The correct answer is: False.

The definition states “Transnational audit means an audit of financial statements which are or may be relied upon outside the audited entity's home jurisdiction for purposes of significant lending, investment or regulatory decisions”.

The guidance issued with the definition goes on to emphasise that there must be “significant transactions across national borders”. It specifically states that the normal business practice of opening a back account for the purpose of, for example, collecting customer receipts does not of itself produce a “transnational audit”; neither would the establishment of an office in another country purely to establish legal existence in the jurisdiction.