Reviewed by O. Ronald Gray University of West Florida

In recent years international accounting has received increased attention in the literature. The focus of this literature has been ac-counting, financial control, and reporting in firms with multinational operations. The auditing implications of international financial control and reporting have received much less attention than they deserve. Campbell’s book represents a major step toward filling this void and is in this respect a noteworthy contribution to the international accounting and reporting literature. As the title suggests, the book presents a comparative analysis of auditing standards in eight major economic countries which serve as headquarters for many multinational corporations.

The book, which is written from the perspective of a United Kingdom national, is organized into four parts. Part I provides a general background and introduction to the importance of multinational auditing. In addition, there is the theoretical justification for the existence of auditing and auditing standards. Campbell’s presentation in this area is traditional and draws on the relevant theoretical and empirical literature. The reviewer would characterize the material in this section as being conventional and predictable.

Part II outlines auditing standards in eight countries. Campbell’s presentation is standardized. Each of the eight chapters contains a discussion of: (1) the auditing and accounting environment; (2) auditing standards — source, history, and authority; (3) auditing standards — scope and content; and (4) summary. Reviewing auditing standards in this manner is an ambitious undertaking. The result of Campbell’s effort is a very creditable survey of auditing in eight countries. However, after having reviewed auditing standards in this manner, the reader would have benefited from the inclusion of a separate chapter which summarized, compared and contrasted the auditing standards in each country. Unfortunately, the author did not consolidate the material in this manner. From an accounting historian’s viewpoint, the author’s treatment of the evolution of auditing standards in each country studied is particularly interesting. While the author’s primary focus is not on the historical evolution of auditing standards, the significant circumstances and events influencing the development of auditing standards in the countries studied are noted and discussed. While this historical presentation is somewhat limited, it is sufficient to allow the reader to develop historical parallels and highlight differences in the evolution of auditing standards in the countries studied.

Part III contains a discussion of several issues in international auditing. Much of the material in this section of the book appears to be oriented toward the practitioner involved in auditing international clients. There is a discussion of audit problems peculiar to multinational companies which arise from international differences in auditing and accounting environments. Among the problems noted are the predictable language and cultural barriers, differences in generally accepted accounting principles, perceptions as to the objectives of an audit, concepts of auditor independence, and varying auditor education and training qualification standards. Problems which arise when another firm of auditors is used to audit an overseas subsidiary are discussed and the possible solutions are reviewed.

The theoretical and practical barriers to progress in harmonization of auditing and accounting standards are discussed in another chapter. This discussion of harmonization offers little but restatement of conventional wisdom. The international harmonization of auditing standards is seen as a necessary step towards improving the international allocation of resources via increased comparability of financial statements. The main objection to harmo-nization is considered to be the fundamental differences in the national environments which created the different auditing standards. One chapter deals with auditing non-financial information included in the financial statements of multinational companies. The final chapter describes the size and nature of the international auditing firms and analyzes their structures and strategies. In Part IV, Campbell concludes by noting several areas in which further research could be conducted in international auditing.

Campbell’s book should serve several audiences well. It should prove useful as a supplemental reading source in an undergraduate international accounting course. Practitioners who are involved in international auditing should find the book useful in their practices. Investors who receive international company financial reports should find the discussion of comparative auditing standards useful in evaluating audit reports. For accounting historians, the book offers a survey of the evolution of auditing standards in eight countries.