International Finance and Accounting Handbook

15 • 16

Country

Required to Be Audited

Election of Auditor

Objective or Purpose of Audit

Sources of Auditing Standards

North and South AmericaArgentina

An independent audit is re-

Appointed by the board of di-

To issue a technical opinion

Professional Auditing

quired by

Argentinean legal

rectors or by the shareholders

as to whether the statement

Standards

are issued by the

control authorities like

at the annual meeting for the

present fairly the entity’s fi-

professional organizations.

Inspeccion General de

period subject to review, so

nancial position and results

The Argentinean GAAS are

Justicia, Taxes Departments,

as to increase the reliability

for the period subject to re-

similar to U.S. GAAS.

Central Bank, etc.

of accounting information

view, according toProfessional AccountingStandards

so as to increase

the reliability of accountinginformation.

Canada

Public corporations, private

Elected by the shareholders

To attest to the fairness of fi-

Federal and provincial incor-

corporations meeting certain

in the case of corporations;

nancial statements presented

porating acts require auditing

tests of size, municipalities,

elected by the board in the

by the organization’s

to follow

GAAS (covered in

universities, hospitals, and

case of other organizations

management.

the CICA Handbook).

most nonprofit organizations

Mexico

Every company registered

Generally appointed by the

The objective of an audit is to

Set forth in technical bulletin

with the Comision Nacional

general manager, the board

express an opinion regarding

issued by the Comision de

de Falores (National

of directors, or the

the company’s financial state-

Normas y Procedimiento de

Securities Commission),

all

shareholders

ments.

The purpose of an au-

Auditoria of the Mexican

companies filing a consoli-

dit of a small company would

Institute of Public

dated tax return and for tax

include providing financing,

Accountants, and summa-

purposes all companies with

tax and social security

rized and classified in the

income of Pesos 2,412,000

services and meeting the

publication

Auditing

or more than 300 employees

requirements of the National

Standards and Procedures

, is-

in the previous fiscal year

Securities Commission. The

sued by the Mexican Institute

general law of commercial

of Public Accountants.

companies requires all corpo-rations to appoint at least onestatutory auditor or (comi-sario), who is required to sub-mit an annual report to theshareholders on accountingand administrative matters.