Probe - Accounting, Auditing and Taxation

Auditing strategies for identifying and measuring corporate currency risks in a volatile exchange rate environment

Wen Kong

University of New South Wales

DOI: https://doi.org/10.59429/paat.v7i2.10289

Keywords: Currency risk; Auditing strategies; Volatile exchange rates; Risk measurement; Corporate exposure

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Abstract

In an era of heightened global economic integration and volatile exchange rates, corporate exposure to currency risks has become a critical concern for stakeholders. This paper examines the challenges and opportunities in auditing corporate currency risks, proposing a comprehensive framework for risk identification, measurement, and mitigation. Drawing on quantitative models and qualitative assessments, the study integrates theoretical insights with empirical analysis to evaluate current auditing practices. Key findings highlight the need for auditors to adopt advanced risk assessment techniques, enhance cross-functional collaboration, and leverage technology-driven tools to improve the accuracy of currency risk disclosures. The research contributes to the literature by offering practical auditing strategies that align with international standards, ensuring robust risk management in volatile market conditions.

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