Description
Q 1 : Why is the concept of auditing convergence important? Will international harmonization of auditing standards be more or less difficult to achieve than international harmonization of accounting principles? ( 500 words )
the answer :
Convergence of auditing standards will help ensure that audit quality will reach acceptable levels worldwide. Auditing convergence may be less difficult to achieve than accounting convergence because auditing is more technically oriented and there is wider agreement as to what constitutes best practices in auditing than there is for accounting principles.
Q 2 :Your company has decided to purchase 60% of its inventory requirements valuing around US$ 2,500,000 from china and purchases will be invoiced in chines yuan. what four processes do you need to consider in designing a foreign exchange risk protection system? ( 500 words )
the answer :
a.Forecasting the expected movement in the relation between the yuan and your domestic currency.
b.Measuring on a periodic basis your firm’s exposure to fluctuations in the value of the yuan.
c.Designing protection strategies that will minimize losses should the yuan revalue.
d.Establishing internal controls to measure your performance in hedging the risk of loss from changes in the value of the yuan.
Q 3 : Stock exchange web sites vary considerably in information they provide and their ease of use.
Required : select any two of the stock exchanges, explore the web sites of each of these stock exchanges. Prepare a table that compares and contrasts the sites for types and quality of information presented and ease of using the web site. ( 500 words )
the answer :
in this question , there is example for two stock exchange . you can find it in chapter 1 , international accounting 7th edition
*** please paraphrase and expand the answer by adding related information
the assignment should be ::
1. introduction and objective of the assignment ( 200 words ) what the assignment will cover
2. Questions answers, (500 words for each question )
3. learning derived ( 200 words )
4. references
total = 1900 words
the source is ( international accounting 7th edition ) you can find useful information in it
Explanation & Answer
Complete paper. Kindly confirm and let me know if you need something to be fixed.I formatted the paper in APA and I numbered the sections.
Running Head: INTERNATIONAL ACCOUNTING
International accounting
Name
Instructor
Course
Date
1
INTERNATIONAL ACCOUNTING
2
Introduction and objectives
The accounting profession is one of the major fields that is highly valued when it comes
to world business. It is a process of measuring, communicating, and identifying the economic
information to allow better judgments and decisions based on the users of the information.
Accounting plays a significant role in the business such as reporting, managing, correcting as
well as updating the firms’ accounts. However, international accounting is an area of study
within the discipline that focuses on the accounting standards. It is a specialty that fit the global
business environment of the 21st century (Greuning, 2001). The purpose of the international
accounting is to introduce students to the international dimensions of financial control,
accounting, and financial reporting. The objectives are to explore the essentials of international
accounting, discuss the concept of auditing convergence along international harmonization
auditing standards. Also, the paper explores the foreign exchange risk protection risk and
processes, stock exchanges such as NYSE and NASDAQ. There are other important areas of
international accounting covered in the paper include the exploration of the web sites of each of
the selected stock exchanges, compares and contrasts the sites for types and quality of
information presented and how the competitiveness of the stocks exchanges in the markets.
Questions Answers
Question 1:
Convergence of auditing standards will help ensure that audit quality will reach
acceptable levels worldwide. Auditing convergence may be less difficult to achieve than
accounting convergence because auditing is more technically oriented and there is wider
agreement as to what constitutes best practices in auditing than there is for accounting g
INTERNATIONAL ACCOUNTING
3
principles. There are various methods that may be used in different disciplines but what makes
convergence outstanding from all these techniques is its combination nature. It simply entails
some processes that try to establish a single set of auditing standards from the many that had
been invented earlier. This method is used in most cases by analysts who are able to combine
more than one auditing standard into a single set that may be used internationally (Kimmel,
2013). Over the past decades, the existing accounting standards have been different in various
regions of the world and this is what has raised a number of questions in this field. As a result,
the auditing convergence is a project that was developed in order to solve this menace.
First, it is vital to understand several factors that drive the convergence audit technique.
The most common factor is the belief that one set of auditing requirements will increase the
comparability of various auditing numbers of entities. It is believed that if this takes place then it
will contribute to the flow of international investment. This one justifies the importance of
auditing convergence concept as many stakeholders from different regions of the world will
benefit. It means that some of the slight differences in some countries shall have been
streamlined and put into some agreed single technique (Choi, 2011). The auditors will enjoy the
freedom to work widely. Mor...
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