Tranfer pricing: Revisors arbejdshandlinger og ansvar

Dennis Herholdt Rasmussen & Julie Koch Overgaard

Student thesis: Master thesis


Summery: This thesis investigates the auditor’s responsibility in the event of transfer pricing corrections. During the last couple of years the tax authorities have increased their focus on companies’ intercompany transactions and in some cases they have increased the taxable income significantly. The corrections can be traced to financial statements and an interesting question is what the auditors’ responsibility is in this case. The thesis has been prepared by finding out which regulations apply when auditing related parties and secondly by finding out what actually is being performed by the auditors. The first research was conducted by studying laws and regulations to achieve an understanding of the requirements, and the second part was conducted through case studies where we asked auditors about their work. From the research we concluded that the problem is relevant whenever the management makes assertions on related parties. The auditor shall obtain sufficient appropriate audit evidence about the assertions. Furthermore, we discovered that the issue can be relevant if a tax liability or asset has not been recognized in the financial statements because of transactions that have not been made on an arms-length basis. The conclusion of the auditor’s responsibility must be found in the generally accepted auditing standards. If the audit complies with the standards we do not see any further responsibility – either from a disciplinary or a compensatory point of view. Sometimes the arms-length principle is very difficult to assess in practice and for future explorations guidelines on what defines arms-length and market terms could be relevant. This uncertainty of what really can be assessed as market terms is a problem and an obvious topic for a future investigation.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2015
Number of pages115