Why Is International Harmonization of Auditing Standards Important

question 12

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:

Bretton Woods System

A monetary management system that established the rules for commercial and financial relations among the major industrial states after World War II.

Gold Value

Refers to the market worth of gold, which fluctuates based on economic conditions, supply, and demand.

Exchange Value

The worth of a good or service as determined by the market, or the amount of goods and services that can be exchanged for it.

Bretton Woods System

An international monetary system established in 1944 that set up fixed exchange rates anchored by the U.S. dollar, which was convertible to gold.