Keywords

Carrefour, auditing, component materiality, business risk, audit reporting

Abstract

Carrefour S.A. is a multinational retailer headquartered in France that operates over 10,800 stores worldwide consisting of hypermarkets (a supermarket and department store under one roof), supermarkets, and convenience stores, as well as e-commerce websites. The objective of this three-part case study is to expose students to international (or multi-national client) audit issues/considerations. Multi-national clients often have multiple locations or components that require separately audited financial information that is included in consolidated or group financial statements. The first case exposes students to the need to allocate materiality across components of a group audit. The second part of the case then introduces information about a certain country (i.e., component) and requires students to consider how increased business risk would influence the audit. The third part of the case provides Carrefour’s group audit report and exposes students to differences in regulatory reporting between France and the U.S.

Original Publication Citation

Seidel, T. A., and W. B. Tayler. 2019. International auditing considerations at Carrefour S. A. Journal of Business Cases and Applications 24: 1-11.