Confirmation of accounts receivable 472
program 384 Developing the 'tests of details' audit program 478
Types of tests 386 Summary 481
Selecting which types of tests to perform 391 Questions and problems 481
Impact of information technology on audit testing 395 Online issue 492
Evidence mix 395
Design of the audit program 396 C HAPTER 14 Audit sampling 493
Relationship of transaction-related audit The role of audit sampling 494
objectives with balance-related and Representative samples 495
presentation and disclosure-related audit Statistical vs non-statistical sampling and
objectives 404 probabilistic vs non-probabilistic sample
Summary of the audit process 406 selection 496
Summary 409 Application of statistical and non-statistical
Questions and problems 410 sampling 497
Online issue 421 Non-probabilistic sample selection methods 498
Probabilistic sample selection methods 499
CHAPTER 12 Audit of the sales and Sampling for deviation rates and
collection cycle: Tests of misstatements 500
controls and substantive Application of non-statistical audit sampling 501
tests of transactions 422 Application of non-statistical audit sampling
Accounts and classes of transactions in the sales for tests of controls and substantive tests
and collection cycle 423 of transactions 502
Business functions in the cycle and related Non-statistical sampling for tests of details
documents and records 424 of balances 513
Methodology for designing tests of controls and Statistical audit sampling 519
substantive tests of transactions for sales 429 Application of attributes sampling 520
Sales returns and allowances 439 Monetary unit sampling 524
Methodology for designing tests of controls and Variables sampling 533
substantive tests of transactions for
Summary 534
cash receipts 439
Questions and problems 535
Audit tests for the write-off of uncollectable
Online issue 548
accounts 443
Case study: Integrated case application-
Summary 445 Pinnacle Manufacturing: Part IV 548
Questions and problems 446
Online issue 456 CHAPTER 1 s Audit of transaction cycles
and financial statement
PART 3 THE AUDIT PROCESS: balances I 551
APPLICATION 457 Accounts and classes of transactions in the
acquisition and payment cycle 552
CHAPTER 13 Completing the tests in the Business functions in the cycle and related
sales and collection cycle: documents and records 553
Accounts receivable 459 Methodology for desigrting tests of controls and
Methodology for designing tests of details substantive tests of transactions 556
of balances 460 Methodology for designing tests of details of
Designing tests of details of balances 466 balances for accounts payable 562

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 C ONTENTS IN FU LL I ix
Design and perform analytical procedures Internal controls 653
(phase Ill) 564 Analytical procedures 654
Design and perform tests of details of the Tests of details of balances 654
accounts payable balance (phase Ill) 564 Internal controls 656
Reliability of evidence 568 Audit of issued and paid-up capital 657
Business functions in the cycle and related
Summary 660
documents and records 571 Questions and problems 660
Parts of the audit of inventory 573
Online issues 672
Audit of cost accounting 575
Analytical procedures 578
Physical observation of inventory 579 PART 4 THE AUDIT PROCESS:
Auditing of pricing and compilation 583
COMPLETING THE
Integration of the tests 586
Accounts and transactions in the payroll and
AUDIT 673
personnel cycle 589 CHAPT ER 17 Completing the audit 675
Business functions in the cycle and related
Perform additional tests for presentation
documents and records 590
and disclosure 677
Methodology for designing tests of controls and
Review for contingent liabilities and
substantive tests of transactions 592
commitments 678
Methodology for designing tests of details
Make inquiries regarding litigation and claims 681
of balances 597
Review for subsequent events 683
Perform analytical procedures (phase Ill) 598
Final evidence accumulation 686
Design and perform tests of details of balances
Evaluate results 688
for liability and expense accounts (phase 111) 599
Communicate with the audit committee
Summary 601 and management 694
Questions and problems 602 Subsequent discovery of facts 696
Online issues 619
Summary 697
Case study: Integrated case application-
Questions and problems 697
Pinnacle Manufacturing: Part V 620
Online issue 705
Case study: Integrated case application-
Pinnacle Manufacturing: Part VI 621
C HAPTER 18 Audit reporting 706
CHAPTE R 16 Audit of transaction cycles The audit report 708
and financial statement Standard unmodified audit report 708
balances II 626 Statutory requirements 711
Conditions requiring a departure 716
Types of cash accounts 628
Audit reports other than urtmodified 716
Cash balances and transaction cycles 629
Materiality 717
Audit of the general cash account 631
Examples of reports 720
Fraud-oriented procedures 639
Unmodified audit report with an emphasis
Audit of property, plant and equipment 643
of matter 722
Audit of manufacturing equipment and related
Impact of e-commerce on audit reporting 725
accounts 644
Audit of prepaid expenses 650 Summary 725
Audit of accrued liabilities 650 Questions and problems 726
Capital acquisition and repayment cycle 652 Online issue 734

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 X I C01'TENTS I N FU U.

PART 5 SPECIAL TOPICS 735 Phases in performance auditing 761

The role of internal auditors 763
CHAPTER 19 Other auditing and assurance Relationship between internal and
engagements 737 external auditors 765
Assurance engagements 740 Public sector audits in Australia 766
Audit reports on special purpose Auditing of Australian Commonwealth
financial reports 742 Government agencies 767
Assurance services pertaining to specific financial Auditing standards 770
information 742 Features peculiar to the public sector 771
Assurance reports on internal controls 743 Australia's Clean Energy Scheme 772
Review engagements 750 Assurance issues 775
Audits of prospective financial information 752 External auditor expertise and qualifications 777
Differences between performance auditing and Guidelines and standards for conducting
financial auditing 755 external assurance engagements and
Effectiveness versus efficiency 756 preparing reports 778
Relationship between performance auditing Questions and problems 780
and internal controls 757 Online issue 790
Types of performance audits 757
Who undertakes performance audits? 758 Index 791
Independence and competence of performance Rouge Clothing Company Ltd case study
auditors 759
Criteria for evaluating efficiency and
effectiveness 760

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 Preface

Objectives
The tenth edition of Auditing, Asmrance Services and Ethics in Australia: An Integrated Approach is based
on the fifteenth US edition of Auditing and Assurance Services: An Integrated Approach. It contains
numerou s changes and revisions, but the principal objectives and emphasis remain unchanged from the
previous edition . It represents a conscious effort to focus on the Australian auditing environment in
terms of the current practices and standards issued by the Auditing and Assurance Standards Board
(AUASB).
The book is a n introduction to auditing for students who have not had significant experience in the
field a nd is intended for either a full-year or one- sem ester course at the undergraduate or graduate
level. The book is also appropriate for introductory professional development courses for public
accounting firms, internal auditors and governm ent auditor s.
The primary emphasis in this textbook is on the auditor's decision-making process. We believe that
the m ost fundamental concep ts in auditing relate to determining the nature and amount of evidence
the a ud itor should accumulate after con sidering the unique circumstances of each engagem ent. If
students of auditing understand the object ives to be accompl ished in a given a udit area, the
circumstan ces of the engagem ent and the decisions to be made, they should be able to determine the
appropriate evidence to gather and h ow to evaluate the evidence obtained.
Thus, as the title of the book reflects, our purpose is to integrate the most important concepts of
auditing with certain practical aspects in a logical manner to assist students in understanding audit
decision making and evidence accumulation. For example, internal control is integrated into each of
the chapters dealing with a particular functional area and is related to tests of transactions. Tests
of transact ions ore, in turn, related to the tests of details o f financial statement balances of the
accounts for the area; and audit sampling is applied to the accumulation of audit evidence rather
than treated as a separate topic. Technology, e-commerce and fraud issues are also integrated
throughout the chapters.

Features of the tenth edition

Auditing regulations
The tenth edition incorporates recently issued auditing standards (ASAs, ASREs and ASAEs),
Accounting Professional and Ethical Statements (APESs), the Framework for Assurance Engagements,
the Explanatory Guide to AUASB Standards Applicable to Review Engagements, and guidance
statements (AGSs a nd GSs). It inclu des up-to-date referencing of relevant legislation (including the
Corporations Act 2001) and common law.

Chapter 9 on fraud auditing and expanded fraud coverage

This chapter on fraud auditing examin es the auditor's responsibility for assessing the risk of fraud and
detecting m aterial misstatements due to fraud. The chapter includes coverage of corporate governance
a nd o ther factors that reduce fraud risk. Specific fraud risk areas and procedures to detect fraud are
also discussed. Additional refer en ces to fraud risks have been integrated into oth er chapters. The results
from the KPMG A Survey of Fraud, Bribery and Corruption in Australia & New Zealand 2012 are
incorporated w ithin the chapter.

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 Xii PREFAC E

Increased emphasis on audit quality

There is an emphasis on audit quality, in the context of the role of auditing in corporate governance.
The major changes in relevant regulation, including the changes to the Corporations Act 2001, are
integrated into relevant chapters.

Running case-Rouge Clothing annual report

Extracts from the annual report for the running case of the fictitious Rouge Clothing Company are
included as a full-colour insert at the back of the textbook. Financial statements and other information
included in the annual report are used in examples throughout the book to illustrate chapter con cepts.
When Rouge Clothing is referred to in the text, a shopping bag icon is shown in the margin.

Running case-Pinnacle Manufacturing integrated case study

The Pinnacle Manufacturing integrated case represents a larger, multi-division company, and appears
in six parts in Chapters 6, 7, 8, 14 a nd 15. Each part of the case is included at the end of the chapter to
which the part relates. The parts of the case are connected so that students will gain a better
understanding of how the parts of the audit are interrelated and integrated by the audit process.

Online issues
Each chapter includes Internet-based cases that require students to research relevant auditing issues
online.

ACL Education edition student software supplement

Students are exposed to ACL audit software in the opening vign ettes for Chapters 9 and 10. Chapter 10
illustrates the application of audit software u sing an ACL demonstration showing screenshots.
ACL provides a wide range of opportunities for incorporating computer-assisted audit techniques
(CAATs) in the auditing curriculum. Instructors may use this supplement in conjunction with Chapter
10, The Impact oflnformation Technology on the Audit Process, which introduces the study ofCAATs.
The objectives of this supplement are twofold:

1 developing students' understanding of CAATs-audit software exercises explore how CAATs can
assist the auditor in testing audit objectives

2 developing students' proficiency in global, market-leading audit software-the marketability of

accounting graduates seeking audit-related employment is significantly enhanced through
exposure to ACL.

ACL is genera lised a udit software u sed by auditors to extract and analyse data on client's
computerised systems. Generalised audit software is discussed on pages 352-358 of the textbook.
ACL is a personal-computer implementation of the English-like Audit Command Language. It has
been designed primarily as a powerful auditing tool for easy access to and analysis of data. ACL has a
number of key features.
ACL is installed on the auditor's personal computer and provides universal access to client data.
The client's data tables are downloaded to the auditor's computer and defined to the system so that
data analysis is feasible.
Commands are issu ed through selections from menus and submenu s. Error messages notify the u ser
if the required data for a command have not been entered correctly. Context-sensitive help is available,
along with a full Windows-style help system. Commands can also be executed interactively through the
command log window. ACL permits both sequential and direct access to data tables. Sequential access
involves a complete pass through the consecutive records in a data table and suits most applications; for
example, locating all records meeting specified criteria. Direct access permits the location of the first
record meeting a criterion or containing a specified key field value (e.g. product number).

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 PREFACE I xiii

ACL possesses powerful expression evaluation capabilities, thereby allowing the creat ion of
computed fields-that is, those calculated from other fields, with formulae and function s. Commands
may be batched and executed on request. Groups of commands may be executed con currently to permit
m ore efficient processing. All commands and results are a u tomatically saved in the command log. This
provides the auditor with the basis for review of work, a set of working papers and the potential
development of future batch applications. ACL can also extract data to create working audit tables for
further processing, and export data to other applications, such as MS Word. An in-depth study of its use
is beyond the scope of most first auditing courses.
To access the educational ACL software go to https:1/accounts.aclgrc.com/promo a nd enter the
p romotional code in the front of the book. Further in formation about the ACL software can be located
at http:l/www.acl.com/about-us.

Auditing and assurance implications of carbon trading

Chapter 19 has been revised for the Australian developments pertaining to carbon emissions reporting
and assurance requirements.

Acknowledgments
We wish to thank the Au diting and Assurance Standards Board (AUASB) and the Au stralian
Accounting Standards Board (AASB) for permission to quote their standards, statements and o ther
pronouncem ents. Material from these Standards Boards is © Commonwealth of Australia. E very
attempt has been made to ensure that the material used is current.
The authors and publisher would also like to thank ACL Services Ltd for permission to package the
ACL student version with this textbook.
The dedicated contribution s of many individuals helped make refinements and improvements in this
edition. An impressive cast of reviewers p rovided m a ny helpful suggestions and enthusiasm for the
organisation and content of the book. The authors and publisher are grateful to each one of them.
These include:
Mrs Prerana Agrawal, University of Western Australia
Dr Tehmina Khan, RMIT
Associate Professor Conor O'Leary, Griffith University.
Dr Grace H su, The University of Queensland
P. J. Best
G. E. P. Shail er
B. A. Fiedler

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Visual preface

For students

How do I use this book?

Learning objectives
These are listed at the beginning of each chapter and explain the 'i Audit responsibilities
j and objectives

___
key concepts that you should understand ofter stu dy in g t h e

...._____
chap ter. T h ey are then signposted t hroug hout th e ch apter, which
steps y ou through each objective by l isting th e objective to which __....,...... ..__..._____ _
each section corresponds. -·--·-
.---------
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·-·-· - -----
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_____ ____
.......=.---...-----
=.:...-==-...::::=.::=-~=..-..

.________
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Professional statements referred to in this chapter
These provide y ou with a list of relevant auditin g and accounting .
.="==:!=---.. -... _

______...,_
.,...

=::=. ::.=..:.==
legislation that is explained t hroughout the chapter.

-------- --·- _.___ . . . . .

..............
_____
--==-===--. .,
-- ::::::'.::=....- .. _ _ _...

---- ..--- -~_

-_
=..:..~""=:::"' ....:::.:-.::;: Chapter opening vignette
-------
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__ _____
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.. _.__ .. ----
.==__
-=:=:- Both real and fictitious companies and situation s
.___________ . ______
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...

::;:;;."=,...-:....-::.,--=::::;-.=~.:::.::::::.~~
..,

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,,

...
introduce you to the con cep ts covered in the
chapter via a practical 'real-life' exam ple.
--
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______
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Auditing FYI
___....______
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·-
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Som e chapters conta in boxed features with
:=:-..:::-..=-.:.-::.
additional information, exa mples and/or
s:=--=-~--------_
___
__________
_______ __ _
- -- 1-
samples of audit documents to get you
thinking.
.__..__________
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--·--··--·--- - ---·------·-- Auditing in the real world
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....

--·
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----· _...---
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- .. _______ ..-- _"• Excerpts from real a u d iting coses, standards, n ews items and rep orts app ear m
..__ _.._.... __
.. ... ..----· -
_____
-- ·---------
·---·------- .-
..--..·-
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various chapters to show real-life examples of auditing in action .

~;::;.-::...-:.:?.:..--=::-:..===
.._______
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___
- -·-=-
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____________
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.,

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 VISU AL PREFACE I xv

____ ... ___,. ____

_______
---1--- ___ -- _ .

Running glossary in the margin == ------------

-- ------------ ~~="-==-~-!:!.'":!:.-

Bolded key terminology and concepts are explained as th ey occur in the text . -- ---------
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Integrated case study-
Pinnacle Manufacturing -~-==..~-====
=- - ..------··- - -..--

___ ____ ____

~=-:. =-:_-=:=1~~=::-:
.---------·---
T his running case appears in Ch apters 6, 7, 8, 14
a n d 15. Wh en all parts of the case are completed
'

_______
., ,..

··- ·- ----- ~- _______

·----·-"'
·------ ,.
.. ......

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-~-:.-i:.:-:·-;__70. you will have a very sound understan ding of
each stage of the audit and h ow it relates to the --
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--
" ' -_ _ ..c _ _ _

-------------
_ _ _ _> ...._ _ _ _ _ _..

=- ----·---------
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wh ole process.
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-----------

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Cue ~udy

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_____ __--_
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... ...
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All the material covered m each chapter is
------ __
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encapsu lated in a few paragraphs; a g r eat ::.::::.:::.··~.:===-= ==-·:.:::.:.=..::::--
revision tool.

__
OuesdOC'IS and orobte:rns

End-of-chapter questions and problems

~~--
~
~
_______
.. -------·
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Review questions, multiple choice questions, discussion question s and problems, case
studies and Internet problems help reinforce your understanding of ch apter content.
.....

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------- ---=----~-
...
...

---------------. -·
.. ===---------.
A ll questions are keyed to the lear ning objective to which they correspond so you can
=---------.
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p ick a nd choose the areas you want to work on . J

~
--·-----------·
.. ...
. . ==--==--=..-----.. -.. - - . .
- -- 1· Appendices
~
__________
O,ro.W o;inl schfdulfc et le:.uling csu:
..
Where appropria te, som e ch apters will have an appen dix to

__
_ .,, a,di!ors' h19at liability ir1 Aust~,a
afh.ding extend a n d explicate chapter con tent.
=-==---. . -·:::::::::=
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... ..________
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:===.:.:::::::_______
---
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Extra features
Rouge C lothing - Extracts from the annual
- =::=-:_"""E===--===
..--...- ........ .,..,_. . .....
:::::::::::::" rep ort for the running case of the fictitiou s
---------
__
---·- - ......_,__ ...--_
====--::..-:::::::.:.-:=.:..--:.:=::
_________ ..---------..
-·__.._......__ _..___
_______ .. ___________
:.::--.=--... Rouge C lothing Company a re included as a
--··--·--------- four - colour insert at the end of the book.
_____________
=----·
....
....
__________ _
______.-.. ::::-.. .:;;:.......·.-~·.....= This case illustrates chapter concepts in a
,..
..... -----~ 'r eal- world' business context. W h en Rouge
C lot hing is referred to in the text, a shopping
bag icon is sh own in the margin.
ACL software will help develop your proficiency in a global, market-leading audit
software, and g ive you more marketability as an accounting graduate seeking
a u dit-related e mployment.

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 xvi VISUAL PREFACE

What else can I use with this book?

For instructors
The following is available for download from the Pearson catalogue site. Contact your sales
representative for passwords to access this material.

Solutions manual
The solutions manual provides educators with detailed, accuracy-verified solutions to all of the end-of-
chapter problems in the book.

PowerPoint slides
A comprehensive set of PowerPoint slides can be used by educators for class presentations or by students
for lecture preview or review. They include key figures and tables, as well as a summary of key concepts
and examples from the text.

Test bank
The test bank provides a wealth of accuracy-verified testing material. Updated for the new edition,
each chapter offers a wide variety of true/false, short- answer and multiple-choice questions, arranged
by learning objective and tagged by AACSB standards.

ACL software
Educators may use this software in conjunction with Chapter IO ' The impact of information technology
on the audit process', which introduces the study ofCAATs.

Copyright c:> Pearson Australia (a division of Pearson Australia Group Ply Lid) 2017-9781488609138-Arens/Audltlng and Assurance Services 1Oe
 About the authors

Peter Best (BCom, MEngSci, PhD, FCPA) is Professor and Head of Discipline,
Accounting at Griffith University's Business School. He was previously the Head of the
School of Accounting, Economics and Finance at the University of Southern Queensland.
He bas taught accounting at the University of Queensland, University of Newcastle,
University of Adelaide, Flinders University, Queensland University of Technology and
University of Southern Queensland. Peter is a Fellow of CPA Australia and an Associate
of the !CAA. He has acted as consultant to a variety of accounting firms a n d government
departments, both in Australia and overseas. His specialist teaching areas include
accounting information systems, auditing, information systems auditing, SAP enterprise
systems and business forensics. Peter is co- a u thor of Auditing Computer Based Systems,
many editions of both Horngren's Accounting and Financial Accounting and the previous
editions of Auditing and Assurance Services in Australia: An lmegraied Approach.

Greg Shailer (BCom, MCom, PhD, FCPA) is Director of the Australian National
Centre for Audit and Assurance Research in the Research School of Accounting at
The Australian National University. He has taught at prominent universities in Australia,
the United Kingdom and the United States. His specialist teaching areas are corporate
governance and auditing. Greg's research focuses on corporate governance, auditing and
regulation. He is a Fellow of CPA Australia and has prior experience with both small and
large public accounting firms, and as a consultant to private sector firms and government
agencies. Greg is author ofAn Imroduciion to Corporaie Governance in Australia and co-author
of the previous editions of Auditing and Assurance Services in Australia: An lnregrared Approach.

Brenton Fiedler ( BA Ace, MBus, FCA) is the Academic Lead on the Online MBA
program in the Business School at Flinders University. Brenton is a Fellow of CAANZ
and is a former senior manager in the Adelaide audit division of KPMG. His specialist
teaching areas inclu de auditing, financial accounting, and corporate strategy , and he
has taught both locally and overseas.

Siva Nathan Kanapathy (FCA, ACMA, MIA, Dip Fin Planning) wrote the Rouge
C lothing Case Study and the related audit letters. He qualified as a Chartered Accountant
with the Institute of Chartered Accountants in England and Wales. He bas practised in the
United Kingdom, Malaysia and Au stralia, and has worked with small, medium and
the Big Four public accounting firms, specialising in banking and mining companies. He
has lectured in accounting, auditing and corporate finance both at private colleges and
in-house at accounting firms, and is the author of several submissions to governments, both
locally and overseas, regarding the finance and banking sector, the self-assessment tax
system and goods and services tax.

Copyright c:> Pearson Australia (a division of Pearson Australia Group Ply Lid) 2017- 9781488609138-Arens/Audltlng and Assurance Services 1Oe
This page Intentionally left blank.
 ~ The Auditing Profession
-l

CHAPTER 1 Demand for audit and assurance services

CHAPTER 2 Auditors' legal environment
CHAPTER 3 Audit quality and ethics
CHAPTER 4 Audit responsibilities and objectives

CHAPTER 5 Audit evidence

Copyright C> Pearson Australia (a d ivision of Pearson Australia Group Pty Ltd) 2017- 9781488609138-Arens/Audltlng and Assl.M'ance Seivlces 1Oe
 The FIRST FIVE CHAPTERS of Auditing, Assurance Services and Ethics in Australia
10th edition describe the auditing profession and integral auditing concepts. The
book begins with a description of the nature of auditing and auditing firms, the
professional bodies and ASIC (Australian Securities and Investments Commission).

C HAPTERS 2 AND 3 reflect the changed auditing environment since 2002, including
the implications of the United States Sarbanes- Oxley Act. The legal environment and
regulatory issues are presented in CHAPTER 2 . Ethics has been incorporated into an
expanded discussion of audit quality in CHAPTER 3.

CHAPTERS 4 AND 5 explore auditors' and management's responsibilities, audit

objectives, and general concepts of evidence accumulation.

Copyright e Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2017-9781488609138-Arens/Audillng and Assurance Services 1Oe
 n
Demand for audit
. and :c
)>
-u
assurance services -I
m
:;o

LEARNING OBJECTIVES
After studying this chapter you should be able to:
1 Describe assurance services, and distinguish audit services from other assurance and
non-assurance services provided by public accountants.
2 Explain the importance of auditing in reducing information risk.
3 List the causes of information risk, and explain how this risk may be reduced.
4 Describe auditing.
S Distinguish between auditing and accounting.
6 Differentiate the three main types of audits.
7 Identify the primary types of auditors.
8 Describe the nature of public accounting -firms, what they do and their structure.
9 Describe the key functions performed by the professional accounting bodies.
10 Use auditing standards as a basis for further study.
11 Identify quality control standards and practices within the accounting profession.
12 Summarise the role of the Corporations Act 2001 in accounting and auditing.
13 Describe the impact of e-commerce on public accountants.

AUDITING STANDARDS
Referred to in this chapter
ASA 101 Preamble to Australian Auditing Standards
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in
Accordance with Australian Auditing Standards
ASA 220 Quality Control for an Audit of a Financial Report and Other Historical
Financial Information
ASA 300 Planning an Audit of a Financial Report
ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding
the Entity and Its Environment
ASA 320 Materiality in Planning and Performing an Audit
ASA 500 Audit Evidence
ASA 700 Forming an Opinion and Reporting on a Financial Report

Copyright C> Pearson Australia (a d ivision of Pearson Australia Group Ply Ltd) 2017-9781488609138-Arens/Audlllng and Ass<Sance SefVlces lOe
 ASA 705 Modifications to the Opi nion i n the Independent Auditor's Report
ASQC l Quality Control for Firms that Perform Aud its and Reviews of Fi nancial Reports and Other
Fi nancial Information, Other Assurance Engagements and Related Services Engagements

PROFESSIONAL STATEMENTS
Referred to in this chapter
APES 320 Q uality Control for Firms

Good auditing includes good client service

' It's been a good week,' thought Melissa Wilson , as
she drove out of the parking area of Solberg Paints on
Friday afternoon. Just a year earlier, she had graduated
from university and had since commenced her CPA studies.
Still, Melissa d idn't think h er transition to profession al life
had been a ll that smoo th, and sh e was surprised at how
much th ere still was to learn. H owever, she had made great
progress on the Solberg en gagement.
John Harris was the a u dit senior on the Solberg Paints
audit, and he h ad a reputation as a patient supervisor and
mentor. Melissa wasn't disappointed. At the start of t he
engagement, John told her, 'Don't be afraid to ask q uestion s. «> AXL/Shutterstock

If you see a n ything t h at seems unusual, let's discu ss it. And

most importantly, if you have a ny ideas that will help the client, br ing them up. The client expects us to deliver m ore
than an audit report.'
'I'd say I delivered,' thought Melissa. Sh e had found a weakness in the compa ny 's computer u ser profiles that
may have exposed Solberg to accounts payable fraud. But h er biggest contribution almost didn 't happen. Melissa
read as much as she could about security in the Systems, Applications a n d P rodu cts in D ata Processing (SAP)
system u sed by the com pan y. She was afraid to bring it up, thinking that she couldn't possibly know anything
that the client d idn't a lready know, bu t John encou raged her to discu ss it with the client. The result was that
the client wanted to meet fur ther with M elissa's firm to better understand how they could improve their fraud
prevention m easu res.
Friday was the last day of fieldwork on the a udit, and the partner, Roger Marlow, was at the client's office to
complete his review of the audit files. Melissa was surprised to hear him say to h er, 'What a r e y ou doin g on the 15th?
We're going to meet w ith the client to discuss our audit findings. You've made a real contribution on this audit, and
I'd like you to be there.' Melissa tried n ot to show her excitement too much, bu t she couldn't hide the smile on her
face. 'Yes, it's been a good week.'

Each chapter's opening vignette illustrates important auditing principles based on realistic situations. Some of
these stories are based on public information about the audits of real companies, whereas others are fictitious.
A ny resemblance in the latter stories to those of real firms, companies or individuals is unintended and purely
coincidental.

Copyright o Pearson Australia (a division of Pearson Australia Group Ply Ltd) 2017-9781488609138-Arens/Audltlng and Assurance Services 1Oe
 CHAPTER 1 Demond for audit and assurance: sc:nice,

As the opening story illustrates, public accountants provide assurances on financial

statements and also help busin esses to be more successful. As businesses become more
complex and need more reliable information, public accountants play a vital role, both in
providing assurance on information other than financial reports and in providing business
advisory and tax services. For example, businesses and consumers who use information
technology and electronic communication networks, such as the Internet, to conduct business
and make decisions need independent assurances about the reliability and security of that
electronic information. Auditors are valued for their technical knowledge and independence in
providing assurances, as well as for their competence and experience in assisting companies to
improve operations. Auditors often make and help implement recommendations that improve
profitability by enhancing or reducing costs, including the reduction of errors and fraud, and by
improving operational controls.

Assurance services A
O BJECTIVE 1
Assurance services are independent professional ser vices that improve the quality of information for Describe assurance
services. and
decision makers. Individuals who are responsible for making business decisions seek assurance services
distinguish audit
to help improve the reliability and relevance of the information they base their decisions on. Assurance services from other
services are valued because the assurance provider is independent and perceived as being unbiased with assurance and
non-assurance
respect to the information examined .
services provided by
Assurance services can be performed by public accountants or by a variety of other professionals. public accountants.
Assurances p rovided by firms other than public accountants include television ratings and radio ratings,
and several non-profit organisations, such as Choice, which test a wide variety of products and report assurance services
independent
their evaluations of the quality in 'consumer reports'. The information provided in these reports is
professional services
intended to help consumers make intelligent decisions about the products they buy, and many consum ers that improve the
consider thls information m ore reliable than a ny that is provided by the product manufacturers because quality of information
it com es from an independent source. for decision makers

The need for assurance isn't new. Public accountants have provided many assurance services for
y ears, particularly assurances about hlstorical financial statem ent inform ation . Public accounting attestation service
firms also p er form assurance ser vices for lotteries a nd contests, to confirm that winner s were determined a type of assurance
fairly a nd in accordance with contest rules. More recently, public accountants have been expanding service in which the
public accounting
the range of assurance ser vices they perform to include engagements that provide assurance about
firm issues a written
other types of information, such as compan y financial forecasts and website controls. The demand for communication that
assurance services continues to grow as the demand for for ward- looking information increases a nd as expresses a
conclusion about the
m ore real-time information becomes available onlin e.
reliability of a wrinen
assertion of another
pany
Attestation services audit of historical
One category of assurance ser vices that public accountants provide is a ttestation services. An financial statements
a form of attestation
attestation service is a type of assurance service in which the public accounting firm issues a written
service in which the
communication that expresses a conclusion about the reliability of a written assertion of another party. auditor issues a
There are three categories of attestation services: audit of historical financial statements, r eview of written report
expressing an opinion
historical financial statements, and other attestation ser vices.
about whether the
6nandaJ statements
Audit of historical financial statements
are in material
An audit of historical financial statements is a form of attestation service in which the auditor issues conformity ,vith
a written report expressing an opinion about whether the financial statements are in material conformity accounting standards

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 PART I The a uditing profession

with accounting standards. Audits are the predominant form of assurance performed by public
accounting firms.
In financial statements, the client makes various assertjons about their financial condition and
results of operations. External users who rely on those financial statements to make business decisions
use the auditor's report as an indication of the statements' reliability. They value the auditor's
assurance because the auditor is independent of the client and has knowledge of financial statement
reporting matters.
Publicly traded companies in Australia are required to have audits under the Corporations Act
2001. Auditor reports can be found in any public company's annual financial report, and most
companies' audited financial statements can be accessed over the Internet by visiting the company's
website. Even without legislative requirements, many public companies would voluntarily contract for
audits to provide assurance to investors and to facilitate access to capital. Many privately held
companies also have annual financial statement audits to obtain financing from banks and other
financial institutions. Government and not-for-profit entities often have audits to meet the requirements
of lenders or funding sources.

Review of historical financial statements

review of historical A review of historical financial statements is another type of attestation service performed by public
financial statements accountants. Many entjties want to provide assurance on their financial statements, without incurring
a form of an estation
in a written repon. the cost of an audfr. Whereas an audit proyjdes a high level of assurance, a reyjew service requires less
issued by a public evidence and provides a moderate amount of assurance on the financial statements. A review is often
accounting firm. that adequate to meet users' needs and can be provided by the public accounting firm at a much lower fee
provides less
assurance than an
than an audit. Public companies are required by the Corporations Act to have their half-year financial
audit as to whether statements either audited or reviewed by the entity's auditor.
the financial
statements are in Other attestation services
material conformity Pub)jc accountants provide a range of other attestation services. Many of these services are a natural
with accounting
extension of the audit of historical financial statements, as users seek independent assurances about
standards
other types of information. However, to qualify as an attestation seryjce, the engagement must involve
written assertions on some accountability matter. For example, banks often require debtors to engage
public accountants to provide assurance about the debtor's compliance with certain financial covenant
provisions stated in the loan agreement. Public accountants can also attest to the information in an
entity's forecast financial statements, which are often used to obtain financing.

Other assurance services

Most of the other assurance services that public accountants provide don't meet the formal definition of
attestation services. They are similar to attestation services in that the public accountant must be
independent and must provide a ssurance about information used by decision makers, but differ in that
the public accountant may not be required to issue a written report, and the assurance doesn't have to
be about the reliability of another party's written assertion about compliance with specified criteria.
Rather, in these other assurance services engagements, the assurance is about the reliability and
relevance of information, which may or may not have been asserted by another party. The common
feature of all assurance services, including audits and attestation services, is the focus on improving the
quality of information used by decision makers.
Public accountants have many opportunities to perform other assurance services engagements.
The demand for assurance on other types of information is expected to grow substantially with the
changing risks faced by businesses and increases in the number of available information sources.
However, one important difference between attestation services and other assurance services
is the potential competition that public accounting firms face when performing other assurance

Copyright c:> Pearson Australia (a division of Pearson Australia Group Ply Lid) 2017- 9781488609138-Arens/Audltlng and Assurance Services 1Oe
Another random document with
no related content on Scribd:
Partout la volupté, la mélodie errante...
O matin de Stresa, turquoise respirante,
Sublime agilité du cœur vers le soleil!

O soirs italiens, terrasses parfumées,

Jardins de mosaïque où traînent des paons blancs,
Colombes au col noir, toujours toutes pâmées,
Espaliers de citrons qu’oppresse un vent trop lent,
Iles qui sur Vénus semblent s’être fermées,
Où l’air est affligeant comme un mortel soupir,
Ah! pourquoi donnez-vous, douceurs inanimées,
Le sens de l’éternel au corps qui doit mourir!

Ah! dans les bleus étés, quand les vagues entre elles
Ont le charmant frisson du cou des tourterelles,
Quand l’Isola Bella, comme une verte tour,
Semble Vénus nouant des myrtres à l’Amour,
Quand le rêve, entraîné au bercement de l’onde,
Semble glisser, couler vers le plaisir du monde,
Quand le soir étendu sur ces miroirs gisants
Est une joue ardente où s’exalte le sang,
J’ai cherché en quel lieu le désir se repose...
Douces îles, pâmant sur des miroirs d’eau rose,
Vous déchirez le cœur que l’extase engourdit.
Pourquoi suis-je enfermée en un tel paradis!

Ah! que lassée enfin de toute jouissance,

Dans ces jardins meurtris, dans ces tombeaux d’essence,
Je m’endorme, momie aux membres épuisés!
Que cet embaumement soit un dernier baiser,
Tandis que, sous les noirs bambous qui vous abritent,
Sous les cèdres, pesants comme un ciel sombre et bas,
Blancs oiseaux de sérail que le parfum abat,
Vous gémirez d’amour, colombes d’Aphrodite!

Des parfums assoupis aux rebords des terrasses

Des parfums assoupis aux rebords des terrasses,
L’azur en feu, des fleurs que la chaleur harasse,
Sur quel rocher d’amour tant d’ardeur me lia!...
Colombes sommeillant dans les camélias,
Dans les verts camphriers et les saules de Chine,
Laissez dormir mes mains sur vos douces échines.

Consolez ma langueur, vous êtes, ce matin,

Le rose Saint-Esprit des tableaux florentins.
Tourterelles en deuil, si faibles, si lassées,
Fruits palpitants et chauds des branches épicées
Hélas! cet anneau noir qui cercle votre cou
Semble enfermer aussi mon âpre destinée,
Et vos gémissements m’annoncent tout à coup
Les enivrants malheurs pour lesquels je suis née...
L’AIR BRULE, LA CHAUDE MAGIE...
 Que tu es heureuse, cigale,
quand, du sommet des arbres,
abreuvée d’une goutte de rosée,
tu dors comme une reine.
ANACRÉON.

’air brûle, la chaude magie

De l’Orient pèse sur nous,
Nous périssons de nostalgie
Dans l’éther trop riche et trop doux.

On entrevoit un jardin vide

Que la paix du soir inclina,
Et là-bas, la mosquée aride
Couleur de sable et de grenat.

La dure splendeur étrangère

Nous étourdit et nous déçoit;
Je me sens triste et mensongère:
On n’est pas bon loin de chez soi.

Ce ciel, ces poivriers, ces palmes,

Ces balcons d’un rose de fard,
Comme un vaisseau dans un port calme
Rêvent aux transports du départ.

Ah! comme un jour brûlant est vide!

Que faudrait-il de volupté
Pour combler l’abîme torride
De ce continuel été!
Des œillets, lourds comme des pommes,
Épanchent leur puissante odeur;
L’air, autour de mon demi-somme,
Tisse un blanc cocon de chaleur...

Dans la chambre en faïence rouge

Où je meurs sous un éventail,
J’entends le bruit, qui heurte et bouge,
Des chèvres rompant le portail.

Ainsi, c’est aujourd’hui dimanche,

Mais, dans cet exil haletant,
Au cœur de la cité trop blanche,
On ne sent plus passer le temps;

Il n’est des saisons et des heures

Qu’au frais pays où l’on est né,
Quand sur le bord de nos demeures
Chaque mois bondit, étonné.

Cette pesante somnolence,

Ce chaud éclat palermitain
Repoussent avec indolence
Mon cœur plaintif et mon destin;

Si je meurs ici, qu’on m’emporte

Près de la Seine au ciel léger,
J’aurai peur de n’être pas morte
Si je dors sous des orangers...
LES JOURNÉES ROMAINES
 ’éther pris de vertige et de fureur tournoie,
Un luisant diamant de tant d’azur s’extrait.
Virant, psalmodiant, le vent divise et ploie
La pointe faible des cyprès.

C’est en vain que les eaux écumeuses et blanches,

Captives tout en pleurs des lourds bassins romains,
S’élèvent bruyamment, s’ébattent et s’épanchent:
Neptune les tient dans sa main.

Je contemple la rage impuissante des ondes;

Dans cette vague éparse en la jaune cité,
C’est vous qu’on voit jaillir, conductrice des mondes,
Amère et douce Aphrodite!

L’odeur de la chaleur, languissante et créole,

Stagne entre les maisons qui gonflent de soleil;
Comme un coureur ailé le ciel bifurque et vole
Au bord tranchant des toits vermeils;

Et là-bas, sous l’azur qui toujours se dévide,

Un jet d’eau, turbulent et lassé tour à tour,
Semble un flambeau d’argent, une torche liquide
Qu’agite le poing de l’Amour.

Rome ploie, accablé de grappes odorantes,

La surhumaine vie envahit l’air ancien,
Les chapiteaux brisés font fleurir leurs acanthes
Aux thermes de Dioclétien!

Dans ce cloître pâmé, des bacchantes blêmies

Gisent; silence, azur, léthargiques dédains!
G se t; s e ce, a u , ét a g ques déda s!
Le soleil tombe en feu sur la gorge endormie
De ces Danaés des jardins...

Ils dorment là, liés par les roses païennes,

Ces corps de marbre blond, las et voluptueux:
O mes sœurs du ciel grec, chères Milésiennes,
Que de siècles sont sur vos yeux!

L’une d’elles voudrait se dégager; sa hanche

Soulève le sommeil ainsi qu’un flot trop lourd,
Mais tout le poids des temps et de l’azur la penche:
Elle rêve là pour toujours.

De vifs coquelicots, comme un sang gai, s’élancent

Parmi les verts fenouils, à Saint-Paul-hors-les-Murs
Un dôme en or suspend des colliers de Byzance
Au cou flamboyant de l’azur.

Ce matin, dans le vent qui vient puiser les cendres

Pour les mêler au jour ivre d’air et d’éclat,
Je respire ton cœur voluptueux et tendre,
Pauvre Cécile Métella!

Tu n’es pas à l’écart des saisons immortelles,

Un tourbillon d’azur te recueille sans fin;
Je n’ai pas plus de part que tes mânes fidèles
A l’univers vague et divin!

Les blancs eucalyptus et le cyprès qui chante,

Où viennent aboutir les longs soupirs des morts,
Racontent, chers défunts, vos détresses penchantes,
Votre sort pareil à nos sorts.
Quels familiers discours sur la voie Appienne!
Tissés dans le soleil, les morts vont jusqu’aux cieux;
Vous renaissez en moi, ombres aériennes,
Vous entrez dans mes tristes yeux!

Là-bas, sur la colline, un jeune cimetière

Étale sa langueur d’Anglais sentimental,
Les délicats tombeaux, dans les lis et le lierre,
Font monter un sang de cristal.

Midi luit; la villa des chevaliers de Malte

Choit comme une danseuse aux pieds brûlants et las.
Comme un fauve tigré l’air jaunit et s’exalte;
Une nymphe en pierre vit là.

Elle a les bras cassés, mais sa force éternelle

Empourpre de plaisir ses genoux triomphants;
Le néflier embaume, un jet d’eau est, près d’elle,
Secoué d’un rire d’enfant.

Les dieux n’ont pas quitté la campagne romaine,

Euterpe aux blonds pipeaux, Erato qui sourit,
Dansent dans le jardin Mattei, où se promène
Le saint Philippe de Néri.

Mais c’est vous qui, ce soir, partagez mon malaise,

Dans l’église sans voix, au mur pâle et glacé,
Déesse catholique, ô ma sainte Thérèse,
Qui soupirez, les yeux baissés!

Malgré vos airs royaux, et la fierté divine

Dont s’enveloppe encor votre cœur emporté,
L’angoisse de vos traits permet que l’on devine
 Votre douce mendicité.

O visage altéré par l’ardente torture

D’attendre le bonheur qui descend lentement,
Appel mystérieux, hymne de la nature,
Désir de l’immortel amant!

Je vous offre aujourd’hui, parmi l’encens des prêtres,

Comme un grain plus brûlant mis dans vos encensoirs,
Le rire que j’entends au bas de la fenêtre
Où je rêve, seule, le soir;

C’est le rire joyeux, épouvanté, timide

De deux enfants heureux, éperdus, inquiets,
Qui joignent leurs regards et leurs lèvres avides,
Et dont tout le sanglot riait!

Ils riaient, ils étaient effrayés l’un de l’autre;

Un jet d’eau s’effritait dans le lointain bassin;
La lune blanchissait, de sa clarté d’apôtre,
La terrasse des Capucins.

Une palme portait le poids mélancolique

De l’éther sans zéphyr, sans rosée et sans bruit;
Rien ne venait briser son attente pudique,
Que ce rire aigu dans la nuit!

Et je n’entendis plus que ce rire nocturne,

Plus fort que les senteurs des terrasses de miel,
Plus vif que le sursaut des sources dans leur urne,
Plus clair que les astres au ciel.

Je le prends dans mes mains, chaudes comme la lave,

 p , ,
Je le mêle aux élans de mon éternité,
Ce rire des humains, si farouche et si grave,
Qui prélude à la volupté!
UN SOIR A VÉRONE
 e soir baigne d’argent les places de Vérone;
Les cieux roses et ronds, rayés d’ifs, de cyprès,
Font à la ville une couronne
De tristes et verts minarets.

Sur les ors languissants du palais du Concile,

On voit luire, ondoyer un manteau duveté:
Les pigeons amoureux, dociles,
Frémissent là de volupté.

L’Adige, entre les murs de brique qu’il reflète,

Roule son rouge flot, large, brusque, puissant:
Dans la ville de Juliette
Un fleuve a la couleur du sang.

O tragique douceur de la cité sanglante,

Rue où le passé vit sous les vents endormis:
Un masque court, ombre galante,
Au bal des amants ennemis.

Je m’élance, et je vois ta maison, Juliette!

Si plaintive, si noire, ainsi qu’un froid charbon.
C’est là que la fraîche alouette
T’épouvantait de sa chanson!

Que tu fus consumée, ô nymphe des supplices!

Que ton mortel désir était fervent et beau
Lorsque tu t’écriais: «Nourrice,
Que l’on prépare mon tombeau!

«Qu’on prépare ma tombe et mon funèbre somme,

Que mon lit nuptial soit violet et noir,
Que o t upt a so t v o et et o ,
Si je n’enlace le jeune homme
Qui brillait au verger ce soir!...»

Auprès de ta fureur héroïque et plaintive,

Auprès de tes appels, de ton brûlant tourment,
La soif est une source vive,
La faim est un rassasiement.

Hélas! tu le savais, qu’il n’est rien sur la terre

Que l’invincible amour, par les pleurs ennobli;
Le feu, la musique, la guerre,
N’en sont que le reflet pâli!

Ma sœur, ton sein charmant, ton visage d’aurore,

Où sont-ils, cette nuit où je porte ton cœur?
La colombe du sycomore
Soupire à mourir de langueur...

Là-bas un lourd palais, couleur de pourpre ardente,

Ferme ses volets verts sous le ciel rose et gris;
Je pense au soir d’automne où Dante
Ecrivit là le Paradis;

La céleste douceur des tournantes collines

Emplissait son regard, à l’heure où las, pensifs,
Les anges d’Italie inclinent
Le ciel délicat sur les ifs.

Mais que tu m’es plus chère, ô maison de l’ivresse,

Balcon où frémissait le chant du rossignol,
Où Juliette qui caresse
Suspend Roméo à son col!
Ah! que tu m’es plus cher, sombre balcon des fièvres,
Où l’échelle de soie en chantant tournoyait,
Où les amants, joignant leurs lèvres,
Sanglotaient entre eux: «Je vous ai!»

Que l’amour soit béni parmi toutes les choses,

Que son nom soit sacré, son règne ample et complet;
Je n’offre les lauriers, les roses,
Qu’à la fille des Capulet!
UN AUTOMNE A VENISE
 h! la douceur d’ouvrir, dans un matin d’automne,
Sur le feuillage vert, rougeoyant et jauni
Que la chaleur d’argent éclabousse et sillonne,
Les volets peints en noir du palais Manzoni!

Des citronniers en pots, le thym, le laurier-rose

Font un cercle odorant au puits vénitien,
Et sur les blancs balcons indolemment repose
Le frais, le calme azur, juvénile, ancien!

Ah! quelle paix ici, dans ce jardin de pierre,

Sous la terrasse où traîne un damas orangé!
On n’entend pas frémir Venise aventurière,
On ne voit pas languir son marbre submergé...

Qu’importe si, là-bas, Torcello des lagunes

Communique aux flots bleus sa pâmoison d’argent,
Si Murano, rêveuse ainsi qu’un clair de lune,
Semble un vase irisé d’où monte un tendre chant!

Qu’importe si là-bas le rose cimetière,

Levant comme des bras ses cyprès verts et noirs,
Semble implorer encor la divine lumière
Pour le mort oublié qui ne doit plus la voir;

Si, vers la Giudecca où nul vent ne soupire,

Où l’air est suspendu comme un plus doux climat,
Dans une gloire d’or les langoureux navires
Bercent la nostalgie aux branches de leurs mâts;

Si, plein de jeunes gens, le couvent d’Arménie

Couleur de frais piment, de pourpre, de corail,
Cou eu de a s p e t, de pou p e, de co a ,
Semble exhaler, le soir, une plainte infinie
Vers quelque asiatique et savoureux sérail;

Si, brûlant de plaisir et de mélancolie,

Une fille, vendant des œillets, va, mêlant
Le poivre de l’Espagne au sucre d’Italie,
Tandis que sur Saint-Marc tombe un soir rose et lent!

Je ne quitterai pas ce petit puits paisible,

Cet espalier par qui mon cœur est abrité;
Qu’Éros pour ses poignards retrouve une autre cible,
Mon céleste désir n’a pas de volupté!...
VA PRIER DANS SAINT-MARC...
 a prier dans Saint-Marc pour ta peine amoureuse;
Le temple de Byzance est sensible au péché;
Un parfum de benjoin, d’ambre, de tubéreuse,
Glisse des frais arceaux et des balcons penchés.

Va prier dans Saint-Marc pour ta douce folie;

Les pigeons assemblés sur la façade en or
Protègent les transports de la mélancolie,
Et les anges des cieux sont plus cléments encor.

Va prier dans Saint-Marc; les dalles, les rosaces

Ont l’éclat des bijoux et des tapis persans;
Depuis plus de mille ans dans ce palais s’entassent
Les profanes souhaits parfumés par l’encens.

Vois, sous leurs châles noirs, les tendres suppliantes

Joindre des doigts brûlants et songer doucement.
Divine pauvreté! cet Alhambra les tente
Moins que les cabarets où boivent leurs amants!

Va prier dans Saint-Marc. Le Dieu des Evangiles

Marche, les bras ouverts, dans de blonds paradis;
On entend les bateaux qui partent pour les îles,
Et les pigeons frémir au canon de midi.

Des mosaïques d’or, limpides alvéoles,

Glisse un mystique miel, lumineux, épicé;
Et vers la Piazzetta, de penchantes gondoles
Entraînent mollement les couples exaucés...

Beau temple, que ta grâce est chaude, complaisante!

O jardin des langueurs, ô porte d’Orient!