International Finance and Accounting Handbook

15 • 20

Country

Required to Be Audited

Election of Auditor

Objective or Purpose of Audit

Sources of Auditing Standards

Europe (Continued)Germany

Public companies (including

Elected by shareholders at

To determine that financial

Commercial laws and juris-

cooperatives), and stock

annual meetings in case of

statements comply with the

diction are the primary basis,

corporations, insurance

statutory audit

company’s status under legal

but the Institute of

companies, banks, and gov-

regulations (German Law)

Wirtschaftsprüfers issues

ernment-directed enterprises,

and give a true and fair view.

professional standards and

audits provided by disclosure

guidelines.

law, special audits of rela-tions with affected compa-nies. Small companies areexempted.

Sweden

Any company with limited

The Companies Act requires

To satisfy the requirements of

The Companies Act states

liability status. This includes

appointment of at least one

the Companies Act and to

that the audit should be car-

limited liability companies,

auditor by the shareholders.

determine if a company’s

ried out in accordance with

branches of foreign compa-

accounts are fairly presented.

generally accepted auditing

nies, cooperative units, and

standards. SBPA recommen-

banks.

dations and sections of theCompanies Act are the mainsources of the auditing stan-dards. These standards aremuch less detailed than U.S.standards and professionalsrely on judgment when ap-plying specific standards.

Asia and PacificAustralia

All public and “large” entities

Board of directors with share-

Corporation Law

requires

Auditing standards (AUS) and

have to be audited. A

holders’ approval; client’s

that accounts show a true

guidelines (AUG) approved

Company is “large” if it has

management; or Auditor

and fair view and comply

by the ICAA and ASCPA.

two of the following three

General; and at the choice of

with the

Accounting

attributes: consolidated

the body to be audited

Standards and the

gross revenue of $10 million;

Corporation Regulations;

ac-

consolidated gross assets

counts should be presented

of $5 million; 50 or more

fairly and be in accordance

employees

with the trust deed.