What type of audit is conducted for financial statements that may be relied upon outside the entity's home jurisdiction?

The type of audit conducted for financial statements that may be relied upon outside the entity's home jurisdiction is known as a transnational audit. This type of audit is crucial for businesses that operate in multiple countries or have significant foreign stakeholders. A transnational audit focuses on ensuring that financial statements are compliant with international accounting standards and regulations, which enhances the credibility and reliability of the financial information presented to external users, such as investors or regulatory bodies in different jurisdictions.

In contrast to transnational audits, local audits are typically confined to examining an entity's financial statements within its home country and may not necessarily adhere to international standards. Internal audits are primarily focused on evaluating and improving the effectiveness of internal controls, risk management, and governance processes within the organization itself, rather than providing assurance to external parties. Quality audits evaluate compliance with specific standards or processes, often related to production or service delivery, but do not specifically address the financial reporting aspects necessary for external reliance. Thus, the transnational audit is specifically designed to meet the needs of audiences outside the entity's home jurisdiction, making it the appropriate choice in this context.