Transnational Audit

I’m sorry to do this to you but ….. have you checked out the past exam question set by Lisa – probably in June or December 2009? In the revision kits there is a perfectly acceptable answer!

2 weeks. 4 days. No reply.
tsk tsk tsk =p

Transnational audit means an audit of
financial statements which are or
may be relied upon outside the audited entity’s home jurisdiction for
purposes of significant lending, invest
ment or regulatory decisions; this
will include audits of all financial
statements of companies with listed
equity or debt and other public interest entities which attract particular
public attention because of their size, products or services provided.
Examples:
1. The audit of a private company in U.S. raising debt finance in
Canada
This would qualify as a transnational
audit as it is reasonable to expect
that the financial statements of
the company would be used across
national borders in obtaining the debt financing.
2. The audit of a private Venezuela-based brokerage firm that
makes investments in the U.S. on behalf of its Venezuelan clients
To determine whether the financial
statements are or may be relied
upon outside of Venezuela, one would consider whether there were any
U.S. regulatory (e.g., NASD) requirements as well as consider the
location of any investors in and lenders to the brokerage. If financial
statements are filed with a U.S. regulator or there are investors or
lenders outside of Venezuela, this would qualify as a transnational
audit. Even if the brokerage audit does not qualify as transnational
because of these factors, it is also
necessary to assess whether the audit
of the brokerage qualifies as transn
ational because of its size or the
products or services provided. To do
this further facts are necessary