Journal Article

Auditing Challenges in Light of Foreign Exchange Risks

Ali, Abd El Wahab Nasr, Hafez, Samah Tarek Ahmed

2024

Overview

This study explores auditing challenges in the context of foreign exchange risks, focusing on how currency fluctuations affect the accuracy and reliability of financial reporting. The authors argue that the international business environment exposes auditors to multiple risks, most notably exchange rate volatility, which impacts the valuation of assets, liabilities, and financial results. The paper outlines major challenges, including the difficulty of selecting appropriate exchange rates for auditing purposes, variations in accounting policies across countries, and economic instability that heightens risk exposure. It also discusses tools and procedures available to auditors to mitigate such risks, such as adopting international accounting standards, employing financial hedging strategies, and developing advanced risk assessment methodologies. The conclusion emphasizes that successful auditing under these conditions requires specialized auditor training, the implementation of advanced control systems, and greater transparency in financial disclosures. Abstract Written by Dar AlMandumh, 2025, Using AI

• Publisher: جامعة مدينة السادات - كلية التجارة
• Subject: الأزمات الاقتصادية / النقد الأجنبي / سعر الصرف / مخاطر الصرف الأجنبي