Asked by Jessica Redding on May 08, 2024
Verified
One of the components that a nation must have to effectively apply international standards is quality auditing. Which of the following statements about auditing is true?
A) Audit quality is consistently high around the world due to the implementation of International Auditing Standards.
B) Most audits around the world are conducted by the Big Four, which ensures consistency.
C) Audit quality is consistent around the world as smaller countries import well-educated auditors to ensure expertise.
D) Audit quality is inconsistent around the world.
Auditing
The process of reviewing and assessing the financial statements of an entity to ensure accuracy and compliance with accounting standards.
International Auditing Standards
Rules and guidelines set for auditing practices internationally to ensure consistency, reliability, and accuracy of financial statements.
Big Four
Refers to the four largest international accountancy and professional services firms, which are Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG.
- Understand the variability in global audit quality and its implications for adopting international standards.
Verified Answer
Learning Objectives
- Understand the variability in global audit quality and its implications for adopting international standards.
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