Why Is International Harmonization of Auditing Standards Important

question 32

Multiple Choice

Why is international harmonization of auditing standards important?

• A) To be consistent with harmonized international accounting standards.
• B) To ensure the independence of external auditors of multinational corporations.
• C) To assure international capital markets that auditing has been consistent across companies.
• D) To reduce the authority of individual governments to enact accounting laws.

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Definitions:

Treasury Bonds

Long-term, fixed-interest securities issued by the U.S. government as a way of borrowing money to fund its operations and projects.

Issue Price

The price at which new shares or bonds are offered to the public by a company or government for the first time.

Yield Per Annum

The annual return on an investment, expressed as a percentage of the total investment.

Retirement Income

Income that an individual receives after retiring from active employment, which can come from pensions, savings, investments, and government benefits.