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Multinationality of U.S. corporations: the auditing implications

Article Abstract:

Auditing in multinational firms must be flexible to address the various challenges to the profession of auditing in a multitude of standards and risks. Some aspects of a multinational's operations that require some adjustment from the auditing procedure is the presence of political, cultural, economic and social condtions prevailing in the multinational's foreign units. The auditing section must also respond to the challenges posed by international standards, such as the ISO 1400, that sets new requirements on environmental auditing.

Analysis, Management, International business enterprises, Multinational corporations, Internal auditing

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Materiality and audit risk modelling: financial management perspective

Article Abstract:

An evaluation of audit risk models in the auditing context indicates that auditors must evaluate the effects of materiality in relation to higher risks. The effects of materiality were integrated with existing audit risk models to produce an audit risk model which had 128 various possible outcomes. While it may not be practical for auditors to evaluate all 128 possible outcomes prior to issuing an audit report, it may serve as a useful reference regarding risk evaluation in financial reports.

Models, Practice, Financial statements

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Mitigating the auditor's legal risk

Article Abstract:

A behavioral pilot study of 87 US general jurisdiction judges and their opinions on altered audit reports indicates that standard auditor's reports must be changed to lessen the perceived liability and culpability of auditors. The study also indicated the importance of the attitudes and beliefs of the judges with respect to the public accounting profession and its professional liability.

Accounting Methods, Laws, regulations and rules, Accounting

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