Question: Acme Inc a multinational company based in the United States
Acme, Inc., a multinational company based in the United States, has a large subsidiary located in Beijing, China. Acme is audited by an international accounting firm headquartered in the United States; its subsidiary is audited by the Chinese affiliate of that firm. Under U.S. auditing standards, what responsibilities, if any, does Acme’s U.S. audit firm have to supervise or oversee the audit of the Chinese subsidiary? Would these responsibilities be different under International Standards of Auditing?
Answer to relevant QuestionsThe Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe were most responsible for that crisis. ...Do auditors have a responsibility to determine whether important transactions of a client are “accounting-motivated”? Defend your answer.What alternative strategies or approaches could U.S. regulatory agencies consider invoking to ensure that the audits of non-U.S. companies with securities traded on U.S. markets are adequate?In addition to client confidentiality, what other ethical issues or challenges did PwC’s contractual relationship with TFG present for the accounting firm?Do you agree with the assertion that “accounting can lead to perceptions of reality”? Why or why not? In deciding whether to adopt a proposed accounting standard, should accounting rule-making bodies consider whether ...
Post your question