Question

You have been asked to make a presentation in your International Business class about how globalization is impacting the auditing profession. In preparation, you met with your auditing professor and discussed these questions:

e. To what extent are PCAOB auditing standards impacted by international standards?

f. What auditing standards should an audit firm follow when they audit a client located in a foreign country that is listed on both a foreign stock exchange and a U.S. stock exchange?

Answer 1

e. To what extent are PCAOB auditing standards impacted by international standards?

Public Company Accounting Oversite Board (PCAOB) is a private sector not for profit corporation, it is entrusted with the protection of investors interest. It oversees audits of the brokers and dealers. It develops and sets its own standard, however it does consider the international standards while preparation and developing its own standards. International standards play a very vital role in the formulation of its standards, but it is not the basis of the PCAOB auditing standards.

f. What auditing standards should an audit firm follow when they audit a client located in a foreign country that is listed on both a foreign stock exchange and a U.S. stock exchange?

While auditing client in a foreign ccountry, which is listed on both foreign and US stock exchange, the audit firm should be able to satisfy both the auditing standards of International standards and as well as PCAOB standards.