1. What is the primary role of external auditing in multinational corporations?

Multiple Choice

a. Selecting independent members for the board of directors

b. Designing a working system of internal accounting controls

c. Preparing the annual report to corporate shareholders

d. None of the above

2. The local currency should be used for performance evaluation purposes if

Multiple Choice

a. the local manager is given authority and responsibility to hedge foreign exchange differences

b. the MNC leaves considerable autonomy to the foreign operation.

c. the foreign currency is relatively stable

d. sales are made in the foreign currency.