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 ARENS ELDER BEASLEY
HOGAN JONES
ALVIN A. ARENS RANDAL J. ELDER MARK S. BEASLEY CHRIS E. HOGAN JOANNE C. JONES

Auditing

Auditing
F O URTEENTH C AN A D I A N E D I T I O N

THE ART AND SCIENCE OF ASSURANCE ENGAGEMENTS

THE ART AND SCIENCE OF ASSURANCE ENGAGEMENTS

FOURTEENTH CANADIAN EDITION

www.pearson.com 90000
ISBN 978-0-13-461311-6

9 780134 613116
 Persuasiveness of Evidence 128 Summary 235
Specific Types of Audit Procedures 131 Review Questions 235
Design Analytical Procedures 140 Multiple Choice Questions and Task-Based Simulations 236
Documentation 146 Discussion Questions and Problems 238
Preparation of Working Papers 149 Professional Judgment Problems and Cases 242
Effect of Technology on Audit Evidence and
Audit Documentation 151
8 Internal Control and COSO
Professional Skepticism, Evidence, and
Documentation 152 Framework 246
APPENDIX 5A: Common Financial Ratios 154 LEARNING OBJECTIVES 246
Summary 156 Internal Control Objectives 247
Review Questions 156 The Responsibilities of Management and
the Auditor 248
Multiple Choice Questions and Task-Based Simulations 157
COSO Components of Internal Control 250
Discussion Questions and Problems 159
Understanding Controls of Small Businesses 271
Professional Judgment Problems and Cases 162
Summary 271
Review Questions 272
6 Client Acceptance, Planning, and
Multiple Choice Questions and Task-Based Simulations 273
Materiality 165
Discussion Questions and Problems 275
LEARNING OBJECTIVES 165 Professional Judgment Problems and Cases 277
The Importance of Audit Planning 166
Client Acceptance and Continuance 168
Understand the Nature of Client’s Business and
9 Assessing Control Risk and Designing
Environment 174 Tests of Controls 279
Perform Preliminary Analytical Review 179 LEARNING OBJECTIVES 279
Develop Overall Audit Strategy 182 Obtain and Document Understanding of Internal
Materiality 184 Control 280
Determine Overall Materiality 185 Assess Control Risk 285
Determine Performance Materiality 191 Tests of Controls 292
Determine Specific Materiality 192 Understanding and Assessing Controls of Outsourced
Applying Materiality—Evaluating Results and Systems 297
Completing the Audit 193 Evaluate Results, Decide on Planned Detection Risk,
Summary 194 and Design Substantive Tests 298
Review Questions 196 Impact of IT Environment on Control Risk
Assessment and Testing 299
Multiple Choice Questions and Task-Based Simulations 197
Auditor Reporting on Internal Control 302
Discussion Questions and Problems 200
Reporting on Internal Controls for Some Public
Professional Judgment Problems and Cases 204 Companies 303
Summary 304
7 Assessing the Risk of Material Review Questions 305
Misstatement 207 Multiple Choice Questions and Task-Based Simulations 305
LEARNING OBJECTIVES 207 Discussion Questions and Problems 308
Audit Risk 209 Professional Judgment Problems and Cases 310
Risk Assessment Procedures 211
Identification of Significant Risks 214
10 Develop Risk Response: Audit Strategy
Considering Fraud Risk 215
Conditions for Fraud 218
and Audit Program 312
Responding to Risks of Material Misstatements LEARNING OBJECTIVES 312
Due to Fraud 221 Audit Strategy 313
The Audit Risk Model 223 Types of Tests 320
Assessing Acceptable Audit Risk 226 Selecting Which Types of Tests to Perform 323
Assessing Inherent Risk 228 Evidence Mix and Audit Strategy 326
Relationship of Risks to Evidence and Factors Design of the Audit Programs 330
Influencing Risks 231 Summary of Audit Process 335

vi CONTENTS

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 Summary 337 Substantive Tests of Details for Accounts Receivable:
Review Questions 337 External Confirmations 423
Multiple Choice Questions and Task-Based Simulations 338 Design and Perform Fraud-Related Substantive
Discussion Questions and Problems 340 Procedures 430
Professional Judgment Problems and Cases 343 Summary 431
Review Questions 431
11 Audit Sampling Concepts 347 Multiple Choice Questions and Task-Based Simulations 432
Discussion Questions and Problems 435
LEARNING OBJECTIVES 347
What Is Audit Sampling? 348 Professional Judgment Problems and Cases 437
Representative Sampling and Its Risks 348
Statistical versus Nonstatistical Sampling 350 13 Audit of the Acquisition and
Sample Selection Methods 351 Payment Cycle 444
The Audit Sampling Process for Tests of Controls LEARNING OBJECTIVES 444
and Substantive Tests of Details 355 An Overview of the Acquisition and
Using Sampling for Tests of Controls 357 Payment Cycle 445
Nonstatistical Sampling Approach to Testing The Four Business Functions and Their
Controls 368 Documents and Records 446
Using Sampling for Substantive Tests Identify Significant Risks and Assess Risk of Material
of Details 368 Misstatement 450
Nonstatistical Sampling for Substantive Tests of Understand Internal Control and Assess Control
Details 369 Risk 453
Statistical Sampling for Substantive Determine Audit Approach (Strategy) for
Tests of Details 377 Acquisition and Payment Cycle 455
Adequate Documentation and Professional Design and Perform Tests of Controls for
Judgment 379 Acquisition and Payment Cycle 456
Summary 381 Design and Perform Substantive Analytical
Review Questions 381 Procedures for Accounts Payable and
Multiple Choice Questions and Task-Based Simulations 382 Related Accounts 458
Discussion Questions and Problems 384 Design and Perform Tests of Details of Accounts
Payable and Accrued Liabilities 459
Professional Judgment Problems and Cases 386
Reliability of Audit Evidence 463
Examining Other Accounts and Related Party
Part 3 Application of the Audit Transactions 464
Summary 471
Process 389 Review Questions 471
Multiple Choice Questions and Task-Based Simulations 472
12 Audit of the Revenue Cycle 390 Discussion Questions and Problems 474
LEARNING OBJECTIVES 390 Professional Judgment Problems and Cases 477
Overview of the Revenue Cycle 391
Business Functions in the Cycle, and Related 14 Audit of the Inventory and
Documents and Records 392 Distribution Cycle 480
An Overview of the Audit Process for the Revenue
LEARNING OBJECTIVES 480
Cycle 396
Overview of the Inventory and
Identify Significant Risks and Assess Risk of Material
Distribution Cycle 481
Misstatement 398
Inventory Cycle Business Functions, Documents,
Identify Key Controls and Assess Effectiveness of
and Records 482
Controls 405
Identify Significant Risks 484
Determine Audit Approach (Strategy) for Revenue
Understanding and Assessing Control Risk 486
Cycle 408
Key Controls 488
Design and Perform Substantive Analytical
Procedures 415 Develop an Audit Approach (Strategy)
for Inventory 490
Substantive Tests of Details for Revenue 417
Design and Perform Tests of Controls 491
Substantive Tests for Accounts Receivable 421

CONTENTS vii

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 Perform Substantive Analytical Procedures 492 17 Audit of Cash Balances 544
Substantive Tests of Details for Inventory LEARNING OBJECTIVES 544
Balances 493
Types of Cash Accounts 545
Designing Fraud Substantive Procedures for
The Relationship Between Cash in the Bank
Inventory 497
and Transaction Cycles 546
Summary 497 Identify Significant Risks and Assess Risk of Material
Review Questions 497 Misstatement in Cash 547
Multiple Choice Questions and Task-Based Simulations 498 Understand Internal Control and Assess Control
Discussion Questions and Problems 500 Risk 548
Professional Judgment Problems and Cases 502 Design and Perform Substantive Tests for Cash 550
Fraud-Oriented Procedures 554
15 Audit of the Human Resources and Summary 557
Payroll Cycle 506 Review Questions 557
LEARNING OBJECTIVES 506
Multiple Choice Questions and Task-Based Simulations 558
An Overview of the Human Resources and Discussion Questions and Problems 559
Payroll Cycle 507 Professional Judgment Problems and Cases 561
Functions in the Cycle, and Related Documents
and Records 508
The Audit Process for Human Resource and Part 4 Completing the Audit,
Payroll Cycle 509 Reporting, and Other
Identify Significant Risks and Assess Risk of
Material Misstatement 510 Assurance Engagements 563
Understanding Internal Control and Assessing
Control Risk 511 18 Completing the Audit 564
Develop an Audit Approach for Human
LEARNING OBJECTIVES 564
Resources and Payroll 514
Complete Final Evidence Gathering 566
Design and Perform Tests of Controls 515
Accumulate Final Evidence 576
Design and Perform Substantive Analytical
Procedures 516 Evaluate Results 580
Design and Perform Substantive Tests 517 Communicate With the Audit Committee and
Management 588
Summary 520
Summary 591
Review Questions 520
Review Questions 591
Multiple Choice Questions and Task-Based Simulations 521
Multiple Choice Questions 592
Discussion Questions and Problems 522
Discussion Questions and Problems 594
Professional Judgment Problems and Cases 525
Professional Judgment Problems and Cases 597

16 Audit of the Capital Acquisition

19 Audit Reports on Financial
and Repayment Cycle 527
Statements 600
LEARNING OBJECTIVES 527
LEARNING OBJECTIVES 600
An Overview of the Capital Acquisition and
Repayment Cycle 528 The Audit Opinion and the Auditors’ Reporting
Responsibilities 602
Notes Payable 529
The Unmodified Audit Opinion 603
Understanding Internal Control and Assessing
Control Risk 531 Elements of the Auditor’s Report 603
Develop Audit Approach (Strategy) for Reporting Material Uncertainty for
Notes Payable and Related Accounts 532 Going Concern 610
Audit of Owners’ Equity 535 Identify and Disclose Key Audit Matters 610
Determine Whether Emphasis of Matter or
Summary 538
Other Matter Paragraphs are Necessary 612
Review Questions 538
Decide Whether Modifications to the Audit
Multiple Choice Questions and Task-Based Simulations 539 Opinion Are Necessary 614
Discussion Questions and Problems 540 Qualified Audit Opinions 616
Professional Judgment Problems and Cases 542 Adverse Audit Opinion 620

viii CONTENTS

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 Disclaimer of Opinion 621 Assurance Engagements for Nonfinancial
How the Audit Report Adds Value 623 Information 643
Summary 624 Assurance Over Compliance With Agreements and
Review Questions 624 Regulations 649
Related Service Engagements 650
Multiple Choice Questions 625
Specified Procedures Engagements 650
Discussion Questions and Problems 626
Reports on Supplemental Matters Arising
Professional Judgment Problems and Cases 628
From an Audit or Review Engagement 652
The Future of Assurance Services 652
20 Other Assurance and Nonassurance Summary 653
Services 631 Review Questions 654
LEARNING OBJECTIVES 631 Multiple Choice Questions 654
Overview of Other Canadian Standards 632 Discussion Questions and Problems 655
Reviews and Compilations of Financial Statements 633 Professional Judgment Problems and Cases 656
The Review Engagement Process 635
Compilation Engagements 640 Appendix: Hillsburg Hardware Limited 660
Review of Interim Financial Statements 642 Index 669

CONTENTS ix

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 Preface
Auditing: The Art and Science of Assurance Engage- What’s New to This Edition?
ments is an introduction to auditing and assurance ser-
vices. It is intended for use in an introductory auditing Despite its practical nature, many students often view
course, for one-semester or two-semester instruction auditing as an abstract subject. To address this, we con-
at the undergraduate or graduate level. The book’s tinue to work on revising the book so that the material
primary emphasis is on the auditor’s decision-making is more accessible and understandable to students. We
process in a financial statement audit and, to a lesser highlight the more substantive changes below.
degree, other types of assurance engagements. As the
title of the book reflects, auditing is an art, as it requires
considerable use of professional judgment and skepti- Current Coverage of Auditing
cism, but it is also a science, resting upon a solid frame Standards
of technical skills and knowledge of multiple disciplines
associated with auditing, such as accounting, tax, and New auditing standards are released without regard
information systems. to textbook revision cycles. As auditing instructors, we
One of the most fundamental concepts in audit- appreciate how critical it is to have the most current
ing concerns the nature and amount of evidence the content available. This edition includes coverage of
auditor should gather after considering the unique cir- the most recent standards released (the most significant
cumstances of each engagement. If students of auditing being the changes to the auditor’s report) and high-
understand the risks to be addressed in a given audit lights impending changes that have been announced
area, the circumstances of the engagement, and the by Canada’s Auditing and Assurance Board. As with the
decisions to be made, they should be able to determine previous edition, we continue to revise the book so that
the appropriate evidence to gather and how to evalu- the concepts and terminology are closely aligned with
ate the evidence obtained. In order to help students Canadian Audit Standards.
develop these skills, we provide a professional judg- In addition to ensuring current coverage, we provide
ment framework to help students reflect upon common several vignettes to illustrate that, despite the constrain-
judgment traps and to develop their own judgment and ing effect of standards, there is considerable variation in
professional skepticism. audit practices within the profession. Unlike accounting
Our objective is to provide up-to-date coverage of standards, which define how to consistently measure
globally recognized auditing concepts with practical and report economic events, audit standards outline the
examples of the implementation of those concepts in process of verifying the accounting. This means that
real-life settings. We integrate the most important con- there is no one “right” answer and there may be many
cepts in auditing in a logical manner to assist students acceptable ways in which to reach the goal of provid-
in understanding decision-making and evidence accu- ing reasonable assurance that the information is fairly
mulation in today’s complex auditing environment. presented.
Throughout the book, we emphasize international
and Canadian developments affecting auditing in a
global and economically volatile context. Key concepts
New Audit Reporting Standards
related to professional judgment and risk assessment The new and revised audit reporting standards are per-
are integrated into all the planning chapters, as well as haps one of the most significant changes in audit stan-
each chapter dealing with particular transaction cycles dards in the last 40 years. We introduce the new audit
and related accounts. We provide numerous real-life report in Chapter 4, providing a sample audit report of
vignettes and examples from actual audit planning a private company. Throughout the textbook, we pro-
documents to enhance students’ understanding of the vide excerpts from audit reports from jurisdictions that
concepts. We also provide numerous diagrams, deci- have already adopted the new international standards
sion frameworks, and visual depictions to help clarify to illustrate key audit matters. We revisit the new and
concepts such as independence, control activities, revised audit reporting standards in Chapter 19 and use
materiality, and the various substantive tests in the key a consolidated public company to illustrate the differ-
transaction cycles. ent elements of the audit report. Given the significant

A01_AREN3116_14_SE_FM.indd 10 2/23/18 1:22 PM

 changes, Chapter 19 has been significantly revised, understand the underlying logic of the audit process.
with new vignettes and homework problems. To assist with these goals, we start with simplifying the
visualization of the audit process, which is first intro-
duced in Chapter 4. To further reinforce this, we start
Professional Ethics and the CPA each relevant chapter with the audit process diagram
Code of Professional Conduct and highlight which objectives and activities are cov-
ered in that chapter.
We introduce new material in Chapter 3 to help clarify We start our examination of the audit process with
the role of the professional in society and to define profes- Chapter 5, on audit evidence. Given that evidence is
sional ethics. We also include some simple tests that pro- the foundation of the audit, in this edition we have
fessionals use to decide the “right” thing to do. Chapter 3 placed the chapter on audit evidence earlier in the
has also been revised to provide an overview of the key book. The chapter has been revised to help clarify con-
elements of the CPA Code of Professional Conduct and cepts and focuses on how to determine whether the
to include a decision tree to assess independence threats. audit evidence is persuasive. To help students develop
We introduce several new vignettes to illustrate the high this important skill, we have developed several task-
cost of an auditor’s lack of independence. based simulations and professional judgment questions.
We have also reorganized Chapters 6 to 10 to follow
the logical sequence of the audit process. We have
New Coverage of Auditor’s expanded our coverage of the auditor’s performance
Responsibilities of risk assessment procedures, including identification
of significant risks, and have clarified the distinction
To reflect recent changes in auditing standards, Chap- between pervasive risks and risks that are specific to par-
ter 4 has been revised to include the auditor’s responsi- ticular accounts and assertions. Chapter 6 covers client
bilities to assess going concern. We revisit this important acceptance and continuance, planning, and materiality.
responsibility in Chapter 18, on completing the audit, Chapter 7 highlights audit risk and the risk of material
and again in Chapter 19, which discusses audit reports. misstatement. Chapters 8 and 9 emphasize the impor-
Chapter 18 also discusses the revised standards concern- tance of internal control as part of the risk assessment
ing the auditors’ responsibility for other information. process, and Chapter 10 brings the discussion together
in its focus on audit strategy. Subsequent chapters that
address the transaction cycles include extensive cover-
Emphasis on Professional age of fraud risk, inherent risk, and internal control risk.
Judgment and Skepticism We continue to provide up-to-date, real-life examples
drawn from actual audit plans and audit reports to illus-
The essence of being a competent auditor is the abil- trate the different types of audit strategies employed in
ity to exercise professional judgment and to apply the the various transaction cycles.
appropriate level of professional skepticism. While an
understanding of the appropriate level of skepticism is
achieved through experience, we believe that introduc- Expanded Coverage of Control
ing this concept early in students’ professional journey
will assist in their development. We discuss the impor-
Risk and the Role of Information
tance of a questioning mindset and the need to critically Technology
evaluate audit evidence to strengthen student awareness Our coverage in Chapters 8 and 9 of internal controls
of the elements of effective professional skepticism. We has been restructured to first introduce the COSO’s
have introduced several new vignettes and homework Internal Control—Framework in Chapter 8, followed
problems that help students think further about chal- by the auditor’s assessment of control risk in Chapter 9,
lenges and threats to applying professional skepticism which has been revised to better integrate the auditor’s
in the context of an audit. consideration of entity-level controls and transaction
cycle controls. We have also added new material to
help students understand the different types of controls
The Logic of the Audit Process— and how to apply professional judgment in evaluating
Risk Identification and Risk control effectiveness. Building upon the 13th edition,
Response we continue to emphasize IT controls and integrate
them into the audit process. We provide new material
We continue to refine the textbook material to pro- and vignettes to illustrate the challenges of auditing in
mote deeper learning and to enable students to better complex IT environments.

PREFACE xi

A01_AREN3116_14_SE_FM.indd 11 2/23/18 1:22 PM

 Other Assurance Services as well other material using the Internet. While many
of these research problems expose students to the CPA
Our coverage of other assurance services in Chapters 1 Canada Handbook—Assurance, other questions require
and 20 highlights emerging opportunities for public students to examine recently issued financial statements
accountants to provide assurance about corporate social or other corporate filings, or they expose students to best
responsibility and sustainability reports. Chapter 20, practices thought papers as part of the assignment.
which focuses on other services outside of the finan-
cial statement audit provided by public accountants,
covers the new standards for review engagements and Organization
the attestation standards for engagements other than
audits or reviews of historical financial information This text is divided into four parts. The chapters are rel-
(CSAE 3000) and direct reporting engagements (CSAE atively brief and designed to be easily read and compre-
3001). New material has been added to help clarify the hended by students.
difference between an attestation and a direct report-
ing engagement. Sample reports based upon the new Part 1: The Auditing Profession
standards are provided, and new vignettes (including
the recent Oscars™ snafu) and homework questions (Chapters 1–3)
are provided to help students appreciate the various The book begins with an opening vignette that pro-
issues related to providing assurance for non-financial vides as an example the Corporate Sustainability
information. Report issued by United Parcel Services (UPS) to help
students see the increasingly important role of audi-
tors in providing assurance on a broad range of infor-
A New Approach to Hillsburg mation important to key stakeholders. Chapter 1 aims
to answer the question, “Who are the auditors and why
Hardware Limited are they important?” The chapter explains the differ-
Those of you who are familiar with Hillsburg Hardware ent types of auditors and assurance services. Chapter 2
Limited, which has been a feature of this book for a covers the public accounting profession, with a par-
very long time, will note some significant changes. To ticular emphasis on the standard setting responsi-
increase realism and more accurately reflect the Cana- bilities of the International Auditing and Assurance
dian business environment, we have revised the nature Standards Board (IAASB) and the Canadian Auditing
of the organization. We have also reframed the presen- and Assurance Standards Board (AASB). Chapter 2
tation of the financial information and company back- provides an overview of the CPA Canada Handbook—
ground as a simulation, which now includes excerpts Assurance, Canadian auditing standards, and auditors’
of interviews with client personnel. New questions are responsibilities. It also provides a discussion of audit
included in Chapter 10 that require students to con- quality. Chapter 3 starts with a discussion of profes-
sider the changes that have occurred since the prelim- sional ethics, the rules of professional conduct, and
inary planning and the impact of those changes on the the importance of independence and how to assess
current year’s audit. independence threats. The chapter concludes with
an investigation of the expectations gap and auditors’
legal liability, with a discussion of some recent Cana-
New and Revised Problems dian cases.
and Cases
All chapters include multiple choice questions as well
Part 2: The Audit Process (Chapters 4–10)
as research activities that require students to use the Part 2 presents the audit process. The concepts in this
Internet to research relevant auditing issues. All chap- part of the book represent the foundation of the book.
ters include several new and revised professional judg- The first chapter describes the overall objectives of the
ment problems and cases. Many of the problems are audit, auditor and management responsibilities, pro-
based upon actual companies. Additionally, each chap- fessional skepticism, a professional judgment frame-
ter identifies new or revised Discussion Questions and work, audit objectives, and management assertions.
Problems that instructors can use in class to generate The chapter concludes with an overview of the audit
discussion about important topics. These problems are process and introduces Hillsburg Hardware Limited,
highlight by an “in-class” discussion icon in the margin which is used to illustrate planning and development
next to the related question. Each chapter also identifies of an audit strategy as well as many other concepts
questions that may require students to research standards throughout the book.

xii PREFACE

A01_AREN3116_14_SE_FM.indd 12 2/23/18 1:22 PM

 Chapter 5 discusses the general concepts of evi- Part 4: Completing the Audit, Reporting,
dence quality, the development of audit procedures, and Other Assurance Engagements
and audit documentation. Chapter 6 deals with cli-
(Chapters 18–20)
ent acceptance and continuance, and the preliminary
planning of the engagement, including understand- This part begins with two chapters on the final two
ing the client’s business and environment as part of phases of the audit process—completion and report-
the auditor’s risk assessment procedures, using analyt- ing. The first chapter deals with performing additional
ical procedures as an audit tool and making prelimi- tests to address presentation and disclosure objectives,
nary judgments about materiality. Chapter 7 provides summarizing and evaluating the results of audit tests,
expanded coverage of the auditor’s performance of risk reviewing audit documentation, communicating with
assessment procedures used to assess the risk of mate- those charged with governance, and all other aspects
rial misstatement due to fraud or error, and how the of completing an audit. Chapter 19 provides a detailed
auditor responds to risks of significant misstatement discussion of the new and revised audit reporting stan-
with further audit procedures. Chapter 8 outlines the dards. The chapter covers all the potential elements of
key components of an effective system of internal con- the new audit report, which has changed dramatically.
trols over financial reporting consistent with the 2013 The chapter emphasizes conditions affecting the type
revision of COSO’s Internal Control—Integrated of report the auditor must issue and the type of audit
Framework. Because most internal control systems are report applicable to each condition under varying lev-
heavily dependent on information technologies, this els of materiality. The last chapter, on other assurance
chapter integrates coverage of IT general controls and services, deals with various types of engagements and
application controls. Chapter 9 shows how effective reports, other than the audit of financial statements.
internal controls can reduce planned audit evidence Topics covered include review and compilation ser-
in the audit of financial statements, and it outlines vices, agreed-upon procedures engagements, and
procedures auditors perform as tests of those controls assurance engagements dealing with nonfinancial
to support a low or moderate control risk assessment. information. We conclude by discussing the future of
Chapter 10 provides an overall strategic risk-based assurance services and the continued evolution of assur-
audit strategy, linking planning to assertion-based ance standards in the face of changing assurance needs.
audit programs.
MyLab Accounting
Part 3: Application of the Audit Process
(Chapters 11–17) MyLab Accounting delivers proven results in help-
ing individual students succeed. It provides engaging
These chapters apply the concepts from Part 2 to plan- experiences that personalize, stimulate, and measure
ning a sample and to the specific transaction cycles. We learning for each student, including a personalized
begin in Chapter 11 with a general discussion of audit study plan.
sampling for tests of controls, substantive tests of trans- MyLab Accounting for the Fourteenth Canadian
actions, and tests of details of balances. The chapter, Edition of Auditing: The Art and Science of Assurance
which uses the revenue cycle as the basis for its exam- Engagements includes many valuable assessments and
ples, covers both nonstatistical and statistical sampling. study tools to help students practise and understand
The remaining chapters deal with a specific transaction key concepts from the text. Students can practise an
cycle or part of a transaction cycle. We start with the expanded number of select end-of-chapter questions,
most significant cycle for most organizations—revenue. review key terms with glossary flashcards, and explore
We provide an overview of the cycle and then consider integrated case content.
the inherent and fraud risks associated with revenue, MyLab Accounting can be used by itself or linked
and discuss how to design and conduct internal control to any learning management system. To learn more
and substantive tests in response to the significant risks, about how MyLab Accounting combines proven
as well as specific fraud procedures. We conclude the learning applications with powerful assessment, visit
chapter by providing an illustration of applying profes- www.pearson.com/mylab
sional judgment in the development of the audit strat-
egy for the revenue cycle of two actual organizations.
Throughout the chapter, we provide numerous real- Instructional Support Materials
life examples to illustrate key concepts. The remaining
chapters follow a similar format. Cash is studied late in INSTRUCTOR’S RESOURCE MANUAL The Instruc-
the text to demonstrate how the audit of cash is related tor’s Resource Manual assists the instructor in teach-
to most other audit areas. ing the course more efficiently. The features include

PREFACE xiii

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 instructions for assignments, practical examples to help opinions and best practices, and helped to make this
the students understand the material, and helpful sug- book representative not only of sound theory but of
gestions on how to teach each chapter effectively. It the actual work done in the field of audit and assur-
also includes a sample course outline and mapping the ance:
chapters’ topics to the CPA Competency Map.
Bailey Church
Telfer School of Management, University of
INSTRUCTOR’S SOLUTIONS MANUAL This comprehen-
Ottawa
sive resource provides detailed solutions to all the end-
Tammy Crowell
of-chapter review questions, multiple-choice questions,
Rowe School of Business, Dalhousie University
problems, and cases.
Craig Emby
Beedie School of Business, Simon Fraser University
COMPUTERIZED TESTBANK Pearson’s computerized
Camillo Lento
test banks allow instructors to filter and select questions
Lakehead University
to create quizzes, tests, or homework. Instructors can
Wendy Popowich
revise questions or add their own, and may be able to
JR Shaw School of Business, Northern Alberta
choose print or online options. These questions are also
­Institute of Technology
available in Microsoft Word format.
Larry Yarmolinsky
York University
POWERPOINT SLIDES Electronic colour slides are avail-
able in Microsoft PowerPoint. The slides illuminate In addition, I thank all the editorial and production
and build on key concepts in the text. staff at Pearson Canada for putting together a high-
quality product, including Megan Farrell and Keara
IMAGE LIBRARY The Image Library is an impressive Emmett (Acquisitions Editors), Emily Dill and Nicole
resource that helps instructors create vibrant lecture Mellow (Content Managers), Anita Smale (Develop-
presentations. Almost all figures and tables in the text mental Editor), Sarah Gallagher (Project Manager),
are included and organized by chapter for convenience. Spencer Snell (Marketing Manager), and Jyotsna
These images can easily be imported into Microsoft Ojha (Senior Project Manager at Cenveo Publisher
PowerPoint to create new presentations or to add to Services).
existing ones. Joanne C. Jones

PEARSON eTEXT Pearson eText gives students access to We thank our families, who encourage and support us
their textbook anytime, anywhere. In addition to note through the many hours of writing, researching, and
taking, highlighting, and bookmarking, the Pearson rewriting; our students, who push us to think “out of
eText offers interactive and sharing features. Instructors the box”; our colleagues, particularly Sandra Iacobelli,
can share their comments or highlights, and students Peter Rumyee, and Larry Yarmolinsky; and the numer-
can add their own, creating a tight community of learn- ous practitioners who continue to keep us up to date
ers within the class. with the ever-changing audit environment.
Joanne C. Jones
LEARNING SOLUTIONS MANAGERS Pearson’s learn- Bartosz Amerski
ing solutions managers work with faculty and campus
course designers to ensure that Pearson technology
products, assessment tools, and online course materi- About the New
als are tailored to meet your specific needs. This highly
qualified team is dedicated to helping schools take full Canadian Authors
advantage of a wide range of educational resources, Joanne C. Jones, PhD, CPA, CA
by assisting in the integration of a variety of instruc-
tional materials and media formats. Your local Pearson This is the second Canadian edition to be authored by
­Canada sales representative can provide you with more Joanne C. Jones, who is an associate professor of audit-
details on this service program. ing at York University. Joanne teaches auditing and
her research focuses on issues such as professionalism
and ethics in accounting, the impact of regulation on
audit practice, and the globalization of the account-
Acknowledgments ing profession. She also investigates academic ethics
I would like to thank the following individuals who and accounting education, and has published several
contributed their time and energy in sharing their instructional audit cases in academic peer-reviewed

xiv PREFACE

A01_AREN3116_14_SE_FM.indd 14 2/23/18 1:22 PM

 journals. Joanne is an active reviewer for several aca- Bartosz teaches auditing and accounting at York
demic journals and currently serves as the associate University, where he has received recognition and
editor at Accounting Perspectives. Prior to earning her awards for his excellence in teaching and creating a
PhD, she worked for several years as an external auditor positive learning environment for his students. Bartosz
with KPMG and as the associate director of education also teaches in the new CPA Ontario’s Professional
with the Institute of Chartered Accountants of Ontario Educational Program (PEP) and the Prerequisite Edu-
(now CPA Ontario). cational Program (PREP). He has completed a Masters
of Laws (LL.M.) at Osgoode Hall Law School and is an
Bartosz Amerski, CPA, CA audit director with the office of the Auditor General of
We are again pleased to have Bartosz Amerski as con- Ontario. Prior to that, Bartosz worked at Ernst & Young
tributing author for the Fourteenth Canadian Edition. as an external auditor.

PREFACE xv

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A01_LO5943_03_SE_FM.indd iv 04/12/15 4:22 PM

 PA R T

The Auditing 1
Profession

Who are auditors, and why are they important? These first three chapters provide
background for performing financial statement audits, which is our primary
focus. This background will help you understand why auditors perform audits
the way they do.
Our book begins with a who’s who of assurance services and describes
the role of accountants, public accounting firms, and other organizations in
doing audits. The chapters in Part 1 emphasize the regulation and control of
public accounting through auditing and ethical standards, and discuss the legal
responsibilities of auditors.

M01A_AREN3116_14_SE_P01.indd 1 2/15/18 3:34 PM

 CHAPTER
THE DEMAND FOR AUDIT c. Based upon the case facts, do you agree with the audi-

1
tors’ statement regarding their inability to detect frauds
involving collusion between client management and

AND OTHER ASSURANCE outsider parties?

SERVICES

LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1 Describe auditing and its purpose.
2 Distinguish between auditing and accounting.
3 Explain how auditing reduces information risk.
4 Determine the causes of information risk.
5 Explain how information risk can be reduced.
6 Identify major types of audits and auditors.
7 Explain the general characteristics of an assurance engagement.
8 Describe assurance and nonassurance services provided by public accountants and
distinguish the audit of financial statements from other assurance services.

Brown Goes Green

United Parcel Service (UPS) is one of the largest shipment and logistics companies
in the world, delivering more than 15 million packages a day in more than 220 coun-
tries. At the peak of the holiday season, UPS delivers 34 million packages daily.
That’s a lot of packages moved by planes and delivery trucks, and it obviously comes
with a large carbon footprint. The UPS company nickname is “Brown” because of
the company’s brown delivery trucks and uniforms, but that does not capture the
company’s commitment to sustainability.
Recently, the company reduced its annual carbon emissions by 1.5 percent, even though deliv-
ery volume increased by 3.9 percent. One way the company reduces carbon emissions is through
its proprietary On-Road Integrated Optimization and Navigation (ORION) IT system, which uses an
advanced algorithm and customized map data to provide optimal route advice to drivers. The system
reduced fuel usage by 5.7 million litres in 2014, resulting in a reduction in annual CO2 emissions of
14 000 metric tons. ORION is not only good for the environment, but it helps the bottom line. UPS
estimates that a reduction of 1.6 kilometers driven per delivery driver per day will save the company
up to $50 million per year.
The UPS Corporate Sustainability Report is prepared in accordance with the G4 framework estab-
lished by the Global Reporting Initiative (GRI). The company received the “Materiality Matters” check
from the GRI, indicating that it had fulfilled the necessary general standards of disclosures. The
increase in sustainability reporting by companies such as UPS has also resulted in increased inter-
est in the accuracy of the reported information, and the GRI recommends external assurance by
accountants or other qualified experts to provide users with increased confidence in the accuracy of
the information. The UPS Corporate Sustainability Report includes a limited assurance report along
continued >
2

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 with a reasonable assurance report on the company’s global statement of greenhouse gas emis-
sions from a Big 4 public accounting firm. Many predict this form of assurance will be a frequent
service performed by tomorrow’s Chartered Professional Accountants (CPAs).

Sources: UPS, The Road Ahead: UPS 2016 Corporate Sustainability Report, accessed June 27, 2017, at https://sustainability.
ups.com/media/ups-pdf-interactive-2016/index.html. Global Reporting Initiative, The External Assurance of Sustainability
Reporting, Amsterdam, 2013, accessed June 27, 2017, at https://www.globalreporting.org/resourcelibrary/GRI-Assurance.pdf.

This opening vignette involving the UPS Corporate Sustainability Report illustrates
the increasingly important role of auditors in providing assurance on sustainability
and other information of interest to a broad range of stakeholders. Of course, report-
ing on financial statements of public companies, as well as private companies, govern-
ment agencies, and non-profit entities, remains the primary role of auditors in public
accounting.
This chapter introduces the purpose of auditing and other assurance services, as
well as the auditor’s role in society. The chapter also explains why there is a demand
for auditing and other assurance services, the many different kinds of auditors, and the
variety of skills needed to be a good auditor.

NATURE AND RELEVANCE OF AUDITING LO 1 Describe auditing and

its purpose.
Auditing is both an art and a science. It takes a combination of the auditor’s profes-
sional judgment and skepticism (the art) and knowledge of the relevant subject mat-
ter, rules, and procedures (the science) to perform a high-quality audit. We will now
examine auditing more specifically using the following definition.
Auditing is the accumulation and evaluation of evidence regarding assertions about Auditing—the accumulation and
information to determine the degree of correspondence between the assertions and evaluation of evidence regarding
established criteria and to report the results to interested users. Auditing should be done assertions about information
by a competent, independent person. to determine and report on
the degree of correspondence
The definition includes several key words and phrases. For ease of understanding, between the assertions and
established criteria.
we’ll discuss the terms in different order than they occur in the description.

Assertions, Information, and Established Criteria

The objective of an audit is to provide a conclusion (or assurance) by assessing the
assertions made and the information provided by the preparer. This is performed by
considering the established criteria, gathering evidence, and reaching conclusions on
the fair presentation of the information. In order to do this, the information must be
in a verifiable form.
Information can and does take many forms. Auditors routinely perform audits of
quantifiable information, including companies’ financial statements and individuals’
federal income tax returns. Auditors also perform audits of more subjective informa-
tion, such as the effectiveness of computer systems and the efficiency of manufactur-
ing operations. The focus of this text is the financial statement audit.
The criteria used to evaluate the assertions made and the information provided
varies depending on the information being audited. For example, in the audit of his-
torical financial statements conducted by public accounting firms, the criteria is the
relevant accounting framework such as International Financial Reporting Standards
(IFRS), Accounting Standards for Private Enterprises (ASPE), or Accounting Stan-
dards for Not-for-Profit Organizations (ASNPO). This means in the case of Canadian
Tire, for instance, that management asserts that the financial statements are prepared

CHAPTER 1 I THE DEMAND FOR AUDIT AND OTHER ASSURANCE SERVICES 3

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 in accordance with the IFRS accounting standards. It is the job of the auditors to
determine whether the financial statements have been prepared in accordance with
IFRS and to provide reasonable assurance to the users that the financial statements
accurately reflect the management’s assertions.
In our opening vignette, the management of UPS asserted that the Corporate
Sustainability Report (the information) was prepared in accordance to the G4 frame-
work (the criteria) established by the Global Reporting Initiative (GRI) (the standard
setter). In this case, the auditors evaluated this assertion by considering the criteria
and gathering evidence, and then reporting their conclusion on the fair presentation
of the information.
For more subjective information, or when there are no generally accepted
standards, it is more difficult to establish criteria. Typically, auditors and the enti-
ties being audited agree on the criteria well before the audit starts. For example,
in an audit of the effectiveness of specific aspects of computer operations, the cri-
teria might include the allowable level of input or output errors as defined by the
organization.

Accumulation and Evaluation of Evidence

Evidence—any information used Evidence is any information used by the auditor to assess whether the information
by the auditor to assess whether being audited is stated in accordance with the established criteria. Evidence takes
the information being audited
many different forms, including:
is stated in accordance with
established criteria. • Electronic and documentary evidence about transactions
• Written and electronic communication from outsiders
• Observations by the auditor
• Oral testimony of the auditee (client)
To satisfy the purpose of the audit, auditors must obtain sufficient quality and
quantity of evidence. In order to determine what types and amount of evidence is
necessary, auditors must assess the risk of material misstatement. Based upon the
evidence gathered, the auditor will then determine the degree of correspondence
between the information and established criteria. Deciding what evidence to gather
and evaluating the evidence are critical aspects of every audit and the primary focus
of this text.

Competent, Independent Person

The auditor must be qualified to understand the engagement risks and the criteria
used, and be competent to know the types and amount of evidence to accumulate
in order to reach the proper conclusion after examining the evidence. While having
Professional judgment— the appropriate technical knowledge and skills are key to being competent, in order
analytical, systematic, and
to reach the proper conclusion (which means exercising professional judgment), an
objective judgment carried out
with integrity and recognition of auditor must act with integrity and with professional skepticism, be independent,
responsibility to those affected by and recognize responsibility to the users of the audit report.
its consequences. Professional skepticism underlies auditors’ professional judgment. It is an atti-
Integrity—the quality of being
tude that includes a questioning mind, a critical assessment of audit evidence, and
honest and courageous. a willingness to challenge the auditee’s assertions. Sound professional judgment
requires the auditor to exercise objectivity (be free of biases, conflicts of inter-
Professional skepticism—an
est, or undue influence). This is referred to as having independence in mind.
attitude that includes a
questioning mind, a critical The competence of the individual performing the audit is of little value if he or
assessment of audit evidence, she is biased in the accumulation and evaluation of evidence. It is likely that a
and the willingness to challenge biased auditor will not use the appropriate level of professional skepticism, which
the auditee’s assertions. can result in inadequate evidence and insufficiently critical evaluation of the
Independence in mind—the
evidence.
auditor’s ability to exercise Auditors strive to maintain a high level of independence in order to keep the
objectivity. confidence of users relying on their reports. Auditors reporting on company financial

4 PART 1 I THE AUDITING PROFESSION

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 statements are independent auditors. Even though such auditors are paid a fee by a Independent auditors—public
company, they are normally sufficiently independent to conduct audits that can be accountants or accounting
firms that perform audits of
relied on by users. Even internal auditors—those employed by the companies they commercial and noncommercial
audit—usually report directly to top management and the board of directors, keeping entities.
auditors independent of the operating units they audit.
Internal auditors—auditors
employed by a company to
Report audit for the company’s board of
directors and management.
The final stage in the audit process is preparing the independent auditor’s report,
which communicates the outcome of the auditors’ evaluation to interested users. Independent auditor’s
report—the communication of
Reports differ in nature, but all inform readers of the degree of confidence that the
audit findings to users.
auditor has that the assertions made and the information provided by management
corresponds to the established criteria. Reports also differ in form and can follow a
standardized format, as in the case of the financial statements auditor’s report, or can
be highly customized report, as in the case of an audit of effectiveness of computer
systems or an audit of the efficiency of manufacturing operations.

An Illustration of the Definition of Auditing

The key parts in the description of auditing are illustrated in Figure 1-1 using
the audit of a large corporate tax return by a team of Canada Revenue Agency
auditors.
The audit team would likely include auditors who are competent in auditing and
corporate taxes, as well as knowledgeable about the particular industry and the related
complex tax issues. The auditors first perform a risk assessment based upon several factors,
such as past tax audit history, industry sector issues, unusual or complex transactions,
corporate structure, participation in aggressive tax planning, and openness and trans-
parency. The auditors next accumulate and examine the relevant evidence, such as
the organization’s financial statements, books, and records, as well as information
from third parties that do business with the organization. The procedures selected
would depend upon the auditors’ professional judgment. After completing the audit,
the audit team will issue an audit report that provides their conclusion, based upon
evidence gathered and their interpretation of tax law, as to whether the tax return is in
compliance with the Income Tax Act. The taxpayer receives a notice of reassessment
that reflects the audit report’s findings.

Figure 1-1 Audit of a Corporate Tax Return

Information
Tax returns
Competent, filed
independent by taxpayer
person Accumulates and
evaluates evidence Reports on results
Canada
Examines financial
Revenue Conducts risk Determines correspondence
statements and other Audit report
Agency assessment
supporting records
auditor

Established criteria
Income Tax
Act and
all interpretations

CHAPTER 1 I THE DEMAND FOR AUDIT AND OTHER ASSURANCE SERVICES 5

M01B_AREN3116_14_SE_C01.indd 5 2/15/18 3:35 PM

 LO 2 Distinguish between
auditing and accounting.
DISTINCTION BETWEEN AUDITING
AND ACCOUNTING
Many financial statement users and members of the general public confuse audit-
ing and accounting. The confusion occurs because most auditing is concerned with
accounting information, and many auditors have considerable expertise in account-
ing matters. The confusion is increased by giving the title “public accountant” to indi-
viduals who are qualified to provide assurance on the financial statements. However,
financial statement auditors do not account for anything.
Accounting—the recording, Accounting is the recording, classifying, and summarizing of economic events in
classifying, and summarizing a logical manner for the purpose of providing financial information for decision mak-
of economic events in a logical ing. The function of accounting is to provide certain types of quantitative and qual-
manner for the purpose of
providing financial information for
itative (notes to the financial statements) information that management and others
decision making. can use to make decisions. Accountants must have a thorough understanding of the
principles and rules that provide the basis for preparing the accounting information.
Accountants also help to develop the systems used to record an entity’s economic
events in a timely way and at a reasonable cost.
As we are all aware, financial statements are prepared using many judgmental
evaluations or estimates. Therefore, it is not possible to produce financial statements
that are absolutely precise. For instance, when management provides an allowance
for doubtful accounts, it represents management’s best estimate of the likelihood of
collectability. When auditing accounting data, the concern lies in evaluating whether
recorded information reasonably reflects the economic events that occurred during the
Materiality—amount of accounting period within specified dollar ranges (called materiality). Misstatements
misstatements, individually or in or omissions are considered to be material if, individually or in the aggregate, they
the aggregate, that would likely would likely influence the economic decisions of users who rely upon the financial
influence the economic decisions
of users.
statements. In simple terms, if the users would have reached a different opinion of the
financial statements if they had received a set of financial statements with the corrected
misstatement or omission, then that misstatement or omission is material. As one can
imagine, establishing materiality requires considerable professional judgment.
Since accounting standards are the criteria for evaluating whether the accounting
information is properly recorded, auditors must understand the relevant accounting
standards. These standards are constantly evolving as business practices and standards
change—there are different accounting standards for public companies, private enter-
prises, not-for-profit organizations, and public sector entities.
In addition to understanding accounting, the auditor must also possess expertise in
internal controls, risk assessment processes, and the accumulation and interpretation of
audit evidence. It is this expertise that distinguishes financial statement auditors from
accountants. Determining the proper audit procedures that mitigate risks, deciding on
the number and types of items to test, and evaluating the results are tasks that are unique
to the auditor.

LO 3 Explain how auditing

reduces information risk.
ECONOMIC DEMAND FOR AUDITING
Businesses, governments, and not-for-profit organizations use auditing services exten-
sively. Publicly accountable organizations, such as businesses listed on securities
exchanges or large not-for-profit organizations, are legally required to have an annual
financial statement audit.
A look at the economic reasons for auditing highlights why auditing is valuable.
Consider a bank manager’s decision to make a loan to a business. The decision will be
based on such factors as previous financial relations with the business and the financial
condition of the business as reflected by its financial statements. Assuming the bank
makes the loan, it will charge a rate of interest determined primarily by three factors:
1. Risk-free interest rate. This is approximately the rate the bank could earn by invest-
ing in Canada Treasury bills for the same length of time as the business loan.
6 PART 1 I THE AUDITING PROFESSION

M01B_AREN3116_14_SE_C01.indd 6 2/15/18 3:35 PM

 2. Business risk for the customer. This risk reflects the possibility that the business
will not be able to repay its loan because of economic or business conditions
such as a recession, poor management decisions, or unexpected competition in
the industry.
3. Information risk. Information risk reflects the possibility that the information Information risk—the risk
upon which the decision to make the loan was made was inaccurate. A likely that information upon which a
cause of the information risk is inaccurate financial statements. business decision is made is
inaccurate.
Auditing has no effect on either the risk-free interest rate or business risk, but it can
have a significant effect on information risk. If the bank manager is satisfied that there
is minimal information risk because a borrower’s financial statements are audited,
the bank’s risk is substantially reduced and the overall interest rate to the borrower
can be reduced. For example, assume that a large company has total interest-bearing
debt of approximately $1 billion. If the interest rate on that debt is reduced by only
1 percent, the annual savings in interest is $10 million. Many lenders such as banks
require annual audits for companies with large bank loans outstanding.

CAUSES OF INFORMATION RISK LO 4 Determine the causes of

information risk.
As society becomes more complex, there is an increased likelihood that unreliable
information will be provided to decision makers. There are several reasons for this,
including the remoteness of information, bias and motives of the provider, volumi-
nous data, and complex exchange transactions.

Remoteness of Information
In a global economy, it is nearly impossible for a decision maker to have much first-
hand knowledge about the organization with which it does business. Information pro-
vided by others must be relied upon. When information is obtained from others, its
likelihood of being intentionally or unintentionally misstated increases.

Biases and Motives of the Provider

If information is provided by someone whose goals are inconsistent with those of the
decision maker, the information may be biased in favour of the provider. The reason
can be honest optimism about future events or an intentional omission or emphasis
designed to influence users. In either case, the result is a misstatement of informa-
tion. For example, when a borrower provides financial statements to a lender, there
is considerable likelihood that the borrower will bias the statements to increase the
chance of obtaining a loan. The misstatement could be incorrect dollar amounts or
inadequate or incomplete disclosures of information.

Voluminous Data
As organizations become larger, so does the volume of their exchange transactions.
This increases the likelihood that improperly recorded information is included in
the records—perhaps buried in a large amount of other information. For example, if
a large government agency overpays a vendor’s invoice by $2000, the overpayment is
unlikely to be uncovered unless the agency has instituted reasonably complex proce-
dures to find this type of misstatement. If many minor misstatements remain undis-
covered, the combined total can be significant or even material.

Complex Exchange Transactions

In the past few decades, exchange transactions between organizations have become
increasingly complex and therefore more difficult to record properly. The increasing com-
plexity in transactions has also resulted in increasingly complex accounting standards.
CHAPTER 1 I THE DEMAND FOR AUDIT AND OTHER ASSURANCE SERVICES 7

M01B_AREN3116_14_SE_C01.indd 7 2/15/18 3:35 PM

Another Random Scribd Document
with Unrelated Content
selfishness, with the conviction that "the throne would last during his
time, at all events."

It was about half-past ten, when the door opened; and the
Blackamoor, peeping from behind the curtains, beheld a lady, closely
veiled, enter the room, the door immediately closing behind her.
"Adorable Georgiana!" exclaimed the King, hastening forward to
receive her, and then conducting her to a seat: "I am rejoiced that
you have thus yielded to my wishes—that you have come to me this
evening."
"But wherefore, sire, did you insist upon this visit?" asked Lady
Hatfield, in a low and tremulous tone. "Our compact stipulated that I
was first to receive a certain document, as a proof of your Majesty's
sincerity——"
"Dearest Georgiana, raise that odious veil—lay aside that invidious
bonnet, which conceals your charming countenance!" exclaimed the
monarch, in an impassioned voice.
"Oh! sire, I have taken a step at which I tremble," said Lady
Hatfield, raising her veil, but retaining her bonnet. "On my way
through the corridors, guided by Sir Phillip Warren, I met two or
three of your Majesty's retainers; and if they recognised me—in spite
of the thick veil——"
"Fear not on that account," interrupted the King. "I admit our
compact was as you just now stated it to be, and that the paper
should have been forwarded to you. But I was so anxious to see you
soon again, that I could not resist the temptation of that idea which
suggested to me how much better it would be to solicit you to come
hither this evening and receive from my hands the document which
you so much desire. Here it is, beloved Georgiana—signed by myself,
and countersigned by the Secretary of State."
The King presented the paper to Lady Hatfield, who received it with
joy flashing from her eyes: and she immediately secured it about her
person.
"My curiosity prompts me to ask an explanation of the extraordinary
contents of that document," said the monarch; "but, on the other
hand, delicacy forbids."
"And I thank you for this delicacy, sire," exclaimed Lady Hatfield,
with earnest sincerity. "It were a long tale to tell—and an useless
one——"
"Yes—useless, indeed, when we have a far more interesting topic for
our discourse," interrupted George the Fourth, throwing one of his
arms round the lady's neck.
"Sire!" cried Georgiana in a reproachful tone, as she hastily withdrew
herself from that half-embrace, and retreated to the further end of
the ottoman.
"Oh! wherefore play the coy and the cruel?" exclaimed the King.
"Have I not given you a signal proof of my attachment, by affixing
my signature to a paper the contents of which I scarcely understand,
and by ordering the Minister to legalize it with his name? And think
you, sweet lady, that it was an easy task to induce that responsible
functionary to obey me in this respect? But I menaced and coaxed
by turns; and all this for your sake! Do I not, therefore, deserve the
reward of your smiles—the recompense of your caresses?"
"I recognise all that is generous in the conduct of your Majesty
towards me in respect to this document," said Lady Hatfield: "but
were I to succumb to you now, sire, I should loathe myself—I should
become degraded in my own estimation—I should feel that I had
been purchased by a bribe! No—sire: I cannot renounce every
consideration of purity—every sentiment of propriety, in a single
moment."
"What further proof do you require of my attachment?" demanded
the King, in a tone of vexation which he could not altogether
subdue.
"No other proof, save your forbearance on this occasion," answered
Georgiana. "Remember, sire, what I told you the other night: I am
not a woman of impure imagination—no—nor of depraved character;
and I cannot consent to become your mistress, without a mental
effort on my part—without wooing on your's. In yielding myself to
your Majesty, it will be as a wife who is forced to dispense with the
ceremony which alone can make her one in reality; and if your
Majesty deem me worth the winning, let me be won by means of
those delicate attentions which would be shown in honourable
courtship."
"Perdition!" ejaculated the King, who was as much unaccustomed to
hear such language as he was to sue at the feet of beauty: "how
long will you keep me in this suspense, fair lady?—how long must I
endure the tortures of deferred hope? Consider—I love you madly:
you are so beautiful—so sweetly beautiful! Oh! to press you in my
arms——"
"Pardon me, sire, for daring to interrupt you," said Georgiana; "but if
there be nothing save the impulse of the senses in this liaison of
ours, your Majesty will soon become wearied of me—and I shrink in
horror from the idea of becoming the cast-off mistress of even
Royalty itself. Let me seek to engage your affections, as you must
endeavour to enchain mine; so that our connexion may be based
upon the sentiments and feelings of the heart."
"But I already love you sincerely—devotedly, cruel Georgiana!" cried
the King, his eyes greedily running over the outlines of the
exquisitely proportioned form of the lady, and the rapid survey
exciting his desire almost beyond endurance.
"Not with a love calculated to be permanent," said Georgiana
quietly; "and unless I become the object of such an affection, never
—never shall I so far forget myself——"
"This is cruel—this is maddening!" exclaimed the King; and he
extended his arms towards Lady Hatfield.
"Sire, do not treat me with outrage," she said, rising from the
ottoman, and speaking in a dignified manner. "If your Majesty
supposed that your sovereign rank would so far dazzle my
imagination as to make me throw myself into your arms at the very
first words of encouragement which fell from your lips, your Majesty
has sadly misunderstood the character of Georgiana Hatfield."
"Be not angry with me, adorable creature!" exclaimed the King: "I
love you too much to risk the chance of losing you by any
misconduct on my part. Name, therefore, your own terms. Or rather,
let me ask whether you will consent to visit me every evening for an
hour, and allow us an opportunity to become better acquainted with
each other?"
"Now your Majesty speaks in a manner calculated to win my
esteem," observed Lady Hatfield, avoiding a direct reply to the
question put to her; "and when the esteem of a woman is once
secured——"
"I understand you," interrupted George the Fourth, hastily: "her love
speedily follows. Be it as you say, sweet lady," he continued, in a
slower tone; "and let us secure each other's affections. You shall find
me docile and obedient to your will—and this is much for me to
promise. But let me hope that the period of probation will not be
long—that the hour of recompense is not far distant——"
"Hush, sire!" exclaimed Georgiana, in a reproachful voice: "this is the
language of sense—whereas you must secure my affections by the
language of sentiment. If you treat me as a woman who is to be
purchased as your mistress, let our connexion cease this moment:
but if you will woo me as a wife should be won—although I am well
aware that your Majesty's wife I can never be——"
"Would that I could marry you this moment!" cried the King, fixing
his eyes upon her beauteous countenance; "for you are ravishingly
lovely! I would give a year of my life to obtain all I crave this night.
Oh! Georgiana, be not so coy and cruel with me—for you madden
me—my veins seem to run with molten lead. Be mine at once—and
render my happiness complete. Behold that small low door in yonder
corner: it opens into a room which may serve as our nuptial
chamber. Come, then, dearest Georgiana—let me lead you thither—
not cold, hesitating, and resisting—but warm, and impassioned, and
prepared to revel in the delights of love! Our privacy will be
complete: no intruder need we fear;—and the world will never know
that you have become mine."
"Sire, this language on your part—in spite of all the arguments and
remonstrances which I have used," exclaimed Lady Hatfield, "is
unworthy of a great King and a polished gentleman."
"The madness of love knows nothing of regal rank nor the shackles
of etiquette," said the monarch, speaking in a tone of great
excitement; "and, in spite of the promises which I just now so rashly
made, I cannot endure delay. No—sweetest lady—you must be mine
at once!"—and he wound his arms around Georgiana's form, the fury
of his desires animating him with a strength against which she could
not long have resisted.
But at that moment succour was at hand!
Forth from his place of concealment sprang the Blackamoor; and an
ejaculation of surprise and rage burst from the lips of the King, while
a cry of joy emanated from those of Lady Hatfield.
"Who are you? and what signifies this intrusion?" demanded George
the Fourth, instantly releasing his intended victim at this sudden
apparition.
But, without answering the monarch, the Blackamoor hastily led the
half-fainting Lady Hatfield to the door—opened it to allow her to
pass out of the room—and, closing it behind her, placed his back
against it,—the whole being effected with such speed, that
Georgiana had disappeared before the King could recover from the
astonishment into which the very first step of the bold proceeding
had thrown him.
"Villainous negro!" cried the disappointed monarch, at length
recovering the power of speech: "do you know who I am, that you
have thus dared to outrage me?"
"I know full well who you are, sire—and I am grieved to the very
soul at the idea of being compelled to acknowledge you as my King,"
returned the Black, in a calm—collected—and somewhat mournful
tone.
"This insolence to me!" ejaculated George the Fourth, becoming
purple with rage. "Make way, sirrah, for me to pass hence!"
"Not until I have allowed Lady Hatfield sufficient time to escape from
this house which the country has given as a palace for your Majesty,
but which seems to be used for purposes too vile to contemplate
without horror," was the firm reply.
The King fell back a few paces in speechless astonishment. Never
before had he been thus bearded:—but in that momentary interval
of silence, a crowd of recollections rushed to his mind, warning him
that the individual who thus seemed to defy his rank and power, had
been present during the whole of the interview with Lady Hatfield,—
and that this individual had learnt how the Royal and Ministerial
signatures had been given as a means of propitiating a coy beauty,
without any reference to the interests of the State:—when the King
remembered all this, he was alarmed at the serious manner in which
he suddenly found himself compromised. For that Blackamoor could
make revelations of a nature to arouse against him the indignation
of the whole kingdom; and, reckless as George the Fourth was of
public opinion, he trembled at the idea of exciting public resentment.
Thus did a few moments of reflection show him the precipice on
which he stood, and carry to his mind a conviction of the necessity
of making terms with the sable stranger who had obtained such a
dangerous power over him. But the mere thought of such a
compromise was sorely repugnant to the haughty spirit of George
the Fourth: and yet there was no alternative! He accordingly
addressed himself with the best grace he could assume, to the task
of conciliation.
"My good sir," he said, approaching the Black, "I seek not to deal
harshly with you: and yet you owe me an explanation of the motives
which induced you to penetrate into the palace, and the means by
which you gained access to my private apartments."
"I feel bound to answer your Majesty with candour and frankness, in
order to clear myself from any injurious suspicion which my
concealment in this room might naturally engender," was the reply.
"The explanation, sire, is briefly given:—I was accosted by an elderly
gentleman in Pall Mall, and asked if I required a situation. In truth I
do not; but it being intimated to me that the proffered place was in
the royal household, curiosity prompted me to follow the gentleman
into the palace. He left me alone in his ante-room for upwards of an
hour; and, growing weary of waiting, I sought a means of egress.
But, losing my way, I found myself at length in this room; and
almost immediately afterwards your Majesty entered with the very
gentleman I am speaking of, and whose name I learnt to be Warren.
I concealed myself behind the curtains—with no bad intention; and
indeed I was about to come forth and explain the reasons of my
presence to your Majesty, when certain words which fell from your
Majesty's lips made me acquainted with the fact that Lady Hatfield
was expected here every moment. That name nailed me to the spot
—and I was prompted by an uncontrollable curiosity to wait and
satisfy myself whether Lady Hatfield could have become so depraved
as to surrender herself to your arms."
"You are acquainted with her, then!" exclaimed the King. "And yet,"
he added, a moment afterwards, "she did not appear to recognise
you."
"No, sire—she did not recognise me," returned the Black.
"But you must know her well, since the mere mention of her name
rendered you thus anxious to see the issue of our interview?" said
the King, impatiently.
"I know her well, sire," was the guarded response: "and yet she
knew not me."
"Who are you, then?" demanded George the Fourth, fixing a
searching look upon the stranger. "You certainly are not what Sir
Phillip Warren took you for——"
"I must firmly, though respectfully, decline to give any account of
myself," said the Blackamoor. "Your Majesty will now permit me to
withdraw."
"One moment," cried the King. "How stand we in respect to each
other? Do you constitute yourself the enemy of your sovereign?—will
you publish your knowledge of all that has transpired here this
evening?—or can I offer you some earnest that I myself am not
offended by the manner in which you ere now thought fit to address
me?"
"I have no interest in making known to the public those secrets
which have so accidentally been revealed to me," answered the
Blackamoor. "It is never a pleasing task to an honest man to publish
the frailties or failings of a fellow-creature—much less when that
fellow-creature is placed at the head of the nation. As for any reward
—or rather bribe, to induce me to remain silent, none is necessary.
At the same time," he added, hastily correcting himself as a second
thought struck him, "it may be as well that I should avail myself of
your Majesty's offer; for it might so fall out that the privilege of
claiming a boon at your royal hands——"
"May prove serviceable to you some day or another—eh?" added the
King, impatiently. "Well—be it so; and, stranger though you be to
me, I rely in confidence upon your solemn pledge to place a seal on
your lips relative to the incidents of this night."
Thus speaking, the monarch seated himself at the nearest table, and
opening a drawer, took forth writing materials: then, with a haste
which showed his desire to put an end to a painful interview, he
penned the following lines on a slip of paper:—
"We acknowledge a sense of deep obligation to the bearer of
this memorandum, the said bearer having rendered us especial
service; and we hold ourselves bound to grant him any boon
which he may demand at our hands, so that it be not
inconsistent with our royal honour, nor prejudicial to the interests
of the State.
"Given this 3rd of March, in the year 1827.
"GEORGE REX." (L.S.)

The King lighted a taper, and affixed his royal seal to this document,
which he then handed to the Blackamoor, saying, "You perceive
what confidence I place in you: see that the good name of Lady
Hatfield on the one side, and your Sovereign's honour on the other,
be not compromised by any indiscreet revelations on your part."
"Your Majesty may rest assured that I shall maintain the incidents of
this evening a profound secret, and that I shall not abuse the
privilege conferred upon me by this paper which bears your royal
signature."
The Blackamoor bowed, and retired from the presence of King
George the Fourth, whom he left in no very pleasant humour at the
turn which his meditated attack upon the virtue of Lady Hatfield had
taken.
On this occasion, the Black had no difficulty in finding the way to the
private staircase up which Sir Phillip Warren had originally introduced
him; and he was about to issue forth from Carlton House, when he
suddenly encountered that old courtier and Sir Randolph Harral in
the hall.
These gentlemen were disputing in a loud tone; but the moment the
Blackamoor appeared, Sir Phillip Warren sprang towards him,
exclaiming, "Why, where have you possibly been? But no matter," he
added, in a triumphant tone, "since you are here at length to settle
the question between me and my friend."
"The fact is, my good sir," said Sir Randolph, "I have laid Sir Phillip
Warren twenty guineas——"
"Yes—twenty guineas," interrupted Sir Phillip hastily, "that you are
——"
"That you are not——" cried Sir Randolph.
"I say that you are!" exclaimed Sir Phillip.
"And I say that you are not!" vociferated Sir Randolph.
"Gentlemen, pray explain yourselves," said the Blackamoor.
"Well—I say that you are a lacquey out of place," observed Sir Phillip
Warren.
"And I say that you are not," cried Sir Randolph Harral, in his turn;
"whereupon we have bet twenty guineas."
"And you must decide who has won," added Sir Phillip.
"Then, gentlemen," said the Blackamoor, in a merry tone, "I can
soon set the matter at rest. So far from being a lacquey out of place,
I have upwards of a dozen dependants of my own. I wish you a very
good night."
"Why—I am robbed as if it were on the highway!" exclaimed Sir
Phillip Warren, his countenance suddenly becoming as awful and
blank as such a Port-wine visage could possibly be.
"Ha! ha!" chuckled Sir Randolph: "robbed or not—please to hand me
over twenty good guineas."
And the cachinnation of the winning courtier was echoed by the
merry laugh of the Blackamoor, as this individual issued forth from
Carlton House.
Again, as he passed along Pall Mall, did the Black pause for a few
moments opposite the splendid mansion of the Earl of Ellingham,
and gaze at it with the attention of no common observer. He was
about to continue his way, when two men, belonging to the working
class, stopped likewise for an instant in front of the house; and one
said to the other, "That is where the Earl lives. God bless him!"
"Yes—God bless him!" repeated his companion, with the emphasis of
unfeigned sincerity: "for he is the people's friend."
The two men then passed on.
"Who dares to say that the industrious millions have no gratitude?"
murmured the Blackamoor to himself, as he also pursued his way. "O
Arthur! you are now indeed worthy of the proud name which you
bear: and I likewise exclaim from the very bottom of my heart, 'May
God bless you!'"
 CHAPTER CII.
A STATE OF SIEGE.

Return we now to Frank Curtis, his excellent wife, and Captain

O'Blunderbuss, who were living in a complete state of siege at the
house in Baker Street.
The captain was the commandant of the garrison, and
superintended all the manœuvres and the devices which it was
necessary to adopt to keep out the enemy. The front-door was
constantly chained inside; and every time there was a knock or a
ring, John the footman reconnoitred from the area. Whenever any
one was compelled to go out to order in provisions, the captain
stood at the door, armed with the kitchen poker, and looking so grim
and terrible that the officers who were prowling about in different
disguises, dared not hazard an encounter with the warlike
gentleman.
The grocer, the butcher, and the baker lowered their respective
commodities down the area by means of a rope and basket provided
for the purpose; but they all took very good care to receive the cash
first. The milkman and pot-boy were enabled to supply their articles
through the opening afforded by the door with the chain up inside;
and they likewise strenuously advocated the ready-money principle.
This condition of siege was a source of great delight to Captain
O'Blunderbuss. He was completely in his element. Little cared he for
the opinion of neighbours: his feelings were by no means concerned.
The house, from the first moment he set foot in it, was in a state of
perpetual excitement. He was constantly ordering the servants to do
something or another: a dozen times a-day did he perform what he
called "going his rounds," armed with the poker in case a bailiff
should have crept into the place through some unguarded avenue;—
and it was indeed with the greatest difficulty that Mrs. Curtis could
divert him from a plan which he had conceived and which he
declared to be necessary—namely, the drilling of all the inmates of
the house, male and female, including the five children, for an hour
daily in the yard. As it was, he compelled John, the footman, to
mount sentry in the yard aforesaid, every morning while the
housemaid was dusting her carpets and so forth—indeed during the
whole time that the domestic duties rendered it necessary to have
the back-door open. If John remonstrated, the captain would
threaten, with terrible oaths, to try him by a court-martial; and once,
when the poor fellow respectfully solicited his wages and his
discharge, the formidable officer would certainly have inflicted on
him the cat-o'-nine-tails, if the cook had not begged him off—she
being the footman's sweetheart.
Mrs. Curtis took a great fancy to the captain, and allowed him to do
pretty well as he chose. She considered him to be the politest,
genteelest, bravest, and most amusing gentleman she had ever
known; and it soon struck her that his various qualifications threw
her husband considerably into the shade. Whenever she felt low-
spirited, he had a ready remedy for her. If it were in the forenoon,
he would exclaim, "Arrah and be Jasus, Mim, it's no wonther ye're
dull, with the inimy besaging us in this way: and it's a nice mutton
chop and a glass of Port-wine that'll be afther sitting ye to rights,
Mim." Then forthwith he would ring the bell, and order three chops,
so that himself and Frank might keep the dear lady company. If it
were in the evening that Mrs. Curtis was attacked by those
unwelcome visitors termed "blue devils," the captain would
recommend "a leetle dhrop of the potheen, brewed afther the
fashion in ould Ireland;" and while he exhausted all his powers of
eloquence in assurances that it should be "as wake as wather, and
not too swate," he would mix the respectable lady such a stinger,
that her eyes would fill with tears every time she put the glass near
her lips. Sometimes he would undertake to amuse the children up in
the nursery, by going on all fours and allowing them to play at
horse-soldiers by riding on his back; and then, what with his
shouting and bawling, and their laughing and screaming, it was
enough to alarm the whole neighbourhood—and very frequently did.
All these little attentions on the part of the captain either to herself
or her children, gave Mrs. Curtis an admirable opinion of him; and
he rose rapidly in her favour. His success in obtaining the five
hundred pounds from Sir Christopher Blunt was considered by her as
sublime a stroke of mingled policy and daring as ever was
accomplished; and his tactics in opposing a successful foil to all the
stratagems devised by the sheriff's-officers to obtain admission into
the dwelling, made her declare more than once that had he
commanded the Allied Army at Waterloo, it would have been all up
with the French in half-an-hour.
The female servants in the house did not altogether admire the
position in which they were placed; but, they were so dreadfully
frightened at the captain, that they never uttered a murmur in his
hearing. They moreover had their little consolations; for Sir
Christopher's five hundred pounds enabled the besieged to live, as
the captain declared, "like fighting-cocks,"—so that the kitchen was
as luxuriously supplied with provender as the parlour; and no
account was taken of the quantity of wine and spirits consumed in
the establishment.
We have before hinted that the house was a perfect nuisance in
Baker Street. And no wonder, indeed, that it should have been so
considered; for it seemed to be the main source whence emanated
all the frightful noises that could possibly alarm nervous old ladies or
irritate gouty old gentlemen. No sooner did the day dawn, than
Captain O'Blunderbuss would fling up the window of his bed-room,
which was at the back of the house, with a crashing violence that
made people think he was mad; and, thrusting forth his head with a
white night-cap upon it, he would roar out—"John! John! to arms!"
as lustily as he could bawl. This was not only to save himself the
trouble of repairing to the footman's chamber to summon him, but
also for the purpose of letting the sheriff's-officers, if any were in the
neighbourhood, know that he was on the alert. Then John would
poke his head out of another window, and answer the captain's call;
and a few minutes afterwards the back-door would open and shut
with a terrific bang, and John would be seen to sally forth to mount
sentry in the yard, with shouldered poker. Then an hour's interval of
comparative silence would prevail, while the captain turned in again
to take another nap; but, at length, up would go the window again—
out would come the head—and, "John! hot wather!" would roll in
awful reverberation throughout the entire neighbourhood.
The confusion and dismay produced by these alarms were terrific;
and the neighbours all threatened their landlords to give warning on
the next quarter. For it was not only in the morning that the noise
prevailed, but throughout the entire day—aye, and the best part of
the night also. Sometimes the captain would take it into his head to
discharge his pistols in the yard: or else he would have a fencing-
match with Frank Curtis, the weapons being pokers, which made a
hideous clang. Then there were the rows in the nursery, which were
truly awful; and, by way of a variety, Captain O'Blunderbuss would
occasionally show himself at the drawing-room windows and
vociferate the most appalling abuse at any suspicious characters
whom he might happen to behold prowling about. These exhibitions
frequently collected crowds in front of the house; and the captain
would harangue them with as much earnestness as if he were a
candidate at a general election. On one of these occasions the
parish-beadle made his appearance, and from the pavement
remonstrated with the gallant officer, who kept him in parlance until
Frank Curtis had time to empty a pitcher of water over the enraged
functionary from the front bed-room window.
But the worst part of the whole business consisted in the goings-on
at night-time. Just when sedate and quiet people were getting cozily
into their first sleep at about eleven o'clock, Mr. Frank Curtis was
getting uncommonly drunk; and, though the captain seemed proof
against the effects of alcohol, no matter in what quantity imbibed,
he nevertheless grew trebly and quadruply uproarious when under
the influence of poteen. Thus, from eleven to twelve the shouts of
laughter—the yells of delight—the cries of mirth—and the
vociferations of boisterous hilarity, which came from the front
parlour, made night perfectly hideous: but no amount of human
patience ever possessed by good and forgiving neighbours, could
possibly tolerate the din and disturbance which prevailed during the
"small hours." Then would the captain and his friend Curtis rush like
mad-men into the yard, shouting—roaring—and bawling like
demons, so that the residents in the adjacent houses leapt from
their beds and threw up their windows in horror and alarm,
expecting to find the whole street in a blaze. These performances on
the part of Frank and O'Blunderbuss were intended to show the
officers that they were upon the alert; and they not only had the
desired effect, but accomplished far more—inasmuch as they
produced an absolute panic throughout an entire neighbourhood.
Thus it was that Mr. Curtis's abode—lately so serene and quiet in the
time of Mrs. Goldberry—became a perfect nuisance and a scandal;
and had Bedlam in its very worst days been located there, the noise
and alarm could not have been greater.
It will be remembered that the captain's plan, when first he took up
his residence in Baker Street, was to get Mr. and Mrs. Curtis and the
children away on a Sunday night, and sell off all the furniture on the
Monday morning. But this scheme was postponed at first for one
week—then for another, because the officers kept such a constant
look-out, that the captain saw the necessity of standing the siege
until the creditors should be completely wearied of paying those
disagreeable spies to watch the premises. This determination was
the more readily come to, inasmuch as the five hundred pounds
obtained from Sir Christopher Blunt, supplied sinews to carry on the
war in grand style.
When the captain paid the second financial visit to the worthy knight
with a view to the effecting of a further loan on the assignat which
himself and Frank Curtis had resolved to issue, it was not because
money was scarce in Baker Street; but simply because the captain
admired "the fun of the thing," and also considered it prudent to
raise as ample a supply of bullion as possible. The rage which he
experienced at his discomfiture on this occasion, can be better
conceived than described; and, firmly believing that it was Sir
Christopher himself who had dealt him from the carriage window the
tremendous blow which sent him sprawling on the pavement in a
most ignominious manner, he vowed the most deadly vengeance
against the new Justice of the Peace. Picking himself up as well as
he could—for the gallant gentleman was sorely bruised—he repaired
to the nearest public-house, to "cool himself," as he said in his own
mind, with a tumbler of the invariable poteen; and, having reflected
upon the insult which he had received, he thought it best not to
communicate his dishonour and discomfiture on his return to Baker
Street. Accordingly, having returned to "the garrison," into which he
effected an easy entry—for no one dared approach the door when it
opened to give him egress or ingress—he assured Mr. and Mrs.
Curtis that the knight was out of town, and would not be back for a
week. However, in a couple of days, the wonderful adventures of Sir
Christopher Blunt and Dr. Lascelles burst upon the metropolis like a
tempest; and, as the morning newspapers were duly dropped down
the area of the besieged dwelling in Baker Street, the entire report
was read aloud by Frank Curtis at the breakfast table. It therefore
being evident that Sir Christopher was not only in town at that
moment, but was likewise in London when the captain had called
upon him, the gallant gentleman affected to fly into a violent rage,
swearing that the knight was denied to him on purpose, and vowing
to make him "repint of his un-gintlemanly conduct." O'Blunderbuss
did not, however, in his heart mean to do any such thing as call
again in Jermyn Street; for he had despaired of inducing the knight,
either by threatenings or coaxings, to advance a further supply; and,
now that the worthy gentleman was a Justice of the Peace, the
captain thought that it would be somewhat imprudent to visit him
for the mere sake of committing an assault and battery. He
accordingly invented divers excuses, day after day, for remaining in
"the garrison;" and as funds were abundant, no one urged him to
undertake another financial mission to Sir Christopher Blunt.
The reader must remember that Messrs. Mac Grab and Proggs were
very roughly handled by captain O'Blunderbuss, when they visited
the house in Baker Street for the purpose of arresting Mr. Frank
Curtis; and, the honour of a sheriff's-officer being particularly dear
to its possessor, those worthies considered their's to be at stake,
unless they fully vindicated it by capturing the aforesaid Mr. Curtis in
the long run. They therefore had recourse to all kinds of devices to
obtain an entry into the house, being armed not only with a writ
against that gentleman's person on behalf of Mr. Beeswing, but also
with an execution against the furniture at the instigation of another
of Mrs. Curtis's creditors.
The tricks practised by these worthies to obtain an entry into the
besieged domicile, were as varied as they were ludicrous. On one
occasion, Mr. Proggs, dressed for the nonce as a butcher, and
carrying a leg of mutton in a tray on his shoulder, hurried up to the
door, gave the loud, sharp, single knock peculiar to the trade, and
shouted "T-cher!" in the most approved style. But the parlour
window was thrown up, and out popped the head of the ferocious
O'Blunderbuss, the countenance as red as a turkey-cock, and the
mouth vomiting forth a torrent of abuse; so that the discomfited Mr.
Proggs was compelled to retreat with all the ignominy of a baffled
strategist. On another occasion, Mr. Mac Grab, attired as a general
postman, rushed along the street, stopped at the door of the
besieged house, gave the two clear, rapid strokes with the knocker,
and immediately began to look over a bundle of letters with all the
feverish haste of the functionary whose semblance he had assumed.
But John came forth from the area; and again was the sheriff's-
officer's object completely frustrated. Next day, however, two sweeps
appeared in the street, as black as if they had never known soap-
and-water, and were accustomed to lodge, eat, and sleep in
chimneys as well as cleanse them; but upon arriving opposite the
parlour-windows, they beheld the captain and Frank Curtis "taking
sights" at them, the two gentlemen having "twigged the traps"
without much difficulty. Thus, defeated in all their endeavours to
accomplish their aims by cunning, Messrs. Mac Grab and Proggs
worked themselves up to the desperate resolution of using force;
and they accordingly took their post at the front-door of Curtis's
house, with the apparent determination to rush in the first time it
should be opened. But, when it was opened as far as the chain
inside would permit, and they beheld, to their horror and dismay, the
terrible captain wielding the poker, they exhibited that better part of
valour which is denominated discretion. At last, however, they could
no longer endure the jeerings of their friends exercising the same
agreeable and lucrative profession; and moreover, the attorneys who
employed them in the Baker Street affair spoke out pretty plainly
about gentlemen bribing bailiffs not to execute writs, and so forth.
All these circumstances induced Mr. Mac Grab and his man Proggs to
hold a council of war over two four-penn'orths of rum-and-water;
and the result was a determination, that as the various devices and
stratagems they had practised to enter the dwelling had failed, and
as they feared to carry it by storm, the stronghold must be reduced
by a surprise.
It was on the very evening when the Blackamoor experienced so
strange an adventure at Carlton House, that the following scene took
place in Baker Street.
The clock had struck ten; and, supper being disposed of, the
whiskey, hot water, glasses, and et ceteras were placed upon the
table, at which Frank Curtis, his amiable wife, and Captain
O'Blunderbuss were seated—as comfortable a trio as you could wish
or expect to see, especially under such adverse circumstances.
"John!" vociferated the captain, as the domestic was about to leave
the room; "stop a moment, you rogue, and answer me this. Is the
area all safe?"
"Yes, sir," was the ready response.
"And the kitchen-windows—and the back-door—and the yar-rd gate
—all right, eh—John?"
"All right, captain: I've just been the rounds."
"And all the provisions in the garrison, John?—plenty of potheen?"
demanded O'Blunderbuss.
"Plenty, sir. There'll be no more going out again to-night."
"That's a blissing!" exclaimed the gallant captain. "John!"
"Yes—sir."
"Take a glass of whiskey, mate—and slape with the kitchen poker-r
under your pillow, my frind," enjoined the officer. "We must be ar-
rmed at all pints, be Jasus!"
"I shan't forget, sir," said John: and having tossed off the spirit, he
quitted the room.
"Now then to make ourselves cozie," observed the captain, drawing
his chair a little closer to Mrs. Curtis. "Pray, Mim, how d'ye feel your
dear self this evening?—is it in good spirits ye are, Mim?"
"Thank you, captain," returned Mrs. Curtis, "I am quite well—but the
least, least thing nervous. This strange kind of life we're leading——"
"Strange, Mim!" ejaculated the captain: "it's glor-r-ious!"
"Glorious, indeed!" cried Frank. "I only wish the Marquis of
Shoreditch was here along with us—how he would enjoy himself!"
"You will permit me, Mim!" said the captain, grasping the bottle of
whiskey, and addressing the lady in an insinuating manner.
"Now, really, captain—if I must take a very leetle drop——" began
Mrs. Curtis, with a simper.
"Well, my dear madam, it shall be the leetlest dhrop in the wor-rld,
and so wake that a baby of a month old might dhrink it and niver so
much as thrip up as it walked across the room," exclaimed
O'Blunderbuss, whose knowledge of the physical capacities of infants
was evidently somewhat vague and limited. "There, Mim!" he added,
placing before the lady a large tumbler, the contents of which were
equal portions of spirit and water: "you may tell me I'm a Dutchman
and unwor-rthy of ould Ireland, if that isn't the purtiest dhrink iver
brewed for one of the fair six."
"You're very kind, captain," said Mrs. Curtis, in a mincing—simpering
manner.
"It's you that's kind to say so, Mim," remarked the captain, placing
his foot close to that of the lady, and ascertaining by the readiness
with which she returned the pedal pressure, that the tender
intimation he wished thereby to convey was by no means
unwelcome.
Frank did not of course notice what was going on under the table,
and the conversation progressed in the usual manner—the captain
and Frank vieing with each other in telling the most monstrous lies,
and the silent interchange of love's tokens continuing with increasing
warmth between the gallant gentleman and the stout lady. Mrs.
Curtis's spirits, however, seemed to require a more than ordinary
amount of stimulant on this occasion: she declared herself to be
"very low," although she contrived to laugh a great deal at the
captain's lively sallies and marvellous stories;—but as the clock
struck midnight and she rose to retire to her chamber, she found
that the three glasses of toddy which she had been persuaded to
imbibe, had somewhat unsettled the gravity of her equilibrium. The
captain sprang from his seat to open the parlour-door for her; and
as he bade her "good night," she pressed his hand with a degree of
tenderness which, as novel-writers say, spoke volumes.
"Curthis, my frind," said the captain, as he returned to his seat, "be
the holy poker-r! you possess a rale jewel of a wife. She's the most
amiable lady I ever knew and takes her potheen without any
nonsense. Be Jove! she's an ornamint in a jintleman's household;
and we'll dhrink her health in a bumper!"
"With all my heart," exclaimed Frank, already more than half-seas
over. "But, I say, captain—do you know that I'm getting very tired of
the life we're leading? I wish we could put an end to it somehow or
another."
"Be the power-rs! and that's the very thing I was going to
recommend to ye, Frank!" cried the captain, who was more affected