Multinational External Audit Planning
Multinational companies control vast resources and may present the auditor with many new challenges. Little research has explored the auditing of such companies. Experts rated the importance of 34 risk factors in the multinational audit scope decision (which client locations to visit). Key factors include unusual transactions, subsidiary size, and client expectations. The audit manuals of the Big Six firms were reviewed to determine the extent of the firms' guidance for planning multinational audits. The guidance varies widely across firms. Finally, the experts were interviewed regarding several aspects of multinational audit planning.