International Accounting
4th Edition
ISBN: 9780077862206
Author: Timothy Doupnik, Hector Perera Professor
Publisher: McGraw-Hill Education
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Question
Chapter 14, Problem 1Q
To determine
Explain the reasons due to which MNC’s should be concerned about auditing issues.
Expert Solution & Answer
Explanation of Solution
Auditing:
Auditing is a process in which financial statements of a company is checked in terms of reliability and fair presentation. It is generally undertaken by the qualified certified public accountants. Audit report is to be submitted after undertaking audit, in which auditor provides its opinion on the financial statements presented.
The reasons due to which MNC’s should be concerned about auditing issues are listed as follows:
- Auditing helps in building investor’s confidence, which in turn helps in raising finance.
- Audit insures compliance with standards that improves comparability and competitiveness of the financial statements.
- Auditors ensure that corporate governance is in place, which helps in long term growth and success of the organization.
- To reduce financial crisis and accounting scandals, auditing is emphasized.
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Chapter 14 Solutions
International Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - Prob. 1EPCh. 14 - Prob. 2EPCh. 14 - Prob. 3EPCh. 14 - Prob. 4EPCh. 14 - Case 14-1 Honda Motor Company Following is the...Ch. 14 - Prob. 13QCh. 14 - Prob. 14QCh. 14 - Prob. 15QCh. 14 - Prob. 5EPCh. 14 - Prob. 6EPCh. 14 - Prob. 7EPCh. 14 - Prob. 8EPCh. 14 - Prob. 9EPCh. 14 - Prob. 11EPCh. 14 - Prob. 12EPCh. 14 - Prob. 13EPCh. 14 - Prob. 10EPCh. 14 - Prob. 2C
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