How many companies can I expect to audit at once as an independent auditor?

Prepwise AnswersCategory: Finance CareersHow many companies can I expect to audit at once as an independent auditor?
Career Dev Staff Staff asked 5 years ago

If working independently, how many different companies can I expect to audit at the same time?

1 Answers
Greston Wise Staff answered 5 years ago

In many cases, a business comprises several legal entities (which may be located in different countries), whose results are consolidated into a single set of financial statements that present the financial position and performance of the consolidated group. Large companies may have dozens or even hundreds of entities. Audits of such clients normally involve audit teams from audit firms around the world performing work in different locations. The lead auditor responsible for issuing the opinion on the consolidated group financial statements develops the audit strategy and defines the scope of work to be performed at each component (location, entity, etc.) of the group. The lead auditor communicates with the audit firms responsible for component audits and typically reviews component auditor’s work in order to obtain evidence to support an opinion on the group consolidated financial statements. As a result, multi-location audits entail more complex considerations regarding audit strategy, planning, execution and communication.