Financial Statements Using Another Country's Framework

Question 1

What are the auditors objectives with respect to auditing financial statements using another country’s framework?

Answer 1

1) Determine whether or not to accept the engagement
- Understanding who the intended users are and if the framework is acceptable under the circumstances

2) Planning and performance of the engagement
- consult with others who have expertise
- Comply with GAAS except for the form and content of the audit report

3) Form an opinion on the F/S

Question 2

If the F/S are going to be used outside and inside the US, how does that impact the report?

Answer 2

Add a emphasis of matter paragraph

1) identifies the financial reporting framework used
2) refers to the note to the financial statements describing the framework
3) Indicate that such framework differs from US GAAP