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.