上海金融學(xué)院會計(jì)財(cái)務(wù)管理系

2022/12/9InternationalAccounting

andMultinationalEnterprises上海金融學(xué)院會計(jì)財(cái)務(wù)管理系王純2022/12/9InternationalAuditingIssuesChapterTwelve2022/12/9InternationalAuditingIssues

IntroductionAuditorsasbothindividualsandfirmsaregoingincreasinglyinternationalduetoincreasedglobalizationofbusiness;Financialadvisorsmustbeasmultinationalastheirclients;Toaccomplishthisprofessionalaccountantshaveformedglobalorganizations,12022/12/9Introduction(Cont.)Externalauditorsprovideclientswithglobalvalueaddedservices,including:Taxadvice,Training,FinancingControlsReview,BasicAccountingServices.22022/12/9TheAccountingandAuditingProfessionAuditingasdefinedby:Quantifiableandverifiablefinancialdataofeconomicentities;Establishedcriteria;Acompetentandindependentpersontotestthecorrespondencebetweenthedataandthecriteria.Thisdefinitionmustbeconsideredinlightofdifferingdomestic/internationalaccounting/auditingstandards.32022/12/9TheAccountingand

AuditingProfession(Cont.)4Auditorqualityrelatestoanation’s:Viewoftheaccountingprofession,Anation’seducationalsystem,andMethodofcertificationofauditorsandaccountant.2022/12/9GlobalAuditServicesandtheInternationalAuditingChallengeServicesprovidedbyglobalauditfirms:Auditservices;Taxadvisoryservices;Consulting/Managementservices.Theglobalenvironmentpresentsuniquechallengesforauditors:Localbusinesspractices/customs;Differencesincurrency,language,andlaw;Distanceandorganizationalissues;Availabilityofsuitablepersonnel.52022/12/9LocalBusinessPracticesandCustomsCancreatechallengesinconfirmingwhathasoccurred:Paymentbycashratherthancheckiscommoninmanycountriesmakingrecord-keepingdifficult;Confirmingaccountsreceivableisdifficultduetolanguagedifferences,lackofcustomerexperiences,mailproblems,andprivacyissues.62022/12/9Currency,LanguageandLawManycountrieshavecurrencyrestrictionsandtransferrequirements;Translationandtransactionalissuesmustbeunderstood;Ignoranceofthelocallanguagecanbeafatalhandicap;Knowledgeofhowhomecountrylawsinteractwithlocallawsisessential.72022/12/9DistanceandOrganizationforProvidingAuditServicesOrganizingaglobalauditingfirmtoperformservicesisverydifficult;Distanceisamajorconcernformultinationalenterprisesandcanlimitthescopeofauditservices;Solutionstothedistanceprobleminclude:Traveltoforeignclients,Physicalorlegalpresenceabroad.82022/12/8AvailabilityofSuitablePersonnel9Findingqualifiedpersonneltostaffforeignofficescanbedifficult;Thenumberofaccountantsavailabledependsonthebarrierstoenteringtheprofession,suchastestingandeducational/certificationrequirements;Globaltrainingandcertificationofaccountantscanvaryconsiderably,threemodelsexist:Apprenticeship,University,andDualTrack.2022/12/8Numerousnationalrestrictionspreventthemovementofaccountingprofessionalsbetweencountries;TheGeneralAgreementonTradeinServices(GATS)addressesreciprocityissues:Signatoriesagreetoadministerlicensingrulesinareasonable,objectiveandimpartialmanner,Countriesareencouragedtorecognizeothercountries’qualifications,TheUS,Canada,andAustraliahaveagreedtosimplifiedstandardsforreciprocity.10AvailabilityofSuitablePersonnel(Cont.)2022/12/8Strategies:Accountingfirms““goglobal””tobetterservicetheirclientsandtoprotecttheirmarkets.Thefivelargestglobalpublicaccountingfirmsare:ArthurAnderson,Deloitte-Touche,ErnstandYoung,KPMG,andPrice-WaterhouseCoopers.11GlobalAccountingFirms2022/12/8Strategies(cont.):Sincethe1980’’s,manyglobalaccountingfirmshavegrownthroughmergers;Globalfirmshavealsobeganorganizingaroundindustry.12GlobalAccountingFirms(Cont.)2022/12/8Multinationalfirmsareincreasinglyrelyingonglobalaccountingfirmstoassisttheminattractinginternationalinvestors;Investorswantanobjectiveassessmentoffirmfinancialstatements.Auditstandardsdifferfromcountrytocountry;Auditstandardscomefromthepublicsector,privatesector,andacombinationofthetwo:Developedcountriesoftenrelyontheirprivatesectorstopromulgatestandards.13AuditStandards2022/12/8TheEUFourthandEighthDirectives:FourthDirectiverequiresauditsforallcompanieswithinitspurview,EighthDirectivedealswithauditstandardsandqualifications.14AuditStandards(Cont.)2022/12/8TheInternationalFederationofAccountants(IFAC)isattemptingtoharmonizeauditstandardsandauditprofessions;IFACissuesguidanceinsixkeyareas:Auditing,Education,Ethics,FinancialManagementAccounting,InformationTechnology,andPublicSectorAccounting.15InternationalHarmonizationofAuditStandards2022/12/8Wouldgiveusersinothercountriesconfidenceinauditreports,Providingreaderswithassurancethatauditstandardsarebeingfollowed;Helpreadersmakeinternationalfinancialcomparisons;Provideincentivestoimproveandextendinternationalaccountingstandards;Aidtheflowofinvestmentcapital;Helplesser-developedcountriesdevelopdomesticauditstandards;Helplessentheeffectofdistancebetweenmanagementandusers.16BenefitsofDevelopingandEnforcingInternationallyAcceptedAuditingStandards2022/12/8TheInternationalForumonAccountancyDevelopment(IFAD)wasformedtoimprove