Question

Explain the concept of comparative international auditing ?

Answer 1

Answer :-

International Auditing :- It refers to the rules for auditing of financial statements to be applied internationally and the processes associated with the auditing financial statements which is prepared by MNC'S.

According to international auditing standards, if audit work has been limited in its scope, the auditors have had a disagreement with management, or there is uncertainty associated with the financial statements. This leads to a qualified audit opinion.

The very first standards of reporting signifies that the auditor should report clearly in his report the scope of his audit work and should give his opinion on the financial statements.

The second standards signifies that the auditor should state whether the financial statements presents fairly the enterprise financial position and also the results of operations.

The third standard mainly signifies the auditor to disclose items which may not effect the financial statements being reported on but it may have material effect in future financial statements.

The main source of auditing is NIVRA Rules of conduct and professional practice. The key elements of this rules are as follows:-

1. Independent

2. Confidentiality

3. Documentation

4. Due care

5. Reporting

6. Other Auditor's

7. Offer of services

The independence rules are contained in section 9, section 22 and also in section 23.

Section 9 specifies forming an auditors opinion.

Section 22 states independent of the persons or legal entity that appointed him or on whose affairs he gives a report.