In December 2011, the chair of the Auditing and Assurance Standards Board issued a message regarding auditing in emerging markets. Bruce Winter, FCA, wanted to address the concerns about the quality of financial reporting of some companies with operations in an emerging market country and the audits of these companies’ financial statements.
His message briefly covers three important aspects of these audits and reflects guidance in the relevant Canadian Auditing Standards (CASs):
- assigning competent and capable group engagement team members and component auditors;
- obtaining sufficient knowledge of the company’s business practices and environment; and
- using this knowledge to plan and perform effective audit procedures.
Auditing in Emerging Markets