上海金融学院会计财务管理系

2019/8/9InternationalAccountingandMultinationalEnterprises上海金融学院会计财务管理系王纯2019/8/9InternationalAuditingIssuesChapterTwelve2019/8/9InternationalAuditingIssuesIntroductionAuditorsasbothindividualsandfirmsaregoingincreasinglyinternationalduetoincreasedglobalizationofbusiness;Financialadvisorsmustbeasmultinationalastheirclients;Toaccomplishthisprofessionalaccountantshaveformedglobalorganizations,12019/8/9Introduction(Cont.)Externalauditorsprovideclientswithglobalvalueaddedservices,including:Taxadvice,Training,FinancingControlsReview,BasicAccountingServices.22019/8/9TheAccountingandAuditingProfessionAuditingasdefinedby:Quantifiableandverifiablefinancialdataofeconomicentities;Establishedcriteria;Acompetentandindependentpersontotestthecorrespondencebetweenthedataandthecriteria.Thisdefinitionmustbeconsideredinlightofdifferingdomestic/internationalaccounting/auditingstandards.32019/8/9TheAccountingandAuditingProfession(Cont.)4Auditorqualityrelatestoanation’s:Viewoftheaccountingprofession,Anation’seducationalsystem,andMethodofcertificationofauditorsandaccountant.2019/8/9GlobalAuditServicesandtheInternationalAuditingChallengeServicesprovidedbyglobalauditfirms:Auditservices;Taxadvisoryservices;Consulting/Managementservices.Theglobalenvironmentpresentsuniquechallengesforauditors:Localbusinesspractices/customs;Differencesincurrency,language,andlaw;Distanceandorganizationalissues;Availabilityofsuitablepersonnel.52019/8/9LocalBusinessPracticesandCustomsCancreatechallengesinconfirmingwhathasoccurred:Paymentbycashratherthancheckiscommoninmanycountriesmakingrecord-keepingdifficult;Confirmingaccountsreceivableisdifficultduetolanguagedifferences,lackofcustomerexperiences,mailproblems,andprivacyissues.62019/8/9Currency,LanguageandLawManycountrieshavecurrencyrestrictionsandtransferrequirements;Translationandtransactionalissuesmustbeunderstood;Ignoranceofthelocallanguagecanbeafatalhandicap;Knowledgeofhowhomecountrylawsinteractwithlocallawsisessential.72019/8/9DistanceandOrganizationforProvidingAuditServicesOrganizingaglobalauditingfirmtoperformservicesisverydifficult;Distanceisamajorconcernformultinationalenterprisesandcanlimitthescopeofauditservices;Solutionstothedistanceprobleminclude:Traveltoforeignclients,Physicalorlegalpresenceabroad.82019/8/9AvailabilityofSuitablePersonnel9Findingqualifiedpersonneltostaffforeignofficescanbedifficult;Thenumberofaccountantsavailabledependsonthebarrierstoenteringtheprofession,suchastestingandeducational/certificationrequirements;Globaltrainingandcertificationofaccountantscanvaryconsiderably,threemodelsexist:Apprenticeship,University,andDualTrack.2019/8/9Numerousnationalrestrictionspreventthemovementofaccountingprofessionalsbetweencountries;TheGeneralAgreementonTradeinServices(GATS)addressesreciprocityissues:Signatoriesagreetoadministerlicensingrulesinareasonable,objectiveandimpartialmanner,Countriesareencouragedtorecognizeothercountries’qualifications,TheUS,Canada,andAustraliahaveagreedtosimplifiedstandardsforreciprocity.10AvailabilityofSuitablePersonnel(Cont.)2019/8/9Strategies:Accountingfirms“goglobal”tobetterservicetheirclientsandtoprotecttheirmarkets.Thefivelargestglobalpublicaccountingfirmsare:ArthurAnderson,Deloitte-Touche,ErnstandYoung,KPMG,andPrice-WaterhouseCoopers.11GlobalAccountingFirms2019/8/9Strategies(cont.):Sincethe1980’s,manyglobalaccountingfirmshavegrownthroughmergers;Globalfirmshavealsobeganorganizingaroundindustry.12GlobalAccountingFirms(Cont.)2019/8/9Multinationalfirmsareincreasinglyrelyingonglobalaccountingfirmstoassisttheminattractinginternationalinvestors;Investorswantanobjectiveassessmentoffirmfinancialstatements.Auditstandardsdifferfromcountrytocountry;Auditstandardscomefromthepublicsector,privatesector,andacombinationofthetwo:Developedcountriesoftenrelyontheirprivatesectorstopromulgatestandards.13AuditStandards2019/8/9TheEUFourthandEighthDirectives:FourthDirectiverequiresauditsforallcompanieswithinitspurview,EighthDirectivedealswithauditstandardsandqualifications.14AuditStandards(Cont.)2019/8/9TheInternationalFederationofAccountants(IFAC)isattemptingtoharmonizeauditstandardsandauditprofessions;IFACissuesguidanceinsixkeyareas:Auditing,Education,Ethics,FinancialManagementAccounting,InformationTechnology,andPublicSectorAccounting.15InternationalHarmonizationofAuditStandards2019/8/9Wouldgiveusersinothercountriesconfidenceinauditreports,Providingreaderswithassurancethatauditstandardsarebeingfollowed;Helpreadersmakeinternationalfinancialcomparisons;Provideincentivestoimproveandextendinternationalaccountingstandards;Aidtheflowofinvestmentcapital;Helplesser-developedcountriesdevelopdomesticauditstandards;Helplessentheeffectofdistancebetweenmanagementandusers.16BenefitsofDevelopingandEnforcingInternationallyAcceptedAuditingStandards2019/8/9TheInternationalForumonAccountancyDevelopment(IFAD)wasformedtoimprovethequalityofGlobalAccountingandAuditing.17BenefitsofDevelopingandEnforcingInternationallyA