Auditing in emerging markets presents challenges that differ significantly from auditing U.S. companies. Beyond the obvious hurdles of language, culture, distance, and time zones, auditors often encounter environments where information cannot be taken at face value. Validating data requires a heightened level of skepticism, creativity, and the use of multiple independent sources to triangulate facts.

For example, while bank confirmations in the United States are a routine and reliable procedure, the same process can be far more complicated in markets such as China, where independence of local institutions may be compromised. In some cases, auditors must observe bank statements being generated directly from core banking systems to ensure accuracy. Similarly, inventory verification can be especially difficult — determining ownership, condition, or even the existence of inventory requires investigative techniques that go well beyond standard procedures.

These experiences highlight a central truth: auditing abroad is not about applying domestic methods in a new setting, but about adapting and innovating in order to obtain trustworthy evidence. By developing creative audit techniques and applying rigorous professional skepticism, firms can meet the unique challenges of these markets while upholding global audit quality standards.

This summary is based on a video interview published by Accounting Today.

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