In this globalized world we are living in, we have reached a point where a major part of the large companies have affiliates in many different countries and therefore have a large number of goods and services floating across borders. To make sure that the companies are paying the right amount in taxes in the countries the companies are operating in, OECD have made a Guideline to ensure the right arm’s-length price for the controlled transactions. To ensure the correct arm’s-length pricing there are five different kinds of methods that companies can use. Furthermore shall the companies follow the local laws for the country in which they are operating. For instance if the company is located in Denmark, the company has to follow the OECD Guidelines and be in compliance with Danish law. To make sure that the companies are following their own politics it is the company’s auditor’s responsibility to report any identified misstatements from the audit that can have an impact on the financial report. To make sure that there is no doubt about auditor’s responsibility in connection with an audit, there have been made some standards called ISA (International Standards on Auditing). In connection with the audit of related parties the most important ISAs are ISA 550, 315, 330 and 240. These ISAs are further descripted in this project but with a specific focus on ISA 550. The auditor of a company can have many different jobs regarding to transfer pricing and the auditor will have to follow a lot of different laws and regulations to be in compliance with government laws.
|Uddannelser||HD Regnskab og Økonomistyring, (HD uddannelse) Afsluttende afhandling|