Audit of MNC

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2010 Hi ,

Iam Manager Finance and accounts in one of the MNC and we are about to get our books of accounts audits ,following are the details

- We are MNC having regiestred companies all over the Europe Central America North America and South East Asia.
- Mainly all the opreations is done by a company in central Amerrica ,
-Other companies registered in various countries are just $$ receving companies or payment processing companies, No other activities takes place in those companies

I want to have more understanding on do we need to get those books of account ( $$ receving and payment companies)audited by auditors of those countries or auditor in central America can audit all the books of account.

CA SIDHARTH HIRALAL PATNI

CA SIDHARTH HIRALAL PATNI (Expert)
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28 February 2010 In my opinion repective companies must be audited even though there are no major activities.

As u will come to know more information about there working.
It is a good practice to get accounts audited from an independent auditors

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2010 -The Question is not of good practice over here, What is the mandatory way to do the Auidt in diffrent countries.

- Whether the CPA registered in Central America is eliglble to do an audit if the records of the subsidairy companies are online but the those subsidary comapnies are registered in different countries.

- We have note that these comapnies just have banking entries in diffrenet countries , Which can be verified online sitting anywhere in the world.

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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01 March 2010 This is a very good question and it relates to conception.

By maintaining online accounting it does not mean that these companies will be escaped from the audit rules of countries where the subsidiaries are established.

Because accounting standards are suitably moulded by the countries according to the land of law. The qualification of CA should also be approved by the home country.

For example; SKF Bearing is indian subsidiary of foreign company.

It has to be audited according to Indian GAAP for Indian subsidiary.