A PA firm is conducting an audit of a public company that has operations in both Canada and Finland.There is a conflict between ISAs (International Statements on Auditing)and CASs (Canadian Auditing Standards)for the foreign operations that will be consolidated with the Canadian operations.Which reporting standards should the PA firm follow?
A)Finnish reporting standards
B)Canadian reporting standards
C)international financial reporting standards
D)the best of Canadian or international standards

Question

Quizplus · Accepted Answer

Since the company has operations in multiple countries, it would be appropriate to follow international financial reporting standards (IFRS) which are recognized and adopted in both Canada and Finland. Following IFRS would ensure consistency in reporting and enable comparability of financial statements across different locations. Additionally, with the increasing trend towards globalization, IFRS has become the preferred reporting standard for multinational companies as it allows for easier cross-border transactions and understanding of financial information.

A PA Firm Is Conducting an Audit of a Public