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Hi tutor,
Can you please confirm if my understand is correct –
For example, KPMG is auditing the group, EY is auditing one Subsidiary, then EY is component auditor.
If the subsidiary is located oversea, and the audit is carrierd by the oversea EY team, EY is is transnational Auditor and component auditor.
If the subsidiary is audited by Oversea KPMG team, it is also transnational audit.
Thanks.
Here’s a link to a 5 page document published by IFAC
https://www.ifac.org/system/files/downloads/TAC_Guidance_Statement_1.pdf
but if you don’t want to read all that, here’s the opening paragraph:
“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, investment 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.”
OK?
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