Page 123 - AAA Integrated Workbook STUDENT S18-J19

Group and transnational audits

Transnational audits

Transnational audit means an audit of financial statements which may
be relied upon outside the audited entity's home jurisdiction.

Reliance on these audits might be for purposes of significant lending, investment or
regulatory decisions.

The differences between an audit, conducted within the boundaries of one set of
legal and regulatory requirements, and a transnational audit are largely due to
variations in:

 Auditing standards

 Regulation and oversight of auditors

 Financial reporting standards

 Corporate governance requirements

Auditors must be aware of the different regimes that apply to the audit of a
transnational entity because they will be bound by the varying laws and regulations.
Given the globalisation of businesses and stock markets this is an increasingly
significant concern for many firms of auditors.

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